Tax Alert No. 15 [Revenue Memorandum Order (RMO) No. 8-2021 dated 17 February 2021]

Providing new policies and procedures in the issuance of the Notice of Denial of the application for compromise settlement cases by the concerned regional offices as well as the issuance of the Authority to Cancel Assessment and Certificate of Approval for applications duly approved by the National Evaluation Board (NEB)

The Commissioner of Internal Revenue (CIR) has issued RMO No. 8-2021 to provide the procedures in the issuance of the Notice of Denial (NOD), Certificate of Availment (CA) and Authority to Cancel Assessment (ATCA).

Notice of Denial

• All NOD on applications for compromise settlement that resulted from the deliberations conducted by the Regional Evaluation Board (REB) involving basic deficiency tax of PHP500,000 and below shall be signed by the concerned Regional Director.
• NOD for cases involving more than PHP500,000 basic tax shall be signed by the CIR.

Certificate of Availment

• All CA on applications for compromise settlement duly approved by the NEB including cases subject of Judicial Compromise Agreement (JCA) shall be signed by the Assistant Commissioner (ACIR) of the Collection Service while those involving large taxpayers cases shall be signed by the ACIR of the Large Taxpayers Service. The concerned office shall prepare the Notice of Lifting on the issued Warrants and Notices, if applicable and update the records of the liability of the taxpayer in the General Control Ledger.

Authority to Cancel Assessment

• All ATCA on applications for compromise settlement duly approved by the NEB shall be signed by the concerned Regional Director or the ACIR where the case originated.

Transitory Provisions

• All applications for compromise settlement with NOD for signature of the CIR that were already transmitted to and pending with the ARMD office shall be acted upon by that office.

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