RMC No. 68-2012: Prescribes the guidelines on condonation of tax liabilities of local water districts

Summary

RMC No. 68-2012 sets the guidelines for processing requests by local water districts to condone their tax liabilities.

Key points

1. Application letter. The local water district files a letter with the Technical Working Committee on Abatement, through the Assistant Commissioner, Collection Service as Chairman. The letter states that it is a duly organized local water district, that it seeks condonation of unpaid taxes, and gives a detailed statement of the unpaid liabilities, including basic taxes, penalties and surcharges, and taxable years.
2. Supporting documents. The application comes with a Conditional Certificate of Conformance from the Local Water Utilities Administration and proof of financial incapacity. It also needs proof that the district submitted to Congress a program of internal reforms, certified by the local water utilities administration, that would bring economic and financial viability.
3. Additional documents. The BIR may require further documents to prove the district’s entitlement to tax exemption under prevailing circumstances.
4. Deadline. Applications must be filed on or before April 30, 2013, and none is processed after that date.

Who is affected

• Local water districts

Deadlines and effectivity

• Filing deadline: on or before April 30, 2013

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