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ln line

vrrith Section

228 of the Naticnai lnternal Revenue Code, as

arnencled, and pursuant to Revenue Regulations hio. 'i8"20'13 which amends

ceriain Sections of Revenue Regulations I'Jo. i2-99 relaiive to the Due
Process f'?.equirement in the issuance of a dciiciency tax assessment, this
Orr1er is irereh:y issue to prescribe poiicies, ilniform guidelines anci pracedures
in handling disputed a,$$essfiients, and in issuing Final Decision on Disputed
/\s$essrnent (FDDA) ancl revision thereof by the Con:mis.;ioner of lnternal
Revonue.

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A taxpayer rnust i:e given an op:porir"inity, if he/she/it so chooses,

to explain his/heriits objection to an essessrnent ancj present
necessary Cocurnent irr suppori his/her/its objection, befci"i: a
FnDA is issued.

Pfotest against Preiiminary Assessment Notice (PAN)

is

optionallnot mandatory.

3.

F:ormal L-etter

ai

Dernand

and Final Assessment Notice

(r;_.D)i(rAi.{) sha}i be issr_red fifteen (15) ,"iays frnrn date of receipi

bil ihe tie:r.5;;iyer ci ilre PAN, whether thr,: sarn* ivas pl'otested oi
nr:i.

4.

t-),

lf the taxpayer shall upon receipts of the PAN, accepts and pays
the assessment either partially or fully, a. FLD/FAN shall be
issued to formalize the assessri-tent, and Payment Form 0605
shall be duly prepared, filed and paid to acknowledged and
prorride evidence for the settlement oi'the assessment or poriian
of tlre asses$ment paid.
Within thirty (30) days from receipt of the FLD/FAN, the taxpayer
shall either:

a. Accept the assessment, fully or paftiaily, and pay

the

amount due on the assessment accepted, or

b.

Protest the assessment fully or partially by filing either of

the following remedy, and the fiiing of one precludes the
filing of the othei' remedy:

ft*qLiest for Recons!ci,er-;*ilon if the taxpayer is

tc

$u'nmit aily ather aeiditionffil

eviCen*e ffr dcclirnent$ *nd ffier*ly pl*as fcr &
r*-6JVAi Uati *n Of An fi.$S,#$Sr'ilen

not going

[:;

ii. R*qu#si I*i" & R*ii"itrestigation

cn th*: i:esis *f
ii*wly disccv#r*cj *viCence er if ihe taxpayer
rntends t* present *r su hrn it aCd itional
evidenc* ilr docurnents"

fr

After the issuance of the FAN/FLD, the taxpayer accepts and

settle/pays the asserisrnent in full, Payment Form 0605 shall be
duly prepared, filed and pai<i as evidenced of the settlernent of
the assessnrent. lf the taxpayer accepts and settle/pays the
assessment in part, and protest the remaining portion, Paymerrt
Form 0605 shall be prepared, iiled and paid for that portion of the
asse$sment acceptetl and settleci, and a FDDA shall be issued
for the portion of the assessment not settled and resolved. Fr:r
that portion of the assessment resolved in favor of the taxpayer,
an Authority to Cancel Assessment (ATCA) shell be prepared to
evidence the cancellation of the assessment.
Hu.lliiAij i-) ir ll'l'l'liiifiAl Iiti;Tili'li-jfi
riiiil{j f,.trrs &/iGg. #:YI,SH{}H

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i;d

lf a

request for Reinvestigation was made, the taxpayer shatl

submit all the relevant supporting documents in support of
hislhe#its protest within sixty (60) days from the date of the filing
of the taxpayer's letter of protest. Evaluation of the protest shall
be based exciusively on the documents subnritied within this
periocl, and no further document shall be accepted after the
expiration of the said period. The assessment shall become final
and executory in the event the taxpayer fails to submit the
relevant supporting documents within this 60 days period, and a
Collection Letter and othei- collection remedies such as but not
limited garnishrnent, warrant and levy shall be issued against the

taxpayer.
t

8.

All decisions on protest tc the FAN, whether the

taxpayer's

accepted or denied partiallit or wholly, shall be

comnrunicated to the iaxpayer through the issuance of a Finai

protest

is

Decision on a Disputecl Assessment (FDDA).

9.

Atl protest shall be considered a request for reconsideration,

unless said protest clearly indicates that the request is for
reinvestigation.

A request for Reinvestigation shall be available in a proiest to a

FANIFLD only. After the issuance of a FDDA, a request ioi
Reinvestigation shall no longer be available as a taxpayer

rl f\

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rernedy.

lf the protest is not acted upon by the Commissioner's

duly
authorized representecj wiihin 180 days counted frorn the date of
the fiiing of the protest in the ca$e of a request icr
reconsideration, or from the lapse opf the 60 days periocl to
submit reievant docunient in the case of a request for
reinvestigation, and the taxpayer appeais to the Court of l-ax
Appeal wiihin 30 days after the expiration of the 180 days period,
an FDDA shall be issued automatically.

