The BIR said taxpayers who avail themselves of the program are entitled to the privilege of last priority in audit and investigation for their tax returns for 2004 and prior years.
BIR Commissioner Jose Mario Buñag said the EVAP was instituted to "maximize revenue collection with the least administration costs, encourage voluntary tax compliance and maintain harmonious relations with taxpayers by minimizing inconvenience relative to investigation."
Unlike previous voluntary assessment programs which cover only certain taxes, EVAP covers all kind of taxes, including income and value added taxes, as well as one-time transactions such as estate tax, donor’s tax, capital gains tax, expanded withholding tax and documentary stamp taxes.
Under the BIR’s revenue regulations, the EVAP applicant-taxpayer shall signify his intention to avail of the program by filing his application and paying the VAP amount of at least 20 percent of the tax due in the covered tax return. The minimum amount, however, should be P10,000 for an individual, P50,000 for estates and trusts, P100,000 for corporations, P1 million for large taxpayers and P1 million for taxpayers with cases being handled by the national investigation division.
Any person, natural or juridical, including estates and trusts, are entitled to avail of the program to correct any errors or deficiencies in their tax payments, or to make up for their failure to file any returns.
Disqualified are taxpayers who have already been issued a final assessment notice, persons under investigation as a result of a verified information filed by an informer before the effectiveness of the program, tax fraud cases already filed with the justice department or the courts, unpaid tax liability already reflected in the tax returns and financial statements, and cases handled by the BIR under the RATE program.
The taxpayer who has availed himself of the EVAP shall not be audited except upon prior authorization and approval of the BIR commissioner when there is strong evidence or finding of understatement in the payment of a taxpayer’s correct tax liability by more than 30 percent. However, any EVAP payment shall be allowed as tax credit against the deficiency tax due.
"It is to be noted, however, that EVAP availment is not an admission on the part of the taxpayer of erroneous payment of the tax as well as of failure to file returns and pay the required tax," the BIR said.