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2023

How to File an Income Tax Return

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How do you earn your income? A majority of people make a living by gaining employment at a company. By working at a company, you’ll be able to earn compensation income. Those who make a living solely through compensation income usually don’t have to worry about filing their own income tax returns, as their employer handles it for them. However, many people aspire to gain income from multiple sources, such as through freelancing. If you’re thinking of doing the same, you must first learn about the basics of filing an income tax return. What is an Income Tax Return? Income tax refers to the tax on any salary or income, regardless of its source, that corresponds to an income tax rate. According to the BIR, the annual income tax return “summarizes all the transactions covering the calendar year of the taxpayer.” Individuals and enterprises alike must pay their taxes on or before April 15 every year. It’s crucial to follow this deadline to the letter. Depending on the severity, purposely missing your ITR could either result in a fine or a few years of imprisonment. Ensure that you stay on top of your income tax if you’re required to file them yourself. Who is required to and exempted from filing an ITR? As a general rule of thumb, all Filipino citizens with a source of income are required to file an ITR. Aliens and foreigners only need to file an ITR for any sources of income inside the Philippines. Again, employees of companies are still required to file an ITR, but their taxes are usually taken care of by their employers. In specifics, those who are required to file an ITR include: Those who are not required to file an ITR include: What are the methods of filing an ITR? There are many ways you can file your ITR, making it easily accessible for everyone. However, do note that you may be required to use a specific method, depending on your circumstances. 

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Cecilia D. Mendoza vs. Atty. Cesar R. Santiago, Jr.

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Cecilia D. Mendoza vs. Atty. Cesar R. Santiago, Jr., A.C. No. 13548, reminds notaries public that the act of notarization is not an empty, meaningless and routinary act. A notarial document is, by law, entitled to full faith and credit upon its face. A notary public must observe the basic requirements in the performance of their duties. Otherwise, the public’s confidence in the integrity of the document would be undermined. The complainant, Celia D. Mendoza, claims she is one of the heirs of Adela Espiritu-Barlaan, who died intestate on September 4, 2020. Adela Espiritu-Barlaan had no descendant or ascendant, but she did have siblings. She also left a parcel of land with an area of 247 square meters. On October 25, 2013, Gemma S. Barlaan executed an Extrajudicial Settlement with Waiver and Transfer of Rights (EJS), adjudicating to themselves the subject property. The EJS was acknowledged before and notarized by the respondent, Atty. Cesar R. Santiago, in his notarial book. A Transfer Certificate of Title was then issued in the name of John Alexander Barlaan. John Alexander Barlaan sold 147 square meters of the subject property to Monette Abac Ramos for P3,130,000.00 as evidenced by the Deed of Absolute Sale dated November 26, 2014. On March 12, 2015, John Alexander Barlaan executed another Deed of Absolute Sale covering the same subject property in favor of Monette Abac Ramos for Pl,500,000.00. Both Deeds of Sale were acknowledged before and notarized by Atty. Cesar R. Santiago in his notarial book. Monette Abac Ramos then filed a Complaint for Ejectment dated May 12, 2015 after discovering that the 147-square meter property was occupied by other relatives of Adela Espiritu-Barlaan. Attached to the Complaint was her Judicial Affidavit, showing her first deed of sale. She won the ejectment case, making the defendants vacate the property. On June 23, 2017, Celia D. Mendoza filed the instant Complaint, claiming that his act of notarizing the two Deeds of Sale is a violation of 2004 Notarial Practice Rule and CPR. Atty. Cesar R. Santiago then argued that:  The IBP-CBD found the act of notarizing the First and Second Deeds of Sale violated the 2004 Notarial Practice Rule and CPR, especially as the act was done to minimize his client’s liability from paying taxes. Thus, they recommended that the respondent be suspended from the practice of law for one year, and that his notarial commission be revoked for two years. The IBP Board of Governors recommended that Atty. Cesar R. Santiago should additionally be disqualified from being commissioned as a notary public for two years. Thus, respondent Atty. Cesar R. Santiago, Jr is found GUILTY of violating the 2004 Rules on Notarial Practice and Canon VI of the Code of Professional Responsibility and Accountability.

