RMC No. 75-2016: Clarifies certain issues relative to the suspension of all BIR audit prescribed under RMC No. 70-2016

Summary

RMC No. 75-2016 answers questions on the suspension of all BIR audit under RMC No. 70-2016. It clarifies which cases, notices and activities fall outside the suspension.

Key points

1. Cases prescribing by October 31, 2016. A table shows when prescriptive periods run for Income Tax, VAT and Withholding Taxes of taxable year 2013. Cases under Letters of Authority covering all internal revenue taxes for taxable year 2013 and prior years are excepted from the suspension. For a specific tax type, the period is counted from the date the law prescribes for filing the return.
2. Refunds and TCC. Processing of tax refund and TCC requests is excepted where existing revenue issuances set a specific timeline, for example VAT refunds or TCC processed within 120 days from submission of complete documents.
3. Assessment notices. Notices that may still be served are those for taxable year 2013 and prior years, including PANs, FANs and FDDA. Notices issued and signed by the Commissioner or an authorized representative as of June 30, 2016 for taxable year 2014 onwards with completed audit fieldwork may also be served. Taxpayers may still protest by request for reconsideration or re-investigation under law and Revenue Regulations No. 18-2013.
4. Denunciations and complaints. Valid denunciations or complaints from taxpayers or informers may still be processed. This is limited to preliminary evaluation under the No Contact with Taxpayer policy, and no Mission Order is issued during the suspension.
5. Other activities not suspended. Reminder letters to taxpayers with open stop-filer cases and follow-up letters for required schedules continue. So do Collection Letters, Seizure Notices of Levy/Tax Lien and similar correspondence for delinquent accounts, and Letters to Third Parties to verify property holdings of delinquent taxpayers.
6. Existing Mission Orders. All activities under Mission Orders issued before July 1, 2016, including service of related notices or communications, are covered by the suspension.

Who is affected

• Taxpayers under audit or investigation
• Taxpayers with open stop-filer cases
• Delinquent taxpayers

Deadlines and effectivity

• Cases prescribing on or before October 31, 2016 are excepted
• Mission Orders issued before July 1, 2016 are suspended
• Assessment notices signed as of June 30, 2016 may be served

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