The Bureau of Internal Revenue (BIR) has instructed its examiners, as well as the taxpayers , o pay the compromise penalty separate from the assessment notice that reflects deficiency taxes, surcharges and interest for uniformity.
BIR Commissioner Caesar R. Dulay noted that there are times that compromise penalties are lumped with the assessment notice for deficiency taxes and other charges that only creates confusion.
The BIR chief explained that compromise penalties are imposed for violation of certain tax laws and regulations uncovered during investigation.
He said tax offenders are allowed to pay the compromise penalty to avoid criminal prosecution.
"Compromise penalty should appear in a separate assessment notice, or demand letter as the amount suggested to taxpayers in lieu of criminal prosecution," said Dulay in Revenue Memorandum Circular No.3-2022.
The circular clarifies the preparation of assessment notice for compromise penalty.