8box Solutions Inc.


Contact Number: 09369340340
Email: sales@8box.solutions

REVENUE MEMORANDUM ORDER NO. 20-2007 issued on August 14, 2007 prescribes the policies for simplified processing of application to avail taxpayer’s remedies, compromise settlement and abatement provided under Sections 204 (A) and 204 (B) of the Tax Code. Under existing rules, the BIR processes applications for the abatement of only the surcharges, interests and compromise penalties. Any application for the abatement of the basic tax assessed or any portion thereof, if any, are not covered by any existing regulations and therefore shall not be processed. The Revenue District Office (RDO)/investigating offices of the Large Taxpayers Service (LTS) having jurisdiction over the taxpayer-applicant shall, upon receipt of the application for abatement together with the required supporting documents, process the application, make the necessary evaluation and prepare a report containing its recommendation (with the basis stated) to the duly constituted Technical Working Committee (TWC). The TWC shall review the report and recommendation of the investigating offices and thereafter prepare the final recommendation for approval of the Commissioner. In all instances, no application for abatement shall be initially processed/evaluated by the investigating office without the payment of 100% of the basic tax. The recommendation/final report on the application for compromise settlement shall be signed/approved by the following: a) Concerned Regional Evaluation Board (REB) ÿ Regional office cases involving basic tax assessment amounting to P 500,000 or less, and minor criminal violations discovered by regional and district officials which were already delegated to the REB. b) Commissioner of Internal Revenue (CIR) ÿ Other cases which were not delegated ÿ Cases which, by law, have been entrusted to the CIR c) National Evaluation Board (NEB) ÿ Cases where the basic tax exceeds P 1,000,000 or where the settlement offered is less than the prescribed minimum amount (10% for cases of financial incapacity; 40% for cases of doubtful validity of the assessment) which, by law, have been entrusted to the NEB Prior to its approval/disapproval, application for compromise settlement shall likewise be processed, evaluated and recommended by the investigating offices having jurisdiction over the taxpayer-applicant. Processing and evaluation of regional office cases shall be undertaken by the respective district offices while LTS cases shall be processed and evaluated by the LTS investigating offices before submitting the recommendation thereon to the respective Technical Working Groups (TWGs). The concerned TWG shall review the submitted report and recommendation and prepare its final recommendation for approval of the CIR/REB/NEB. In all instances, application for compromise settlement shall not be forwarded to the TWGs without being processed, evaluated and provided with recommendation by the originating office. The concerned RDO/head of the LTS investigating office is directed to require all applicants to pay the basic tax assessed, for abatement cases, and the offers of compromise, for compromise settlement, upon filing of the application for abatement/compromise settlement before the same can be initially processed. In case of ultimate disapproval of the application by the approving authority, payments already made pursuant to these applications shall be treated as partial or installment payments of the assessments.