Entitlement to Last Priority Privilege in Audit and Investigation of Income Tax Return

April 4, 1986 BIR RULING NO. 035-86 7-b 141-85 035-86 S i r : This refers to your letter dated December 12, 1985, in effect requesting for a ruling on whether you are entitled to the benefit of last priority in audit and investigation of your 1982 income tax return, based on the following representation of facts: cdtech 1) That after final computation, the 1982 income tax due from you amounted to P89,553.00; that after crediting the expanded withholding tax of P111,284.59 there appears an overpayment of P21,731.59. 2) That you have filed your 1982 income tax return on April 15, 1983 together with a supplementary statement, declaring therein that your 1982 income tax payment is 42% more than your 1981 income tax payment; 3) That while you have indicated in your 1982 income tax return the overpaid expanded withholding tax you waived your right to claim the refund thereof, since you have availed of the privilege of last priority in audit and investigation under Revenue Memorandum Order No. 8-83. In reply, please be informed that under subparagraph 2, paragraph III of RMO No. 8-83 reading: "III. Determination of last priority privilege . xxx xxx xxx "2. Taxpayers who in their income or percentage tax returns in a given year have made payments amounting to at least 25% above the payments made in the immediately preceding year shall be entitled to qualify for the privilege of last priority herein granted, subject however to the conditions prescribed under 2.1, 2.2 and 2.3 hereof. Likewise, amendments to income and percentage tax returns as well as deficiency tax assessments issued by this Office shall be included in the computation of the 25% needed for the availment of this privilege." you are entitled to qualify for the privilege of last priority granted herein for your 1982 income tax return, it appearing that your income tax payment for said taxable year is 42% more than the 1981 income tax paid by you, and that you are not claiming a refund of the excess expanded withholding tax. aisadc Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner