RMO No. 33-2018: Consolidates, clarifies and reiterates the existing policies and procedures in the issuance of the Authority to Cancel Assessment (ATCA)

Key points

1. What the ATCA is for. It is issued as proof of cancelling assessments with an issued Final Assessment Notice or Formal Letter of Demand that are recorded in Form 40.00 (Protested) or AR/DA cases of delinquent taxpayers.
2. Grounds for issuance. These include a modified or null and void assessment under a final decision (FDDA) or final court judgment, approved compromise settlement or abatement under Section 204 (a), insolvency declared by a court, and tax amnesty availment. Others are condonation by law, prescription under Sections 203 and 222 approved by the Commissioner, write-off, and other meritorious cases the Commissioner deems necessary.
3. Write-off grounds. Write-off may be approved, for example, where an individual taxpayer is deceased with no assets to levy, on permanent cessation of business, dissolution, or where a general partnership’s partners are deceased. It also covers AR/DA cases of Php20,000.00 and below once all summary collection remedies are exhausted.
4. Preparation and timelines. The ATCA is prepared in quadruplicate under the prescribed Matrix, with supporting documents attached to the tax docket. The recommending official signs within fifteen (15) working days from receipt of the docket, and the approving official acts within seven (7) working days.
5. Legal issues and prescribed cases. Cases referred to legal offices on questions of law, due process or prescription are resolved within thirty (30) days from receipt. Write-offs due to prescription go to the Regional and then National Committee on Prescribed Cases, and the ARMD prepares the ATCA only after the Commissioner approves the write-off and filing of administrative sanctions.
6. Records and monitoring. Approved cases are recorded in the ATCA column of the GCL report (BIR Form 0319) or removed from the AR/DA Inventory List. The ARMD validates the ATCAs and reports to the Collection Service within twenty-five (25) working days from the set deadline for submitting GCL reports and the AR/DA Inventory List.

Who is affected

• Delinquent taxpayers with assessments or AR/DA cases
• Revenue officials preparing and approving ATCAs

Deadlines and effectivity

• Recommendation signed within fifteen (15) working days from receipt of docket
• Approval within seven (7) working days from receipt
• Legal resolution within thirty (30) days from receipt