RR No. 28-2002: Extends further the period for the availment of the VAAP until October 31, 2003, subject to the imposition of a progressively increasing additional penalty every month

Key points

1. Extended deadline. Applications and payments on voluntarily disclosed sales, receipts, income or taxable base are extended until October 31, 2003 unless sooner revoked. Installment payment remains allowed.
2. Taxpayers with Letter Notices. Their deadline is the date in the Letter Notice, unless extended or a different deadline is approved by the BIR Management Committee. Those with a Letter Notice deadline on or before December 16, 2002 may still avail until December 27, 2002 without additional penalties.
3. Amounts payable. Taxpayers with Letter Notices pay the amounts stated in the notices, computed under RR No. 12-2002 for Income Tax, Value-Added Tax and Excise Tax. For other tax types, the amount follows the rules on voluntary disclosure.
4. Additional monthly penalty. For availments starting January 2003, an additional penalty of five percent (5%) every month applies, progressively increasing. Those who avail voluntarily without a Letter Notice pay a progressive additional penalty of only two and one-half percent (2.5%) every month.
5. Default on installments. Defaulted installments bear interest at twenty percent (20%) per annum. The interest runs from the due date to actual payment and is computed on the diminishing balance of the VAAP amount.

Who is affected

• Taxpayers availing of VAAP
• Taxpayers with Letter Notices
• Taxpayers availing voluntarily without a Letter Notice

Deadlines and effectivity

• VAAP availment extended until October 31, 2003 unless sooner revoked
• Letter Notice deadlines on or before December 16, 2002: may avail until December 27, 2002 without additional penalties
• Additional penalty applies to availments starting January 2003