RMO No. 14-2004 — Expands the coverage of the Centennial Taxpayers Recognition Program (CTRP) Digest | Full Text

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE March 19, 2004 REVENUE MEMORANDUM ORDER NO. 14-2004 SUBJECT: Supplement To Revenue Memorandum Order No. 7-2004 On The Centennial Taxpayers Recognition Program (CTRP). TO: All Taxpayers and Revenue Officer Employees and Others Concerned I. BACKGROUND The Centennial Taxpayers Recognition Program (CTRP) was launched with the issuance of Revenue Memorandum Order (RMO) No. 7-2004 dated February 27, 2004. It initially covers corporation and individual business income earners following the calendar year of reporting. In view of the clamor to expand the coverage of the CTRP to include other taxpayer earning business income, not otherwise following the calendar year of reporting, this Revenue Memorandum Order is being issued (a) to include corporate taxpayers using the fiscal year of accounting and reporting for tax purposes whose ends on date specified hereunder, and (b) to clarify certain provisions of RMO 7-2004. II. ENTITLEMENTS OF CENTENNIAL TAXPAYERS All taxpayers who qualify as Centennial Taxpayers shall be ranked in accordance with their weighted score in terms of percentage increase and absolute peso in tax payment for (a) growth rate of income tax payment for tax year 2003 over tax year 2002, (b) growth rate of income tax for 4th quarter 2003 over 4th quarter 2002, and (c) growth rate of income tax for the 1st quarter 2004 over 1st quarter 2003. In addition to the honor and benefits accorded a Centennial Taxpayer as provided for in RMO 7-2004, the top 1000 Centennial Taxpayers shall the protection of last priority in audit and investigation for taxable calendar/fiscal year 2003 for all tax payments which may only be undertaken upon careful evaluation and authorization by the Commissioner of the BIR. Other Centennial Taxpayers who may not be among the top 1000 Centennial Taxpayers will still be accorded the protection of last priority in audit and investigation for taxable calendar/fiscal year 2003, if the qualified Centennial Taxpayer made a voluntary payment, where said voluntary payment is not necessary to qualify as such, of the following amounts:

Amount Tax Due for Taxable Year 2003 P 100,000.00 Up to P 10,000,000 P 500,000.00 P 1,000,000.00 Over P 10,000,000 to P 50,000,000 P 5,000,000.00 Over P 50,000,000 to P 100,000,000 P 10,000,000.00 Over P 100,000,000 to P 500,000,000 Over P 500,000,000 III. OTHERS WHO MAY QUALIFY FOR THE CENTENNIAL TAXPAYER AWARD In addition to corporations and individual earning business income who follows the calendar year of reporting for tax purposes, corporations who follows the fiscal year of accounting and reporting of their taxable operations who has all the qualification required under RMO 7-2004, and provided their fiscal year begins and ends on the following date, may also be qualified to vie for the Centennial Taxpayer Award: Beginning Ending August 1, 2002 July 31, 2003 September 1, 2002 August 31, 2003 October 1, 2002 September 30, 2003 November 1, 2002 October 31, 2003 December 1, 2002 November 30, 2003 IV. DEADLINES OF FINAL INCOME TAX FOR FISCAL YEAR 2003 AND 1ST QTR FISCAL YEAR 2004 For proper guidance, outlined below are the statutory deadlines for filing of final income tax return for the CTRP-covered Fiscal Year 2003 and their corresponding 1st quarter Fiscal Year 2004, to wit: Fiscal Year Deadline for filing Coverage of Deadline for filing ending Final Income Tax 1st Quarter 1st Quarter Fiscal for Fiscal Year 2004 July 31, 2003 Return (on or Year 2004 August 31, 2003 before the 15th day August 1 � October (within 60 days) September 30, 2003 of the fourth month) 31, 2003 November 15, 2003 December 30, 2003 October 31, 2003 September 1 � November 30, 2003 December 15, 2003 November 30, 2003 January 29, 2004 January 15, 2004 October 1 � February 1, 2004 December 31, 2003 February 15, 2004 April 1, 2004 March 15, 2004 November 1 � April 29, 2004 January 31, 2004 December 1 �

February 29, 2004 V. CENTENNIAL VOLUNTARY PAYMENT (BIR Form 0605-100) A Centennial Awards aspirant whose correct/accurate income tax payment resulted in a shortfall or gap in the growth rates and ratio required in part IV of RMO No. 7-2004 may opt to make up for the shortfall or gap by making a voluntary additional payment. For this purpose, they should accomplish a Centennial Voluntary Payment & Waiver of Refund Form (BIR Form 0605-100) and pay the voluntary payment. The voluntary payment when added to the correct tax paid must at least provide the growth rates and income to sales ratio as required in RMO No. 7-2004, in order for the said taxpayer to qualify as a Centennial Taxpayer. As can be gleamed from Part VI of this RMO, most of the tax returns of covered fiscal year taxpayers mentioned in Part II above are already filed with the Bureau, thus, those who are aspiring for a Centennial Award, are not required to file an amended income tax return to reflect the voluntary payments. They must however, accomplish and file the CTRP Participation Form attaching therewith a copy of their Centennial Voluntary Payment Form (BIR Form 0605-100). Completed CTRP Participation Form should be submitted to the Revenue District Office (RDO) where the taxpayer is registered for proper evaluation. Participation Forms and the Voluntary Payment Form (BIR Form 0605-100) maybe downloaded from the Bureau's website (www.bir.gov.ph). All corporate and individual business income earner shall have until May 30, 2004 to vie for the Centennial Taxpayer Recognition Award by submitting a duly accomplished and completed CTRP Participation on or before May 30, 2004, and by making the necessary voluntary payment and duly accomplishing and filing their Centennial Voluntary Payment Form (BIR Form 0605-100), when applicable, no later than May 30, 2004. VI. APPLICABILITY OF RMO No. 7-2004 Rules and policies laid down in RMO No. 7-2004 not otherwise inconsistent with this RMO shall likewise apply. Reference to full calendar year 2003 in RMO No. 7-2004 shall be understood to mean full fiscal year 2003 for those fiscal year taxpayers covered by this Order. (Original Signed) GUILLERMO L. PARAYNO, JR. Commissioner of Internal Revenue