RMO No. 64-99: Prescribes the 1999 Audit Program on Large Taxpayers and Policy Cases

Key points

1. Coverage of the audit. The program covers taxable year 1998 for Income, Value-Added Tax, Percentage, Withholding and other tax returns and liabilities. Taxable year 1998 includes corporations with fiscal years ending on or before June 30, 1999.
2. Regular audit of large taxpayers. This covers the top 500 large taxpayers, and banks, insurance and stock brokers classified as Specially Monitored Industries.
3. Policy cases. These cover chemical and chemical products, food and beverage, and follow-up audit on selected conglomerates.
4. ERAP Program availers. Covered taxpayers who availed of the ERAP Program under Revenue Regulations No. 2-99 and Revenue Memorandum Order No. 10-98 will not be audited. The exception is tax liabilities not covered by the ERAP return, such as Withholding Taxes and Documentary Stamp Taxes.
5. Industry audits. Audits done to develop industry procedures, guidelines and standards are treated as audits of an industry, not of individual taxpayers. A joint and coordinated audit is carried out to keep action uniform.

Who is affected

• Top 500 large taxpayers
• Banks, insurance and stock brokers classified as Specially Monitored Industries
• Chemical and chemical products, and food and beverage industries
• Selected conglomerates

Deadlines and effectivity

• Issued August 13, 1999
• Taxable year 1998 covered