REVENUE MEMORANDUM ORDER NO.
1-2024 issued on January 10, 2024 further
amends Revenue Memorandum Order (RMO) No. 6-2023 prescribing the updated
and consolidated policies, guidelines and procedures for BIR audit program.
Item Ill.A.1 of the same RMO was amended to include as one of the mandatory
cases to be covered by electronic Letter of Authority (eLA) the audit/investigation of
taxpayers who consistently (at least three (3) times in any given period) failed to
pay/remit the corresponding taxes due reflected in the tax returns filed through
Electronic Filing and Payment System (eFPS) or who later filed an amended tax
returns reflecting a decrease/no tax due.
Item IV.C.6 of the same RMO, prescribing the time frame for the submission of
report of investigation of cases covered by eLA, other than replacement eLA, is
likewise amended, as follows:
Case No. of Days
Classification
Cases covered by 180 days for Regional cases/240 days for LT
eLAs other than cases/120 days for OAS/90 days for LTVAU
replacement eLA and VATAS from date of the eLA
Further, the counting of the number of days to complete audit, as prescribed
in the same Item of the RMO, shall be suspended when the investigating Revenue
Officer (RO) requested for the issuance of Subpoena Duces Tecum (SDT) or an
Exchange of Information (EOI). The reckoning date for the suspension shall be on
the date of receipt of request by the concerned office, and shall only be lifted when
the reply has been forwarded to the requesting RO:
Concerned BIR Office
Requests for issuance of SDT Legal Division/Office of the
Assistant Commissioner - Large
Taxpayers Service
Requests for exchange of Exchange of Information Unit of
information provision for the International Tax Affairs
taxes covered by tax treaty Division
To prevent the issuance of jeopardy assessments as well as to ensure that the
Bureau is not deprived of its right to assess and collect the right amount of tax, the
procedures in the issuance of SDT within two (2) working days from receipt of request
as prescribed under Item No. III.3.5 of RMO No. 10-2013, as amended by RMO No.
8-2014, must be strictly observed by the concerned office to compel taxpayers to
submit or present the required books, records and documents.
Item IV.G.2.b of RMO No. 6-2023, is likewise amended to read as follows:
"In case the taxpayer has transferred its business registration to
another Revenue District Office (RDO), or the taxpayer has been
enlisted/delisted as large taxpayer, the continuation of audit cases
which has already started prior to transfer or its
enlistment/delisting as large taxpayer, shall be conducted by the
old handling BIR Office.
In the same manner, all protests against deficiency tax
assessment notices [e.g., Preliminary Assessment Notice (PAN),
Formal Letter of Demand/Final Assessment Notice (FLD/FAN), and
Final Decision on Disputed Assessment (FDDA)] issued against
transferred or newly enlisted/delisted large taxpayers, shall be
handled by the old concerned BIR Office that issued such notice
until settlement/termination of the case. Unprotested tax
assessments that matured into "delinquent accounts" shall be
referred to the new concerned BIR Office where the taxpayer is
registered.
Any collection therefrom shall be credited to the Office that
conducted/concluded the audit upon notification to the Large
Taxpayers Service (LTS) or Regional Office, as the case may be,
for proper crediting by the Revenue Accounting Division.
Thereafter, all eLAs/TVNs regardless of the taxable year shall be
issued by the new BIR Office having jurisdiction over the
taxpayer's registration."
