BIR RMC No. 19-2008; duty to withhold

Qualified taxpayers with pending tax cases may still avail themselves of the tax amnesty program under Republic Act No. 9480,[1] otherwise known as the 2007 Tax Amnesty Act. Thus, the provision in BIR Revenue Memorandum Circular No. 19-2008 excepting "[i]ssues and cases which were ruled by any court (even without finality) in favor of the BIR prior to amnesty availment of the taxpayer" from the benefits of the law is illegal, invalid, and null and void.[2] The duty to withhold the tax on compensation arises upon its accrual.

[1] An Act Enhancing Revenue Administration and Collection by Granting an Amnesty on All Unpaid Internal Revenue Taxes Imposed by the National Government for Taxable Year 2005 and Prior Years (2007).

[2] CS Garment, Inc. v. Commissioner of Internal Revenue, G.R. No. 182399, March 12, 2014 <http://sc.judiciary.gov.ph/pdf/web/viewer.html?file=/jurisprudence/2014/march2014/182399. pdf> 14 [Per C.J. Sereno, First Division].