RMC No. 38-2013: Clarifies the implication of Legal Petition Notices/ Declarations and similar documents on the audit/assessment process

Summary

RMC No. 38-2013 clarifies how Legal Petition Notices (LPN), declarations and similar documents affect the audit and assessment process.

Key points

1. Audit continues. Audit or investigation under an electronic Letter of Authority (eLA) is not suspended by receipt of an LPN on the case. The National Office no longer entertains any LPN questioning the validity of an eLA issued by the Regional Director, as RMC No. 6-2013 already clarified this.
2. Subpoena Duces Tecum. Nothing blocks the investigation or the later recommendation to issue a Subpoena Duces Tecum, if warranted, under RMO Nos. 45-2010 and 88-2010.
3. Protest of assessments. After a Preliminary Assessment Notice or a Formal Letter of Demand and Final Assessment Notice, the taxpayer has 15 or 30 days, as the case may be, to protest under Revenue Regulations No. 12-99. An LPN, declaration or similar protest sent to the Commissioner or a National Office official without a Final Decision on Disputed Assessment from the Regional Office is premature and invalid.
4. Tax agents and consultants. Taxpayers are reminded to engage tax agents or practitioners accredited with the BIR and to check the contents of any LPN or declaration before signing. Such documents gain no merit and may lead to charges in court.

Who is affected

• Taxpayers under audit with an eLA
• Taxpayers who receive assessment notices

Deadlines and effectivity

• Protest period: 15 or 30 days, as the case may be, after the Preliminary Assessment Notice or Formal Letter of Demand and Final Assessment Notice

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.