RR No. 19-2001: Amends/updates the provisions contained in the agreement between the BIR and the Authorized Agent Banks relative to the collection of internal revenue tax liabilities through the banking system

Key points

1. Memorandum of Agreement. On approval of its application, the bank executes a Memorandum of Agreement (MOA) with the BIR in the format prescribed in the Regulations. Banks already authorized may continue to collect until a new MOA is executed with those that qualify for accreditation.
2. Waiver of penalties. The BIR may waive penalties, surcharges and interest on delayed collections, delayed or erroneous reports and procedural errors. The Commissioner of Internal Revenue (CIR) must approve every waiver on the recommendation of the Bank Accreditation Committee (BAC).
3. Condonation and 60% limit. The BAC may recommend condonation if the delay or error was caused by civil disturbance or fortuitous events. For other reasons it deems meritorious, the waiver is not more than 60% of the total penalties, and a recommended waiver above 60% goes to the Management Committee (MANCOM) for confirmation before the CIR.
4. Minimum compromise rates. An AAB with outstanding penalties may offer a compromise of at least 20% for procedural errors or delayed reports for CY 2000 and prior years, and 40% for CY 2001. For late remittance, the offer is at least the prevailing interbank borrowing rate at the time the collection became due plus five percent (5%).
5. Non-payment of compromise. The offer and payment periods are final and cannot be extended. If the approved compromise is not paid in time, the AAB must pay its outstanding liabilities in full, and failure is a ground for revocation or non-renewal of accreditation.

Who is affected

• Authorized Agent Banks
• Bank Accreditation Committee

Deadlines and effectivity

• Compromise rate for CY 2000 and prior years: at least 20%
• Compromise rate for CY 2001: at least 40%