Additional attachment to ITR

Additional attachment to ITR - "Statement of management responsibility"

Taxpayers are now required to attach a "statement of management responsibility" to their annual income tax returns (ITR) effective for the 2009 ITR.

The statement should be signed by:
      -   the individual taxpayer
      -   the president or CEO and CFO in the case of corporations
      -   the managing partner for partnerships                                
      -   the local manager in case of branches of foreign corporations.

The statement affirms the responsibility of taxpayers over the content and accuracy of their ITR including the financial statement and other information returns which accompany the tax return. The taxpayer likewise affirms the ITR was prepared in accordance with the financial accounting standards and the provisions of the Tax Code.  

RR 03-10 does not specify the penalties for non-submission of the statement.  However, under RR 07-07 and existing provisions of the Tax Code and regulations, failure to submit is subject to penalty of P1,000 under Section 250.  In case of willful failure to supply correct and accurate information, the penalty includes a fine of not less than P10,000 and imprisonment from  1 to 10 years under Section 255.  Under Sec. 257, an official who certifies statements containing essential misstatements may be fined from P50,000 to P100,000  and imprisoned from 2 years to 6 years.

Attached is a sample format of the “ statement of management responsibility” as culled from RR 03-10.  For more details, please see a copy of RR 03-10 in the link below.

If you need clarifications or require assistance, please get in touch with your P&A contact persons.