RMO No. 35-2001: Suspends the conduct of tax audit, examination, investigation and/or verification of taxpayers’ books of accounts and records effective December 18, 2001 up to January 15, 2002

Key points

1. What is barred. No Letters of Authority/Audit Notices, Tax Verification Notices, Mission Orders or other written orders to audit or investigate internal revenue taxes may be issued or made during the suspension, except in the listed cases.
2. Exceptions: prescribing cases. Investigation of cases prescribing on or before June 30, 2002 continues. So does service of Assessment Notices, including Notice for Informal Conference and Preliminary Assessment Notices, for such cases.
3. Exceptions: returns and retirements. Processing and verification continue for Estate Tax, Donor’s Tax, Capital Gains Tax and Withholding Tax Returns on sales of real property and shares of stocks, with related Documentary Stamp Tax Returns. Examination of taxpayers retiring from business continues.
4. Exceptions: refunds, protests and government entities. Investigation and processing of refund and credit claims and requests for reinvestigation/reconsideration (protested tax cases) continue. So does audit of National Government Agencies, Local Government Units and Government-Owned and -Controlled Corporations, including subsidiaries and affiliates.

Who is affected

• Taxpayers subject to audit or investigation
• National Government Agencies, Local Government Units and GOCCs (audits continue)

Deadlines and effectivity

• Suspension: December 18, 2001 up to January 15, 2002
• Excepted prescribing cases: prescribing on or before June 30, 2002