Reducing VAPP lawfully, RR 21-2020
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Pursuant to Section 244, in relation to Sections 6 and 204, and other pertinent provisions of the National Internal Revenue Code (NIRC) of 1997, as amended, these Regulations are hereby promulgated to provide for the policies, procedures, and guidelines in the implementation of Voluntary Assessment and Payment Program (VAPP) for the collection of additional tax revenues, which could otherwise be collected through audit and enforcement effort. Any person, natural or juridical, including estates and trusts, liable to pay internal revenue taxes for the above specified period/s who, due to inadvertence or otherwise, erroneously paid his/its internal revenue tax liabilities or failed to file tax returns/pay
taxes, of the
may avail of the benefits under these Regulations, except those falling under any following instances:
Those taxpayers who have already been issued a Final Assessment Notice (FAN) that have become final and executory, on or before the effectivity of these Regulations;
Persons under investigation as a result of verified information filed by a Tax Informer under Section 282 of the NIRC of 1997, as amended, with respect to the deficiency taxes that may be due out of such verified information;
Those with cases involving tax fraud filed and pending in the Department of Justice or in the courts; and
Those with pending cases involving tax evasion and other criminal offenses under Chapter II of Title X of the NIRC of 1997, as amended. The voluntary payment, as indicated in the BIR Form No. 0622 (Payment Form), should be in cash as a condition to avail of the privilege under these Regulations. Hence, non- cash modes of payment, such as Tax Debit Memo and the like, will not qualify as a valid payment. The duly accomplished BIR Form No. 0622 shall be presented for payment to any BIR Authorized Agent Bank (AAB) or Revenue Collection Officer (RCO) under the LT Office/RDO having jurisdiction over the taxpayer, except for ONETT involving the sale of property which must be filed/paid with AABs/RCOs under the RDO covering the location of the property. Hence, separate applications must be filed in case the availment is under non-ONETT (Sections 9.a and 9.b) and ONETT wherein the same taxpayer is registered in an RDO different from the RDO having jurisdiction over the place where the decedent is domiciled at the time of death; or where the donor is domiciled at the time of donation; or where the property is located. Likewise, separate applications must be filed for availment under Section 9.c for transactions involving the sale of real properties under the jurisdiction of different RDOs.
Taxpayers whose availment is found to be invalid, deficient or defective are not entitled to the privilege under these Regulations. However, they may apply the voluntary payments made against any deficiency tax liability for the taxable year 2018, in case of audit/investigation. Non- submission or submission of erroneous/incomplete/falsified information concerning the VAPP shall not entitle the taxpayer to avail of the privilege under these Regulations. Still, the voluntary payment may be applied against any deficiency tax liability for the taxable year 2018, in case of audit/investigation.In cases where any non-ONETT tax deficiency covering the taxable period under Section 3 has already been paid, the basic deficiency tax paid shall be added to the tax due of the applicable tax returns for 2018 in computing the amount of voluntary payment required under Section 9.a. provided, that, such payment did not arise from the cases excluded from the coverage of the VAPP under Section 3. The amount to be paid must be the higher amount in column B, but in no case should be less than the amount in column C. Total taxes due in 2017 and 2018, for purposes of the above schedule refer to the sum of all tax due per tax return (IT, PT, ET, and DST) and net VAT payable (VAT) before deducting any creditable withholding tax, quarterly payment or advance payment. Gross sales and taxable net income shall be based on the Annual Income Tax Return for the taxable year ending December 31, 2018, and fiscal year 2018, ending on the last day of July 2018 to June 2019. A Certificate of Availment (Annex C) shall be issued by the concerned LT Office/RDO within three (3) working days from approval of the application. Such Certificate shall serve as proof of the taxpayer’s availment of the VAPP, compliance with the requirements, and entitlement to the privilege granted under these Regulations. The LT Office/RDO shall transmit all dockets on approved VAPP applications to the concerned reviewing office not later than the 5th day following the month of issuance of the Certificate of Availment for post review.