RR No. 08-2001: Establishes the policies and procedures governing the availment of the Voluntary Assessment Program granting taxpayers the privilege of last priority in the audit and investigation of all internal revenue taxes for the taxable year ending December 31, 2000 and all prior years under certain conditions

Key points

1. Privilege granted. Taxpayers get last priority in audit and investigation of all internal revenue taxes for the covered years. This includes one-time transactions such as Estate Tax, Donor’s Tax, Capital Gains Tax, Expanded Withholding Tax and Documentary Stamp Tax on sales of real property and/or shares of stocks, and also covers taxpayers with preferential tax treatment.
2. Who may not avail. Excluded are those covered by a Preliminary Assessment Notice, Final Assessment Notice or Collection Letter issued on or before July 31, 2001. Also excluded are persons under investigation on verified Tax Informer information recorded in the BIR Official Registry Book on or before July 31, 2001, tax fraud cases pending in courts, and those with unpaid tax liabilities shown in their books, records, financial statements and return unless they first pay them.
3. Payment amounts. If no return was filed, the taxpayer pays the basic tax due plus the additional VAP amount under the Regulations, and the additional amount is not allowed until the tax is paid. A taxpayer who filed a return but believes he erroneously paid pays at least 20% of the basic tax per the original return or the actual unpaid tax due, whichever is higher. If no return was filed and no payment made, the VAP amount is 120% of the basic tax due.
4. No credit or deduction. VAP payment cannot be used as a tax credit in the year of payment or in later returns, nor as a deduction for internal revenue tax purposes.

Who is affected

• Taxpayers liable for internal revenue taxes for taxable year ending December 31, 2000 and prior years

Deadlines and effectivity

• Covers taxable year ending December 31, 2000 and all prior years
• Program valid only until September 30, 2001