JJ Elite Financial Experts

Congrats Atty. Conrado Valix, CPA! Well-deserved! 👏

The (SC) has ruled that companies issuing registered securities must use only certified public accountants (CPAs) accredited by the Securities and Exchange Commission (SEC) for independent audits of their annual financial statements.

In a Resolution written by Associate Justice Ricardo R. Rosario, the SC En Banc granted the SEC’s Second Motion for Reconsideration, reversing its previous ruling and declaring valid and not unconstitutional Rule 68, paragraph 3 of the Implementing Rules and Regulations of the Securities Regulation Code (RA No. 8799) and SEC Memorandum Circular No. 13, series of 2009.

These rules require CPAs serving as external auditors for corporations issuing registered securities to obtain SEC accreditation.

The SEC, which regulates the corporate sector and securities industry, issued the accreditation rule as a quality control measure for external auditors.

However, 1Accountants Party List, Inc., an organization of CPAs, challenged this requirement, arguing that it restricted CPAs’ right to practice their profession under the Philippine Accountancy Act of 2004 (RA No. 9298).

In its June 21, 2022 Decision, the SC ruled that the SEC’s authority applied only to corporations, not individual CPAs. However, after reconsideration, the SC found merit in the SEC’s arguments and reversed its earlier decision.

The SC held that the Accountancy Act does not limit regulation of the practice of accountancy to the Professional Regulatory Board of Accountancy. The Securities Regulation Code and the Revised Corporation Code give the SEC powers to implement the State policy to protect investors, ensure full and fair disclosure of securities, and minimize insider trading, which harms the free market.

This accreditation requirement is not a regulation of the accountancy profession but the specific activity of auditing. Thus, CPAs engaged merely for bookkeeping or other non-audit services are not required to be accredited by the SEC.

Read the full text of the Press Release at https://tinyurl.com/2fy8xat9.

Read the full text of the Decision at https://tinyurl.com/yw5ne3ak.

Read the Dissenting Opinion of Associate Justice Alfredo Benjamin S. Caguioa at https://tinyurl.com/8ahnravu.

Read the Dissenting Opinion of Associate Justice Amy C. Lazaro-Javier at https://tinyurl.com/4t87dvsa.

Copying of this content is subject to the SC PIO’s Credit Attribution Policy: https://sc.judiciary.gov.ph/credit-attribution-policy/.

The new Alphalist Data Entry and Validation Module (Version 7.4) is now available and can be downloaded from the BIR website at https://www.bir.gov.ph/Downloadables. The RMC was posted on the BIR website on Tuesday, February 25, 2025.

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Masbate City Financial Experts - JJ Elite Financial Experts | JJ Elite Financial Experts Discover JJ Elite Financial Experts in Masbate City, Philippines, offering top-notch services like bookkeeping, tax services, audits, payroll, and business registration. Learn about our mission, vision, and the founders behind our firm. Reach out and be well-served by Masbate City financial experts.

Feel free to message us for inquiries and appointments.

The BIR has issued RR No. 4-2025 further amending the "De Minimis Benefits" provisions of Revenue Regulations No. 2-98, as amended, increasing clothing allowance pursuant to Republic Act No. 11975, the Fiscal Year 2024 General Appropriations Act, and "Employees Achievement Awards". Please take a look at the illustration below for more details.

Please feel free to PM us for payroll services inquiries.

The Dec 2024 CPA Licensure Examination (CPALE) results are out! Congrats to the 3,058 new CPAs! Welcome to the Profession! 🎊

Deadline of filing Quarterly VAT Return (BIR Form No. 2550Q) and Quarterly Percentage Tax Return (BIR Form No. 2551Q) is extended until Oct 31, 2024.

Note: Masbate City is the BIR RDO No. 70, under BIR Region No. 10.

https://www.pna.gov.ph/articles/1230608

BIR intensifies efforts vs. ghost receipts through data analytics MANILA – The Bureau of Internal Revenue (BIR) has intensified efforts to combat the proliferation of ghost receipts by leveraging data analytics and mathematics. In a press conference on Tuesday, BIR Commissioner Romeo Lumagui Jr. said the agency has partnered with the Ateneo de Manila…

Congrats newly-passed CPAs! 🎉