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3 Types of Separation: Everything You Need to Know

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Because the Philippines currently doesn’t have a divorce law, you may find your options limited if you wish to separate from your spouse. Currently, a separating couple has three options under the Family Code: legal separation, nullity of marriage, or annulment. The best course of action varies case to case. The couple will have to take several factors into account, such as the circumstances of their marriage, the grounds for their separation, the cost of the legal process, and whether they want the marital ties to be severed or not.  In this article, we break down everything you need to know about legal separation, nullity of marriage, and annulment. Nullity of Marriage A Declaration of Nullity of Marriage applies to a marriage that is null and void from the beginning, due to it missing one or more of the essential or formal requisites of marriage. Because the marriage was never valid, the marital ties are severed and both parties will be able to remarry.  Grounds for Nullity of Marriage Again, a married couple can file for nullity of marriage if said marriage is considered void ab initio, or void from the beginning. According to Article 35 of the Family Code, the following marriages fall into this category: In addition to those under Article 35, the following marriages are also considered void from the beginning:  Annulment You can get your marriage annulled if it was valid at first, but because of the existence of the grounds under Article 45 of the Family Code, the marriage will be annulled. This is in contrast to the declaration of nullity of marriage, which can only apply to marriages that are null from the beginning. Grounds for Annulment According to Article 45 of the Family Code, you can get an annulment on any of the following grounds: Process of Annulment and Nullity of Marriage  The main difference between annulment and declaration of nullity of marriage is whether or not the marriage was considered valid from the beginning. Because of this, there are many similarities between the steps in filing for the two separation procedures. With that in mind, here is a rough outline of the steps in filing for annulment of declaration of nullity of marriage. However, note that there will still be differences between the two procedures and that some situations may add or skip over certain steps, depending on the circumstances. Legal Separation Legal separation is a legal remedy for couples suffering from a problematic marriage. It differs from both annulment and declaration of nullity of marriage in that the marriage is still considered valid and subsisting. Because of this, neither party is allowed to remarry in the future.  However, it does allow them to live apart and own separate assets. By doing this, the guilty party cannot inherit any of the innocent party’s assets. One difference between a legal separation, an annulment, and a declaration of nullity of marriage is that legal separations are almost always borne from a conflict between the two parties. In contrast, a separating couple doesn’t necessarily have to have conflict to get annulled or file for a declaration of nullity of marriage. Grounds for Legal Separation The primary purpose of a legal separation is to provide a way for problematic marriages to separate safely, even if the marriage bond is not dissolved. Under Article 55 of the Family Code, one may file a petition for legal separation within 5 years from the time of the occurrence of the following grounds: Process of Legal Separation In contrast to the process of an annulment, legal separation is a more combative court case. Here is an overview of how a legal separation is processed. Note that these steps may vary depending on the situation and circumstances. Conclusion Whether or not the Philippines will ever get a divorce law remains unclear, though there are steps being taken to legalize it. For now, any couple looking to get separated can still consider their existing options carefully, so they can decide which is the best move for them. If you are in need of a lawyer specializing in Family Law, you can contact Sadsad Tamesis Legal and Accountancy Firm’s team of lawyers today.

