Transfer of the Office Audit/Investigation Function of the Revenue District Office (Assessment Unit) to the Regional Office (Assessment Branch)

September 15, 1988 REVENUE ADMINISTRATIVE ORDER NO. 22-88 SUBJECT : Transfer of the Office Audit/Investigation Function of the Revenue District Office (Assessment Unit) to the Regional Office (Assessment Branch) I. Objectives : This Order aims to streamline further and to delineate more clearly the field and office audit/investigation functions in the revenue region. The following are prescribed in this Order: A. Creation of an Office Audit Unit in the Assessment Branch to assume the office audit/investigation function of the Revenue District Office, provided for under RAO 11-88. cdt B. Merging of Review and Evaluation Units I and II into a singular entity which shall review both field and office audit reports of investigation on tax cases (except VAT and excise tax cases) including capital gains tax cases. II. Organization : For this purpose, an Office Audit Unit is hereby created in the Assessment Branch, alongside the merging of Review and Evaluation Units I and II. Henceforth, the Assessment Branch shall have the following sections: A. Review and Evaluation Unit B. Office Audit Unit C. Tax Returns Processing Unit D. VAT Unit Correspondingly, an appropriate number of Revenue Enforcement Officers, (REOs) from the merged Review and Evaluation Unit shall be shifted to the Office Audit Unit in the Assessment Branch which shall compose the personnel to handle the investigation of returns, filed within the region, classified for office audit. casia III. Functions : Accordingly, the functions of the Assessment Branch (Section IIIA), as stated under RAO 11-88, are amended as follows: 1. Review field and office audit reports of investigation on tax cases (except excise tax cases) including capital gains tax cases per RMO 21-80, except when specifically provided otherwise by the Commissioner of Internal Revenue; 2. Pre-audit refundable tax returns with purely compensation income filed within the region; 3. Investigate returns filed within the region, classified for office audit including refundable tax returns declaring mixed income or purely business income, as prescribed under RMO 15-85, RMO 12-86 and RAO 4-87; 4. Coordinate and evaluate the performance and accomplishment of revenue examiners; cd 5. Process, number and classify all types of tax returns for computer processing; 6. Maintain special logbooks and index card using BIR Form 27.06 (History Card of Assessed Cases) for deficiency tax protested and submits quarterly inventories and statistical reports on these cases to Accounts Receivable/Billing Division; 7. Prepare reports required by the National Office that are deemed pertinent or necessary for top management information; 8. Monitor the issuance of assessment notices and letters of demand on the cases acted upon by their respective offices; and 9. Perform such other related functions as may be assigned to it. A-1 Review and Evaluation Unit a) Evaluate and review all examiners' field and office audit reports on tax cases except fraud, excise and VAT tax cases and forward to the National Office for approval all audit reports that are found to be within the jurisdiction of the National Office (per RMO Nos. 22-80 and 15-85); b) Review all protested cases (i.e. cases not involving legal issues) and report of investigation of tax cases with deficiency assessments and send pre-assessment notice to taxpayers; c) Prepare Transcripts of Assessment for tax cases with deficiency assessment and for second installment of income tax to be used as bases in the preparation of demand letters and assessment notices in the Collection Branch; d) Compile all information on collection from enforcement and statistical data on gross assessments for submission to the National Office; and e) Perform such other related functions as may be assigned to it. A-2 Office Audit Unit a) Investigate returns filed within the region, classified for office audit including refundable tax returns declaring mixed income or purely business income, as prescribed under RMO 15-85, RMO 12-86 and RAO 4-87; acd b) Pre-audit refundable tax returns with purely compensation income filed within the region; and c) Perform such other related functions as may be assigned to it. A-3 Tax Returns Processing Unit a) Process and number all tax returns received before computer processing; b) Receive, release documents and maintain an accurate record of all reports, dockets, correspondence and other documents for action; c) Maintain a regional data bank which shall include an index and a master file of all taxpayers in order to monitor those who are delinquent in the payment of their taxes; and d) Perform such other related functions as may be assigned to it. casia A-4 VAT Unit a) Monitor the implementation of VAT law and regulations, orders and issuances in the revenue region; b) Evaluate and review all examiners' field and office audit reports on VAT cases as well as all protested VAT cases (i.e. cases not involving legal issues); c) Prepare Transcripts of Assessment of VAT cases with deficiency assessment for use as bases of demand letters and assessment notices; d) Maintain a regional VAT data bank which consists of an index and a master file of VAT taxpayers within the region, for control purposes; e) Prepare reports required by the National Office necessary for management information; and f) Perform such other related functions as may be assigned to it. casia IV. Repealing Clause : This Order supersedes all revenue issuances or portions thereof inconsistent herewith. V. Effectivity : This Order shall take effect immediately. BIENVENIDO A. TAN, JR. Commissioner