AMENDING CERTAIN PROVISIONS OF REVENUE MEMORANDUM CIRCULAR NO. 5-2001 ON THE GROUNDS AND PROCEDURES FOR THE IMPLEMENTATION OF SECTION 206 OF THE 1997 TAX CODE ON CONSTRUCTIVE DISTRAINT

 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:
  1. 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.
  2. 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.
  3. 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.
  4. Taxpayers who use aliases in their bank accounts, other than their legally and popularly known name, are considered unauthorized.
  5. Taxpayer maintains bank deposits and other property/ies under other names, regardless of relationship, without any lawful fiduciary or trust capacity
  6. 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.
  7. 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.
  8. Taxpayer under tax investigators attempts to conceal personal property to prevent tax authorities from discovering it.
  9. When the taxpayer under tax investigation intends to obstruct the collection of their tax dues or potential dues.
  10. When the taxpayer is tagged as Cannot be Located; and
  11. Other analogous cases.”