BIR sets rules for recovery of erroneously imposed DST

MANILA, Philippines — The Bureau of Internal Revenue (BIR) is allowing taxpayers to request for adjustments in their documentary stamp tax (DST) payments, which may have been erroneously imposed due to mistakes by the taxpayer or the bureau’s system.

Internal Revenue Commissioner Caesar Dulay issued Revenue Memorandum Circular 142-2019, dated Dec. 12, 2019, which provides the Electronic Documentary Stamp Tax (eDST) system’s balance adjustment as an option for the recovery of erroneously deducted DST.

“This circular is hereby issued in order to provide all concerned taxpayers-users of the eDST System of this Bureau another option for the recovery of erroneously deducted amount of DST from their respective ledger balances in the eDST System arising from erroneously encoded information by the taxpayer-user, or multiple affixture or printing of stamps due to taxpayer-user’s error or a system error,” Dulay said.

“Aside from filing a claim for refund, a request for adjustment to the taxpayer’s ledger balance in the eDST System may be filed by the concerned taxpayer,” he said.

According to the circular, taxpayers filing for DST adjustment should file with the bureau a revised BIR Form 2000.

The request for adjustment, together with all the relevant documentary proofs, shall be filed by the taxpayer to the chief of the Miscellaneous Operations Monitoring Division (MOMD).

The MOMD shall then conduct a preliminary evaluation of the taxpayer’s request.

If the error arises from the taxpayer’s mistake, a written request for verification will be transmitted to the revenue district office or the Large Taxpayer Service where the taxpayer is registered.

If the mistake arises due to a system error, a written or emailed request for investigation or adjustment will be transmitted to the Chief Administrative System Division.

The RDO or LTS will then verify the taxpayer’s request and issue a corresponding recommendation for approval or denial.

“The recommendation, whether for approval or denial of the taxpayer’s request for adjustment, shall be evaluated by MOMD and subsequently endorsed to the assistant commissioner, Collection Service for final approval,” the circular read.

The taxpayer shall be notified of the approval or denial of their request within five working days from receipt of the recommendation. The reasons for denial shall, at all times, be clearly stated in the notice to the taxpayer.

In case there is a need for a further verification at the taxpayer’s side, the same shall be informed to the taxpayer.