RMC No. 67-2010: Circularizes the revocation of BIR Ruling No. DA-722-2006 issued in favor of Atlas Consolidated Mining and Development Corporation

Summary

RMC No. 67-2010 circularizes the revocation of BIR Ruling No. DA-722-2006, dated December 15, 2006, issued in favor of Atlas Consolidated Mining and Development Corporation (Atlas).

Key points

1. What the ruling had declared. Based on Atlas’ representation that it had filed returns, the ruling said the BIR could no longer assess and collect Excise Tax on gold and silver from its Masbate Mining Operations, and that the period to assess Excise Tax on copper concentrates from its Toledo Mining Operations had prescribed. It also said the write-off of those liabilities would not be a taxable event.
2. Basis of the earlier ruling. The ruling held the right to assess had prescribed under Section 203 of the Tax Code of 1997, since assessments came more than three years after the returns were filed.
3. Reason for revocation. It was later discovered that Atlas did not file the returns it had represented. Where no return is filed, the period is ten years after discovery of the omission under Sec. 222, not three years under Section 203, so the assessments were within the allowed period.

Who is affected

• Atlas Consolidated Mining and Development Corporation

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