RMO No. 45-2010: Prescribes the revised guidelines in the requests for the production of the books of accounts and/or other records and documents and in the issuance of Subpoena Duces Tecum for failure of taxpayers to comply with the requests

Summary

RMO No. 45-2010 prescribes revised guidelines for requests to produce books of accounts and other records, and for issuing a Subpoena Duces Tecum (SDT) when taxpayers do not comply.

Key points

1. First Notice. The Revenue Officer sends a First Notice, signed by the officer and/or the group supervisor, 10 calendar days after the taxpayer receives the Letter of Authority and checklist or the access to records request. It demands the requirements.
2. Second and Final Notice. If the taxpayer ignores the First Notice, the Head of Office signs a Second and Final Notice sent 10 calendar days after the taxpayer receives the First Notice.
3. Request for SDT. If the taxpayer still refuses, the Head of Office requests an SDT from the Legal Service, Legal Division or another authorized office after 10 calendar days from receipt of the Second and Final Notice. That office acts within 5 calendar days.
4. Serving the SDT. The Revenue Officer serves the SDT immediately and returns a served copy to the issuing office within 5 calendar days from its issuance.
5. Non-compliance with the SDT. The BIR legal office may file a criminal case under Section 5 in relation to Sections 14 and 266 of the NIRC and/or start contempt proceedings under Section 3(f), Rule 71 of the Revised Rules of Court.
6. Dismissal on compliance. If the taxpayer later asks for dismissal and submits the documents, the BIR office concurs upon submission and payment of a P 10,000 penalty for delayed compliance.

Who is affected

• Taxpayers under audit
• Revenue Officers

Deadlines and effectivity

• First Notice 10 calendar days after receipt of LA and checklist
• Second and Final Notice 10 calendar days after receipt of the First Notice
• SDT request 10 calendar days after receipt of the Second and Final Notice
• Legal office acts within 5 calendar days

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