BIR REVENUE MEMORANDUM ORDER NO. 3-91 FURTHER EXTENDING ADMINISTRATIVE COMPROMISE SETTLEMENT OF DELINQUENT ACCOUNTS UNDER RMO NO. 1-88, AS LAST AMENDED BY RMO NO. 29-90 January 14, 1991

The big volume of delinquent accounts has been reduced largely through the administrative compromise settlement. For this reason, and in order to increase tax collection, RMO No. 1-88, as last amended by RMO NO. 29-90, is hereby further extended up to December 31, 1991, subject to the following rules and amendments:

1.Coverage– The administrative compromise settlement will cover 1988 and prior (calendar or fiscal) taxable years or assessments issued on or before January 1, 1991.

2.Compromise Rate– The rate of compromise as provided under paragraph 2 of RMO No. 29-90 is hereby revised as follows:

a.1986 and prior years:50% of the basic tax assessed, provided that 30% may be accepted only on the ground of clear financial incapacity of taxpayer.

b.1987 and 1988:100% of the basic tax assessed, provided that 50% may be accepted only on the ground of clear financial incapacity of taxpayer.

3.All Delinquent Accountswith pending offers of compromise under RMO No. 1-88, as last amended by RMO No. 29-90 but not yet finally approved as of December 31, 1990, may be processed subject to the rates and conditions prescribed in this Order.

4.Applicability and Repealing Clause– The provisions of RMO Nos. 1-88, 8-89, 16-89 and 29-90 shall remain applicable except those inconsistent with the provisions of this Order.

5.Effectivity– This Order shall take effect January 1, 1991 and shall remain in force until December 31, 1991.

Adopted: 14 Jan. 1991