Summary
RMO No. 11-98 sets the audit policies and procedures for the audit of 1996 and 1997 Value-Added Tax returns.
Key points
- Order of priority. Audit priority goes first to returns with claims for VAT credit/refund, then break-even VAT returns, then returns with excess tax credit for any or all of the four quarters.
- Gross sales thresholds. Next are returns with quarterly gross sales/receipts of P1,000,000 and above in Metro Manila districts under Revenue Region Nos. 5, 6, 7 and 8 (Valenzuela, Manila, Quezon City and Makati). RDO Nos. 35, 36 and 37 are excluded from that group. Last are returns of P500,000 and above for all other RDOs, including RDO Nos. 35, 36 and 37.
- Exclusions. Returns already selected by the investigating divisions under the Enforcement Service are excluded. So are returns of taxpayers who availed of the Voluntary Assessment Program (VAP) under RMO No. 63-97, as amended, unless their availments were found to be substantially deficient.
Who is affected
- Taxpayers with 1996 and 1997 VAT returns
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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