BIR
BIR offers VAPP for 2018 tax deficiencies
BY
Taxpayers have until December 31, 2020 to settle their
2018 tax deficiencies and enjoy the privilege of “no audit”
through availment of the BIR’s Voluntary Assessment and
Payment Program (VAPP).
The implementation of the VAPP is prescribed under
Revenue Regulations (RR) No. 21-2020 issued by the
BIR on September 4, 2020. Through voluntary payment
of additional tax under the VAPP for the covered period,
taxpayers are given the opportunity to help the government
defray its increased expenditures brought about by the
COVID-19 pandemic.
The VAPP covers all internal revenue taxes due for the
taxable year ending December 31, 2018, and for fiscal
year 2018 ending on the last day of July 2018 to June
2019, including taxes on One-Time Transactions (ONETT)
such as Estate Tax, Donor’s Tax, Capital Gains Tax, as well
as ONETT-related Creditable Withholding Tax/Expanded
Withholding Tax and Documentary Stamp Tax.
Taxpayers with erroneously paid internal revenue tax
liabilities or those who failed to file tax returns may avail
of the VAPP benefits, except those who have been issued
a Final Assessment Notice (FAN) that have become final
and executory on or before the effectivity of RR No. 21-
2020; persons under investigation as a result of verified
information filed by a tax informer with respect to the
deficiency taxes that may be due out of such verified
information; those with cases involving tax fraud filed and
pending in the Department of Justice or in the courts; and
those with pending cases involving tax evasion and other
criminal offenses.
Taxpayers who failed to file tax returns and/or pay their
taxes (either Income Tax, Value-Added Tax, Percentage
Tax, Excise Tax or DST other than DST on ONETT) for
taxable year 2018 can apply for VAPP, provided that the
unfiled tax returns will first be filed and/or unpaid taxes
plus corresponding penalties for late filing and payment
will first be paid by the taxpayer.
A taxpayer who will be issued a VAPP Certificate of
Availment will not be audited for 2018 for the tax types
covered by the availment. In case the taxpayer’s tax
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Abigael Subiela
returns for the covered taxable period are currently being
audited, the conduct of the audit will be suspended while
the availment is under evaluation. It will resume if the
availment has been found invalid.
If the taxpayer’s availment has been determined to be valid,
a Certificate of Availment will be issued and consequently,
the issued Letter of Authority, Tax Verification Notice,
Discrepancy Notice, Notice for Informal Conference,
Preliminary Assessment Notice, Final Assessment Notice
for pending cases will be withdrawn and cancelled.
The voluntary tax payment under the Program should be in
cash as a condition for availment of the VAPP’s privilege.
Hence, non-cash modes of payment, such as Tax Debit
Memo and the like, will not qualify as a valid payment.
The VAPP requirements can be filed personally or through
courier service with the Large Taxpayer (LT) Office/
Revenue District Office (RDO) having jurisdiction over the
taxpayer, and will be processed within thirty (30) working
days from its receipt.
A Certificate of Availment will be issued within three
(3) working days from approval of the application. The
Certificate will serve as proof of the taxpayer’s availment
of the VAPP, compliance with the requirements and
entitlement to the privilege granted under the Regulations.
However, despite the issuance of a Certificate of
Availment, a taxpayer’s availment may still be rendered
invalid and shall be subject to audit or investigation when
there is strong evidence of under-declaration of sales,
receipts or income or overstatement of deductions by
more than 30%; or when there is verifiable information
that the taxpayer has withheld but failed to remit
withholding taxes.
Any voluntary payment made by the taxpayer may be
applied against the deficiency tax due, if any, that
may be assessed against the taxpayer after the audit/
investigation. (For information on the documentary requirements
and amount to be paid under the VAPP, see full text of RR No. 21-2020
posted in the BIR Website)
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MAHUSAY NA SERBISYO.
RAMDAM NA PAGBABAGO.