RMC No. 35-2019: Reiterates the definition of Accounts Receivable/Delinquent Accounts for purposes of issuance of Delinquency Verification Certificates and Tax Clearance for certain/specific purpose

Summary

RMC No. 35-2019 reiterates the definition of Accounts Receivable/Delinquent Accounts (AR/DAs) for issuing Delinquency Verification Certificates (DVC) and Tax Clearance for specific purposes.

Key points

1. What is not an AR/DA. Under RMO No. 11-2014, open stop-filer cases and deficiency tax assessments that are timely protested, under reconsideration or re-investigation, or pending appeal with the Appellate Division, Court of Tax Appeals or Supreme Court are not AR/DAs. They are not a ground for refusing a clear DVC or Tax Clearance.
2. Verification through ARMS. Outstanding AR/DAs are generally verified through the Accounts Receivable Management System (ARMS).
3. Manual inventory list. If a taxpayer’s AR/DA appears only in the manually-maintained Inventory List, it must first be added or created in the ARMS before an application is denied or a DVC reflecting it is issued.
4. Physical docket. The physical docket of the added AR/DA must be with the concerned office, so only enforceable AR/DAs are added. Otherwise, it does not hinder issuance of a clear DVC or Tax Clearance.

Who is affected

• Taxpayers applying for Delinquency Verification Certificates or Tax Clearance

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.