Amending RDAO No. 3-2003 Re: Approval and Signing of Documents Processed by LTS and LTDOs

August 3, 2007 REVENUE DELEGATION AUTHORITY ORDER NO. 04-07 SUBJECT : Amending Revenue Delegation Authority Order (RDAO) No. 3-2003, as Amended by RDAO No. 3-2004, Relative to the Delegation of Authority to Approve and Sign Various Accountable Forms, Notices, Permits, Reports, and other Documents Processed by the Large Taxpayers Service, Including the Large Taxpayers District Offices (LTDOs) TO : All Internal Revenue Officers and Employees and Others Concerned I. Delegated Authority Pursuant to Executive Order Nos. 275 and 306, the Large Taxpayers Service (LTS) shall be directly under the supervision of the Commissioner of Internal Revenue. In order to properly delineate the approving and signing authorities of the Commissioner allowed under Section 7 of the National Internal Revenue Code of 1997, as amended, the authority of the Commissioner to approve and sign various accountable forms, notices, reports, permits and other documents processed by the LTS, including the LTDOs, provided under RDAO No. 3-2003, as amended by RDAO No. 3-2004, is hereby further amended and delegated to designated officials, as follows: A. The OIC-Commissioner of Internal Revenue/Commissioner of Internal Revenue shall approve and sign the following: 1. Letters of Authority (LA)/Audit Notices (AN)/Mission Orders (MO); 2. Letter Notices (LNs) to taxpayers arising from the BIR RELIEF Program (matching of SLSP/BOC data versus taxpayers' declarations); 3. Audit Reports (Revenue Officers Memorandum Reports and BIR Form No. 0500 series) on cases with LAs/ANs/LNs/Missions Orders, including claims for tax credit/refund involving issuance of Tax Credit Certificates or the refund of amounts exceeding Ten Million Pesos (P10 M); 4. Tax Credit Certificates or Tax Refund Disbursement Vouchers involving amounts in excess of Ten Million Pesos (P10 M); 5. Preliminary/Final Assessment Notices and Formal Letters of Demand on cases covered by LAs/ANs/LNs/Mission Orders; 6. Final Decision on Disputed Assessments (FDDA) involving assessments previously approved by the Commissioner; 7. Request letters for Third Party Information (TPI) addressed to other government agencies, as well as reply letters involving the release of information or answers to queries requested by the said agencies; and HCISED 8. Assignment of Revenue Officers on Premise (ROOP) of Excisable Establishments. B. The Assistant Commissioner (ACIR),LTS or in his/her absence, the concerned Head Revenue Executive Assistant (HREA) shall approve and sign the following: 1. Tax Verification Notices (TVNs); 2. Notice of Discrepancy arising from reconciliation of Official Register Books (ORBs),spot-checking of excisable establishments, and conduct of other enforcement activities relating to excise tax matters; 3. Audit Reports (Revenue Officers Memorandum Reports and BIR Form No. 0500 series) on cases not covered by LAs/ANs/LNs/Missions Orders, including claims for tax credit/refund involving issuance of Tax Credit Certificates or the refund of amounts not exceeding Ten Million Pesos (P10 M); 4. Preliminary/Final Assessment Notices and Formal Letters of Demand on cases not covered by LAs/ANs/LNs/Missions Orders; 5. Final Decision on Disputed Assessments (FDDA) involving assessments previously approved by the ACIR, LTS or concerned HREA; 6. Computer-generated RPS assessment notices; 7. Denial letters on claims for tax credit/refund; 8. Authority to Cancel Assessment (BIR Form No. 1758) after the reports of reinvestigation/reconsideration have been approved; 9. Tax Credit Certificates or Tax Refund Disbursement Vouchers involving amounts not exceeding Ten Million Pesos (P10 M); 10. Tax Debit Memo (TDM) issued to taxpayers under the jurisdiction of LTS (except LTDO cases); 11. Approval of Reports on Inventory Destruction due to Obsolescence, Spoilage, etc. (with "value" inventory); 12. Certificate of Deductibility of Inventory or Asset Destructed/Disposed/Lost; 13. Request for Issuance of Subpoena Duces Tecum; 14. Warrant of Distraint and Levy (WDL)/Garnishment, Notices of Tax Liens, Constructive Distraint, Seizure and Levy and lifting thereof (except LTDO cases); 15. Waiver of the Statute of Limitations duly signed by the taxpayer or authorized representative; 16. Certificate Authorizing Registration (CAR)/Tax Clearance Certificate (TCL) for transactions involving shares of stocks, and real property where taxpayer is allowed to file the return with the LTS (except LTDO cases); ASHECD 17. Request letters for Third Party Information addressed to offices within the Bureau as well as