Issues and Concerns of the Estate Tax Amnesty Returns (ETARs) (BIR Form No. 2118-EA) Transmitted to the DPD for Encoding

October 30, 2019 OPERATIONS MEMORANDUM NO. 031-19 TO : All Regional Directors, Revenue District Officers, Chiefs of the Document Processing Divisions, Revenue Offices and All Others Concerned SUBJECT : Issues and Concerns of the Estate Tax Amnesty Returns (ETARs) (BIR Form No. 2118-EA) Transmitted to the DPD for Encoding This Operations Memorandum is being issued to reiterate the policies, guidelines and procedures in the processing of Estate Tax Amnesty Availment pursuant to Revenue Memorandum Order (RMO) No. 33-2019. HTcADC The Document Processing Divisions (DPDs) have raised issues in the Estate Tax Amnesty Returns (ETARs) (BIR Form No. 2118-EA) transmitted to the said office. The following issues that has been observed are curtailing the encoding of these returns. A. RETURNS ARE NOT COMPLETELY FILLED-OUT It was observed that the returns being transmitted to the DPDs are not completely filled-up. The schedules and other fields on the second page are left blank. It should be noted that Section II (2) of the abovementioned RMO clearly states that: "2. The RDO shall verify the completeness and correctness of the documentary requirements as enumerated in the Estate Tax Amnesty Returns (ETARs) (BIR Form No. 2118-EA), and ensure that all fields of the said return are completely and accurately filled-up. In case there are items which are not applicable to the taxpayer, the words "Not Applicable" or "N.A." shall be indicated on the space provided." Furthermore, in Section III (7) the One-Time Transactions (ONETT) Team Revenue Officer and the Group Supervisor are both instructed to assist the tax filer, to wit: "7. Assist the filer in filling up the ETAR, upon receipt of the complete documents, and ensure that all fields of the return are completely and accurately filled up. In case there are items which are not applicable to the taxpayer, the words "Not-Applicable" or "N.A." shall be indicated on the subject fields"; B. ONLY PHOTOCOPIES OF ETARS ARE TRANSMITTED TO THE DPD As reported, there had been instances when only photocopies of the ETARs were transmitted to the DPD with the reason that the taxpayer filed/accomplished only one (1) copy of the ETAR. This is contrary to the provision in Section II (10) of RMO No. 33-2019 which states that the RDO shall transmit to the concerned DPD the original copy of the ETAR for encoding to the DEM. Considering that the ONETT Team is mandated to assist the taxpayer filing the ETAR, the same should have been advised to file/accomplish the return in triplicate as instructed in Section 9 of Revenue Regulations No. 6-2019, to wit: aScITE "x x x. . . After payment, the duly accomplished and sworn ETAR and APF with proof of payment, together with the complete documentary requirements shall be immediately submitted to the RDO in triplicate copies. X x x" In Revenue Memorandum Circular No. 68.2019, the answer to question number "8" even identifies the three (3) parties to whom each copy of the ETAR should go to. Original Document Processing Division (DPD) Duplicate Docket file Triplicate Taxpayer's Copy It should also be reminded that the Client Support Section (CSS) of the RDO should validate the existing Taxpayer Identification Number (TIN) in the Integrated Tax System (ITS) to determine if there was a previously filed estate tax return and if the heirs have existing TIN. If none, a TIN should be issued for the purpose. Importance should be given the abovementioned concerns and stringent implementation of the provisions stating the policies, guidelines and procedures in the processing of Estate Tax Amnesty Availment should be followed in view of the need for complete accurate information that will be part of the Tax Amnesty Program database and in anticipation of the data that will be required by the Department of Finance. Lastly, the DPDs are instructed to return to the RDO for their correction, all the ETARs that falls short of the compliance requirements or has inconsistencies with the reiterated policies, guidelines and procedures above. The RDO shall then correct/complete the ETAR returned by the DPDs and transmit the same back to the DPD when ETARS are corrected/completed. Strict compliance is hereby enjoined. (SGD.) ARNEL SD. GUBALLA Deputy Commissioner Operations Group