RR No. 15-2006: Prescribes the guidelines on the implementation of one-time administrative abatement of all penalties/surcharges and interest on delinquent accounts and assessments (preliminary or final, disputed or not) as of June 30, 2006

Summary

RR No. 15-2006 sets guidelines for a one-time administrative abatement of all penalties, surcharges and interest on delinquent accounts and assessments (preliminary or final, disputed or not) as of June 30, 2006.

Key points

1. Cases covered. Covered cases include delinquent accounts, Income Tax 2nd installment cases, dishonored checks, cases under protest, assessed cases, civil tax cases in the DOJ and courts, collection cases, pending compromise and RR No. 13-2001 abatement requests, failure to withhold, Letter Notice cases, and certain criminal violations. Cases where the PCGG has an interest or coordination is needed are excluded.
2. Amount to pay. A taxpayer, natural or juridical, pays 100% of the Basic Tax assessed with the Accredited Agent Bank, or with the Revenue Collection Officer/Deputized Treasurer if there is no bank. The penalties, surcharge and interest are then cancelled, and the docket goes to the Office of the Commissioner for a Termination Letter.
3. Exclusions. The program is not available to those who already paid any portion of the surcharge, interest or other increments, or to tax cases in which the PCGG has an interest. Pending compromise or abatement requests with approved amounts or payments already made are also not covered.
4. Where to file. The office holding the docket receives and processes the application, such as the RDO, Assessment Division, Legal Division, Collection Service, LTS, Legal Service or Enforcement Service, depending on the case.
5. Staggered payment. Staggered payment may be considered case by case with the approval of the Regional Director or the concerned ACIR. Cases pending in court are not withdrawn until 100% of the basic tax is fully paid, and unpaid abated amounts revert to the original amount with statutory increments.

Who is affected

• Any person or taxpayer, natural or juridical, with a delinquent account or assessment released as of June 30, 2006

Deadlines and effectivity

• Covers delinquent accounts and assessments as of June 30, 2006
• Remains in force until October 31, 2006, subject to CIR extension on meritorious grounds

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