RMO No. 14-2004: Expands the coverage of the Centennial Taxpayers Recognition Program (CTRP)

Summary

RMO No. 14-2004 expands the coverage of the Centennial Taxpayers Recognition Program (CTRP) to corporations using a fiscal year, and sets the ranking, audit protection and voluntary payment rules.

Key points

1. Fiscal year corporations. Corporations using a fiscal year may vie for the Centennial Taxpayer Award if the year begins and ends on one of these dates: August 1, 2002 to July 31, 2003; September 1, 2002 to August 31, 2003; October 1, 2002 to September 30, 2003; November 1, 2002 to October 31, 2003; or December 1, 2002 to November 30, 2003. These are in addition to calendar year corporations and individuals earning business income.
2. Ranking. Qualified Centennial Taxpayers are ranked by weighted score in percentage increase and absolute peso in tax payment. This covers growth of income tax payment for tax year 2003 over 2002, 4th quarter 2003 over 4th quarter 200, and 1st quarter 2004 over 1st quarter 2003.
3. Audit protection. On top of the benefits in RMO No. 7-2004, the top 1,000 Centennial Taxpayers get last priority in audit and investigation for taxable calendar or fiscal year 2003 for all tax payments. Any audit needs careful evaluation and authorization by the BIR Commissioner.
4. Voluntary payment for others. Other Centennial Taxpayers get the same protection if they made a voluntary payment, which is not needed to qualify. For tax due for 2003 up to P 10,000,000 the payment is P 100,000.00. Over P 10,000,000 to P 50,000,000 it is P 500,000.00. Over P 50,000,000 to P 100,000,000 it is P 1,000,000.00. Over P 100,000,000 to P 500,000,000 it is P 5,000,000.00. Over P 500,000,000 it is P 10,000,000.00.
5. Participation form. Aspirants need not file an amended Income Tax return to show voluntary payments. They file the CTRP Participation Form with the Revenue District Office where they are registered, attaching a copy of the Centennial Voluntary Payment Form (BIR Form 0605-100) when applicable.

Who is affected

• Corporations using a fiscal year with the listed start and end dates
• Top 1,000 Centennial Taxpayers
• Centennial Taxpayers who made a voluntary payment

Deadlines and effectivity

• CTRP Participation Form due not later than May 30, 2004

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