BIR drastically changes waiver procedure

Published January 1, 2020, 12:00 AM

by manilabulletin_admin

By Jun Ramirez 

The Bureau of Internal Revenue (BIR) has drastically changed the procedure on taxpayer’s waiver application extending the prescriptive audit period.

Bureau of Internal Revenue (MANILA BULLETIN)
Bureau of Internal Revenue (MANILA BULLETIN)

Under Revenue Memorandum Circular 141-2019, the revenue district office (RDO) will no longer execute the approval of waiver on the request of the taxpayer.

Suffice that the RDO receives such waiver application via letter-request.

The circular, signed by BIR Commissioner Caesar Dulay, stated the “waiver is a unilateral and voluntary undertaking which shall have the legal effect and be binding on the taxpayer immediately upon his execution.”

It said the taxpayer is charged with the burden of ensuring that his waiver is validly executed when submitted to the BIR.

The taxpayer must ensure that the waiver is executed before the expiration period to assess or collect the taxes.

It must also indicate the expiry date of the extended period, tax type and signed by his duly authorized representative.

There is no strict format for the waiver and it need not be notarized.