Guidelines on the Extension of Payment of 50% or More of the Previous Year's Tax Liability and Certain Issues on the Availment as Provided for Under RMC No. 23-89

May 4, 1989 REVENUE MEMORANDUM CIRCULAR NO. 29-89 SUBJECT : Guidelines on the Extension of Payment of 50% or More of the Previous Year's Tax Liability and Certain Issues on the Availment as Provided for Under RMC No. 23-89 TO : All Assistant Commissioners, Revenue Directors, Revenue District Officers and Others Concerned In response to the numerous and persistent requests from various sectors to extend the deadline for amending the 1988 Income and Business Tax returns to comply with the 50% minimum increase over that of 1987 ITR for income tax; and for VAT and other percentage taxes based on the total tax liability for 1988 (four quarters), these additional guidelines are hereby issued for the information of all concerned. cdt A. Coverage and Limitation If an amendment of the 1988 tax return and an additional payment were made without amending the VAT or other percentage tax return for 1988, then only the income tax liability of the taxpayer shall be accorded with whatever privilege will be extended for such availment or vice versa. B. Bases of the Payment of the 50% or more Additional Tax 1. For corporations on fiscal year basis, the privilege shall be extended to those entities whose taxable period end on July 31, August 31, September 30, October 31 and November 30, 1988; 2. For corporations on fiscal year basis, the availment shall be based on the income tax due per return as of July 31, 1987 and so on, and for VAT and other percentage taxes the basis shall be the total tax liability for 1988. (Business tax liability means the output tax for VAT and the total percentage tax due for other business taxes, without the benefit of credits.) C. Extended Deadline To accommodate all taxpayers willing to avail of this program, the undersigned hereby extends the deadline for the filing of the amended returns and the payment of additional taxes without any increment to May 15, 1989. This extension is final. D. Taxpayer to Inform BIR For those taxpayers who are no longer amending their 1988 returns but have already complied with the required minimum payment as of April 17, 1989, their letter to the Revenue Director, Attn.: Chief, Assessment Branch, must be accompanied by photo copies of the first pages of the 1987 and 1988 returns, a copy of which shall be furnished the Commissioner, Attn.: Chief, Tax Information and Assistance Division, NOB, Diliman, Quezon City, with the same attachments for monitoring purposes not later than May 20, 1988 . casia E. Processing of the Returns Filed In view of the new deadline, the Revenue Directors are hereby instructed to transmit the returns (original and duplicate) in time to be received in the Office of the Commissioner not later than May 31, 1989. F. No Letter of Authority (LAs) will be issued for 1988 Returns No letter of authority shall be issued by any investigating unit in the Bureau covering taxable year 1988 and in the case of corporations on fiscal year basis, those ending July 31, 1988 up to November 30, 1988, until all returns shall have been classified in accordance with this program. Any violation of this ban shall be dealt with severely. All revenue officials and employees are hereby enjoined to give this Circular the widest publicity. JOSE U. ONG Commissioner of Internal Revenue