RR No. 9-2010: Provides the policies and guidelines for the abatement of surcharges and/or compromise penalties in relation to the filing of tax returns and payment of taxes under certain conditions

Key points

1. Late or unfiled returns. Taxpayers who did not file or pay the correct tax may file and pay the deficiency tax with interest, with no surcharge or compromise penalty. The return and full payment must reach the BIR not later than October 29, 2010.
2. Conditions for original returns. No Letter of Authority, Tax Verification Notice, Audit Notice, Letter Notice or discrepancy notice may have been served for the tax period. The tax type must not be subject to a pending criminal case for tax evasion or other NIRC offenses, or to a final and executory judgment, and importation-related returns are filed and paid with the BIR.
3. Amended returns. Taxpayers may file amended returns and pay deficiency tax with interest on upward adjustments, with no compromise penalty. The amendment must raise gross sales, revenues or receipts and/or reduce deductions or tax credits, must result in additional tax, and must be filed and paid not later than October 29, 2010.
4. Declaration of Availment. Taxpayers execute a Declaration of Availment of Abatement with attachments: a photocopy of the return (original or amended, with required attachments) and proof of payment. For importation-related amended returns, proof of previous duties and taxes paid to the Bureau of Customs is also attached.
5. BIR rights preserved. Filing under the Regulations presupposes full and accurate disclosure. It does not stop the BIR from investigating the returns or the sufficiency of attachments, or from prosecuting criminal violations under the NIRC.

Who is affected

• Taxpayers who failed to file returns or pay correct taxes
• Taxpayers amending returns with additional tax due

Deadlines and effectivity

• Return, amended return and full payment: not later than October 29, 2010