RMO No. 23-2009: Prescribes the policies and guidelines in the audit of selected taxpayers by the National Investigation Division

Summary

RMO No. 23-2009 prescribes the policies and guidelines for audits of selected taxpayers by the National Investigation Division (NID), including developing Run After Tax Evaders (RATE) cases.

Key points

1. NID authority. Subject to the Commissioner’s approval, the NID may investigate or reinvestigate inter-related companies and conglomerates, including related individual taxpayers from certain industries, and their officers. It may also cover Local Government Units, National Government Agencies and Government Owned and Controlled Corporations.
2. Audit focus. In audits of inter-related companies and conglomerates, particular attention goes to transfer pricing issues. Audits of LGUs, NGAs and GOCCs check compliance with the rules on correct withholding and remittance of taxes.
3. RATE cases. Cases found qualified for the RATE Program after the audit get priority. All concerned offices must act within 10 days from receipt of the report of investigation.

Who is affected

• Inter-related companies and conglomerates and related individuals
• LGUs, NGAs and GOCCs
• National Investigation Division

Deadlines and effectivity

• Issued July 9, 2009
• Action on RATE cases within 10 days from receipt of the report of investigation

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