RR No. 10-2001: Amends RR No. 8-2001 relative to the period of availment of the Voluntary Assessment Program (VAP), additional benefits to taxpayers who availed of the VAP and clarification of some of the conditions for the availment thereof

Key points

1. Audit protection. A taxpayer who availed of the VAP is not audited unless the Commissioner of Internal Revenue authorizes and approves it on strong evidence or a finding of understatement of the correct tax liability by more than 30%. If audited, the VAP payment is allowed as a tax credit against any deficiency tax due.
2. Amount to pay. Where returns were filed in the covered year, the VAP amount is not less than the highest amount computed under all conditions in the Regulations and the actual additional unpaid tax as determined by the taxpayer. For taxpayers under preferential rates under special laws, it is 20% of the tax due per return filed or the additional unpaid tax not recorded in the books, whichever is higher.
3. Unpaid liabilities. No VAP payment is allowed unless the corresponding unpaid tax liability has been paid.
4. Pending refunds. Availing of VAP on refundable returns or excess/erroneous payments with a pending refund or credit request does not automatically approve the refund or credit. The taxpayer may ask that the tax type be processed or audited solely for the refund case.
5. Mixed income. Individuals with mixed income may avail of VAP for compensation income alone, business income alone, or both.

Who is affected

• Taxpayers who availed of the VAP
• Taxpayers subject to preferential tax rates under special laws
• Individuals deriving mixed income

Deadlines and effectivity

• VAP availment deadline: October 31, 2001