PNB Can Legally Refuse the Examination by Revenue District Office No. 43 of the Books of Account of its Pasig Branch since it is only Revenue District Office No. 30 which has Jurisdiction to Examine its Books of Account including that of its Branches Considering that it has Jurisdiction over its Principal or Head Office located in Manila

June 15, 1995 BIR RULING NO. 092-95 RMO 26-94 000-00 092-95 Philippine National Bank Escolta, Manila Attention: Ms . Teresita S . Cruz Vice President Gentlemen : This refers to your letter dated October 24, 1994 stating that your Pasig Branch has received a Final Notice Before Assessment letter dated September 30, 1994 from Mr. Aguinaldo L. Miravalles, Revenue District Officer of Revenue District No. 43, reiterating its request for the presentation of the Branch's books of accounts, accounting records, and other pertinent data relative to the routine verification of said branch's income/VAT, withholding and documentary stamp tax liabilities for 1993; that the Letter of Authority (LA) [RR No. 0049860-B] received by the Branch dated November 8, 1993, signed by Asst. Regional Director Antonio I. Ortega, in his capacity as Officer-In-Charge, covered only the examination of records for all of the Branch's withholding taxes for 1993; that in your understanding the Revenue District Officer (RDO) authorized to issue an LA, under Revenue Memorandum Order (RMO) No. 36-94, refers to the RDO in whose territory the head office of the taxpayer is located; that in addition, Section 236 of the Tax Code provides that the examination and inspection of books and records by internal revenue officers may be undertaken only once in a taxable year to avoid duplicity of examination; that there are, however, instances when additional examinations may be allowed within the same taxable year, such as in the verification of compliance of withholding tax regulations; and that such an examination in your own understanding should likewise be undertaken by the same RDO having Jurisdiction over the taxpayer's principal place of business. cdll Based on the foregoing representations, you now request for a ruling on the following queries: "(1) Can we legally refuse examination by RD 43 of the books of the Bank's Pasig Branch since it should only be RD No. 30 which can examine its records considering that it has jurisdiction over the Bank's Head Office which is located at Manila, as contemplated by RMO No. 26-47 "(2) If the answer to no. (1) above is in the negative, will the future examination by RD No. 30 of the Bank's records for the taxable year 1993 not violate Section 235 of the Tax Code which prohibits duplicity of examination by different RDO's? Please note that this examination will cover all the records of the Bank's Head Office including all of its branches. In reply, please be informed that under Revenue Memorandum Order No. 26-94, all Letters of Authority (LA) will be issued and approved by the Revenue District Officer within their respective districts. (Paragraph E, RMO 26-94). Thus, the Revenue District Officer in whose jurisdiction the principal office of a taxpayer is located has the authority to issue such LA to the exclusion of other Revenue District Officer. Such being the case, this Office is of the opinion as it hereby holds that you can legally refuse the examination by Revenue District Office No. 43 of the books of account of your Pasig Branch since it is only Revenue District Office No. 30 which has jurisdiction to examine your books of account including that of your branches considering that it has jurisdiction over your Principal or Head Office which is located in Manila As regards your second query, the same is no longer relevant in view of the above answer to your first query. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue