RMO No. 07-2013: Prescribes the endorsement of fraud cases discovered in the processing and issuance of Certificates Authorizing Registration (CARs) and Tax Clearances (TCLs) and amends the manner and procedures in the issuance of CARs and TCLs for transactions or transfers within the area of jurisdiction of Revenue Region No. 1

Summary

RMO No. 07-2013 prescribes the endorsement of fraud cases found in processing CARs and Tax Clearances (TCLs), and amends how CARs and TCLs are issued for transactions within Revenue Region No. 1.

Key points

1. Referral of fraud cases. On finding evidence of fraud in new or previously issued CAR or TCL applications, offices send the docket and a report of initial findings to the Special Investigation Division of their Revenue Region. The case is investigated under the Run After Tax Evaders Program.
2. Higher-value or serial cases. For property transfers valued at P 10,000,000.00 or more, or a series of fraudulent transactions by the same group of persons, the docket goes to the National Investigation Division. A copy of the report also goes to the Offices of the Deputy Commissioner for Legal and Inspection Group and Operations Group.
3. Approval in Revenue Region No. 1. The Commissioner of Internal Revenue signs and approves all CARs and TCLs for transactions in Revenue Region No. 1, which covers RDO Nos. 1 to 6. Revenue District Officers or Assistants only initial to recommend approval and forward the dockets through the Revenue Regional Director.

Who is affected

• RDOs and Regional Assessment Divisions that process CARs and TCLs
• Revenue Region No. 1 (RDO Nos. 1 to 6)

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