RMC No. 40-2003: Clarifies the effect of issuance and receipt of Letter Notice to the taxpayer’s right to amend its tax returns

Summary

RMC No. 40-2003 clarifies how issuing and receiving a Letter Notice (LN) affects a taxpayer’s right to amend its tax returns.

Key points

1. LN as notice of audit. An LN served on taxpayers found to have under-declared sales or purchases through the Third Party Information Program can be considered a notice of audit or investigation.
2. Effect on amendments. This disqualifies the taxpayers concerned from amending any return that is the subject of the audit or investigation.

Who is affected

• Taxpayers served an LN for under-declared sales or purchases under the Third Party Information Program

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