Extending the deadline for the availment of the privilege of last priority in audit under Revenue Memorandum Circular No. 75-90 and amending and simplifying certain requirements thereof

November 7, 1990 REVENUE MEMORANDUM CIRCULAR NO. 093-90 SUBJECT : Extending the Deadline for the Availment of the Privilege of Last Priority in Audit under Revenue Memorandum Circular No. 75-90 and Amending and Simplifying Certain Requirements Thereof TO : All Internal Revenue Officers and Others Concerned There have been numerous requests and clamor received from various sectors to extend the deadline and to simplify the requirements and the procedure in the computation of the deficiency tax to be paid, for the availment of the last priority privilege in audit. There are also many taxpayers who are subject to the value added tax or the percentage taxes who would like to avail of the privilege but could not afford the minimum amount prescribed in said Circular. Furthermore, there are taxpayers who were excluded from the coverage of RMC 75-90 because they are selling services and maintain no inventory but would like to be covered by the last priority program of the Bureau. In view thereof, this Circular and amendments are hereby promulgated to attain the said objectives. SECTION 1 . The privilege of absolute last priority is hereby offered under this amendatory Circular to those who would pay a non-deductible deficiency tax covering the years 1986 to 1989 on a yearly basis in an amount computed in accordance with the following schedule but in no case should such deficiency tax be lower than the minimum amount of One Hundred Thousand Pesos (P100,000) per year: Tax due per return Tax Rate Up to P50,000 500% Over P50,000 P500,000 400% Over P500,000 P1,000,000 350% Over P1,000,000 P2,000,000 300% Over P2,000,000 P3,000,000 250% Over P3,000,000 200% With respect to taxable years 1986 and 1987, the taxpayer may avail of the privilege of absolute last priority under this Circular, provided that no proposed or preliminary notice of assessment has yet been issued as of November 9, 1990. aisa dc SECTION 2 . The basis for computing the deficiency tax shall be the amount of income tax (Title II), VAT (Title IV), and/or other percentage taxes (Title V) due per return. In the case of income tax and other percentage taxes, the basis shall be the tax due per return before credits for withholding tax, quarterly corporate tax, tax credit memos and certificates and in the case of value added tax, it is the amount after deducting the input tax. SECTION 3 . Taxpayers need not file an amended return nor submit any other document except for the form prescribed herein as Annex "A" and the payment of the deficiency tax due at the time of filing such form. SECTION 4 . Taxpayers are allowed to select the taxable year they want to avail of the privilege. For example, if they want to avail only for the years 1986 and 1989, he may do so by paying the appropriate amount of tax prescribed in Section 1 above. cd SECTION 5 . Taxpayers who have availed of the "sympathetic treatment" for taxable year 1988 under RMC 23-89 and relative last priority for the taxable years 1988 and 1989 under RMC 75-90 may still avail of the absolute last priority in audit under this Circular, and any additional amount paid under RMC 23-89 and 75-90 shall be credited against the tax to be paid under this amendatory Circular. However, the minimum amount to be paid under this Circular after crediting the deficiency tax paid under RMC 23-89 (sympathy treatment) and RMC 75-90 (relative last priority) shall in no case be lower than One Hundred Thousand Pesos (P100,000) per year. SECTION 6 . No tax credit certificates or memoranda shall be used in payment of the tax due under this privilege. 7 . The privilege herein granted shall be available only up to November 30, 1990. SECTION 8 . All provisions in RMC 75-90 are hereby adopted and shall form part of this amendatory Circular, except for such provisions which are inconsistent with the provisions of this Circular. cd SECTION 9 . This Circular shall take effect immediately upon approval. JOSE U. ONG Commissioner of Internal Revenue