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Processing of Claims under the Tax and Revenue Group (TRG)
Applications
under Section 112 the National Internal
Revenue Code
A. Submission of the application with the
required basic documents
The application consisting of the Claim
Information Sheet (CIS) together with the
basic documents as indicated in the
Checklist of Requirements shall be submitted by the applicant to the
Tax and Revenue Group (TRG) at the CENTER
for checklisting. If the documents accompanying
the application are complete approval sheet
duly signed by the TRG Head shall be issued
to the claimant or the authorized representative
for the payment of the corresponding filing
and processing fees at the CENTER Cashier;
otherwise the applications with the accompanying
documents shall be returned to the applicant
and will be accepted only upon completion
of the required basic documents.
B. Claim Evaluation
Tax Verification Notices (TVNs) are issued
on officially accepted claims and assigned
to evaluating groups at the TRG for evaluation.
Conduct of audit or evaluation of claims
under Section 112 NIRC is guided primarily
by Revenue Memorandum Order 2-93 and other applicable BIR
issuances and NIRC provisions.
Field
Audit is conducted at the Office of the
claimant where the records are kept (Head
Office of the company or the place where
the company is registered). The books of
accounts of claimants are verified and the
corresponding source documents for purchases,
sales and related accounts are vouched to
determine the correctness and validity of
claims filed and to determine VAT liabilities
, if any, of the claimant.
Verification
of registration of claimants and their suppliers
against the BIR Integrated Tax System is also
made. The
claim processing, as provided under Section
112 (D) of the NIRC, is 120 days upon submission
of complete documents. In case of failure
of the claimant to submit the complete documents,
they are given up to three notices to comply;
otherwise, the TRG will submit a recommendation
to deny the claim to the Executive Director
of the CENTER and the claimant will be notified accordingly. The claimant may file
an appeal within thirty (30) days from receipt
of notice of denial.
On completed evaluations, after conferring
with claimants as to audit results, the
corresponding TRG evaluation reports as
prepared by the TRG examiners and reviewed
by the TRG Head are submitted to the Center
Executive Director for approval.
C. REVIEW AND APPROVAL OF THE
EVALUATION REPORT
Upon approval of the evaluation report by
the CENTER Executive Director, the claim
is reviewed and further evaluated at the
BIR National Office-Assessment Service where
additional documents and/or report revisions
may be required. After compliance therewith
by the evaluating TRG group, the report
will be submitted again for approval and
subsequent issuance of a corresponding Tax
Credit Certificate, or Notice of Denial,
whichever is applicable.
see process flow
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