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RMO No. 14-2007: Prescribes additional procedures to detect the presence of “Fly-by-Night” taxpayers in the current database of the BIR and to thwart their subsequent request to secure Authority to Print sales invoices/official receipts

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Summary

RMO No. 14-2007 prescribes added procedures to detect Fly-by-Night taxpayers in the BIR database and to block their later requests for Authority to Print (ATP) sales invoices and official receipts.

Key points

  1. Who are Fly-by-Night taxpayers. They register with the BIR only to get invoices or receipts that they sell to others. They cannot be found at their registered addresses and deliberately do not file required returns.
  2. Tax mapping and inspection. All new business registrants for a month are included in the monthly tax mapping of the RDO/LTS with jurisdiction. An ocular inspection checks the business at its registered address, and a taxpayer who moved or stopped without notice is closely monitored on return filing, tax payment and later ATP requests.
  3. Added ATP requirements. Taxpayers asking for a later ATP also submit a photocopy of the latest annual Income Tax return. They also submit VAT returns (for VAT invoices or receipts) or Percentage Tax returns (for Non-VAT invoices or receipts) filed within a 12-month period ending the month before the request.
  4. Missing returns and unpaid taxes. A taxpayer with no returns must file all returns missed since registration and pay the deficiency taxes. Taxes shown as due on returns but unpaid must be paid first, and a taxpayer registered for less than one (1) year presents only the returns filed since registration.
  5. Processing and referral. The ATP is issued within one (1) day after all requirements are submitted and the returns are validated. Registrants using their registration for fraudulent transactions are referred for criminal prosecution, and taxpayers using their invoices or receipts to claim input taxes or deductions are dealt with accordingly.

Who is affected

  • New business registrants
  • Taxpayers applying for a subsequent ATP for sales invoices/official receipts
  • RDO/LTS offices

Deadlines and effectivity

  • Returns required: 12-month period ending the month before the ATP request
  • ATP issuance: within one (1) day after submission of requirements and validation of returns

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.