Cited Laws
Accordingly, the manual submission of the alphabetical lists containing less than ten (10) employees/payees by withholding agents under Annual Information Returns BIR Form No. 1604CF and BIR No. 1604E shall be immediately discontinued begi1ming January 31, 2014 and March 1, 2014, respectively, and every year thereafter . (Underline & emphasis in original) To reiterate, the rule under RR 1-2014 is that all withholding agents are required to submit only a digital alphalist. By the express provision of RR 1- 2014, the submission of alphalist where the income payments and taxes withheld are lumped into one single amount ( e.g. , "various employees," "various payees," "PCD nominees," "others," etc.) is not allowed. On January 29, 2014, the CIR issued RMC 5-2014 clarifying, in a Question and Answer format, the provisions of RR 1-2014 on the submission of the alphalist of employees/payees of income payments. It requires submission of the tax identification number (TIN) and the complete name of the payees, together with the corresponding amount of income and withholding tax. [7] Then the Securities and Exchange Commission (SEC) followed suit and issued SEC MC 10-2014. It directs the Philippine Depository and Trust Corporation (PDTC) and broker dealers to provide the listed companies or their transfer agents an alphalist of all depository account holders and the total shareholdings in each of the accounts and sub-accounts. The pertinent provisions of the issuance state: Section 2. List of PDTC Accounts and [C]orresponding Shareholdings . The Philippine Depository and Trust Corporation (PDTC) shall prepare an alphalist of all depository account holders and the total shareholdings in each of the accounts and sub-accounts as of Record Date upon receiving information on a dividend declaration. PDTC shall provide the Issuer or its authorized Transfer Agent with the alphalist and all the depository account holders with their respective shareholdings as reflected in their depository accounts and sub-accounts, if any, not later than 12:00 noon of the day following such Record Date. Section 3. List of Payees and [C]orresponding Shareholdings . All depository account holders which are registered broker dealers and which hold shares, for the account of their clients or for their own account, and which are payees of dividend declared by the Issuer/Paying Company shall prepare an alphalist showing the total shareholding of each account and subaccount belonging to these payees and the dealer account as of Record Date. In determining the alphalist, the broker dealers shall take into account the Philippine Stock Exchange's (PSE) conventions on transactions effected during cum and ex-dates. The broker dealers shall also ensure that the account balances are consistent with the respective balances as reflected in the PDTC alphalist of depository account holders and corresponding total shareholdings. The broker dealer alphalist shall provide the following information. (