RR No. 05-2002: Prescribes the establishment of electronic linkage with excise establishment

Summary

RR No. 05-2002, issued May 27, 2002, provides for an electronic linkage with excise tax establishments. The linkage lets the Bureau extract information directly from taxpayers’ databases to determine the correct Excise Taxes.

Key points

1. Mandatory linkage. The linkage is mandatory for excise tax establishments with computerized books of accounts and accounting system, as identified by the Commissioner of Internal Revenue. It covers operations from receipt of raw materials up to removals and/or sales of goods.
2. Notice and coordination. The Commissioner notifies identified taxpayers in writing. They then immediately coordinate with the Large Taxpayers Service (Excise Tax Group) on data requirements, operational and technical specifications, and other resource requirements.
3. Presumptions. The extracted information is presumed to include all recorded transactions covered by the linkage and to be an exact replica of the data in the taxpayer’s database. If there are disputes or discrepancies, the data on the BIR server prevails.
4. Confidentiality. Extracted information is kept in utmost confidence and used only for internal revenue tax purposes. Security procedures guard against harm from disclosure to unauthorized persons.
5. Taxpayer duties. A taxpayer that upgrades or enhances its system notifies the BIR in writing for re-evaluation. Enhancing the linkage module so transmission is not hampered is the taxpayer’s sole responsibility.
6. Downtime and parallel filing. If downtime or non-connectivity is attributable to the Bureau, the taxpayer submits reports or data in a readable and compatible diskette format. Linked taxpayers also file periodic excise returns and reports on production and removals in parallel, until the operations are fully linked.

Who is affected

• Excise tax establishments with computerized books of accounts identified by the Commissioner of Internal Revenue

Deadlines and effectivity

• Parallel filing continues until the entire operations are fully linked with the BIR

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