Jurisdiction of Large Taxpayer Service (LTS)

July 5, 2006 BIR MEMORANDUM TO : All Regional Directors, Revenue District Officers, Revenue Employees and Others Concerned CC : The Assistant Commissioner, Division Chiefs and Revenue Employees Large Taxpayers Service SUBJECT : Jurisdiction of Large Taxpayer Service (LTS) Reports have reached the Office of the Commissioner that some revenue officials and employees not officially assigned at the Large Taxpayers Service or the Divisions under it are conducting unauthorized activities by meddling and interfering with the affairs of large taxpayers (regular/excise/LTDO), e.g., monitoring their companies' activities through surveillance and inventory stocktaking, issuance and service of Letter Notices or Letters of Authority against these taxpayers, etc. These are resulting in confusion amongst large taxpayers and they have started to raise complaints of harassment by BIR. It is also creating friction and disagreement between these taxpayers and the said non-LT officials/employees. In view of the foregoing, all non-LT officials/employees are hereby directed to refrain from undertaking these unauthorized activities, unless officially ordered by the undersigned, in order to maintain harmonious relations with the taxpaying public, specifically the large taxpayers. Furthermore, any such activities already undertaken must be terminated forthwith and a report thereon is hereby required to be submitted to the undersigned within five (5) days from receipt hereof. Anybody who has first hand information that these unauthorized activities are still being pursued by non-LT officials/employees must be reported immediately to the Office of the Commissioner so that appropriate action can be taken against them. Non-LT officials/employees found to be violating this directive shall be dealt with in accordance with the existing administrative cases. DHcEAa Strict compliance herewith is hereby enjoined. (SGD.) JOSE MARIO C. BUAG Commissioner of Internal Revenue