Summary

RMO No. 14-2016 revises the guidelines for executing waivers of the defense of prescription under Section 222 of the NIRC of 1997, as amended.

Form of waiver. The waiver need not follow the form in RMO No. 20-90 or Revenue Delegation Authority Order No. 05-01, if it meets the listed conditions. It must be executed before the period to assess or collect expires, with the execution date shown, and it must be signed by the taxpayer or a duly authorized representative, or by a responsible official for a corporation. It must also state the expiry date of the agreed period after the regular three-year prescriptive period.
Contents. A waiver of collection must name the particular taxes assessed. A waiver for assessment need not specify taxes or amounts and may simply say all internal revenue taxes.
Authority and notarization. The taxpayer must make sure its representative is validly authorized, and that authority cannot later be contested to invalidate the waiver. Notarization is allowed, but a written waiver is sufficient. It binds the taxpayer upon execution.
Acceptance and copies. The taxpayer submits the waiver to the CIR or designated officials, or to the revenue district officer or group supervisor named in the Letter of Authority/Memorandum of Assignment, who signs to show acceptance. Acceptance must come before the period to assess or collect expires, and the taxpayer keeps a copy of the accepted waiver.
Extension. The two material dates are the date of execution and the expiry date of the waived period. Before that expiry, the period may be extended by a later written waiver made under the Order.

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

RMO No. 14-2016: Revises the guidelines for the execution of waivers from the defense of prescription pursuant to Section 222 of the National Internal Revenue Code of 1997, as amended