RMC No. 135-2019 — Reiterates the prescribed procedures in the availment of the Tax Amnesty on Delinquencies and additional clarification on issues raised relative thereto

FEPUBLIC OF THE PHILIPPINES BUREAU OF INTERN nnnY jal revenui c

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE DEC 11 2019 IIS P.M.

Quezon City RECORDS MGT. DIVISION J0

REC Ys

REVENUE MEMORANDUM CIRCULAR NO. 135-2019

SUBJECT Reiteration of the Prescribed Procedures in the Availment of the

Tax Amnesty on Delinquencies (TAD) and Additional Clarification on Issues Raised Relative thereto

TO All Revenue Officers, Employees and Others Concerned

This Revenue Memorandum Circular (RMC) is issued to reiterate the prescribed

against BIR revenue officials and employees due to either misunderstanding of some taxpayers on the law itself or total disregard of the approved implementing rules and regulations. procedures in the availment of the Tax Amnesty on Delinquencies and address complaints

Bureau continues to receive complaints from certain taxpayers alleging deprivation of the tax Since the effectivity of Revenue Regulations (RR) No. 4-2019 on April 24, 2019, the

the "stop-filer" cases and delinquent accounts arising from non-payment of self-declared tax due were not considered "delinquent accounts" for purposes of the implementation of Republic amnesty program on delinquencies due to the definition provided under RR No. 4-2019 on Act (RA) No. 11213. "delinquent accounts", which in their opinion, limits the coverage of the said tax amnesty, since

Such definition is aligned with the provisions of the aforesaid RA No. 11213 which

to failure of the taxpayer to file the required return is not qualified for tax amnesty in the and those covered by a pending criminal case. Thus, a "stop-filer" case which merely pertains Circular No. 57-2019, particularly Question and Answer items 9, 10, 14 and 26, which are quoted below: expressly provides that the tax amnesty amount shall be based on the "basic tax assessed". This Revenue (BIR), which should be final and executory , except in case of unremitted tax withheld absence of tax assessment. In addition, those tax liabilities arising from failure to pay in full and non-payment of the tax due declared per tax returns are not qualified for tax amnesty unless, prior to April 24, 2019, a letter to the withholding agent or preliminary collection letter demanding remittance/payiment of taxes withheld but not remitted, as declared per return, was sent by the BIR. These issues were clarified in the earlier released Revenue Memorandum simply means that there should be an'assessment of tax due made by the Bureau of Internal

Assessment Notice (FAN)/Formal Letter of Demand (FLD)/Final Decision on Q9. Can tax amnesty on delinquencies be availed of even if there is no Final

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Disputed Assessment (FDDA) that has become final and executory on or before April 24, 2019?

FAN!FLD/FDDA that has become final and executory if the tax liabilities fall under anv of the following instunces: A9. Tax amnesty on delinquencies can be availed of even if there is nc

(1) The tax liabilities are related to the pending criminal cases with

the DOJ/prosecutor 's Office or the courts for tux evasion and other criminal offenses under Chapter II of Title X and Section 275 of the Tax Code as amended: and

(2) The tax liabilities pertain to unremitted tax withheld by Withholding agents.

Q10. What would be the basis of the tax amnesty payment if the pending criminal charges of the taxpayer as of April 24, 2019 pertain to "failure to obey summon" but the legal complaint does not have assessmeni of unpaid basic tax?

A10: When a criminal charge pertains to "failure to obey summon" the legal officer requires the examiner to issue an assessment based on best evidence obtainable. If an assessment has already been issued as of April 24, 2019, whether final or not, the basis of the tax ammesty would be the basic tax per such document. Othervise, the taxpaver could not avail of the tax anmnesty on delinquency.

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Q14. Are open stop-filer cases included in the amnesty?

A14. No, these are not covered under RR No. 4-2019.

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O26.Under RR 4-2019. Prelimiinary Assessment Notice (PANj/Notice for Informal Conference (NIC) or equivalent document is sufficient document of the taxpaver to support the tax liabilities pertaining to unremitted tax withheld. What are those eguivalent document being referred to?

same was issued on or before April 24. 2019. and the taxable period A26.Equivalent document can be any of the following. provided the

involved are 2017 and prior years:

a. Leller to the withholding agent demanding remiliance of the amount not remitted based on the withholding iax returns filed:

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b. Letter to the withholding agent demanding the remiltance of tax withheld based on the Commission on Audit (COA) reports. for those subject to COA audit:

C Preliminary Collection Letter demanding the payment of tax

withheld declared per returns filed.

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Public hearings were conducted before the implementing rules and regulations were approved by the Secretary of Finance and therefore, it should be enforced accordingly for the efficient and orderly implementation of the tax amnesty program. In this regard, the following procedures as prescribed under Revenue Memorandum Order (RMO) No. 23-2019 must be strictly complied by all concerned:

a. Tax Amnesty Return (TAR) (BIR Form No. 2118-DA). completely and accurately accomplished and made under oath.

b. Acceptance Payment Form (APF) or BIR Form 0621-DA must be duly endorsed

by the concerned BIR Officials.

c. Certificate of Tax Delinquencies (CTD) must be issued and signed only by the

authorized BIR officer and not by the taxpayer who is availing of the tax amnesty.

In addition, the immunity and privileges shall only apply to the particular tax type and taxable period as indicated in the TAR and paid under duly approved APF. Consequently, tax liability/ies for taxable period/s and/or tax type not included in the tax amnesty application will not be cancelled.

Moreover, the Notice of Issuance of Authority to Cancel Assessment (NIATCA) shall be issued by the BIR to the taxpayer availing of the Tax Amnesty on Delinquencies within fifteen (15) calendar days from submission of the APF and TAR. Otherwise, the stamped "received" duplicate copies of the APF and TAR shall be deemed as sufficient proof of availment.

Finally, pursuant to Section 9 of RR No. I I -2006, "only those Tax Agents/Practitioners, Pariners, or Officers of General Professional Partnerships, or Officers or Directors of corporate entities engaged in tax practice who have been issued Certificate of Accrediiction or ID card shall be allowed to represeni a taxpave ransact business with the Bureau of Internal Revenue in representation of a taxpaver for the purpose(s) defined in these regulations." Therefore. BIR revenue 1 C to deal only with taxpayers themselves or their tax agents who are du CTC are likewise advised to secure only the services lited tax agents as posted in the BIR website, or the services of bona fide tax law ise due diligence

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information to the detriment of the taxpayers. in securing their services since those posing as accredited tax agents are providing wrong

All internal revenue officers, employees and others concerned are enjoined to give this Circular a wide publicity as possible.

CAESAR R. DULAY Commissioner of Internal revenue 03129 6

BUREAU GF TNTERNAL REVENUE aTIYND DEC 11/2019 IIS ta% P.M

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