REVENUE MEMORANDUM CIRCULAR NO. 142-2019 issued on December 27, 2019 circularizes the Electronic Documentary Stamp Tax (eDST) System’s balance adjustment as an option for recovery of erroneously deducted DST.
Aside from filing a claim for refund, a request for adjustment to the taxpayer’s ledger balance in the eDST System may be filed by the concerned taxpayer, provided that the following conditions are satisfied:
a. The revised BIR Form No. 2000 filed with the BIR is properly accomplished, more particularly on the tax computations for the eDST System (i.e., Part Il. A. and Schedule l); and
b. The erroneously deducted amount from the taxpayer’s ledger account in the eDST System has not been declared in Schedule I of the said return.
The request for adjustment in the taxpayer’s ledger balance shall be filed in writing by the taxpayer-user to the Chief, Miscellaneous Operations Monitoring Division (MOMD), Collection Service located in the National Office of the BIR, together with all the relevant documentary proofs on the incident(s) that gave rise to the erroneous deductions from the taxpayer’s ledger balance in the eDST System, including the taxable document where the eDST was affixed. These documents shall include a sworn declaration that the amount of DST requested for balance adjustment has not been applied to other taxable documents/transactions nor was it claimed as a deductible expense from the taxable income in the taxpayer’s Income Tax Return.
The recommendation, whether for approval or denial of the taxpayer’s request for adjustment, shall be evaluated by MOMD and subsequently endorsed to the Assistant Commissioner, Collection Service for final approval. In case of approval, the Chief, MOMD shall approve the taxpayer’s request and briefly indicate the reasons for adjustment in the box provided for, both under the “Balance Adjustment Details” functionality of the eDST System.
The taxpayer-user shall be notified, in writing or thru email, on the approval or denial of its request for balance adjustment within five (5) working days from receipt of the written recommendation and supporting documents of the concerned Revenue District Office or Large Taxpayer Service Division. The reason(s) for the denial of the taxpayer’s request shall, at all times, be clearly stated in the notice to the taxpayer. Should it be determined that a request for refund should have been filed instead by the taxpayer-user, the same should be categorically stated in the notice of denial. In case the taxpayer’s request does not arise from a system error and there is a need for a further verification at the taxpayer’s side, the same shall be communicated to the taxpayer