RMO No. 23-2002: Prescribes the guidelines and procedures in the implementation of the Voluntary Assessment and Abatement Program (VAAP) of the BIR

Key points

1. Forms and periods. The VAAP Application Form and Payment Form (VAAP-AF and VAAP-PF) are accomplished per tax type and taxable period. Income Tax availment is yearly. VAT and Excise Tax availment is yearly for 2000 and 2001, and for January 2002 to June 2002 it is the cumulative total of the two (2) quarters.
2. With a Letter Notice. The taxpayer gets the VAAP-AF and VAAP-PF from the Revenue District Office. The minimum amounts under Subsection 3.1.1 of the Regulations are paid within the period in the Letter Notice, using the VAAP-PF in four (4) copies, with the AABs of the BIR office having jurisdiction over the principal place of office. The VAAP-AF is accomplished in three (3) copies. If the 110% basic tax due per VAAP-AF is higher than the minimum paid, the additional amount is paid.
3. Without a Letter Notice. The taxpayer accomplishes the VAAP-AF in three (3) copies. The 110% basic tax due computed there is paid with the AAB having jurisdiction over the principal place of office, using the VAAP-PF.
4. Effects of availment. Penalties on the underdeclared sales disclosed are abated or cancelled. The taxpayer is not subject to criminal penalties, nor to the administrative penalty of closure for underdeclaration of at least 30%. The taxpayer gets the privilege of last priority in audit.
5. Condition. The abatement or cancellation of penalties depends on full, complete, correct, accurate and honest disclosure of sales, receipts, income or taxable base, and payment of the correct tax due.

Who is affected

• Taxpayers availing of the VAAP
• Taxpayers who received a Letter Notice (LN)

Deadlines and effectivity

• Minimum amounts paid within the period stated in the Letter Notice