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Описание: Collection of Accounts Receivables supports the mission of the Bureau of Internal Revenue in its mandate to collect the correct amount of taxes from taxpayers. While accounts receivables represent only about 1/10 of 1 % of the Bureau’stotal collections, intensified efforts in their collection creates strong impact on taxpayers to voluntarily pay their tax obligations. Accordingly, effective and efficient receivable accounts management will not only contribute to increased tax collections but can be a tool to enhance taxpayers’ compliance.

The accounts receivable emanates from the following:

Non-payment of tax due arising from:

a. Dishonored check;

b. Non-payment of second installment of the income tax of the individual taxpayer; and

c. Non-payment of tax due per return.

Non-payment of tax due per Final Assessment Notice (FAN) or Final Decision on Disputed Assessment (FDDA) within the prescribed period of thirty (30) days from the issuance of the FAN per Monthly Summary of Taxes Assessed (BIR Form No. 40.00)or the FDDA.

a. Result of audit or compliance checks conducted pursuant to Returns Processing System (RPS) assessment, pre-audit or table audit, short audit, package audit, assessment through Letter Notice (LN), and such other assessments issued in the course of verifying the level of taxpayer’s compliance; and

b. Valid stopfiler.

This Chapter covers the accounts receivables, including delinquent accounts, being handled by the Collection Service through the Collection Enforcement Division (CED), the Collection Section of the Revenue District Office (RDO)/Large Taxpayer District Office (LTDO), the Collection Division of the Regional Officeand the Large Taxpayer Collection Enforcement Division (LTCED) of the Large Taxpayer Service (LTS). The enforcement of collection of the Bureau’s receivables is performed by using a variety of collection techniques which are discussed in detail in this Chapter.

Definition of Terms

For purposes of this Manual and in order to provide clarity and better understanding of the policies and procedures in the implementation thereof, the words and phrases herein provided are defined as follows:

Accounts Receivables – refer to the amount of tax due from a taxpayer who failed to pay the same within the time prescribed for its payment arising from a self-assessed tax, or a deficiency tax assessment issued by the Bureau. These accounts also include deficiency tax assessments covered by FANs even if the same are still subject matters of administrative or judicial protests filed by taxpayers within the prescribed reglamentary period.

Delinquent Accounts – refer to Accounts Receivables thatarose from unpaid self-assessed taxes or tax assessments which are already considered as final and executory due to any of the following:

failure to file a protest within thirty (30) days from receipt of the assessment;

failure to submit all relevant supporting documents within sixty (60) days from filing of the administrative protest;

failure to appeal to the Court of Tax Appeals (CTA) within thirty (30) days from receipt of the BIR decision denying the administrative protest; and

issuance by the competent Court of final adverse decision on the assessed taxes, in favor of the BIR.

Assessment – refers to the act or process of establishing, fixing, or determining the tax liability of a taxpayer. It is also a demand made on a concerned taxpayer to settle the amount indicated in a valid assessment notice. It also signals the time when penalties and interests on any unpaid tax liability begin to accrue against the taxpayer. As a general rule, it is a preliminary but essential step to the enforcement of collection prior to the issuance of warrants of distraint and levy; and it is required to establish a cause for judicial action against the taxpayer.

4. Deficiency tax assessment – is an assessment made by an authorized Revenue Officer whereby the correct amount of the tax due from a taxpayer is determined after the conduct of audit, examination or investigation of the taxpayer’s tax returns/declarations filed, books of accounts, records, documents and/or other third-party information.

6. Jeopardy Assessment – it is an assessment made by an authorized Revenue Officer without the benefit of complete or partial audit, in the light of the said official’s belief that the assessment and collection of a deficiency tax will be jeopardized by delay caused by the taxpayer’s failure to comply with the audit/investigation requirements to present his books of accounts and/or other pertinent records, substantiate all or any of the deductions, exemptions or credits claimed in the filed return. In order to prevent the issuance of a jeopardy assessment, the taxpayer may be required to execute a waiver of the statute of limitations.