REVENUE REGULATIONS NO. 19-2001 issued November 16, 2001 amends the provisions in the agreement between the Bureau of Internal Revenue and the Authorized Agent Bank (AAB) relative to the collection of internal revenue tax liabilities through the banking system. The bank shall, upon approval of the application, execute a Memorandum of Agreement (MOA) with the BIR using the format prescribed in the Regulations. The BIR shall be authorized to waive penalties, surcharges and interest due on delayed collections, and/or delayed or erroneous reports, as well as procedural errors committed. Such waiver of penalties, surcharges and interest due shall, in all instances, be approved by the Commissioner of Internal Revenue (CIR), upon the recommendation of the Bank Accreditation Committee (BAC). The BAC may recommend for a condonation of the said penalties, surcharges and interest, provided that the delay in the remittance of collections and/or delay in the submission of reports, and/or submission of erroneous reports, as well as procedural errors committed, are caused by civil disturbance or fortuitous events. If the same is caused by other reasons which the BAC deems meritorious, the waiver of penalties/sanctions for such cases shall not be more than 60% of the total amount of penalties imposed. Should the BAC, after its evaluation, recommend for a waiver of penalties by more than sixty percent (60%), such request for waiver, together with BAC’s recommendation, shall be elevated to the Management Committee (MANCOM) for confirmation before the same is submitted to the CIR for his approval. AABs, which have outstanding penalties due to non-compliance with the procedures prescribed for the collection of taxes, submission of reports, period of remittance, as well as procedural errors in receiving taxpayers’ returns, may request for a waiver of penalties/sanctions by offering an amount of compromise not less than the minimum rates provided in the Regulations, to wit: 1) procedural errors/delay in submission of reportorial requirements – for CY 2000 and prior years – 20%; for CY 2001 – 40%; and 2) late remittance of tax collections – an amount of compromise not less than the prevailing interbank borrowing rate at the time the collection becomes due for remittance plus five percent (5%). The periods for the offer and payment of compromise, as provided in the Regulations, shall be deemed final, thus, shall not be subject to any grant of extension. The AABs shall be required to pay in full their outstanding liabilities if the offer of compromise for penalties, surcharges and/or interest as approved by the CIR is not paid within the prescribed period. Such failure shall constitute a ground for the revocation/nonrenewal of their accreditation. All banks presently authorized to collect internal revenue taxes may continue to do so until such time that a new MOA shall thereupon be executed between the BIR and the banks which have qualified for accreditation.