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MARY GRACE NATIVIDAD S. POE-LLAMANZARES v. COMELEC

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FACTS Mary Grace Natividad S. Poe-Llamanzares (a.k.a. Grace Poe) was found abandoned as a newborn infant in the Parish Church of Jaro, Iloilo in 1968. At age 5, she was adopted by celebrity spouses Ronald Allan Kelly Poe (a.k.a Fernando Poe, Jr.) and Jesus Sonora Poe (a.k.a Susan Roces). She initially pursued a degree in Developmental Studies at the University of the Philippines but opted to continue her studies abroad and left for the United States of America (U.S.) in 1988. She immigrated to the U.S. in 1991 after her marriage to Theodore Llamanzares, who was based in the U.S. at the time. In 2001, she became a naturalized American citizen and obtained an American passport. In 2004, Grace Poe returned to the Philippines to support her father’s candidacy for President. However, after a few months, she rushed back to the Philippines upon learning of her father’s deteriorating medical condition, who slipped into a coma and eventually expired. In her desire to be with her grieving mother, she and her husband decided to move and reside permanently in the Philippines in 2005.  On 7 July 2006, Grace Poe took her Oath of Allegiance to the Republic of the Philippines pursuant to the Citizenship Retention and Re-acquisition Act of 2003. The BI declared that she is deemed to have reacquired her Philippine citizenship while her children are considered as citizens of the Philippines. Consequently, the BI issued Identification Certificates (ICs) in her name and in the names of her three children. In 2010, President Benigno S. Aquino III appointed Grace Poe as Chairperson of the Movie and Television Review and Classification Board (MTRCB). Before assuming her post, she executed an “Affidavit of Renunciation of Allegiance to the United States of America and Renunciation of American Citizenship” before a notary public in Pasig City on 20 October 2010, in satisfaction of the legal requisites stated in Section 5 of R.A. No. 9225. The following day, she submitted the said affidavit to the BI and took her oath of office as Chairperson of the MTRCB. From then on, Grace Poe stopped using her American passport. On 2 October 2012, she filed with the COMELEC her Certificate of Candidacy (COC) for Senator for the 2013 Elections wherein she answered “6 years and 6 months” to the question “Period of residence in the Philippines before May 13, 2013.” She obtained the highest number of votes and was proclaimed Senator on 16 May 2013. On 15 October 2015, Grace Poe filed her COC for the Presidency for the May 2016 Elections. In her COC, Grace Poe declared that she is a natural-born citizen and that her residence in the Philippines up to the day before 9 May 2016 would be ten (10) years and eleven (11) months counted from 24 May 2005. Her filing of her COC for President in the upcoming elections triggered the filing of several COMELEC cases against her which were the subject of these consolidated cases. These cases argued that Grace Poe cannot be considered as a natural-born Filipino on account of the fact that she was a foundling, and that international law does not confer natural-born status and Filipino citizenship on foundlings. They also argued that she fell short of the ten-year residency requirement of the Constitution as her residence could only be counted at the earliest from July 2006, when she reacquired Philippine citizenship under the said Act. ISSUE RULING The petition was thus GRANTED. MARY GRACE NATIVIDAD SONORA POE-LLAMANZARES is DECLARED QUALIFIED to be a candidate for President in the National and Local Elections of 9 May 2016.

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What to Know About: Grave and Light Threats

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Have you ever been on the other end of a threat? Many people throw threats left and right without ever meaning to follow up on them. More often than not, they’re are lightly given to friends as a joke. But a serious threat that causes fear or mental disturbance should not be taken lightly. Threats come in three separate categories. These can help differentiate the gravity and intention of each one that you may come across. Here’s what you need to know about the difference between grave threats, light threats, and other light threats. What are Grave Threats? You receive a grave threat if someone threatens to commit a crime that could potentially harm you, your family, or your property. It must amount to some form of legal crime to be considered a grave threat. Grave threats are punishable under Article 282 of the Revised Penal Code. This type is further divided into three categories: An example is from Caluag vs People, G.R. No. 171511, in which the petitioner held a gun to one of the two private complainants and verbally threatened her by uttering, to wit, “Saan ka pupunta gusto mo ito?” What are Light Threats? A light threat does not amount to a crime, but still causes fear or mental disturbance. This type of threat also always comes with a condition that the victim must fulfill. For example, instead of being threatened with murder or property damage, the offender might instead threaten to share the victim’s darkest secret if he/she doesn’t do what the offender says.  Light threats are punishable under Article 282 of the Revised Penal Code. What are Other Light Threats? Finally, other light threats also do not amount to a crime, nor is there ever a condition for the victim to fulfill. The offender should also never have intended to follow through with the threat that he/she made towards the victim. Other light threats are punishable under Article 285 of the Revised Penal Code. An example is from Ignacio vs People, G.R. No. 226991, wherein Ignacio was found guilty of Other Light Threats by brandishing a bolo knife to the private complainants and threatening them with it. No condition was given, and the petitioner never intended to follow through with her threat. If you feel fearful for your safety after receiving a threat, remember that you have the power to seek legal help. Here at Sadsad Tamesis Legal and Accountancy Firm, we will always strive for a positive and just outcome for their clients, for their future and peace of mind. Book a consultation with our team of lawyers today.

