Review and Evaluation by Commissioner of Internal Revenue of All Pending Cases of Delinquent Accounts

August 22, 1975

LETTER OF INSTRUCTIONS NO. 308

TO : The Commissioner of Internal Revenue

WHEREAS, the voluntary payments made under the various tax amnesty decrees which had already reached P1.4 billion is tangible proof of the high sense of patriotism and involvement of the tax-paying public in the government's drive to build a reformed and progressive New Society; aisa dc

WHEREAS, with the exception of Presidential Decree No. 68, the various tax amnesty decrees invariably excluded from their provisions, deficiency assessments issued on the basis of investigations made by the Bureau of Internal Revenue prior to their dates of promulgation;

WHEREAS, these delinquent tax accounts have become a nagging problem that is growing every year, causing irritations on an otherwise wholesome tax-payer- BIR relationship, and consuming the time and effort of revenue personnel that should be devoted to the tapping of new sources of revenue;

WHEREAS, it is desirable to have a mode of settling expeditiously all such delinquent tax liabilities or deficiency assessments not paid or covered by the previous tax amnesties, in order that taxpayers and the government can work in closer partnership for the realization of the objectives of the New Society.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by Constitution, hereby order and authorize: aisa dc

The Commissioner of Internal Revenue to cause the immediate review and evaluation, and to exercise his authority to make compromises with the view to terminating all cases of delinquent accounts, whether pending with the Bureau of Internal Revenue or with the Courts, as the facts and circumstances thereof may warrant.

This Order shall embrace all cases within the purview of the express provision and spirit of section 309 of the National Internal Revenue Code, as amended, including those —

1. Where the taxpayer is insolvent or that his/its financial position to demonstrates a clear inability to pay the assessed tax;

2. Where the corporate taxpayer has dissolved and no successor-in-interest had been ascertained or is ascertainable, except its former board of directors and other officials who continue to remain liable under existing jurisprudence;

3. Where evidence is insufficient or hard to obtain; cd i

4. Where taxpayer's property is outside the territorial jurisdiction of the country;

5. Where the collection enforcement would be difficult because of prior adverse claims on taxpayer's assets;

6. Where the interest of the government is best served by avoiding long, tedious and costly litigation;

7. Where the assessment is of doubtful validity; and

8. Where similar circumstances are present.

The Commissioner of Internal Revenue shall organize the office machinery and issue the necessary rules and procedures to implement effectively this Order.

This Letter of Instructions shall be effective immediately.

DONE in the City of Manila, this 22nd day of August, in the year of Our Lord, Nineteen Hundred and Seventy-Five. cd