On June 29, 2018, a new amendment was issued by the Bureau of Internal Revenue (BIR) for further amendments of section 10 of RR No. 10-2010 under the “Notice to Taxpayers”. The government has the legal right to provide tax information upon the request of the foreign tax authority.
This update will help you to avoid tax penalties in the future. Find other tips on how to avoid tax penalties during tax mapping in the Philippines. This exchange of information should be in a due process of law in which the taxpayer will be notified within the specified date. This notification has a further amendment below.
Previous Amendment of RR No.10-2010
This issuance is related to the amendment of the Republic Act (RA) no. 10021, or the Exchange of Information on Tax Matters Act of 2009. This issuance had a further amendment that the taxpayer will be notified within 60 days, not from the receipt of the said request. The 60 days counting will start after the transmittal of all the information requested from, and provided for by, the concerned financial institution to the requesting treaty partner.
Notice to Taxpayer updates
However, this tax updates had widened the notification letter to the taxpayers. This amendment does not nullify the previous amendment but rather it expands. RR No. 22-2018 further amended that in a case where notification is likely to undermine the chance of success of the investigation conducted by the requesting jurisdiction. Furthermore, the requesting jurisdiction has made a substantiated request for a deferment of the notification based on these grounds, notice to the taxpayer must only be given after receipt of communication from the requesting jurisdiction was finalized.
Effectively of New Amendment
This amendment will take effect after fifteen (15) days after this issuance is fully circulated in the public. It was signed on the 9th October 2018.
This amendment does not invalidate the previous issuance but rather it expands the duration of notifying the taxpayers. For further information, you may visit the BIR homepage.