RR No. 22-2020: Amends certain Sections of RR No. 12-1999, as amended by RR No. 18-2013 and RR No. 7-2018, relative to the Due Process requirement in the issuance of a Deficiency Tax Assessment. ​RR 22-2020

Key points

1. Notice of Discrepancy. Section 3 of RR No. 12-1999, as amended, provides for a Notice of Discrepancy in place of a Notice of Informal Conference. A taxpayer found liable for deficiency tax in a Revenue Officer’s investigation is informed through this notice. The Revenue Officer states the findings of discrepancies in the initial report of investigation.
2. Who sends the notice. Based on the initial report, the Revenue District Office informs the taxpayer in writing. In Revenue Regional Offices this is the Assessment Division or Regional Investigation Division, and in the National Office it is the Chief of Division concerned.
3. Discussion of Discrepancy. The taxpayer presents his or her side, explains the discrepancy and submits supporting documents. The discussion never extends beyond thirty (30) days from receipt of the Notice of Discrepancy. Documents needed later may be submitted after the discussion, within thirty (30) days after receipt of the notice.
4. Next step. If the taxpayer is still found liable and does not pay or agree with the findings, the investigating office endorses the case to the reviewing and approving office. That office issues a Deficiency Tax Assessment as a Preliminary Assessment Notice within ten (10) days from the conclusion of the Discussion.

Who is affected

• Taxpayers found liable for deficiency taxes in a Revenue Officer’s investigation

Deadlines and effectivity

• Discussion of Discrepancy not beyond thirty (30) days from receipt of the Notice of Discrepancy
• Preliminary Assessment Notice within ten (10) days from the conclusion of the Discussion