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Intestate Succession: How to Handle Inheritance without a Will

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Have you written out your will yet? Writing a will isn’t in many people’s minds. Wills aren’t common in the Philippines, and even then, many believe they’re too young to think about it. Unfortunately, death is often unpredictable and can strike the most unlikely of people. A written will can help grieving loved ones figure out how to handle the deceased’s assets and property without worrying about whether they’re going with or against his or her wishes. If a loved one dies without a will, you’ll have to handle their property in accordance with intestate succession. This is in accordance with Article 960 of the Civil Code. Here is a brief guide to intestate succession, so that you know what to expect and how to handle the assets and property of a deceased loved one. 1. What is a will? A will, or a last will and testament, is a legal document dictating how the writer of the will would want his or her assets to be distributed after his or her death. Many choose to divide their assets up to give to any heirs or descendants. They can also give their assets to other family members, non-family members, an organization, or a charity. They can even dictate when these assets should be given to the heirs. A last will and testament will only take effect after the writer’s death. The will must also name an executor, who will handle the distribution of assets.  2. What is intestate succession? The handling of assets is simple enough if the deceased had a will prepared. But what happens when a person dies without having written a will at all? The distribution of assets without a written will is called intestate succession. The law and the state will handle the assets, and will divide and distribute it to a list of certain compulsory heirs. 3. Who are the compulsory heirs in intestate succession? The list of compulsory heirs goes in accordance with priority. Those listed towards the top should have  the closest relationship to the deceased and are as follows: Conclusion Dying without having written a will means that your loved ones wouldn’t know what your intentions were with your assets. As a result, intestate succession may distribute your assets in ways you might not agree with otherwise. It’s a good idea to think of your will as soon as now, especially if your assets are plentiful.  If you plan on writing your will, it’s a good idea to hire an estate lawyer. An estate lawyer can either help you with the process or even write the will on your behalf. He or she can also ensure that your wishes are fully carried out. If you’re looking for an estate lawyer to help you with your will, consider booking a consultation with Sadsad Tamesis Legal and Accountancy Firm’s team of lawyers.

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Your Helpful Guide to Property Transfer Taxes and Fees

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Do you want to buy real property? If you do, learning about real property taxes and fees is critical. Failing to pay can result in different consequences for you, depending on which one you miss. There are also a few types of taxes and fees that the seller will handle.  Keeping track of what payments both parties need to settle will help make the transferring process easier. Prepare yourself with this quick overview of the different taxes and fees you and your seller will encounter, so that you’ll always stay on top of your payments. Buyer’s Taxes and Fees Registration Fee The simplest fee to consider when transferring a property is the registration fee, which you as the buying party will shoulder. Completing this payment is required in order to make the transfer of ownership official.  To calculate the registration fee, take the selling price, zone value, or fair market value of the property, whichever one is the largest. The final cost for registration is 0.25% of that number.  Transfer Tax A municipality imposes the transfer tax on any method of transferring real property ownership.  You will pay this tax to the local government. The transfer tax is not to be confused with estate taxes, which are paid to the BIR.  To calculate transfer taxes, you will still have to take the largest number among the property’s selling price, zone value, or fair market value. The transfer tax that you will have to pay is 0.75% of that number in Metro Manila, and 0.5% in other provinces. Documentary Stamp Tax Finally, you’ll have to pay the Documentary Stamp Tax upon finalizing the transfer. Documentary Stamp Tax, or DST, refers to the tax that is on any document or paper proving a sale or transfer. This tax applies to, among other things, the sale or transfer of stocks and properties.  Calculating the DST for the transfer of real property works similarly to the transfer tax and registration fee. Take the highest number between the selling price, zone value, or fair market value of the property. You will have to pay 1.5% of that number for your DST. However, note that the DST is applied to a wide range of documents, and there are different ways to compute each one. The best way to see how to compute the DST for your document is by checking BIR’s Tax Rate Table. Seller’s Taxes and Fees Capital Gains Tax The government imposes the capital gains tax, also known as CGT, on the profit that the investor received from selling or exchanging their capital assets. Capital assets refer to both stocks of a domestic corporation and real property, but we will focus on real property for now.  To get the CGT of a real property, take whichever is the larger number between the zonal value or selling price on the deed of sale. The seller will have to pay 6% of that number for your CGT. Realty Tax Realty tax refers to the tax imposed on all buildings, land, improvements on the land or building, and machinery. Section 197 to 283 of the Local Government Code states that all local governments can impose a realty tax. These governments will then use the collected tax to provide their public services to the community. If your seller has any unpaid realty taxes, he or she will have to settle them before completing the transfer of title.  There are a few more steps towards calculating the realty tax. First, check the real realty tax rate of the property’s area. If it’s within Metro Manila, the rate is 2%. Likewise, if it’s within the provinces outside of Metro Manila, the rate is 1%.  Next, calculate the property’s assessed value. You can get this by multiplying your property’s market value by its assessment level. Here are the assessment levels, based on Section 218 of the Local Government Code: For example, if you have a house worth P2,000,000, you’d multiply that by the residential assessment level, which is 20%. Your property’s assessed value would then be P400,000. Multiply your property’s assessed value by the area’s tax rate to get your yearly realty tax. Say this house is located in Metro Manila. Multiply P400,000 with 2% to get P8,000.  The final step is to add an additional 1% of your property’s assessed value for the Special Education Fund, which aims to fund the local schools in the area. In this case, 1% of P2,000,000 would be 20,000. Adding this all up would finally bring your realty tax to 28,000 per year. You will have to shoulder this tax instead once the transfer is fully complete and the property is officially yours. Therefore, it’s a good idea to keep this in mind for the future. Conclusion Settling all of these taxes and fees on time can speed up the process of the transfer of title. Ensure that both you and your seller handle your respective payments on time. Are you looking for a real estate lawyer to help you with your transfer of title? You can rely on Sadsad Tamesis Legal and Accountancy Firm’s team of lawyers to help you throughout the transferring process.

