RMO No. 23-2006: Prescribes the guidelines and procedures on the one-time administrative abatement of all penalties/surcharges and interest on delinquent accounts and assessments (preliminary or final, disputed or not) as of June 30, 2006

Key points

1. Cases that may be abated. The same list of cases as RR No. 15-2006 applies, subject to Section 204 of the Tax Code and the conditions of that Regulation. Cases in which the PCGG has an interest or coordination is needed are excepted.
2. How to apply. A taxpayer with a delinquent account or assessment issued as of June 30, 2006 files an application for every tax type with the concerned BIR office.
3. Payment. The amount equal to 100% of the basic tax is paid using BIR Form 0605 with an Authorized Agent Bank in the taxpayer’s RDO/LTS/LTDO jurisdiction. If there is no bank, payment goes to the Revenue Collection Officer/Deputized Treasurer.
4. Staggered payment and court cases. Staggered payments may be considered case by case with approval by the Regional Director or the concerned ACIR. For cases pending in court, 100% of the basic tax must be paid before withdrawal, and unpaid abated amounts revert to the original amount with statutory increments.
5. Basic tax paid before RR No. 15-2006. Where 100% of the basic tax was paid before the Regulations, the handling office prepares the Termination Letter. The ATCA is prepared and approved by the responsible official where the case originated, and the docket goes to the Office of the Commissioner for signature.

Who is affected

• Taxpayers with delinquent accounts or assessments issued as of June 30, 2006

Deadlines and effectivity

• Covers accounts and assessments as of June 30, 2006