RMC No. 54-2018: Clarifies the imposition of penalties and interest on the filing of an amended return

Key points

1. Additional tax due. When an amended return shows additional tax due, a 25% penalty and 12% interest are imposed per amended return, based on the additional tax to be paid.
2. Compromise penalties. These are amounts the BIR suggests to settle criminal liability. Payment is consensual and cannot be imposed or exacted.
3. Refusal to pay. If a taxpayer refuses to pay the suggested compromise penalty, the violation is referred to the appropriate office for criminal action.

Who is affected

• Taxpayers filing amended returns with additional tax due