Expanded coverage of Tax Amnesty on Delinquencies: A second chance to qualify

(Revenue Memorandum Circular No. 11-2020, February 7, 2020)

This Tax Alert is issued to inform all concerned on the following further clarifications on the implementing rules and regulations of the Tax Amnesty on Delinquencies.  The clarifications open the tax amnesty to taxpayers who received the FAN/FDDA before March 25, 2019.

• Extended period up to April 23, 2020 to withdraw a protest to qualify as delinquent case. Tax liabilities covered by FAN/FLD or FDDA covering taxable year 2017 and prior years, received before March 25, 2019, and which was timely protested/disputed but withdrawn on or before April 23, 2020, can now be covered by the tax amnesty on delinquencies. Previously, only a protest which was withdrawn before April 24, 2019 can be covered by the said tax amnesty.
• Instances when protest is invalid and case qualifies for amnesty. The following instances will render the protest to the FAN/FLD or appeal to the FDDA invalid and will make the assessment final and executory, and therefore delinquent, from the lapse of the 30-day period from receipt of the FAN/FDDA:

1. The protest to FAN/FLD was filed beyond 30 days from receipt of the FAN/FLD;
2. The appeal to the FDDA was filed beyond 30 days from receipt of the FDDA;
3. The protest to FAN/FLD was not fled with the duly authorized representative of the CIR who signed the FAN/FLD;
4. The appeal to the FDDA (i.e. motion for reconsideration) was not filed with the office of CIR;
5. The protest/ appeal failed to state the applicable law, rules and regulations or jurisprudence on which it is based;
6. The request for reinvestigation did not specify the newly discovered or additional evidence which the taxpayer intends to present as required in a valid protest.

In the above instances, the FAN/FDDA should have been received before March 25, 2019 to be deemed final and executory by April 24, 2019.

• Extended period to submit documents after payment of amnesty tax. Taxpayers who can secure Certificate of Tax Delinquencies/ Tax Liabilities and endorsement of the Acceptance Payment Form, and who can pay the amnesty tax due on April 23, 2020, the last day of the availment period, shall be given additional 30 days to submit the complete documentary requirements to fully comply with the availment of the tax amnesty.