Summary
RMO No. 02-98 prescribes policies and guidelines to intensify the collection and settlement of delinquent accounts under RA No. 8424, the Tax Reform Act of 1997.
Key points
- Settlement authority. The Revenue Regional Approval Committee may settle by compromise and/or abatement delinquent accounts for 1996 and prior taxable years with basic taxes not exceeding P500,000.
- Minimum collection rates. Tax due per return and the second installment of income tax must be collected at 100% of the basic tax. Other delinquent account cases require 50% of the basic tax.
- Cases above P500,000. The same minimum percentages apply when basic taxes exceed P500,000. Dockets of these cases go to the BIR Management Committee for final approval.
Who is affected
- Delinquent accounts for 1996 and prior taxable years
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.