Summary
RMO No. 64-2016 amends the audit policies in RMO No. 19-2015. It changes the approval needed before a taxpayer is audited a third (3rd) time and removes the fifty percent (50%) surcharge.
Key points
- Third audit approval. If a taxpayer was audited for the last two (2) years and is selected for the current or 3rd year, the RDO, Large Taxpayers Division or Large Taxpayers Assistance Division encodes the requested audit in the Electronic Letter of Authority Monitoring System/Electronic Tax Information System-Case Monitoring System. The Regional Director or Assistant Commissioner who heads the investigating office approves it.
- Surcharge. The deficiency assessment carries a twenty-five percent (25%) surcharge. The surcharge is fifty percent (50%) only if the under-declaration of income or overstatement of expenses/deductions reaches 30% or more.
Who is affected
- Taxpayers selected for audit for the 3rd time
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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