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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
BIR Revenue Memorandum Circular No. 074-2024 provides the guidelines and prescribes the mandatory documentary requirements in the processing and grant of claims for issuance of tax credit or cash refund of erroneously or illegally received or collected taxes under Section 204(C), in relation to Section 229 of the NIRC.
In line with the recently introduced reforms on tax refunds under Republic Act No. 11976, also known as the Ease of Paying Taxes Act of 2023, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 074-2024 to outline the guidelines and mandatory documentary requirements for processing and granting claims for the issuance of tax credit certificates (TCC) or cash refunds (TCC/Refund) of taxes erroneously or illegally collected under Section 204(C), in relation to Section 229 of the National Internal Revenue Code (Tax Code). This is part of the recent reforms on tax refunds introduced by Republic Act No. 11976, also known as the Ease of Paying Taxes Act of 2023.
Under RMC No. 074-2024, only applications for tax credits or refunds with complete documentary requirements filed within the prescribed two (2) year period after the payment of the tax or penalty shall be received and processed by the authorized processing office that has jurisdiction over the taxpayer-claimant.
Accordingly, the Application for Tax Credits/Refunds (BIR Form No. 1914) for claims under Section 204(C), in relation to Section 229 of the Tax Code must be accompanied with complete supporting documents enumerated in the Checklist of Mandatory Requirement as set-forth under Annex A.1:
- Letter addressed to the Commissioner of Internal Revenue stating therein the legal basis, facts and other circumstances justifying the claim for tax credit/refund;
- Copy of the duly filed tax return relative to the tax credit or refund claim with the corresponding proof of payment remitted to the Bureau;
- Original copy of the duly notarized Taxpayer’s Attestations (must be in accordance with the prescribed format in Annex A.2);
- Original copy of Notarized Secretary’s Certificate (for corporate claimant) or Special Power of Attorney (for individual & ROHQ claimant) stating the authorized representative/s to file, sign documents on behalf of the claimant and/or follow-up tax credit/refund claims together with the photocopy of at least one (1) valid government-issued ID with three (3) specimen signatures of authorized representative/s;
- Original copy of Delinquency Verification Certificate (valid for 6 months) issued by the Collection Division under the respective Revenue Region that has jurisdiction of the taxpayer-claimant or the LT-Collection Enforcement Division under the Large Taxpayers Service, whichever is applicable; and
- Other documentary requirement(s) in support of the erroneously or illegally received or collected taxes being claimed.
Documentary requirements for tax credit/refund claims vary depending on the nature of the tax sought to be refunded/credited and the circumstances that led to the taxes alleged to have been erroneously or illegally received or collected or penalties imposed without authority. Hence, the taxpayer-claimant is given the option to submit documents other than the basic requirements to support the claim.
The taxpayer-claimant shall then attest that the documents submitted for purposes of processing the tax credit/refund claim on erroneously or illegally received or collected taxes, are complete and these are the only documents that will be presented to support the claim.
The taxpayer-claimant shall attach a notarized Taxpayer Attestation (Annex “A.2”) certifying to the completeness of the documents submitted.
Accordingly, the claims shall be processed based on the documents submitted. The books of accounts and accounting records shall be presented by the taxpayer-claimant upon written request of the assigned Revenue Officers (ROs). Failure to present the books of accounts and accounting records relevant to the claim may be a ground for denial of the application for TCC/refund.
The taxpayer-claimant shall fully cooperate with the assigned ROs and shall ensure availability of all documents that may be requested during the verification in case there are issues or findings that need further clarification so as not to cause undue delay on the 180-day processing of the tax credit/refund. Failure to cooperate or submit the requested documents for clarification as further requested by the assigned ROs may result in the full or partial denial of the claim.
The taxpayer-claimant shall secure Delinquency Verification Certificate (valid for 6 months) from the Collection Division under the respective Revenue Region or the Large Taxpayer Collection Enforcement Division under the Large Taxpayers Service, whichever is applicable.
RMC No. 74-2024 shall not cover actions or request for tax credit/refund based on writ of execution issued by the Court of Tax Appeals (CTA) and the Supreme Court under the authority and jurisdiction of the Legal Group.
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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