Summary
RMO No. 26-2020 prescribes the revised Exchange of Information (EOI) Working Manual and amends RMO Nos. 2-2013 and 3-2013 for this purpose.
Key points
- Who uses the Manual. The EOI Unit of the International Tax Affairs Division (ITAD) and all BIR officers whose work relates to assessment, collection, enforcement, prosecution or appeals for taxes covered by a tax treaty’s exchange of information provision. The EOI Unit handles incoming and outgoing exchanges with foreign tax jurisdictions under the Commissioner’s supervision.
- Who may sign. Under RDAO Nos. 2-2019 and 3-2020, officials other than the Commissioner may now sign EOI documents. The ITAD Division Chief signs the acknowledgment letter to the foreign tax authority. The ACIR, Legal Service signs letters to government agencies, letters to BIR offices, and partial and final replies to foreign authorities. The DCIR, Legal Group signs letters to banks and other financial institutions and outgoing EOI requests.
- Who may request information. Requests may relate to assessment, collection, enforcement, prosecution or appeals, not only assessment. Examiners, ITAD action officers and the ITAD Chief, Collection Officers and Prosecution Officers may initiate requests.
- Notification of account-holders. For banking information, the account-holder is notified within sixty (60) days from receipt of the letter of request. RR No. 22-2018 delays notice to the taxpayer until the requesting jurisdiction says its investigation has reached finality, where notice would likely undermine the investigation and the deferment is substantiated. These provisions are in the Manual.
- Group requests and response time. The manner of initiating an EOI group request is now included. The requested office or taxpayer is given a shorter period, usually 30 days, with an extension of no more than 30 days. The old period was usually 60 days, extendable by another 30 days.
- Reasons and duties. The streamlining responds to the Global Forum’s June 2018 recommendation and the Ease of Doing Business and Efficient Government Service Delivery Act of 2018. Officers follow the Manual when initiating outgoing requests, answering incoming requests on time, and keeping confidentiality at all times. The Model Templates were also revised.
Who is affected
- EOI Unit of the ITAD
- BIR officers whose functions relate to taxes covered by treaty exchange of information
Deadlines and effectivity
- Notification of account-holder within sixty (60) days from receipt of the letter of request
- Response period usually 30 days, extension not exceeding 30 days
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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