RMO No. 09-2014: Prescribes guidelines in the processing of requests for rulings with the Law and Legislative Division

Summary

RMO No. 09-2014 prescribes guidelines for processing requests for rulings with the Law and Legislative Division.

Key points

1. What a ruling is. A tax ruling is the BIR’s official position on a taxpayer’s inquiry about the NIRC, other tax laws or their implementing regulations. It rests on the particular facts presented and the law at a specific point in time.
2. Limits on rulings. The BIR does not give tax planning advice or approve tax planning arrangements. It will not resolve through a ruling an issue that can be settled by another process, such as an appeal. No ruling is issued on alternative plans of proposed transactions or on supposed situations, and none on local taxes, customs duties or other charges outside the BIR’s powers.
3. When no ruling is issued. The Law and Legislative Division issues no ruling if the taxpayer sent a similar inquiry to another BIR office. It also issues none if the same issue involving the same or a related taxpayer is in litigation, or is under investigation, audit, administrative protest, refund or tax credit claim, or collection proceeding. Matters declared “No Ruling Areas” in RB No. 1-2003, as amended by RB No. 2-2003, are also excluded, and non-compliance with the Order’s requirements may prevent an opinion.
4. Request contents. The Order specifies the information the request letter must contain and the general documents that must come with it.
5. Reliance and revocation. A taxpayer ordinarily may rely on a valid ruling for the transaction it was requested for, if the request fully and accurately described the transaction. Other taxpayers cannot cite a ruling as precedent. A ruling may be revoked or modified, for example when the facts differ from those represented or it is not in accord with the Commissioner’s current views.

Who is affected

• Taxpayers requesting rulings from the Law and Legislative Division

Deadlines and effectivity

• Issued February 7, 2014

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