RMO No. 14-2017: Prescribes the 2017 Collection Target from Audit and the basis for the computation of the audit goal

Key points

1. What counts as audit collection. It covers deficiency taxes and penalties collected from audit or verification under a duly issued eLA and Letter Notice. It excludes voluntary Estate Tax returns and their verification under a Tax Verification Notice, and collections from delinquent accounts even if they arise from an eLA or LN.
2. Payments counted. Counted are voluntary payments of probable deficiency taxes and penalties made before an assessment notice, per Item No. 2 of RMC No. 11-2014. Payments after review, based on a Preliminary Assessment Notice, Final Assessment Notice or Final Decision on Disputed Assessment, also count.
3. RDO goal. The minimum collection target from audit for RDOs is 3%. It is computed as collection from audit (eLAs + LNs) over the assigned collection goal, net of voluntary compliance collections from certain items such as Withholding Tax on compensation income.
4. VATAS goal. The goal for the VATAS is at least 105% of the prior year’s collection from VAT audit or investigation of the same sections.
5. Reports of investigation. The Revenue District Officer or Chief of the VATAS ensures reports of investigation are submitted and updates are encoded in the eLAMS and/or Case Management System. Only cases with reports actually submitted and received count in the computation.

Who is affected

• Revenue District Offices
• VAT Audit Sections in the Assessment Division of Metro Manila Revenue Regional Offices

Deadlines and effectivity

• Applies to the 2017 collection target from audit