RR No. 7-2018: Amends certain sections of Revenue Regulations (RR) No. 12-99, as amended by RR No. 18-13, relative to the due process requirement in the issuance of a deficiency tax assessment.

Key points

1. Revenue Officer’s report. The Revenue Officer who audited the records states in the report whether the taxpayer agrees that deficiency tax is due.
2. Informal Conference notice. If the taxpayer does not agree, the RDO or the Special Investigation Division (in Revenue Regional Offices), or the Chief of Division concerned (in the National Office), informs the taxpayer in writing of the discrepancies. The notice is for an Informal Conference where the taxpayer can present his or her side.
3. 30-day limit. The Informal Conference may not extend beyond thirty (30) days from receipt of the notice.
4. Endorsement for assessment. If the taxpayer is still liable and not amenable after the conference, the case is endorsed within seven (7) days from the conclusion of the conference. It goes to the Assessment Division of the Revenue Regional Office or to the Commissioner or his authorized representative for issuing the assessment.
5. Penalty. Revenue Officers who miss the prescribed periods are penalized as provided by existing laws, rules and regulations.

Who is affected

• Taxpayers under audit for deficiency tax
• Revenue Officers

Deadlines and effectivity

• Informal Conference: not beyond thirty (30) days from receipt of the notice
• Endorsement: within seven (7) days from conclusion of the Informal Conference