RR No. 07-98: Implements Section 230 of the NIRC, as amended by RA No. 8242 relative to the treatment of cash refunds and of Tax Credits

Summary

RR No. 07-98 implements Section 230 of the NIRC, as amended by RA No. 8242, on the treatment of cash refunds and Tax Credit Certificates (TCC).

Key points

1. Five-year rule. An issued cash refund or TCC that stays unclaimed, uncashed or unutilized five (5) years after its date of issue is considered invalid unless revalidated. It is forfeited in favor of the government, and the amount reverts to the General Fund.
2. Older TCCs. A TCC issued by the Commissioner or an authorized representative before January 1, 1988, which is unutilized or has a creditable balance as of that date, may be presented for revalidation.
3. How to revalidate. The taxpayer files a written application for revalidation with the Bureau’s Chief of the Appellate Division. The taxpayer surrenders the original copy of the unutilized TCC for verification and cancellation.

Who is affected

• Holders of cash refunds and Tax Credit Certificates
• Holders of TCCs issued before January 1, 1988

Deadlines and effectivity

• Cash refund or TCC invalid or forfeited if unclaimed after five (5) years from date of issue
• Revalidation of TCCs issued before January 1, 1988: on or before August 31, 1998

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