This circular amends Section 2 of Revenue Memorandum Circular No. 05-2001 to include cases where a notice or warrant of constructive distraint over a taxpayer's property can be issued Is hereby amended to read as follows:
“SEC.2. Cases When a Notice or Warrant of Constructive Distraint over the Property/ies of a Taxpayer may be Issued.
These cases, including but not limited to the following, may warrant the issuance of a notice or warrant of constructive distraint over a taxpayer’s properties:
- A taxpayer applying for business retirement may have a substantial amount of assessment pending with the BIR, which is equal to or greater than their net worth or equity during the current taxable year.
- Tax investigators may investigate a taxpayer if they leave the Philippines at least twice a year over a 12-month period, unless these trips are justified or related to their business, profession, or employment.
- Tax investigators may investigate a taxpayer, other than a banking institution, who transfers their bank deposits and other valuable personal property from the Philippines to any foreign country.
- Taxpayers who use aliases in their bank accounts, other than their legally and popularly known name, are considered unauthorized.
- Taxpayer maintains bank deposits and other property/ies under other names, regardless of relationship, without any lawful fiduciary or trust capacity
- Undeclared income which is known to the public or the BIR and there is a strong likelihood that the taxpayer will conceal their assets, exceeding 30% of the gross sales, receipts, or revenue declared per return.
- Upon receipt of an information or complaint about undeclared income exceeding 30% of a taxpayer's gross sales, receipts, or revenue declared per return, supported by substantial and credible evidence.
- Taxpayer under tax investigators attempts to conceal personal property to prevent tax authorities from discovering it.
- When the taxpayer under tax investigation intends to obstruct the collection of their tax dues or potential dues.
- When the taxpayer is tagged as Cannot be Located; and
- Other analogous cases.”