SM Investments Corporation sought confirmation on whether electronically signed, soft copies of BIR Form No. 2307,submitted pursuant to RMC No. 29-2021 (which authorizes the use of e-signatures in BIR Forms/Certificates Nos. 2304, 2306, 2307, and 2316 to promote compliance with Republic Act No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018) and RMC No. 117-2021 (which prescribes the modes of submission of soft copies of BIR Form No. 2307),would be sufficient for income tax refund or tax credit applications, as well as for tax audit purposes.
The BIR clarified that while e-signatures and electronic/soft copy submissions of BIR Form No. 2307 are acceptable for compliance and filing; they are not sufficient for tax refund or tax credit claims and for tax audits. For these specific purposes, hard copies of BIR Form No. 2307,regardless of whether they bear electronic signatures remain mandatory.
The ruling underscored that tax refunds are strictly construed against the claimant, who carries the burden of proving entitlement and full compliance with documentary requirements. It further reiterated record-keeping obligations: hard copies must be preserved for the first five years, with electronic copies permitted only for the remaining retention period.
Given the above, companies are advised to properly safeguard and retain hard copies of BIR Form No. 2307, notwithstanding the presence of electronic signatures, for the purposes of income tax refund or credit applications, as well as for audit and investigation requirements. To support compliance, it is recommended that a comprehensive records management system should be adopted to preserve hard copies for the initial five (5) years from filing, maintain electronic copies for the remaining statutory retention period, and ensure alignment between hard-copy and electronically filed documents.