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Do You Have a Lost TCT? What to Know About: Getting a New Certificate of Title

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Have you recently purchased real property, such as a plot of land or a house and lot? The first thing to do upon receiving ownership of real property is to put your Transfer Certificate of Title (TCT) somewhere safe. Your title is how you’ll be able to prove that you own the land or property in question. Without this document, you won’t be able to sell, borrow against, or give your property to anyone. You’ll also need your TCT if you plan on passing down your property to any heirs. However, sometimes incidents happen. It can get misplaced, or caught in an unfortunate fire or flooding. If you find yourself having lost or damaged your TCT, don’t worry. There’s still a way to prove yourself as the true owner, even without the original copy. According to Section 109 of Presidential Decree No. 1529, you can get a new copy through a Reissuance of Title. If you need a new copy of your TCT but are unfamiliar with the court process, here’s a quick overview of what to expect. Hire a Lawyer and File an Affidavit of Loss First and foremost, it’s essential that you look for and hire an experienced lawyer. A good lawyer will be able to speed up the process of the reissuance by gathering and organizing your evidence, guiding you with the requirements you have to obtain, handling other court requirements, and keeping you updated throughout the process.  Afterwards, it’s time to file an Affidavit of Loss. This affidavit is a sworn statement that will notify the Registry of Deeds that your previous TCT has been lost or destroyed. This, in turn, will kick start the rest of the reissuance process. This Affidavit of Loss will include information such as the name and details of the owner; a description of the property; a description of how the property was lost; and why you are filing an Affidavit of Loss. File a Petition Requesting for Reissuance After filing your Affidavit of Loss, your lawyer will draft a petition requesting for the reissuance of the TCT. This petition will be filed with the Regional Trial Court. Attached to that petition are pieces of documentary evidence to support the claims of ownership which are stated there. These will include the Affidavit of Loss, Official Receipts, Tax Declaration, Tax Clearances, and any other documents that your lawyer will require from you.. Testify in Court To get a new copy of your TCT, you will need to prove to the court that you have truly lost the original copy and that you are the rightful owner of the property covered by the TCT. While requirements and documents you had gathered in the previous step serves this purpose, the law requires that you also testify in court so that you can confirm the statements and claims in the petition and to identify the documents attached before the judge.. If you have a co-owner, he or she may be allowed to testify on your behalf.  Wait for Court Decision and File at the Registry of Deeds Once you have gone through all these processes and you have submitted your evidence, the only thing left to do is wait for the court’s final decision. Normally, this would end in your favor, especially if you had done your due part in ensuring your testimony is watertight, and documents are all genuine. However, there is a chance that someone will oppose the reissuance, which will further complicate and prolong the case. He or she may try to claim that you don’t have ownership of that property. He or she may also try to claim you never lost your original TCT in the first place.  So long as you and your lawyer have a strong case, it’s likely that the court will grant your petition for reissuance. Afterwards, you’ll have to register the Court Decision with the Registry of Deeds. This will finally lead to the reissuance of your new Certificate of Title.  Conclusion Take note that the court process of reissuing a Certificate of Title can take up to at least a year. This is why it’s essential for you to have a trustworthy, efficient, and experienced lawyer by your side. If you need a lawyer for your Reissuance of Title case, you can Sadsad Tamesis Legal and Accountancy Firm (STLAF) and book a consultation today.

