JJGroup Consulting Inc.

The Bureau of Internal Revenue (BIR) has recently issued Revenue Memorandum Circular (RMC) No. 7-2023 clarifying the Returns Processing System (RPS) Assessments being issued by the BIR.

👉 The RPS, the BIR's information system which processes tax returns filed by taxpayers, generates "RPS Assessments" when it detects tax returns that were filed late but no corresponding penalties were paid, or tax returns were filed with tax due but the payment detected was only partial;
👉 "RPS Assessments" are not tax assessments arising from the conduct of audit/investigation of taxpayers' books of accounts and other relevant records, but rather are tax payables based on taxpayers' own tax declaration as reflected in their respective tax returns and are already considered as "delinquent accounts" pursuant to Revenue Memorandum Order (RMO) No. 11-2014;
👉 "RPS Assessments" should not be likened to and is not an Assessment Notice arising from an audit where taxpayers can contest or protest;
👉 Considering that no books of accounts and accounting records of taxpayers are to be examined or subjected to audit, the issuance of a Letter of Authority for "RPS Assessments" shall not be required;
👉 "RPS Assessments" is a Collection Letter and is considered as part of civil/administrative remedies of the BIR under Sec. 205 of the Tax Code.

Source: BIR website

The Bureau of Internal Revenue (BIR) has recently issued Revenue Memorandum Circular (RMC) No. 5-2023 providing transitory provisions for the implementation of quarterly filing of VAT returns starting January 1, 2023 pursuant to the provisions of Republic Act (RA) No. 10963, otherwise known as TRAIN Law.

VAT-registered taxpayers are no longer required to file Monthly Value-Added Tax Declaration Return (2550M) for transactions starting January 1, 2023.

Source: BIR website

JJGroup Consulting Inc. updated their business hours.