REVENUE MEMORANDUM CIRCULAR NO. 35-2019 issued on March 14, 2019 reiterates the definition of Accounts Receivable/ Delinquent Accounts (AR/DAs) for purposes of issuance of Delinquency Verification Certificates (DVC) and Tax Clearance for certain/specific purpose.

As provided in Revenue Memorandum Order No. 11-2014, “open stop-filer cases” and deficiency tax assessments which are timely protested, subject of reconsideration/ reinvestigation, or pending appeal with the Appellate Division or Court of Tax Appeals/Supreme Court shall not be considered as AR/DA and, therefore, existence of which shall not be a ground for the non-issuance of a clear DVC or Tax Clearance, as the case may be.

For purposes of issuing DVC and Tax Clearance, the existence of the outstanding AR/DAs shall generally be verified through the utilization of the Accounts Receivable Management System (ARMS). However, in the event the concerned taxpayer has record of AR/DA in the manually-maintained Inventory List of AR/DAs under the respective jurisdiction of the DVC/Tax Clearance-issuing offices, such AR/DA must first be added or created in the ARMS before denying the application for Tax Clearance or before issuing DVC reflecting the said AR/DA. Provided further that the physical docket where such record of added/created AR/DA emanated must be with the concerned office to ensure that only enforceable AR/DA is added in the ARMS database, otherwise it shall not likewise hinder the issuance of a clear DVC or Tax Clearance.