BIR has recently issued Revenue Memorandum Order (RMO) 4-2016 to make some amendments on RMO No. 20-2007 in order to simplify and expedite the processing of the applications for compromise settlement and abatement or cancellation of internal revenue tax liabilities.
Significant provisions are:
- All applications for compromise settlement, abatement or cancellation of internal revenue tax liabilities filed by concerned taxpayers under the respective jurisdictions of the Revenue Regions and Large Taxpayers Service (LTS), regardless of the amount of threshold prescribed under the provisions of Section 204(A) for compromise settlement, resulting to a recommendation for denial of the application, shall be considered final and the outstanding tax liabilities shall be immediately collected from the taxpayer.
- The Notice of Denial shall be prepared by the Office of the Regional Director for regional cases and Office of the LTS for LTS cases.
- In case the recommendation of the evaluation board, regional or LTS as the case maybe, is to approve the taxpayer’s application, the procedural requirements set forth under Revenue Regulation (RR) No. 30-2002 and RR No. 13-2001, as amended, and other related issuance shall still be observed.
- The LTS sub-Technical Working Committee (TWC)/EB and all regional Technical Working Groups (TWG)/Regional Evaluation Boards (REB) shall evaluate and release their decision within fifteen (15) calendar days from the receipt of application for compromise settlement or abatement.
- The prescribed reports for applications for compromise settlement/abatement penalties under Operations Memorandum No. 13-01-003, shall be strictly observed by all revenue offices.
The RMO is not applicable to applications transmitted to and pending with the TWG/C or board as of Jan. 29, 2016, but the pertinent procedural requirements set forth under the existing relevant revenue issuance shall apply instead.