RMO No. 80-2010: Prescribes the CY 2010 Audit Criteria

Summary

RMO No. 80-2010 sets the CY 2010 Audit Criteria, the policies for Revenue District Offices in auditing CY 2009 tax returns.

Key points

1. All taxpayers are candidates. Every taxpayer is a possible candidate for audit.
2. Priority for professionals. Priority goes to taxpayers who render professional services: lawyers, doctors, engineers, accountants and other professionals.
3. Last priority for income tax audit. Taxpayers with an effective income tax rate of eighteen percent (18%), computed as Gross Income X 18%, have last priority.
4. Last priority for VAT audit. Taxpayers with an effective VAT rate of 3% or higher for sale of goods, or 6% for sale of service, are also last in priority.
5. Exception. Last priority status does not apply to taxpayers with findings or suspicions of under-declaration of sales or revenues.

Who is affected

• Taxpayers whose CY 2009 returns are audited by Revenue District Offices
• Lawyers, doctors, engineers, accountants and other professionals

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