RMC No. 70-2016: Suspends all audit of the BIR effective July 1, 2016 and requires the submission of inventory of pending Letters of Authority/Letter Notices as of June 30, 2016

Summary

RMC No. 70-2016 suspends all BIR field audit and other field operations effective July 1, 2016, and requires submission of an inventory of pending Letters of Authority and Letter Notices as of June 30, 2016.

Key points

1. Suspended activities. Field audit and other field operations on examination of taxpayers’ books of accounts, records and other transactions are suspended until further notice. No field audit, field operation or business visitation under Letters of Authority, Audit Notices, Letter Notices or Mission Orders is conducted, and no written orders to audit or investigate tax liabilities are served.
2. Exceptions. The suspension does not cover: investigation of cases prescribing on or before October 31, 2016; processing of Estate Tax, Donor’s Tax, Capital Gains Tax and Withholding Tax returns on sales of real properties or shares of stocks, with related Documentary Stamp Tax returns; examination of taxpayers retiring from business; audit of National Government Agencies, Local Government Units and GOCCs, including subsidiaries and affiliates; and other matters with imposed deadlines or under Commissioner orders.
3. Assessments and payments. Assessment Notices, Warrants and Seizure Notices are still served. Taxpayers may voluntarily pay known deficiency taxes without securing authority from revenue officials.
4. Inventory. An inventory of all outstanding Letters of Authority, Audit Notices and Letter Notices as of June 30, 2016 goes to the Office of the Commissioner on or before July 16, 2016.

Who is affected

• Taxpayers subject to field audit
• Revenue officials issuing audit orders

Deadlines and effectivity

• Suspension effective July 1, 2016, until further notice
• Inventory due on or before July 16, 2016
• Investigation of cases prescribing on or before October 31, 2016 is excepted

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