To Extend Administrative Compromise Settlement of Delinquent Accounts Under RMO No. 1-88, As Amended

June 18, 1990 July 1, 1990 REVENUE MEMORANDUM ORDER NO. 29-90 SUBJECT : To Extend Administrative Compromise Settlement of Delinquent Accounts Under RMO No. 1-88, As Amended TO : All Internal Revenue Officials and Others Concerned Encourage by the enthusiastic response of delinquent taxpayers in settling their tax delinquency thru the administrative compromise settlement and as another step towards the conversion of our receivable accounts to cash which is urgently needed by the government, Revenue Memorandum Order No. 1-88, as amended, on Administrative Compromise Settlement of Delinquent Accounts is hereby extended up to December 31, 1990, subject to the following rules and amendments: 1. Coverage The administrative compromise settlement will cover 1987 and prior (calendar or fiscal) taxable years on assessments issued on or before the date of this Order. cdt 2. Compromise Rate The rate of compromise provided for under paragraph 3 of RMO No. 1-88 is hereby revised as follows: (a) 1985 and prior years - 50% of the basic tax assessed (b) 1986 and 1987 - 100% of the basic tax assessed 3. In no case may any revenue office/revenue official passing upon cases applied for administrative compromise settlement shall cause any computational adjustment or adjustments in determining the basic tax before applying the compromise settlement rate, any error in the assessment and demand being compromised notwithstanding. 4. The compromise amount must be paid within the time prescribed in the compromise agreement/approval. If the compromise amount is not paid within the time so specified, the compromise agreement is automatically nullified and the delinquent account reverted to the original amount plus the statutory increments, which shall be collected through the summary and/or judicial processes provided for by law. 5. All delinquent accounts that have been previously applied for compromise settlement not yet finally approved as of the date of the effectivity of this Order will now be processed subject to the rates and conditions prescribed in this Order. acd 6. Repealing Clause This Revenue Memorandum Order supersedes RMO Nos. 8-89 dated February 9, 1989 and 16-89 dated March 9, 1989 and other issuances or portion thereof that are inconsistent herewith. 7. Effectivity This Order shall take effect July 1, 1990 and shall remain in force until December 31, 1990. cd (SGD.) JOSE U. ONG Commissioner of Internal Revenue