BIR Ruling [DA-092-04]

March 1, 2004 BIR RULING [DA-092-04] RMO 59-97 & RMO 60-97 Ms. Rosemarie M. Vitto Bureau of Internal Revenue Revenue District No. 60 Lucena City M a d a m : This refers to your letter dated December 15, 1999 in effect requesting for a ruling as to whether or not investigation can be pursued against a taxpayer who availed of the Voluntary Assessment Program. It is represented that in one of the seminars conducted by the Training Division of the Bureau, it was mentioned by one of the resource speakers that a taxpayer who availed of the Voluntary Assessment Program (VAP) on either income or business taxes cannot be investigated; and that you have a taxpayer who is claiming exemption from investigation under the VAP. In reply, please be informed that the Voluntary Assessment Program (VAP) was initially offered to petroleum dealers under Revenue Memorandum Order No. 39-96, as amended by RMO No. 10-97. RMO No. 59-97, as amended by RMO No. 60-97, expanded the coverage of VAP to all taxpayers who would be interested to avail of the following benefits: "V. BENEFITS OF THE VAP "A taxpayer-applicant may avail of the following benefits under the VAP: 1. A bona fide rectification of filing errors and assessment of tax liabilities under the VAP shall relieve the taxpayer-applicant from any criminal or civil liability incident to the misdeclaration of incomes purchases, deductions, etc. and non-filing of a return. 2. The taxpayer who shall avail of the VAP shall be liable only for the payment of the basic tax due. EaScHT 3. There shall be no investigation of taxpayers who have availed under VAP authorized under this Order and who have correctly declared their true tax liabilities, except under approval of the Commissioner of Internal Revenue, when there is evidence or finding of misdeclaration of any information on the return filed under the VAP .(emphasis provided) Based on the foregoing, this Office is of the opinion and so holds that no investigation of taxpayers who have availed of the VAP covering taxable years 1993 to 1996 for income tax on business and compensation income, value-added tax and other percentage taxes under Titles II, IV and V of the Tax Code of 1997, can be pursued successfully provided the taxpayer involved correctly declared its/his true tax liabilities. The only exception is when the Commissioner of Internal Revenue so approves that an investigation be conducted in cases where there is evidence or finding of misdeclaration of any information on the return filed under the VAP. Please be guided accordingly. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal & Inspection Group