Question & AnswerQ&A (BIR Revenue Memorandum Order No. 7-2015)
The primary objective is to adopt and implement a uniform application of compromise penalties for violations of the National Internal Revenue Code (NIRC) of 1997, update the Schedule of Compromise Penalties, and remove certain acts considered fraudulent from the coverage of compromise penalties.
It concerns violations of the National Internal Revenue Code of 1997, as amended.
Cases involving fraudulent acts are excluded from the coverage of compromise penalties and shall be referred for the institution of criminal actions.
No, compromise penalties must strictly follow the amounts specified unless approved by the Commissioner of Internal Revenue, Deputy Commissioner, or Regional Directors.
No, compromise penalties should appear in a separate assessment notice or demand letter and should not form part of the deficiency tax assessment notice that includes basic tax, surcharge, and interest.
The case shall be referred to the appropriate office for criminal action as compromise penalties may not be imposed or exacted on a taxpayer without their consent.
Yes, but only if approved by the Commissioner of Internal Revenue or the concerned Deputy Commissioner, Assistant Commissioner, or Regional Director.
The Commissioner of Internal Revenue or their duly authorized representative may accept a compromise amount higher than that provided in the schedule.
All orders inconsistent with this Revised Schedule of Compromise Penalties are repealed or revoked accordingly.
The Order took effect immediately upon issuance on January 22, 2015.
Internal revenue officers must apply the Revised Schedule as an integral part of the order to ensure uniformity of action and refer fraud cases for criminal prosecution.