All banks have been
mandated by the Philippine Deposit Insurance Corporation
(PDIC) to inform their clients about certain provisions
of the PDIC Regulatory Issuance No: 2002-03 otherwise
known as the Deposit Insurance Guidelines on Determination
of Beneficial Ownership, Including Transfers/Break-Up
of Deposits.
In compliance with this mandate, shown below are
the pertinent provisions:
1.
Deposits are insured
by the PDIC up to a maximum amount of One Hundred
Thousand Pesos (P100,000.00) per depositor.
2.
PDIC shall presume that
the name/s appearing on the deposit instrument is/are
the actual/beneficial owner/s of the deposit, except
as provided herein.
3.
In case of transfers
or break-up of deposits, PDIC shall recognize actual/beneficial
ownership of transferees who are qualified relatives
of the transferor. Qualified relatives are transferees
within the third degree of consanguinity or affinity
of the transferor.
4.
In case of (a) deposits
in the name of, or transfers or break-up of deposits
in favor of, entities, either singly or jointly
with individuals, and (b) transfers or break-up
of deposits in favor of non-qualified relatives,
whenever such transfer/break-up will result in increased
deposit insurance coverage, PDIC shall recognize
beneficial ownership of the entity or transferee
provided that the deposit account records show the
following:
(i)
details of information
establishing the right and capacity or the relationship
of the entity with the individual/s or
(ii)
details of information establishing
the validity or effectivity of the deposit transfer,
or
(iii)
copy of the Board of Resolution,
order of competent government body/agency, contract
or similar document as required/provided by applicable
laws.
In the absence of any
of the foregoing, PDIC shall deem the outstanding
deposit as maintained for the benefit of the transferor
although in the name of the transferee, subject
to the consolidation with the other deposits of
the transferor.
5.
PDIC may require additional
documents from the depositor to ascertain the details
of the deposit transfer or the right and capacity
of the transferee or his relationship to the transferor.
The Bureau of Internal
Revenue (BIR) recently released Revenue Regulations
(RR) No: 12-2003 imposing a 10% Value Added Tax
(VAT) on the following types of compensation derived
from financial and non-financial services performed
by banks, non-bank financial intermediaries including
quasi-banks, and finance companies:
a.
Financial intermediation
services fee
b.
Financial leasing income
c.
Rentals on properties, real or personal
d.
Royalties
e.
Commissions
f.
Trust fees
g.
Estate planning fees
h.
Service fees
i.
Other charges or fees received as
compensation for services
j.
Net trading gains
k.
Net foreign exchange gains
l.
Gain on sale or redemption of investments
m.
Net gain from the sale of properties
acquired through foreclosure lodged under the account
"Real and other Properties Owned and Acquired"
(ROPOA)
n.
All other receipts of income specified
in Section 32(A) of the Code not otherwise enumerated
above (like interest on loans)
RR No. 12-2003 also provides that this 10% VAT
be collected from the borrower and/or investor
from whom the above compensation or fees are derived.
In view of the BIR regulation, your bank is constrained
to start collecting immediately the said VAT from
the clients. The regulation is deemed to
take effect as of January 1, 2003, hence we also
have to assess the required VAT for the first
quarter of 2003 and collect them retroactively.
Under RR No. 12-2003, a VAT-registered client
may claim the 10% VAT as part of his input tax
credit; a non-VAT registered client, however,
will have to carry the 10% VAT as part of his
or her cost.
For any clarification, you may call our Customer
Relations Center Hotline at (632) 811-9111 or
email us at crc@ucpb.com.
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