Persons allowed to compromise tax

The National Internal Revenue Code (NIRC) allows the Commissioner of the Bureau of Internal Revenue (BIR), the Commissioner of the Bureau of Customs (BOC) and the Collector of Customs.

The BIR Commissioner is allowed to enter into a compromise with a taxpayer over taxes in any of the following cases:

[1] Existence of reasonable doubt as to the tax claim's validity; or
[2] Clear inability of the taxpayer to pay the tax due to his financial position.

The BOC Commissioner is also allowed to do so in cases involving the imposition of fines, surcharges and forfeitures. This power is subject to the approval of the Secretary of Finance.

The Collector of Customs, with respect to customs duties limited to cases where the legitimate authority is specifically granted such as in the remission of duties.