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REVENUE REGULATIONS NO. 15-2006 issued on September 27, 2006 prescribes the
guidelines on the implementation of one-time administrative abatement of all
penalties/surcharges and interest on delinquent accounts and assessments (preliminary or
final, disputed or not) as of June 30, 2006.
This Abatement Program shall cover the following cases:
a. Delinquent accounts/accounts receivable cases except those cases where the
Presidential Commission on Good Government (PCGG) has an interest and/or
there is a need to coordinate with the PCGG;
b. Income Tax 2nd installment cases;
c. Dishonored checks cases;
d. Cases with administrative protest pending in the Regional Office, Revenue
District Office (RDO), Legal Service (LS), Large Taxpayer’s Service (LTS),
Collection Service (CS), Enforcement Service (ES) and other offices in the
Bureau of Internal Revenue (BIR) National Office except those cases where the
PCGG has an interest and/or there is a need to coordinate with the PCGG;
e. Assessed cases, whether preliminary or final, as of June 30, 2006 except those
cases where the PCGG has an interest and/or there is a need to coordinate with the
PCGG;
f. Civil tax cases being disputed before the Department of Justice (DOJ) and the
courts, e.g., Metropolitan Trial Court (MTC), Regional Trial Court (RTC), Court
of Tax Appeals (CTA), Court of Appeals (CA) and Supreme Court (SC) including
decided cases which are not yet final and executory except those cases where the
PCGG has an interest and/or there is a need to coordinate with the PCGG;
g. Collection cases filed with the courts except those cases where the PCGG has an
interest and/or there is a need to coordinate with the PCGG;
h. Cases with pending request for compromise settlement under Revenue
Regulations (RR) No. 6-2000, RR No. 7-2001 and RR No. 30-2002, as amended
by RR No. 8-2004, and other prior years’ issuances which are under evaluation by
the Technical Working Group-National Evaluation Board (TWG-NEB), TWGRegional Evaluation Board (TWG-REB), National Evaluation Board (NEB) and
Regional Evaluation Board (REB); provided that, pending requests for
compromise settlement pursuant to the aforementioned RRs where the amounts
offered have already been approved or where partial or full payments have already
been made shall not be covered by these Regulations;
i. Cases with pending request for abatement under RR No. 13-2001 for evaluation
by the Commissioner of Internal Revenue (CIR) or his authorized representative;
provided that, pending requests for abatement pursuant to the aforementioned RR,
where the amounts offered have already been approved or where partial or full
payments have already been made shall not be covered by these Regulations;
j. Failure to withhold Withholding Taxes discovered upon audit;
k. Criminal violations (except those already filed in court, those involving
criminal tax fraud, those under the Run After Tax Evaders Program of the Bureau
and tax fraud cases which are the results of confidential information, unless
allowed to avail by the CIR or his representative on meritorious grounds);
l. Letter Notice cases; and
m. “Accounts Payable or Due to BIR” account duly recorded or acknowledged by the
taxpayer in his books of accounts.
Any person/taxpayer, natural or juridical, may settle through this Abatement Program
any delinquent account or assessment which has been released as of June 30, 2006, by paying
an amount equal to 100% of the Basic Tax assessed with the Accredited Agent Bank (AAB)
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of the RDO/LTS/Large Taxpayers District Office (LTDO) that has jurisdiction over the
taxpayer. In the absence of an AAB, payment may be made with the Revenue Collection
Officer(RCO)/Deputized Treasurer of the RDO that has jurisdiction over the taxpayer. After
payment of the basic tax, the assessment for penalties/surcharge and interest shall be
cancelled by the concerned BIR office following existing rules and procedures. Thereafter,
the docket of the case shall be forwarded to the Office of the Commissioner, through the
Deputy Commissioner for Operations Group, for issuance of Termination Letter.
Provided, however, that this Abatement Program shall not be available to taxpayers
who may have already paid any portion of increments (surcharge, interest, etc.) on their tax
liabilities, and to tax cases on which the PCGG has an interest.
All applications shall be filed, accepted and processed with the following offices:
a. Revenue District Office – for Regional Office cases under its jurisdiction;
b. Assessment Division – for Regional Office cases with administrative protest;
c. Legal Division – for Regional Office cases with judicial protest or for judicial
action or with administrative protest involving legal issues;
d. Collection Service – for delinquent accounts under the jurisdiction of the BIR
National Office other than LTS cases;
e. Large Taxpayers Service (LTS) – for Large Taxpayers cases under the jurisdiction
of the LTS;
f. Legal Service – for National Office cases that are for judicial action or with
judicial protest and/or administrative protest involving legal issue;
g. Enforcement Service – for tax cases handled by the National Investigation
Division of the National Office.
The office which has possession of the docket of the case shall receive and process
applications for abatement of penalties/surcharge and interest on delinquent accounts and
assessed tax cases.
Upon filing of the application for/acceptance of the offer to avail of the Abatement
Program, the amount offered in complete settlement of the delinquent account/assessed tax
cases shall be paid with the AABs located within the jurisdiction of the RDO/LTS/LTDO
where the taxpayer is registered. In the absence of AABs, the payment may be made to the
RCO/Deputized Treasurer of the City/Municipality of the RDO/LTDO that has jurisdiction
over the taxpayer.
Staggered payments of the amounts payable under this Program may be considered on
a case to case basis in accordance with the existing regulations of the BIR upon approval of
the Regional Director for regional cases, and concerned Assistant Commissioner of Internal
Revenue (ACIR for LTS, Collection, Legal, or Enforcement) for National Office cases.
Nonetheless, cases pending in courts shall not be withdrawn unless the concerned taxpayer
shall fully pay 100% of the basic tax.
If the amount, as abated, is not paid as required, the approved staggered payment is
automatically nullified and the delinquent account or the assessment shall be reverted to the
original amount which includes the statutory increments incident to delinquency, which shall
be collected through the summary remedies and/or judicial processes provided for by law.
These Regulations shall remain in force until October 31, 2006 subject to extension
by the CIR on meritorious grounds.