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Books of Accounts: Simplified and Explained

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Having a book of accounts isn’t just for the sake of organization. If you’re handling a business establishment, you must manage a book of accounts. In fact, it’s one of the first things you have to register when applying for a Certificate of Registration with BIR. This doesn’t just include large corporations; even freelancers and smaller businesses need to keep a book of accounts. Your book of accounts should record all business transactions throughout your business, along with proof of transactions, such as receipts. These recordings are to ensure that your business is properly paying its due taxes to BIR, so ensuring your book of accounts is accurate and updated is essential. Be wary of letting your book of accounts go unupdated, as it could lead to harsh penalties. Here are the basics of your books of accounts so that you can start recording your business transaction Formats of Books of Accounts  BIR currently accepts three formats of book of accounts, and you are free to choose whichever format works best for you and your business. However, do note that if you are a large taxpayer (meaning you have total annual gross sales/receipts of at least P1,000,000,000), you are required to use a computerized book of accounts. Manual Books of Accounts Chances are you’ve seen books of accounts for sale in an office supply store or bookstore. These are preprinted with all the required components of a book of accounts, and each entry has to be handwritten. You can register a manual book of accounts once you’ve gotten your Certificate of Registration from BIR. Once you have filled up your first book of accounts, you’ll be able to register another volume. Computerized Books of Accounts Finally, computerized books of accounts are programs where you can log your transactions, with functions and features that can help with efficiency. Many programs are available to purchase, but you can also hire IT experts to create one just for your business. However, do note that BIR is stricter with approving these programs. They have to put it under rigorous testing to ensure that it complies their rules and regulations. Again, large taxpayers must use computerized books of accounts. Loose-leaf Books of Accounts Finally, loose-leaf books of accounts combine both manual and computerized formats. You would create entries through a computer, usually using a template. Then, you can print these entries out, bind them, and it to BIR as your book of accounts. Note that you must submit your template to BIR first for approval before you can use it for your entries. During registration, you must also justify why a loose-leaf book of accounts is the best format for your business. Basic Types of Books of Accounts General Journal The General Journal is where you would initially put your accounting transaction. Many also call it the ‘original entry book’ for this reason. When creating an entry in the General Journal, you’d have to write down the date, description, reference code, and the debit or credit amount.  General Ledger On the other hand, the General Ledger is also what taxpayers call the “book of final entry.” Here, you’ll be writing down summaries of your transactions that you previously recorded in your General Journal, as well as the other journals in our book of accounts. You’ll essentially follow the same format, too: account name, date, reference code, and the amount in either debit or credit.  Cash Receipt Journal To keep your cash receipts in order, you’ll first have to input them in your Cash Receipt Journal, then transfer them to the General Ledger later on. To successfully record a cash receipt, you’ll need to write down the date, the official receipt number, description, amount, and other account titles (if any). Cash Disbursement Journal Likewise, you’ll need to keep track of your cash disbursements in order to summarize them in the General Ledger later. To do so, you’d write down the date, description, amount, and other amount titles. If you’re a non-VAT registered taxpayer, these four basic types are all you’ll need for your book of accounts. However, if your business is VAT-registered, there are two more journals you’ll need to update. Sales Journal You’ll need to record every sales transaction that your business completes in your Sales Journal. The format you’ll have to follow includes: Note that you won’t need to write the customer’s name and address if a Customer Master File is available. A Customer Master File, or CMF, is a company’s record of all of their customers’ information. Purchase Journal You’ll also need to record all of your business expenses in your Purchase Journal. The format is similar to the Sales Journal and is as follows: Just like with your Sales Journal, you won’t need to include the supplier’s name or address if you have a Vendor Master File, which functions in the same way as the Customer Master File. You’ll soon be able to register your own Book of Accounts now that you know how it works. Be sure to check BIR’s requirements and instructions before proceeding with registration.  Are you in need of guidance regarding your book of accounts? Schedule a consultation with STLAF’s team of accountants today so that you can start recording your business transactions with ease.