11

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All the periods provided for under RR No.18-2013 is mandatory

and non-extendible

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After ihe issuance of the FDDA, the taxpayer !"nay accept ancl
seitle the assessme nt contained therein, padially or fuliy.
Paynrent Forrn 0605 strali he prepared, filed and paid'for tire
a$$es$rnent ircct-.pied antJ settled by ihi: ta;<pay*r. lf ihe FDDA
were Issu,:ci by tlre Corrtrnissir:lir:r',; dllly authoi-izeci

representative, the taxpayer shall within thirty (30) days from

receipt of the FDDA file a rnotion for reconsideration with the
-[ax
Commissioner of lnternal Revenue or appeal to the Courl of
Appeal. ln appealing the protest to the Couri of Tax Appeal, ihe
taxpayer shall manifest and siate that the appeal pertains oniy to
the portion of the FDDA noi seitled and paid and attached to their
appeal a cCIoy of the duly 'filed and paid Payment [:orm 0605.
4n
t*L
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Appeal to the Commissioner or to the Court of Tax Appeal of the

FDDA, shall not preclude the taxpayer from voluntarily settling
the assessment, partially or fuliy. Payment Form 0605 shail be
duty prepared, filed and paid and the taxpayer shall manifest
'fax Appeal the fact of settlement of the
before the Court of
assessment, partially or fr-rlly, present the duly filed and paid
Payment Form 0605, and file a motion for dismissal with
prejudice as to the assessment r:r portions thereof that has been
settled and paid ott the ground that the appealed dispt:ted
assessment has become moot and academic.

15,

An assessment shali become final, executory and demandable

due to, among others, the fcllowing grounds:

it. FaiIure of the texpayer to fiie & veiid prot*st within thirty*
(30) Ceys from rec*ipt of ih,:: Forrnfil Letter cf D*rfiancl
and Final Assessrnent l{otice (f LDli-AN);

h.

F*i[ure cf the taxpeyer ta subi^nit el! re[evant docurfients

in suppcrt of his protesi by wfiy of requ*st fr:r

relnvestigaticn within sixty (Gil) deys frorr:
filing the!"eCIf;

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Failur* of i['l* l*xpaysr to al5,,p*el tc th* (,*i'irffiiss!*r:er fff

-[ax Appsalri (*TAi
Internfil $:tcry*n ue *r lhc tou rt of
'ovithin ii:irty (30) Cmys frorr d;*te CIi'i"cceipt sf tlie F*il4
issueC by lhe Lj*rnrnissir:ner'$ eiul,; auih*rixeci
rep rese ntati\,,3;

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FaiIure of th* texp,?y{}r to app*aI t* the CTA within th!rty

(3C) deys fr*rn dat* ilf ret*ipt of ihe fDilA issliscl hv
tl'le il *nl il']i*s icner;

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rnoti*rr fni"
Liri"let:l fite
f-*cftns,[r;j*i-ertii:r": or i-i*uJ trii, i br::f*]r{: ihe CTA ilivlsit;i'l' i"}i
f,*iitJr* i:*' ,irr:lf,{+fi! ir:; ll is:* (l-i-A ffin ,:il;r-ic f;nri Sllill"erilC
Coi"i I"i bei${*ri i.i r i #;Yi*tiirp }:{ r-llrr:s ftf [:]r$ctscii; i-c, or
[:ailure of

texil*,,ror

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f.

Faiiure of tlre taxpf;yer to receiue aily a$sessrrient

nctrc*s becau$* it \For,fis serv*i in the aelCres$ in#i*ated
in
BiR's re#istreticn datai:*se i*nr"i the taxpfiyer
lr i *f-,,3
L,
*'r,insferrecl to ;* n*w arir"ii'*$$ CIr closcd/*easeel
{}permtions wlthoul lrpdatri-ig anC transtrcrrir:g iis Bi[:t
lL

*$ Ll-;e ofis#
may be, through ihe accci"npiishment and filing of BIR
regis'rr"ation or c&iir.:*tiing iLs BtR rf;gistrati*i'r

Farm Nc. 1905- Application fcr IRegistr ati*n Inforrnation

Update, &s prescribeei by pestrr-'rent issuance andlor
&m*riCmenLs thereto.

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AII revenue issuances and portions thereof inconsistent with this Order
are hereby amended or repealed accordingly.

lv.

ffig':ffiffir:-$'HVITY

-this (}rri*r
$hetl take effect lr-nmedi*tcly.

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