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Return Processing System RPS assessment vs. Open Cases and non payment taxes & penalties RMC 7-2

0 Views· 11/26/23
Aryel Narvasa
Aryel Narvasa
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How to close OPEN CASES and pay little penalties, CLICK this https://youtube.com/live/Ng7qFT-grxs

Return Processing System (RPS) assessment is a process used by the Bureau of Internal Revenue (BIR) to check the accuracy and completeness of tax returns filed by taxpayers.

This system uses a computerized system to verify and validate the information provided on the tax returns. It compares the data provided on the tax return with the data from other sources such as the withholding tax returns of the taxpayer's suppliers and the data from other government agencies.

If the RPS assessment determines that there are discrepancies or errors on the tax return, the BIR may assess additional taxes, penalties, and surcharges. The taxpayer will then be informed of the additional taxes assessed and given the opportunity to dispute the assessment or to pay the additional taxes.

Taxpayers who are non-compliant and not filing their tax returns are subject to various penalties and fines under the National Internal Revenue Code (NIRC) of the Philippines.

One of the penalties for not filing a tax return is a fine of Php 1,000 for each year the tax return is not filed. Additionally, if a taxpayer fails to file their tax return on time, they will be subject to a surcharge of 25% of the unpaid taxes for each year the taxes are unpaid.

If a taxpayer is found to have understated their income or overstated their deductions, the Bureau of Internal Revenue (BIR) may assess additional taxes, penalties, surcharges, and interest.

Furthermore, if a taxpayer knowingly files a false return or fails to file a tax return, they may be subject to criminal penalties, including fines and imprisonment.

The BIR also has the authority to conduct investigations to ensure compliance with tax laws. If a taxpayer is found to have failed to file tax returns or to have understated their income or overstated their deductions, the BIR may assess additional taxes, penalties, surcharges, and interest.
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