RR NO.

18-2013 Revised Rules on Assessment Procedure

On November 28, 2013, the BIR and DOF issued Revenue Regulations No. 18-2013 amending certain
procedures relative to the due process requirement in the issuance of tax assessments. Among the
IMPORTANT CHANGES include:
1. Removed the requirement for the issuance of a letter of informal conference before a Preliminary
Assessment (PAN) is issued.
2. Mandates the issuance of a Final Assessment (FAN) within 15 days from receipt of the protest to PAN.
3. Requires an identification of the kind of protest filed whether a reconsideration or reinvestigation.
The submission of additional documents within 60 days from filing of protest is allowed only in the case
of reinvestigation. For motion for reconsideration, the decision of the BIR will be based only on
documents already submitted to the BIR prior to the issuance of FAN and no new evidence will be
accepted.
4. Mandates that protest should include the facts, law, rules, regulations on which the protest is based.
Otherwise, the protest is void and of no effect. For items in the assessment not properly protested, these
shall become final and demandable and collection letters shall be issued immediately.
5. Required the imposition of a 20% delinquency interest per annum on assessments unpaid which shall
be computed from the time stated for its payment in the FAN until paid. This shall be in addition to the
20% deficiency interests imposed on assessments from time it is due until it is paid. It is possible that
annual interest penalty may amount to 40% per annum.
6. Final Decision on Disputed Assessment (FDDA) issued by an authorized representative of the
Commissioner (such as the Regional Directors or Assistant Commissioner in the case of the Large
Taxpayers Service) may be appealed to the Court of Tax Appeals (in a judicial appeal) or to the
Commissioner (in an administrative appeal) within 30 days from receipt of decision. For administrative
appeal, no new evidence can further be introduced.
7. Service of delivery of the PAN/FAN/FDDA can be served by personal mail, registered mail or by
substituted delivery.

RR NO. 17-2013 Revised Rules on the Preservation of books and other

Accounting Records
The BIR recently issued Revenue Regulations No.17-2013 dated September 27, 2013 relative to the
retention periods and preservation of books and other accounting records.
Under this regulations, all taxpayers are required to preserve their books of accounts, including
subsidiary books and other accounting records, for a period of ten (10) years reckoned from the day
following the deadline in filing a return, or if filed after the deadline, from the date of the filing of the
return.
If the taxpayer has any pending protest or claim for tax credit/refund of taxes, and the books and records
concerned are material to the case, the taxpayer is required to preserve his/its books of accounts and
other accounting records until the case is finally resolved.
Unless a longer period of retention is required under the NIRC or other relevant laws, the independent
Certified Public Accountant (CPA) who audited the records and financial statements of the taxpayer has
the responsibility to maintain and preserve copies of the audited financial statements for a period of ten
(10) years from the due date of filing the annual income tax return or the actual date of filing thereof,
whichever comes later.