RR No. 18-2002: Amends certain provisions of RR Nos. 12-2002 and 17-2002 relative to the implementation of the Voluntary Assessment and Abatement Program (VAAP)

Key points

1. General deadline. VAAP applications and the matching tax payments on voluntarily disclosed sales, receipts, income or taxable base must be received not later than November 29, 2002. Installment payment remains allowed as provided in the Regulations.
2. Taxpayers with Letter Notices. Their VAAP deadline is the date stated in the Letter Notice, unless an extension is granted or the BIR Management Committee (BIR MANCOM) approves a different deadline.
3. Installment extension for financial incapacity. A written request is approved by the Regional Director. The taxpayer must submit a list of banks where deposits or accounts are kept, a waiver of bank secrecy so the BIR can verify the claim, a written undertaking to pay by installment within a period not exceeding six (6) months from filing of VAAP-AF, and postdated checks for the installments.
4. 30% additional discrepancy. If the BIR finds additional sales, revenues or tax base, or overstatement of purchases, cost, tax credit or deduction, that exceeds the amount voluntarily disclosed by thirty percent (30%) or more, the VAAP availment is null and void. The entire under-declaration or discrepancy is then subject to the full force of the law.

Who is affected

• Taxpayers availing of VAAP

Deadlines and effectivity

• VAAP applications and payments due not later than November 29, 2002
• With Letter Notice: deadline stated in the Letter Notice
• Installment period not exceeding six (6) months from filing of VAAP-AF