REVENUE REGULATIONS NO. 12-2002 issued on September 12, 2002 provides the policies, procedures and guidelines in the implementation of the Voluntary Assessment and Abatement Program (VAAP) for taxpayers, and the consequences for non-availment thereof. The VAAP is available to taxpayers subject to Income Tax, Value-Added Tax and Excise Tax who has underdeclared sales/receipts/income or taxable base for the Calendar and Fiscal Years 2000, and 2001, and the first and second quarters of 2002. Underdeclarations in the third quarter 2002 returns and succeeding quarters are no longer entitled to the VAAP but shall be subjected to the full force of the law. Based on data generated from the BIR Reconciliation for Listing and Enforcement (RELIEF) System, the Bureau will send Letter Notice to persons found to have under-reported sales/receipts. The Letter will specify, among others, the amounts payable and the deadlines for submission of VAAP Application Form and payment of the appropriate tax. Taxpayers who wish to avail of the VAAP but have not received a Letter Notice from the BIR must submit a VAAP Application Form (VAAP-AF) and pay the amounts payable using VAAP Payment Form (VAAP-PF) on or before November 15, 2002. In case a taxpayer fails or refuses to avail of the VAAP for any of the taxable periods covered by the Regulations within the period prescribed in the Letter Notice or the general deadline for VAAP availment (Nov. 15, 2002), as the case may be, the BIR shall institute such criminal or administrative actions as may be authorized under the Code, specifically, closure, criminal actions, or audit and investigation, depending on the extent of under-declaration. Notwithstanding the taxpayer’s payment of the amounts required under the VAAP, should the BIR discover additional discrepancy, where the additional sales or overstatement in purchases or cost discovered exceed the amount voluntarily disclosed by 10% or P 1,000,000.00, whichever is lower, the VAAP availment shall be considered null and void and the entire under-declaration shall be subjected to the full force of the law. However, if the discrepancy discovered is equal to or less than the said threshold amounts, the VAAP availment shall remain valid, provided that the payment of appropriate additional tax on the additional discrepancy is mad