RMC No. 29-2023: Clarifies the effect of publication of the list of taxpayers determined as Cannot Be Located (CBL) pursuant to existing guidelines

Key points

1. Purpose of publication. Publication gives notice to the taxpayers concerned and to the public. Those who know where a CBL taxpayer is can report to the BIR, and those who deal with such taxpayers are put on notice of the tax consequences.
2. Tax consequences for buyers. Purchases from a CBL taxpayer are not deductible for income tax, whether in cost of sales or operating expenses. Any VAT on the purchase cannot be claimed as input tax, unless the buyer proves the supplier exists and the purchases are authentic.
3. Timing. These consequences apply to transactions made after the publication of the CBL taxpayer’s name.
4. Prescriptive period. Publication is not a prerequisite to suspending the prescriptive period to assess under Section 203 of the Tax Code. Suspension sets in once the Revenue Officer submits a CBL report with the required documents.

Who is affected

• Taxpayers tagged as Cannot Be Located
• Buyers transacting with CBL taxpayers

Deadlines and effectivity

• Consequences apply to transactions after publication of the CBL name