RMO No. 27-98: Prescribes the audit policies and procedures of the 1998 Enforcement Audit Program

Key points

1. Taxes covered. The Program covers 1996 and 1997 Income, Value-Added Tax, Percentage, Withholding and other tax returns and liabilities.
2. Sectors covered. These include banks, insurance and other financial intermediaries, international carriers, telecommunication companies, and pharmaceutical companies. Also covered are the top 1,500 large taxpayers identified by the Large Taxpayers Division, oil companies, breweries, distillers, rectifiers and compounders, and cigarette manufacturers.
3. Other covered groups. The Program also covers companies registered with the Board of Investments, Export Development Authority and Philippine Export Zone Authority, and exempt organizations under Sec. 30 of the Tax Code. SBMA and CDC enterprises, cases from confidential informer information, and tax fraud cases of the Tax Fraud Division are included too.
4. Exclusions. Cases in these classifications are automatically excluded by the Assessment Service from the 1998 Audit Program for Revenue District Offices. Taxpayers who availed of the Voluntary Assessment Program are not included unless the Voluntary Assessment Program Committee found the availment substantially deficient.

Who is affected

• Banks, insurance and other financial intermediaries
• Telecommunication companies, oil companies and pharmaceutical companies
• Top 1,500 large taxpayers
• Registered enterprises of BOI, Export Development Authority, Philippine Export Zone Authority, SBMA and CDC