RR No. 17-2002: Expands the coverage of the Voluntary Assessment and Abatement Program (VAAP) to include other taxes and taxable periods not covered under RR No. 12-2002

Key points

1. Who is covered. VAAP covers any person, natural or juridical, including estates and trusts, liable for internal revenue taxes for the specified periods who, through inadvertence or otherwise, erroneously paid or failed to file returns or pay taxes.
2. Taxes and periods. Income Tax: calendar/fiscal year 2002 ending before June 30, 2002 and all prior years. VAT: quarter ending June 30, 2002 and all prior periods. Excise Tax: period ending June 30, 2002 and prior. Percentage Tax: quarter/month ending June 30, 2002 and prior. Documentary Stamp Tax: transactions up to June 30, 2002. Improperly Accumulated Earnings Tax: earnings from January 1, 1998 up to December 31, 2000. Withholding Tax: transactions up to June 30, 2002. One-time transactions (Estate, Donor’s, Capital Gains, Expanded Withholding and DST on real property and/or shares) are covered if on or before June 30, 2002, even if returns and payment fall due later.
3. Not covered. Taxpayers who already received a Letter Notice (LN) under RR No. 12-2002 for the period and taxes on the underdeclared sales stated in it are not covered. Also not covered are persons under investigation on a verified tax informer’s information duly processed and recorded in the BIR Official Registry Book on or before September 16, 2002. Those with a Final Assessment Notice or Collection Letter issued on or before September 16, 2002 are likewise excluded.
4. Deadlines. Applications and payments must be received on or before November 15, 2002 for Income Tax (calendar and fiscal years 2000 and 2001), VAT (quarters from January 1, 2000 up to the quarter ending June 30, 2002) and Excise Tax (same quarters). For other taxes and periods, the deadline is not later than November 29, 2002.
5. Installments. Minimum amounts per Letter Notices of P 500,000 and above may be paid in 2 to 3 equal installments within 2002, depending on the amount. Voluntarily disclosed amounts of P 500,000 and above are paid in 3 equal parts, with the first payment made before filing the VAAP Application Form with the Revenue District Office.
6. Effect of payment. Payment of the required VAAP amounts abates or cancels penalties and is in lieu of surcharge, interest and penalties otherwise due on the deficiency taxes.

Who is affected

• Natural or juridical persons, including estates and trusts, who erroneously paid or failed to file returns or pay taxes for the covered periods

Deadlines and effectivity

• Income, VAT and Excise Tax for covered 2000 to June 30, 2002 periods: received on or before November 15, 2002
• Other taxes and periods: not later than November 29, 2002
• Installments within 2002