Tax Alert No. 74 [Revenue Regulation (RR) No. 22-2020 dated 15 September 2020]

Amending certain Sections of RR No. 12-1999, as amended by RR No. 18-2013 and RR No. 7-2018, relative to the due process requirement in the issuance of a deficiency tax assessment

The Secretary of Finance has issued RR No. 22-2020 to further amend Section 3 of RR No. 12-1999, as amended by RR No. 18-2013 and RR No. 7-2018. The amendment pertains to the preparation of a Notice of Discrepancy instead of a Notice of Informal Conference.

If the taxpayer disagrees with the discrepancy(ies) detected during the audit/investigation, the taxpayer must present an explanation and provide documents to support his explanation within thirty (30) days from receipt of the Notice of Discrepancy.

If after the discussion of discrepancy, it is still found that the taxpayer is still liable for deficiency taxes and the taxpayer does not agree to the discrepancy or address the same by paying the deficiency taxes, the investigating office shall endorse the case for issuance of a Preliminary Assessment Notice within ten (10) days from the conclusion of the discussion.

These Regulations shall be effective after 15 days following the date of its publication last 17 September 2020.

You may access the full version of this issuance through the BIR website.