RMO No. 19-2008: Prescribes the revised target for the 2008 audit goal and the basis for the computation of the Audit Effort Ratio

Summary

RMO No. 19-2008 prescribes the revised target for the 2008 audit goal and the basis for computing the Audit Effort Ratio, amending the target set in RMO No. 15-2008.

Key points

1. What counts as collection from audit. It covers deficiency taxes and penalties collected from audits under a duly issued Letter of Authority, Letter Notice, Tax Verification Order or Mission Order. Payments before an assessment notice, or after a Preliminary or Final Assessment Notice or after review, are included. Collections from delinquent accounts are not, even if they arose from those issuances.
2. Formula for the LTS. Audit Effort Ratio equals Collection from Audit (LAs + LNs + TVNs + MOs) divided by the Assigned Collection Goal, net of voluntary compliance collections from TRA of NGAs, SARO and Excise Tax.
3. Formula for RDOs. The same ratio applies, but the Assigned Collection Goal is net of voluntary compliance collections from TRA of NGAs, withholding taxes of LGUs and SARO.
4. Audit goal. The goal is set at a minimum of 1% for investigating offices under the LTS and 2% for the RDOs.

Who is affected

• Large Taxpayers Service investigating offices
• Revenue District Offices

Deadlines and effectivity

• Effective immediately for Performance Evaluation Reports at the end of each semester starting the first semester of CY 2008, submitted on or before the end of the following month

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