RMC No. 68-2010: Prescribes the guidelines and procedures in granting the request of Large Taxpayers for extension in complying with the requirements for the mandatory use of Computerized Accounting System

Summary

RMC No. 68-2010 sets the guidelines and procedures for granting requests of Large Taxpayers (LTs) for an extension to comply with the mandatory use of Computerized Accounting System (CAS) under Revenue Regulations (RR) No. 9-2009.

Key points

1. Background deadline. LTs keeping manual books and accounting records had to register their CAS and/or components not later than December 31, 2009. Some LTs asked for a window beyond that deadline.
2. Covered Large Taxpayers. The circular covers LTs using an excel program or manual books, LTs already using CAS without the required Permit to Use/Adopt CAS from the Large Taxpayers Service, and LTs with permits issued before taxable year 2002 that must apply for revalidation on or before December 31, 2010.
3. How to request. A letter goes to the Assistant Commissioner, LTS, Attention: Chief, Large Taxpayers Assistance Division (LTAD) or Chief, Large Taxpayers District Office (LTDO), with a Sworn Statement signed by the authorized signatory. The statement gives the compelling reason for non-compliance and a specific timeline, and for manual-book LTs also confirms the company still keeps books manually.
4. Evaluation and reporting. The Chief of LTAD or LTDO, as head of the Computerized System Evaluation Team, evaluates the request and recommends approval or disapproval to the ACIR-LTS. A report of extensions granted goes to the Commissioner every 15th of the following month, showing the taxpayer name, reason and period of extension, which cannot go later than December 31, 2010.

Who is affected

• Large Taxpayers keeping manual books or using excel
• Large Taxpayers using CAS without a Permit to Use/Adopt
• Large Taxpayers with permits issued before taxable year 2002

Deadlines and effectivity

• Original CAS registration deadline: not later than December 31, 2009
• Revalidation of pre-2002 permits: on or before December 31, 2010
• Extension granted: not later than December 31, 2010
• Report to the Commissioner: every 15th of the following month

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