RMC No. 43-2003: Amends RMC No. 13-2003 regarding the issuance of Letters of Authority/Audit Notices/Tax Verification Notices covering the audit/verification of taxpayers’ tax returns/liabilities.

Key points

1. Income tax refund or TCC cases. Income tax refund or TCC claims, or returns with carry-over of excess withholding tax or quarterly payments, need an audit of the taxpayer’s income and withholding tax liabilities for the covered period. This applies to corporate taxpayers irrespective of amount and to individuals exceeding P 100,000.00.
2. VAT cases. VAT refund or TCC claims, or VAT returns showing excess input tax exceeding P 100,000.00, need a specific audit of the VAT liabilities only for the covered period.
3. Who issues LAs and ANs. The Regional Director issues LAs/ANs for these cases, unless the Commissioner directs otherwise.
4. TVNs signed by the Revenue District Officer. The RDO continues to sign TVNs for: income tax refund or TCC cases of individuals at P 100,000.00 and below, VAT cases at P 100,000.00 and below, excise tax credit/refund claims of any amount, erroneous or double payment claims of any amount, taxpayers retiring from business with gross assets of P 10 Million and below, and protested or reinvestigation cases.
5. Earlier issuances. LAs/ANs/TVNs already issued under RMC No. 13-2003 remain in force. The concerned Revenue District Offices pursue the cases.

Who is affected

• Corporate taxpayers and individuals claiming income tax refunds or TCCs
• Taxpayers claiming VAT refunds or TCCs
• Taxpayers retiring from business with gross assets of P 10 Million and below