SECTION 1. Scope. - Pursuant to the provisions of Section 244, in relation to Section  245  of  the  National  Internal  Revenue  Code  of  1997  (Tax  Code),  as amended, these Regulations are hereby promulgated to amend provisions of Revenue Regulations (RR) No. 12-99, as amended by RR No. 18-13.

SECTION 2. Amendment. - Section 3 of RR 12-99, as amended by RR No. 13-18, is hereby amended by adding Section 3.1.1 providing for the preparation of a Notice  of  Informal  Conference,  thereby  renumbering  other  provisions  thereof, and  prescribing   other  provisions   for  the  assessment   of  tax  liabilities.   The pertinent provisions of Section 3 of RR 12-99 shall now read as follows.

œSECTION.   3.  Due  Process   Requirement   in  the  Issuance   of  a Deficiency Tax Assessment.

3.1 Mode of procedure in the issuance of a deficiency tax assessment:

3.1.1   Notice  for  Informal  Conference.  -  The  Revenue  Officer  who audited  the taxpayer ™s  records  shall,  among  others,  state  in his report whether or not the taxpayer agrees with his findings that the taxpayer is liable for deficiency tax or taxes. If the taxpayer is not amenable, based on the said Officer ™s submitted report of investigation, the taxpayer shall be informed, in writing, by the Revenue District Office or by the Special Investigation Division, as the case may be (in the case of Revenue Regional Offices) or by the Chief of Division concerned (in the case of the BIR National Office)  of  the  discrepancy   or  discrepancies   in  the  taxpayer ™s payment of his internal revenue taxes, for the purpose of œInformal Conference,  in order to afford the taxpayer with an opportunity to present his side of the case.

The  Informal  Conference  shall  in no  case  extend  beyond  thirty (30) days from receipt of the notice for informal conference. If it is found that the taxpayer is still liable for deficiency tax or taxes after presenting   his  side,  and  the  taxpayer   is  not  amenable,   the Revenue District Officer or the Chief of the Special Investigation Division of the Revenue Regional Office, or the Chief of Division in the National Office, as the case may be, shall endorse the case within   seven   (7)   days   from   the   conclusion   of   the   Informal Conference to the Assessment Division of the Revenue Regional Office  or  to  the  Commissioner  or  his  duly  authorized representative for issuance of a deficiency tax assessment.

Failure on the part of Revenue Officers to comply with the periods indicated  herein  shall  be  meted  with  penalty  as  provided  by existing laws, rules and regulations. 

SECTION 3. Repealing Clause. - Any rules and regulations or parts thereof inconsistent   with  the  provisions  of  these  Regulations   are  hereby  repealed, amended, or modified accordingly.

SECTION 5. Effectivity. - The provisions of these Regulations  shall take effect after  fifteen   (15)  days   following   publication   in  any  newspaper   of  general circulation.