RDAO No. 02-2014 — Delegates the authority to approve and sign Authority to Cancel Assessment (ATCA) by the Enforcement & Advocacy Service and the Legal Service Digest | Full Text

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City January 30, 2014 REVENUE DELEGATION AUTHORITY ORDER NO. 2-2014 SUBJECT: Delegation of Authority to Approve and Sign Authority to Cancel Assessment (ATCA) by the Enforcement & Advocacy Service (EAS) and the Legal Service (LS) TO : All Internal Revenue Officers and Employees and Others Concerned I. Background Pursuant to Section 7 of the National Internal Revenue Code of 1997, as amended and in view of Revenue Administrative Order No. 2-2013 whereby supervision over the Litigation Division and Prosecution Division is transferred to the Assistant Commissioner, Enforcement & Advocacy Service (EAS), there is a corresponding need to define the delegated authority of the Commissioner of Internal Revenue to sign Authority to Cancel Assessment (ATCA) processed by the Divisions under EAS. II. Instances When an Authority to Cancel Assessment (ATCA) Should Be Issued By the Assistant Commissioner, EAS Any change in the amount of tax assessments arising from the following cases handled by the National Investigation Division, Litigation Division or Prosecution Division shall require the issuance of ATCA: 1. Cases under reinvestigation or reconsideration where the final assessment as originally issued was either modified, amended, or otherwise canceled in its entirety; 2. Appealed or collection cases that have been decided by the courts in favor of the taxpayer when there is an entry of judgment; 3. Such other cases which the Commissioner may require to be covered by ATCA. 1

II. Scope of Delegated Authority The authority to sign the ATCA under any of the circumstances enumerated above is hereby delegated to the Assistant Commissioner, EAS provided that a Memorandum Report has been approved by the Deputy Commissioner, Legal Group. III. Form Preparation The ATCA shall be accomplished by the appropriate processing office for the approval by the Assistant Commissioner, EAS. IV. Notification Requirements The Assistant Commissioner, EAS shall, within three (3) days from issuance thereof, notify the Office which issued the original assessment that the ATCA had been issued so that appropriate entries may be made in the records of said Office. V. Repealing Clause All existing revenue memorandum circulars, orders and other issuances inconsistent herewith are hereby repeated, modified or amended accordingly. VI. Effectivity Clause This revenue delegation authority order shall take effect immediately upon approval. (Original Signed) KIM S. JACINTO-HENARES Commissioner of Internal Revenue 2