RR No. 7-2018 — Amends certain sections of Revenue Regulations (RR) No. 12-99, as amended by RR No. 18-13, relative to the due process requirement in the issuance of a deficiency tax assessment. (Published in Manila Bulletin on February 1, 2018) Digest | Full Text

w REPUBLIC OF THE PHILIPPINES ffiq!ffi,,ffi DEPARTMENT OF FINANCE r/{? JAN3t20tt ts BUREAU OF INTERNAL REVENUE REcE Date2J-JAl{.J0lS REVENUE REGULATIoNS No. T- )018 SUBJECT : Arnending Certain Sections of Revenue Regulations No. 12-99, as Amended by Revenue Regulations No. 18-13, TO Relative to the Due Process Requirement in the lssuance of a Deficiency Tax Assessment All lnternal Revenue Officers and Others Concerned - SECTION 1. Scope. Pursuant to the provisions of Section 244,in relation to Section 245 of the National lnternal Revenue Code of 1997 (Tax Code), as amended, these Regulations are hereby promulgated to amend provisions of Revenue Regulations (RR) No. 12-99, as amended by RR No. 18-13. - SECTION 2. Amendment. Section 3 of RR 12-99, as amended by RR No. 13-18, is hereby amended by adding Section 3.1.1 providing forthe preparation of a Notice of lnformal Conference, thereby renumbering other proVisiohs thereof, and prescribing other provisions for the assessment of tax liabilities. The pertinent provisions of Section 3 of RR 12-99 shall now read as follows. "SECTION. 3. Due Process Requirement in the lssuance of a - Deficiency Tax Assessment. 3.1 Mode of procedure in the issuance of a deficiency tax assessment: 3.1.1 Notice for lnformal Conference. - The Revenue Officer who audited the taxpayer's records shall, amonq others, state in his report whether or not the taxpayer aorees with his findinqs that the taxpaver is liable for deficlencv tax or taxes. lf the taxpaver is not amenable, based on the said Officer's submitted report of investiqation, the taxpayer shall be informed, in writing, by the Revenue District Office or by the Special lnvestioation Division, as the case mav be (in the case of Revenue Reqional Offices) or bv the Chief of Division concerned (in the case of the BIR National Office) of the discrepancv or discrepancies in the taxpaver's pavment of his internal revenue taxes. for the purpose of "lnformal Lt/

Conference," in order to afford the taxpaver with an opportunitv to present his side of the case. The lnformal Conference shall in no case extend beyond thirtv (30) davs from receipt of the notice for informal conference. lf it is found that the taxpaver is still liable for deficiency tax or taxes after presentinq his side, and the taxpaver is not amenable, the Revenue District Officer or the Chief of the Special lnvestiqation Division of the Revenue Reoional Office, or the Chief of Division in the National Office, as the case mav be, shall endorse the case within seven (7) days from the conclusion of the lnformal Conference to the Assessment Division of the Revenue Reqional Office or to the Commissioner or his dulv authorized representative for issuance of a deficiencv tax assessment. Failure on the part of Revenue Officers to complv with the periods indicated herein shall be meted with penaltv as provided bv existinq laws, rules and requlations." - SECTION 3. Repealing Clause. Any rules and regulations or parts thereof inconsistent with the provisions of these Regulations are hereby repealed, amended, or modified accordingly. SECTION 5. Effectivity.- The provisions of these Regulations shall take effect after fifteen (15) days following publication in any newspaper of general circulation. ,l./.; CARLOS G. DOMII{GUEZ Secretary of Finance l. i, JAN 2 2 2018 'at IUBE{U 0r nuEBtrAt ir$l,ittit! \* ss nDCORDS MGT. Dlryliii.-. i , I 000856 fl: A.14, Recommending Approval: JAN 3t2f:t/h/..tPf /tr^-:-) CAESAR R. DULAY RECE!V'8ry Commissioner of lnternal Revenue 012 5 5 0