RR No. 15-2007: Allows the abatement of penalties/surcharges and interest on disputed/litigated assessments

Key points

1. Covered cases. Cases with a duly issued Assessment Notice as of November 29, 2007 for taxable year ending December 31, 2005 and prior years are covered. These include cases under administrative protest in BIR offices and civil tax cases before the DOJ and the courts, including decisions not yet final and executory.
2. Excluded cases. Excluded are cases on issues decided with finality by the Supreme Court, unless they involved a difficult question of law or issues without established precedent at the time of the transaction. Cases where the PCGG has an interest and withholding tax cases are also excluded.
3. Application and payment. The application consists of a letter request, the Application for Abatement Form and a copy of the PAN or FAN. It is filed with the RDO for Regional Office cases or the concerned LTS Group for large taxpayer cases. Payment of 100% of the basic tax is made with the AAB, or with the Revenue Collection Officer or Deputized Treasurer if there is no AAB.
4. Evaluation. A Technical Working Committee (TWC) reviews the docket, which includes proof of payment on BIR Form No. 0618. For LTS cases, the recommendation first needs a majority vote of the Management Committee before going to the CIR, who has sole authority to abate under Section 204(B) in relation to Section 7(c) of the NIRC.
5. Termination and timelines. Upon CIR approval, the case ends with a Termination Letter and an Authority to Cancel Assessment (ATCA) for the abated penalties and interest. Offices send the application and documents to the TWC within five (5) days from receipt, and the TWC has 15 days to act.

Who is affected

• Taxpayers with protested or litigated assessments for taxable year 2005 and prior years

Deadlines and effectivity

• Assessment Notice issued as of November 29, 2007
• Application and payment due not later than February 29, 2008, unless extended by the CIR on meritorious grounds