RMO No. 13-2002: Prescribes the policies, guidelines and procedures in the audit/investigation of Year 2000 tax returns of taxpayers under the jurisdiction of the Regional Office

Summary

RMO No. 13-2002, issued May 16, 2002, prescribes the policies, guidelines and procedures for Revenue District Office (RDO) audit of Year 2000 tax returns.

Key points

1. Cases for Letters of Authority. Letters of Authority (LAs) or Audit Notices (ANs) cover: claims for tax credit/refund of VAT and Income Tax above P 100,000, except refund of excess Income Tax on compensation income; mergers, consolidations, split-ups, spin-offs, temporary cessation of operation and other corporate reorganizations; taxpayers found understating sales/income by 30% or more through authorized surveillance or stocktaking; and specified priority target taxpayers who have not availed of the Voluntary Assessment Program.
2. Cases for Tax Verification Notices. These cover cases below the threshold defined in the Order, specified tax credit/refund claims, protested and reinvestigation cases, Donor’s Tax cases, and sales or transfers of real property or shares not traded through the local stock exchange (Capital Gains Tax, Expanded Withholding Tax, Documentary Stamp Tax).
3. Other verification cases. Also covered are taxpayers with obvious basic tax deficiency or delinquency of P 100,000.00 or more on the face of returns or financial statements. All domestic and resident foreign corporations not selected for an LA/AN are covered too.

Who is affected

• Taxpayers with Year 2000 tax returns audited by RDOs

Deadlines and effectivity

• Applies to Year 2000 tax returns

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