REVENUE REGULATIONS NO. 30-2002 issued on December 26, 2002 implements certain provisions of the Tax Code of 1997 relative to the compromise settlement of internal revenue tax liabilities, superseding Revenue Regulations Nos. 6-2000 and 7- 2001. Cases which may be compromised are the following: 1) delinquent accounts; 2) cases under administrative protest after issuance of the Final Assessment Notice to the taxpayer which are still pending in the Regional Offices, Revenue District Offices, Legal Service, Large Taxpayer Service, Collection Service, Enforcement Service and other offices in the BIR National Office; 3) civil tax cases being disputed before the courts; 4) collection cases filed in courts; and 5) criminal violations, other than those already filed in court or those involving criminal tax fraud. Cases which may not be compromised are: 1) Withholding Tax cases, unless the applicant-taxpayer invokes provisions of law that cast doubt on the taxpayer’s obligation to withhold; 2) criminal tax fraud cases confirmed as such by the Commissioner of Internal Revenue or his duly authorized representative; 3) criminal violations already filed in court; 4) delinquent accounts with duly approved schedule of installment payments; 5) cases where final reports of reinvestigation or reconsideration have been issued resulting to reduction in the original assessment and the taxpayer is agreeable to such decision by signing the required agreement form for the purpose; 6) cases which become final and executory after final judgement of a court, where compromise is requested on the ground of doubtful validity of the assessment; and 7) Estate Tax cases where compromise is requested on the ground of financial incapacity of the taxpayer. The Commissioner of Internal Revenue (CIR) may compromise the payment of any internal revenue tax on the following grounds: 1) doubtful validity of the assessment and 2) financial incapacity. The CIR shall not consider any offer for compromise settlement on the ground of financial incapacity of a taxpayer with Tax Credit Certificate (TCC) on hand or in transit, or with pending claim for tax refund or tax credit, or with existing finalized agreement or prospect of future agreement with any party that resulted or could result to an increase in the equity of the taxpayer at the time of the offer for compromise or at a definite future time. Moreover, no offer of compromise shall be entertained unless and until the taxpayer waives in writing his privilege of the secrecy of bank deposits, which shall constitute as the authority of the Commissioner to inquire into the bank deposits of the taxpayer. Presence of circumstances that would place the taxpayer-applicant’s inability to pay in serious doubt can be a ground to deny the application for compromise based on financial incapacity of the taxpayer to pay the tax. The compromise settlement of the internal revenue tax liabilities of taxpayers, reckoned on a per tax type assessment basis, shall be subject to the minimum rates specified in the Regulations (ranging from 10% to 40%), which will be based on the basic assessed tax. The prescribed minimum rate for compromise settlement based on doubtful validity is equivalent to 40% of the basic assessed tax. The taxpayer may, however, request for a compromise rate lower than 40%, provided, that he shall submit his request in writing stating therein the reasons, legal and/or factual, why he should be entitled to such lower rate.