24 July 2013
The Commissioner of Internal Revenue (“CIR”) has issued Revenue Memorandum Circular No. 50-2013 dated 15 July 2013 on the “Tentative Annual Income Tax Returns” being filed by certain taxpayers.
Under Sections 74 and 77 of the Tax Code, taxpayers other than those qualified for substituted tax filing have to file on “April 15 of each taxable year” their annual and/or adjusted annual income tax returns (ITRs).
To meet the April 15 deadline, the CIR has noted the filing of tentative ITRs by some taxpayers.
The CIR has issued the RMC to emphasize that it should be the priority of those taxpayers filing tentative ITRs to file their respective amended and final ITR notwithstanding the fact that the same shall result to the extension of the three (3) - year period within which the Bureau of Internal Revenue (“BIR”) is allowed to examine the books of the taxpayers.
It shall be the policy of the BIR to consider a “Tentative ITR” as a final return, unless a final amended return is filed by the concerned taxpayer. However, once an electronic Letter of Authority or any other notice of audit is received by the concerned taxpayers, they shall already be barred from making amendments to their tentative ITRs. ITRs marked as “Tentative” may also be the subject of examination pursuant to Section 6(A) of the Tax Code.