RMO No. 40-2007: Amends further pertinent provisions of RMO No. 57-2000, as amended, relative to the effect of lifting of closure order

Key points

1. Partial compliance. If a taxpayer does not fully comply with the tentative figures but amends returns using the ratios and percentages in the original returns, the lifting of the closure order may still be recommended. The tax payments in the amended returns, or in initially filed returns if none were filed before, must meet a minimum.
2. Minimum for sellers of services. Business tax payments must be not less than 5% of gross receipts, based on the tentative gross receipts found by the BIR.
3. Minimum for sellers of goods. Business tax payments must be not less than 3% of gross sales. Sellers in the grocery or pharmaceutical business have a minimum of 1% of gross sales, based on the tentative gross sales found by the BIR.
4. Pending closure cases. For closure cases started before the Order but still pending when it took effect, the provisions apply to the remaining stages. If only the lifting remains, the provisions on lifting and later procedures are followed.

Who is affected

• Taxpayers with closure orders