Strict Enforcement of All Issuances, Guidelines and Procedures Governing the Conduct of Audit and Investigation of Tax Cases

June 6, 2013 BIR MEMORANDUM TO : All Revenue District Officers and Employees Concerned SUBJECT : Strict Enforcement of All Issuances, Guidelines and Procedures Governing the Conduct of Audit and Investigation of Tax Cases It has come to the attention of this Office that substantial number of tax cases covered with Letters of Authority (LAs), electronic Letter of Authority (eLAs) and Tax Verification Notices (TVNs) have prescribed on account of inaction and/or failure by Revenue Officers to comply with their mandates to submit the required report of investigation within the prescribed period in accordance with the established rules, thereby depriving this Bureau the right to assess, review and collect whatever tax deficiency that might be due the government. aTEACS Thus, there is a need to impress upon all Revenue District Officers (RDOs) their responsibility and accountability for the acts and omissions of Revenue Officers under their respective supervision/jurisdiction in the conduct of audit and investigation of tax cases. Henceforth, in order to avoid incidents of unwarranted prescription of tax cases, all RDOs are hereby enjoined to strictly enforce and carry out all issuances, guidelines and procedures governing the conduct of audit and investigation of tax cases. Section 12 of the Revised Code of Conduct for Revenue Officers and Employees as implemented by Revenue Memorandum Order No. 53-2010 dated June 11, 2010, explicitly states: "Every Revenue Official who is a Head of Office shall be held fully accountable for his/her decisions and actions. Similarly, he/she shall be liable for the acts, conduct and/or behavior of those under his/her jurisdiction/supervision, if it is proven that he/she has knowledge of, or ought to have known of, such acts, conduct or behavior. He/She shall likewise be responsible for upholding and enhancing the efficiency of all BIR personnel under his/her supervision, and shall report in writing to the proper authorities any incidence of neglect of duty, incompetence or malfeasance of which he/she may obtain knowledge, with a statement of all the facts and/or any evidence relating to each case. He/She shall also ensure that all pertinent issuances affecting the enforcement of the National Internal Revenue Code and its implementing rules are faithfully complied with and enforced by the BIR personnel under his/her supervision. Non-compliance therewith shall be considered as Simple Neglect of Duty and shall constitute a Less Grave Offense." Section 43 thereof further provides for the penalty of Simple Neglect of Duty as follows: AcIaS 1st Offense : Suspension of 1 month and 1 day to 6 months 2nd Offense : Dismissal For the information, guidance and strict compliance of all concerned. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue