On 31 May 2019, the Philippines Bureau of Internal Revenue (BIR) has published Revenue Memorandum Circular (RMC) 57-2019 clarifying certain issues on tax amnesty. This circular is issued to address the frequently-asked questions regarding the tax amnesty on delinquencies pursuant to title IV of Republic Act (RA) No. 11213, otherwise known as the “Tax Amnesty Act” as implemented by Revenue Regulations (RR) No. 4-2019 effective from 24 April 2019.
A taxpayer covering taxable year 2017 and prior years and the assessment notices have become final on or before April 24, 2019 may avail of tax amnesty on delinquencies within one year from the effective date of 24 April 2019 (RR No 4-2019) under any of the following instances:
- Delinquent accounts: Delinquent Accounts, whether without or with application for compromise settlement, either on the basis of (i) doubtful validity of the assessment or (ii) financial incapacity of the taxpayer, and the same was denied by or still pending with the Regional Evaluation Board (REB) of the National Evaluation Board (NEB), as the case may be;
- With pending criminal cases with the DOJ/Prosecutor’s Office of the courts for tax evasion and other criminal offenses under Chapter II of title IX and Section 275 of the Tax Code, as amended, with or without assessments duly issued;
- With final and executory judgment by the courts; and
- Withholding tax liabilities of withholding agents arising from their failure to remit withheld taxes (Section 3, RR No. 4-2019).
A total 9 issues, including those with specific scenarios are clarified in the Circular in the form of questions and answers.
