Bureau of Internal Revenue
The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 29-2023, dated 10 March 2023, to clarify the effects of publishing the list of taxpayers who cannot be located (CBL) according to the guidelines outlined in RMC No. 98-2010. The purpose of publishing the list is to give notice to the taxpayers and the public in case anyone has information about their whereabouts or business transactions with them. The Circular also explains the tax consequences of transactions with CBL taxpayers, which include non-deductibility of purchases and the inability to claim the VAT on said purchases as input tax, unless the buyer can prove the existence of the supplier tagged as CBL and authenticity of the purchases made. These tax consequences shall apply on transactions made after publication of the name of the CBL taxpayer.
Further, the publication of names is not necessary to suspend the prescriptive period to assess because such suspension sets in once the handling Revenue Officer submitted a report that the taxpayer is a CBL.
Please click on the link for the full text of the issuance: RMC No. 29-2023