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What You Need to Know About Trademarks: 4 FAQs Answered

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Can you go a day without seeing a trademark symbol anywhere? It’s a more challenging task than one may think. After all, almost every notable brand for every product and service has one of these symbols attached to its name or logo. But what are they exactly, and what is their significance? Knowing such information is crucial, especially if you plan on starting your own business. Here’s what you need to know about trademarks. What is a trademark? A trademark identifies a brand and differentiates it from competitors. The most common trademarks take the form of a word, phrase, symbol, or combination of the three. However, sounds and even smells can also be trademarked. A trademark gives your brand the exclusive right to use it while preventing others (especially your competitors) from using it. They would also not be allowed to use anything similar. For example, a competitor of McDonald’s would not be allowed to use a version of their logo in a different color. What is its importance? Trademarks prevent competitor brands from using your brand’s name or anything similar. This protection keeps you safe from competitors imitating your brand to get your consumer base or doing something slanderous to ruin your brand’s reputation. It also helps consumers remember your brand, distinguishing it from the rest of the crowd. Keeping your image unique, memorable, and recognizable can help expand your consumer base and increase the opportunity for repeat customers.  Where can you file a trademark application? You can file a trademark application with the Intellectual Property Office of the Philippines (IPOPHL). Firstly, ISOPHL’s website links to the World Intellectual Property Organization’s Global Brand Database. This website lets you check if another company has already trademarked your intended brand name. You’ll also be able to browse a particular trademark’s serial number, registration number, mark type, expiration date, and more. You can proceed once you’ve confirmed that your intended brand name is safe to be trademarked. You can fill up your application online through the eTMFile Page.  Regarding the Eat Bulaga Trademark Issue Who has the right over a trademark, the creator or the first to file the trademark? The ongoing dispute regarding Eat Bulaga between Tito Sotto, Vic Sotto, and Joey De Leon (TVJ) vs. TAPE Inc. has raised an interesting issue regarding trademarks. Is TVJ in the right to pursue getting Eat Bulaga’s trademark because they conceptualized and created the show? Or are they powerless against it because they didn’t submit the application before TAPE did? IPOPHL has what is called the FIRST-TO-FILE rule. This rule means that the party that was the first to file for registration for a trademark will get the rights to it above anyone else who filed for the same. Note that this is only if the first party was able to get all of their requirements together and filed their registration correctly. This means that since TAPE has been registering the trademark for Eat Bulaga for the past 40 or so years, they should be able to continue doing so, despite not being the show’s original creators. However, there are also ways for other parties to oppose a registration for a trademark. Section 151 of the Intellectual Property Code of the Philippines states that another party can file a petition to cancel a trademark registration if they believe that the registration will damage them in any way. This ended up being TVJ’s course of action. They filed a petition to the Bureau of Legal Affairs to cancel TAPE’s trademark of Eat Bulaga. IPOPHL has asked TAPE to respond before the 6th of July. If TAPE fails to answer TVJ, the agency will have to decide on the case. If TAPE does respond, an Adjudication Officer will handle the cases for a proper decision and resolution. Iit’s best to consult a lawyer first before filing a trademark application for your brand,. That way, you’ll be able to ensure that your application is complete and properly filled out for a smoother process. Our lawyers at Sadsad Tamesis Legal and Accountancy Firm will be able to guide you through every step of your application process.

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