Philippines: Clarification of effects of publishing list of taxpayers who cannot be located

Revenue Memorandum Circular issued to clarify effects of publishing list of taxpayers who cannot be located

Clarification of effects of publishing list of taxpayers who cannot be located

The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 29-2023 (10 March 2023) to clarify the effects of publishing the list of taxpayers who cannot be located (CBL).

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 value added tax (VAT) on 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 would 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 begins as soon as the handling Revenue Officer submitted a report that the taxpayer is a CBL.

Read a March 2023 report prepared by the KPMG member firm in the Philippines


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