REVENUE MEMORANDUM CIRCULAR NO. 34-2014 issued on May 8, 2014 clarifies the rule on whether or not an assessment resulting from jeopardy/arbitrary assessment or which was based on “best evidence obtainable” method could be considered as a “doubtful assessment” contemplated in Section 3 of Revenue Regulations No. 30-2002 in so far as compromise settlement application is concerned.

          It is clarified that an assessment based on “Best Evidence Obtainable Rule” should not be automatically considered as a doubtful assessment. Scrutiny as to the surrounding circumstances that led to the issuance of such an assessment should be thoroughly evaluated.

           The taxpayer’s failure to present or submit the required documents necessary to make the assessment of its tax liability makes it incumbent to the BIR to resort to the application of the best evidence obtainable method to recover unpaid taxes due to the government. Therefore, any assessment made as a result thereof is presumed prima facie correct and sufficient for all legal purposes.