RMO No. 29-2007: Prescribes the audit policies, guidelines and standards at the Large Taxpayers Service

Key points

1. Selection list. The Chief of the LTAID or LTDO draws a list of taxpayers selected for audit. It states the taxpayer’s name, nature of business, gross sales or receipts, selection code, PSIC code and tax paid for the period. The ACIR/HREA-LTS approves it, with a copy to the CIR.
2. Letters of Authority and TVNs. The ACIR/HREA issues and approves all LOAs. The same official issues all Tax Verification Notices unless delegated in writing to the Chiefs of LTAIDs or LTDOs, and may revoke that authority in writing at any time.
3. One LOA per period. One LOA or TVN is issued for each taxable period, except for retirement, corporate reorganization and other short-period returns. For General Professional Partnerships, all partners are covered wherever registered, but the RDO and region where each partner is registered approves the report on that partner.
4. Attached returns. An LOA or TVN is issued only with the duplicate copy of the returns attached. Exceptions: the return cannot be located (with a certification from the Chief, Large Taxpayers Document Processing and Quality Assurance Division), or the basis is Third Party Information.
5. Rotation and reports. A Revenue Officer or Group Supervisor may not audit the same taxpayer for two consecutive years or periods. Audit reports follow the audit manuals and existing issuances.

Who is affected

• Large Taxpayers Service taxpayers
• LTAID and LTDO Chiefs
• Revenue Officers and Group Supervisors