Tax Alert No. 48 [Revenue Memorandum Order No. 23 – 2019 issued on 8 May 2019]

Policies, Guidelines and Procedures in the Processing of Applications for Tax Amnesty on Delinquencies Pursuant to Republic Act (RA) No. 11213 Otherwise Known as the “Tax Amnesty Act” 

The Commissioner of Internal Revenue has issued Revenue Memorandum Order (RMO) No. 23 – 2019 dated 8 May 2019 to prescribe policies, guidelines, and procedures in processing the applications for Tax Amnesty on Delinquencies (TAD) relative to the implementation of the Tax Amnesty Act.

The salient provisions of RMO No. 23 - 2019 are as follows:

• Issuance of the Certificate of Tax Delinquencies/Tax Liabilities (CTD) to the taxpayer
  • The CTD shall be issued by the concerned offices within five (5) days from receipt of the request/application. It shall be signed by the Revenue District Officer/Chief, Regional Collection Division (RCD)/Chief, Large Taxpayers Division (LTD)/Chief, Large Taxpayer Collection Enforcement Division (LTCED)/Chief, Legal Division/Chief, Prosecution Division/Chief, Litigation Division. In the absence of the Revenue District Officer/Division Chief, the Assistant Revenue District Officer/Assistant Division Chief shall sign the CTD.
    
    The list of the concerned offices can be downloaded below. 
  • For tax liabilities not indicated in the CTD but known to the taxpayer as delinquent accounts, an amended CTD may be issued upon the request and subject to submission of a copy of the Final Assessment Notice (FAN)/Formal Letter of Demand (FLD)/Final Decision on Disputed Assessment (FDDA), and a “Sworn Declaration of No Protest Filed/Withdrawal of Protest”, should be submitted. The submitted FAN/FLD/FDDA shall be validated by the issuing office before an amended CTD is issued.
  • For tax liabilities pertaining to failure to remit withheld taxes, where no FAN/FDDA is issued, the Preliminary Assessment Notice (PAN)/ Notice for Informal Conference (NIC) or equivalent document shall be presented.
  • Payment of certification fee of one hundred pesos (PHP 100) and documentary stamp tax of thirty pesos (PHP 30).
• Endorsement and approval of the Acceptance Payment Form (APF)
  • The endorsement and approval of the APF by the RDOs/LTDs/ LTCEDs shall be made within the day of presentation of the complete and duly accomplished documentary requirements, provided that the same is presented before the daily cut-off time of 12:00 noon. Otherwise, the endorsement and approval shall be made on the next working day.
  • The required endorsement shall be made by the Revenue District Officer, or in the absence thereof, the Assistant Revenue District Officer or Chief of Assessment Section, for Revenue District Offices (RDOs). In case of LTDs/LTCEDs, the endorsement shall be made by the Division Chief or Assistant Division Chief.
• Payment of the tax amnesty amount

Only duly endorsed APF shall be received for payment of the tax amnesty amount by the Authorized Agent Banks (AABs) or the Revenue Collection Officers. Tax amnesty payments of large taxpayers shall be made only with the following authorized AAB:

• Filing of TAD application
  • All TAD applications shall be filed with the RDO/LTD (Cebu or Davao) where the taxpayer is registered. For large taxpayers - excise and regular, the same shall be received by the LTCED in the National Office.
  • Applications shall be filed in triplicate copies and received only if the required documents are complete. Please see Annex A, in the document that can be downloaded below, for the list of the documents required to be submitted for the TAD request/application.
• Issuance of the Authority to Cancel Assessment (ATCA) and Notice of Issuance of ATCA (NIATCA)
  • For non-large taxpayers, the ATCA of cases covered by FAN/FLD/FDDA which have become final and executory shall be prepared by the concerned RCDs within 5 days from receipt of the Weekly Report on Received TARs, together with triplicate copies of TARs with complete attachments, from the RDOs.
  • For large taxpayers, the ATCA shall be prepared within five (5) days from receipt of the TAR with complete documentary requirements by the LTDs/LTCEDs, whichever has jurisdiction.
  • No ATCA shall be issued for cases covered by pending criminal case/s with the DOJ/Prosecutor’s Office or the court/s if the tax liabilities are not covered by FAN/FLD/ FDDA.
  • The ATCA shall be issued per taxable year regardless of the number of tax types involved.
  • The NIATCA shall be issued per taxpayer by the LTDs/LTCEDs/ RCDs.
  • In case there are tax liabilities covered by TAR which will require the issuance of Electronic Certificate Authorizing Registration (eCAR) for the purpose of transfer of property ownership, the eCAR shall be prepared in accordance with existing policies after the issuance of the ATCA.
  • Lifting orders on the issued Warrant of Distraint and/or Levy (WDL), Warrants of Garnishment (WG), Notice of Tax Lien (NTL), Notice of Tax Levy (NOL), Notice of Encumbrance (NOE), shall be prepared and issued based on the approved ATCA, provided the tax liabilities covered by these warrants and notices are included in the taxpayer’s availment of the Tax Amnesty. In case not all outstanding delinquent accounts are included, the issued WDL, WGs, NTLs, NOLs, NOEs shall be amended.

This RMO shall take effect immediately.

You may view the full version of the RMO through the BIR website.