Formal Letter of Demand: Republic of The Philippines Department of Finance Bureau of Internal Revenue
Formal Letter of Demand: Republic of The Philippines Department of Finance Bureau of Internal Revenue
DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE
Revenue Region No. 78 - East NCR
The President
ABC INC
2nd Flr. DEF Bldg., Ortigas Jr. Rd.
Ortigas Center, San Antonio 1605 Pasig City
TIN: 000-111-222-333
Sir/Madam:
Please be informed that after investigation, there has been found due from you deficiency
Income Tax, Value-Added Tax, Expanded Withholding Tax and Improperly Accumulated Earnings
Tax for the taxable year 2020, to wit:
I. INCOME TAX
Taxable Income per Income Tax Return (ITR) ₱ (700,000.00)
Add: Adjustments per investigation:
Disallowed Income due to non-withholding ₱2,246,500.00
Undeclared income from unaccounted expenses ₱19,354,400.00
Salaries and Wages not subjected to WC 274,550.00 21,875,450.00
Taxable Income ₱21,175,450.00
Add: Net Operating Loss Carry Over 650,000.00
Adjusted Taxable Income ₱21,825,450.00
Income Tax Due (30%) ₱6,547,635.00
Less: Tax Credits and Payments per ITR/ITS
Previous Year's Excess Tax Credits ₱5,250,000.00
Creditable tax withheld 3,120,000.00
Total ₱8,370,000.00
Less: Excess Tax Credits Carry Over to 6,500,000.00
Succeeding Period
Excess MCIT over NCIT carried over to 1,800,000.00 70,000.00
Succeeding Period
Deficiency Income Tax Due ₱ 6,477,635.00
Add: 20% Interest (16 April 2021 - 12 Sept 528,858.97
2021)
Compromise 50,000.00
TOTAL AMOUNT DUE ₱ 6,870,937.96
II. VALUE ADDED TAX
Vatable Sales per Return ₱410,550,450.00
Undeclared income from unaccounted expenses 19,354,400.00
Adjusted Vatable Sales ₱429,904,850.00
TOTAL ₱ 9,328,991.06
Please note that the interest and the total amount due will have to be adjusted if paid after the date
specified herein.
The complete details covering the aforementioned discrepancies established during the investigation
of this case are shown in the accompanying ANNEX-A of this letter.
The twenty percent (20%) interest per annum until December 31, 2020 has been imposed pursuant
to the provisions of Section 249(8) of the National Internal Revenue Code of 1997 (NIRC), as amended, and the
twelve percent (12%) interest per annum from January 1, 2018 up to present has been imposed pursuant to
the provisions of Section 249(8) of the Tax Reform for Acceleration and Inclusion (TRAIN).
Page 2 of 3
In view thereof, you are requested to pay your aforementioned deficiency tax liabilities through the
duly authorized agent bank in which you are enrolled in using the electronic BIR Payment Form (eBIR Form
0605) within the time shown in the enclosed assessment notice. Afterwards, submit a copy thereof to the
Office of The Regional Director, this Region, located at 24th & 25th Floors, The Podium West Tower, ADB Road,
Ortigas Center Mandaluyong City, to update your records and for the cancellation of the herein FLD, if
warranted.
CAESAR R. DULAY
Commissioner of Internal Revenue
By,
EDGAR TOLENTINO
Regional Director
RR7B-ABC INC
SN eLA202100012345/LOA-043-2021-00000123 dated 20 April 2021
Page 3 of 3