Clarification on binding effect of BIR rulings issued prior to January 1, 1998

The BIR has issued the following clarifications on the proper interpretation of RR 5-2012 on the non-binding effect of BIR rulings issued prior to January 1, 1998.

A. On the use of BIR rulings as precedent

All BIR rulings issued prior to January 1, 1998 may not be used as precedent basis by taxpayers to secure their own rulings for current business transactions or tax assessments. The same rulings may also not be used by a BIR action lawyer in issuing new rulings involving current business transactions.

B. On its effect on taxpayers to whom the rulings were issued

The BIR rulings issued prior to January 1, 1988 remain valid but only to the taxpayer who was issued the ruling and covering the specific transactions that are the subject of the ruling. The rulings also stand unless the taxpayer is expressly notified of its revocation or the legal basis in law for such issuance has already been repealed/amended in the current Tax Code.

Revenue Memorandum Circular No. 22-2012, May 7, 2012

Tax Brief - June 2012

Punongbayan and Araullo 

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