RR No. 16-2006: Prescribes the submission by taxpayers of electronic books of accounts and other accounting records in the course of a tax audit/investigation

Summary

RR No. 16-2006 requires registered computerized taxpayers to submit their books of accounts and other accounting records in electronic form during a tax audit or investigation, in line with the NIRC and RA No. 8792.

Key points

1. What must be provided. Electronic books and records submitted and registered within 30 days from the close of the taxable year under RMO No. 29-2002 must be provided upon audit. The BIR may also request other transaction files for the year under examination.
2. When to submit. Records are submitted within the due date on the audit authority, such as the Letter of Authority or Audit Notice. The period cannot exceed 5 days from receipt of that document.
3. Format and labeling. Records come from a computerized accounting system evaluated and approved by the Computerized Systems Evaluation Team (CSET), on CD-R, DVD-R or other optical media readable by BIR audit tools. The media carry required labels, a file layout document, and a label signed by the officials who sign the tax returns.
4. Notarized certification. A notarized affidavit certifying the completeness, accuracy and appropriateness of the records is submitted in hard copy together with the electronic files.
5. Access and return. Access is restricted to the assigned Revenue Officers, who return the records intact after the report and docket are approved. They may request certified true copies of portions that serve as proof of audit findings.
6. Retention and non-compliance. Records are retained in original form under Section 235 in relation to Sections 203 and 222 of the NIRC, and electronic documents are the functional equivalent of written ones for evidence, subject to integrity conditions. Failure to comply leads to the prescribed procedures and Subpoena Duces Tecum enforcement.

Who is affected

• Registered computerized taxpayers under audit or investigation

Deadlines and effectivity

• Submit within the due date on the audit authority, not exceeding 5 days from receipt
• Records registered within 30 days from close of the taxable year under RMO No. 29-2002

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