RMO No. 04-2011: Amends the Audit Criteria for Taxable Years 2009 and 2010

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. 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 Taxable Years 2009 and 2010 tax returns