RMO No. 03-2011: Prescribes the CY 2011 Audit Criteria

Key points

1. Audit candidates. All taxpayers are possible candidates for audit.
2. Priority taxpayers. Priority goes to taxpayers who render professional services: lawyers, doctors, engineers, accountants and other professionals.
3. Last Priority for income tax. Taxpayers with an effective Income Tax rate of eighteen percent (18%), computed as Gross Income X 18%, get Last Priority status for Income Tax audit.
4. Last Priority for VAT. For VAT audit, taxpayers with an effective VAT rate of 3% or higher for sale of goods, or 6% for sale of service, are also last in priority.
5. Exception. Last Priority does not apply where there are findings or suspicions of under-declaration of sales/revenues.

Who is affected

• Lawyers, doctors, engineers, accountants and other professionals (priority)

Deadlines and effectivity

• Covers CY 2010 tax returns