Availment of Privilege to Pay Correct Sales Tax on Subsequent Sales without Penalties and Surcharges

June 24, 1986 REVENUE MEMORANDUM CIRCULAR NO. 18-86 SUBJECT : Availment of Privilege to Pay Correct Sales Tax on Subsequent Sales without Penalties and Surcharges TO : All Internal Revenue Officers and Others Concerned In the interest of emphasizing and promoting the positive in tax collection, and in view of the encouraging response of taxpayers in the payment of the sales tax on subsequent sales, this circular is issued to reach taxpayers who are still uninformed or undecided in the payment of the said tax. aisa dc 1. Privilege and Scope All taxpayers liable to the "sales tax on second sale" and/or the "sales tax on subsequent sale" at 3% and 1.5%, respectively, are allowed to amend their returns and pay the correct sales tax due without the imposition of penalties and surcharges, for the months of November, 1985 to June, 1986 (originally limited to the period from November, 1985 to April, 1986 under memorandum dated May 20, 1986). The privilege is hereby expanded to cover non-filing of the required returns and non-payment of the said tax. 2. Deadline The privilege, however, should be availed of not later than July 31, 1986. 3. Manner of Availment The privilege may be availed of by declaring the correct amount of taxable subsequent sales or second sales in the amended return (BIR Form 2529D) and paying the amount of tax still due after crediting the sales tax paid on the original return. The words "amended return" should be written or typed on the upper right hand side of the return to distinguish it from the original return previously filed. To illustrate : Mr. Juan de la Cruz declared in his original return the amount of P50,000 as his gross sales for the month of January, 1986. However, for the same month, his true amount of sales subject to 1.5% is P100,000. Gross Sales P100,000 Less: 1) Sales to subject to zero rate 2) Exempt Sales Taxable Subsequent Sales 100,000 Less: Sales Returns & Allowances Net Taxable Subsequent Sales 100,000 Tax Due 1,500 Less: Tax Paid Under CR/ROR-0001 750 SALES TAX STILL DUE P750 In the case where the taxpayer failed to file the return and pay the tax, the filing of a separate or consolidated return and the payment of tax will be sufficient availment of the privilege. However, the returns for the period from November to December, 1985 and the returns for January to June, 1986 shall be separately filed in order to avoid confusion in the application of the tax rates of 3% or 1.5%. cd All internal revenue officers and others concerned are hereby enjoined to give this Revenue Memorandum Circular the widest publicity possible. (SGD.) BIENVENIDO A. TAN, JR. Commissioner