The Bureau of Internal Revenue (BIR) explained that the Voluntary Assessment and Payment Program (VAPP) is not a tax amnesty that the government issued previously for individual and corporate taxpayers.
It said, however, that the VAPP is similar to it in the sense it grants taxpayers last priority in investigation, unless sham availment is discovered.
Revenue officials have come out with the explanation even as BIR Commissioner Caesar Dulay issued the 7-page Revenue Memorandum Circular 111-2020 clarifying certain issues of the VAPP.
The circular stated that a delinquent taxpayer must apply for all eligible tax types like income and value-added taxes.
Selective application is not allowed unless it concerns one-time transactions (ONETT) like capital gains tax.
VAPP ends on December 31, 2020 and covers delinquencies incurred in 2018.
Tax fraud cases and those served with final assessment notice as of Sept. 20, 2020 are excluded.
VAPP payments ranges from P75, 000 for individual and up to P1 million for corporation depending on sales, subscribed capital and taxable income whichever is higher.