Amending RAO No. 7-88 Delineating the Functions of the National Audit Review Division and Tax Credit/Refund Division in so far as the Review of Capital Gains Taxes are Concerned

July 19, 1991 REVENUE ADMINISTRATIVE ORDER NO. 03-91 SUBJECT : Amending RAO No. 7-88 Delineating the Functions of the National Audit Review Division and Tax Credit/Refund Division in so far as the Review of Capital Gains Taxes are Concerned TO : All Internal Revenue Officers and Others Concerned I. Objective a) In order to optimize the valuable manpower resources of Tax Credit/Refund Division (mostly CPAs) and with the end in view of updating the review of capital gains tax cases that have accumulated through the years; and (b) so as not to overly burden the National Audit Review Division (NARD) and erode their effectiveness in the review work this order hereby amends the previous RAO 7-88 by assigning the review of taxable capital gains tax cases to Tax Credit/Refund Division (TCRD) and the untaxed capital gains tax cases to National Audit Review Division (NARD). II. A . National Audit Review Division Section A, paragraph 3 of RAO No. 7-88 is hereby amended to read as follows: 3) Review, evaluate, verify and examine transactions involving transfer of property where the fair market value exceeds P3,000,000.00 and transactions not subject to capital gains tax where the fair market value exceeds P500,000.00 . C. Tax Credit/Refund Division Section C paragraphs 7 and 8, of RAO No. 7-88 dated February 16, 1988, are hereby amended to read as follows: 7) Review and evaluate reports involving taxable capital gains tax returns where the gross selling price or fair market value exceeds P500,000.00; 8) Perform such other related functions as may be assigned to it. Section C-1 of RAO 7-88 paragraphs (i), (j), (k) and (l) are hereby amended to read as follows: i) Review, evaluate and verify transactions involving taxable capital gains tax returns where the fair market value exceeds P500,000.00; aisa dc j) Prepare a Ten (10) day-letter notice to the taxpayer arising from discrepancy or deficiency relative to taxable capital gains tax; k) Prepare transcript of assessment to serve as basis for the preparation of the demand letter or assessment notice; l) Perform such other related function as may be assigned to it. Section C-2 of RAO 7-88 paragraphs (f), (g), (h), and (i) are hereby amended to read as follows: i) Review, evaluate and verify transactions involving taxable capital gains tax returns where the fair market value exceeds P500,000.00; j) Prepare a Ten (10) day-letter notice to the taxpayer arising from discrepancy or deficiency relative to taxable capital gains tax; k) Prepare transcript of assessment to serve as basis for the preparation of the demand letter or assessment notice; l) Perform such other related function as may be assigned to it. This Order amends RAO No. 7-88 dated February 16, 1988 and shall take effect immediately. cdtai JOSE U. ONG Commissioner of Internal Revenue