to private entities; 18. Reply letters to taxpayers on queries covered by "No Ruling Areas"; 19. Approval of applications for VAT Zero-Rating; 20. Approval of Applications for Contractor's Final Payment Release Certificate; 21. Approval of formula for denaturing; 22. Approval of taxpayer's request for installment payment of any tax due; 23. Permit to Use: a. Computerized Accounting System or any component thereof (except LTDO cases); b. Cash Register Machine (CRM) (except LTDO cases); c. Point-of-Sale Machine (POS) (except LTDO cases); d. Permit and Reports on the use of Loose-leaf Invoices/Receipts and Books of Accounts and other Accounting Records (except LTDO cases); e. Other types of permit not otherwise herein mentioned (except LTDO cases). 24. Tax Clearance I (TCL I-other than for bidding purposes); 25. Authority for Accredited Agent Bank's (AAB's) acceptance of manual payments of internal revenue taxes (permissible on deadline dates and system downtimes only); 26. Request letter to Audit Information, Tax Exemption and Incentives Division (AITEID) for Pre-processed Data; and 27. Acceptance of Offer of Compromise for violation of Section 264 of the Tax Code relating to the printing, possession, use and issuance of sales or commercial invoice, if there is no legal impediment for such acceptance or approval. C. The concerned HREA shall approve and sign the following: 1. Notice for an Informal Conference or Post Reporting Notice; 2. Transmittal of closed cases/dockets to the Records Division; 3. Memorandum Order to revenue officers assigned to witness and supervise the denaturing of alcohol in the distilleries (Note: In case of assignments requiring travels thru airplane, the Memorandum Order shall be approved and signed by the Deputy Commissioner for Resource Management Group); CcTHaD 4. Approval of the initial and final reports of the denaturing activities; 5. Transmittal letters to the Bureau of Customs of approved Authority to Release Imported Goods; 6. Certificate of Destruction (for "No Value" inventories only); 7. Extension of deadline in the submission of the following: a. Inventory list (except LTDO cases); b. Registration of books of accounts (except LTDO cases); c. Annual/Monthly Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes (BIR Form No. 1604-CF) (except LTDO cases); d. Annual/Monthly Information Return of Creditable Income Taxes Withheld Expanded/Income Payments Exempt from Withholding Tax (BIR Form No. 1604-E) (except LTDO cases); e. Summary List of Sales and Purchases (except LTDO cases);and f. List of Regular Suppliers (except LTDO cases). 8. Permits listed under Revenue Memorandum Order (RMO) No. 39-2003: a. Permit to Export; b. Continuing/Renewable Permits; c. Other special permits to excise taxpayers. 9. Certificate of Registration (COR);and 10. Approval and transmittal to General Services Division of surety bonds posted by excise taxpayers. D. The concerned Division Chief of the LTS shall approve and sign the following: 1. Referral Memoranda to concerned Section Chief/Group Supervisor/Revenue Officer: a. Request for inventory destruction; b. Application for VAT-Zero Rating; c. Application for Contractor's Final Payment Release Certificate; and d. Returned dockets. 2. Authority to Release Imported Goods; 3. Request for Stamps/Labels for alcohol and tobacco products; cDTIAC 4. Authority To Print (ATP) invoices and receipts; 5. Permit to Import provided under RMO 38-2003; 6. Tax Debit Memo (TDM) issued to taxpayers (for LTDOs only); 7. Certificate Authorizing Registration (CAR)/Tax Clearance Certificate (TCL) for transactions involving shares of stocks, and real property where taxpayer is allowed to file the return with the LTS (for LTDOs only); 8. Warrant of Distraint and Levy (WDL)/Garnishment, Notices of Tax Liens, Constructive Distraint, Seizure and Levy and lifting thereof (for LTDOs only); 9. Computerized Accounting System or any component thereof (for LTDOs only); 10. Cash Register Machine (CRM) (for LTDOs only); 11. Point-of-Sale Machine (POS) (for LTDOs only); 12. Permit and Reports on the use of Loose-leaf Invoices/Receipts and Books of Accounts and other Accounting Records (for LTDOs only); 13. Other types of permit not otherwise herein mentioned (for LTDOs only); 14. Extension of deadline for the submission of the following: a. Inventory list (for LTDOs only); b. Registration of books of accounts (for LTDOs only); c. Annual/Monthly Information Return of Income Taxes Withheld on Compensation and Final Withholding Taxes (BIR Form No. 1604-CF) (for LTDOs only); d. Annual/Monthly Information Return of Creditable Income Taxes Withheld (Expanded/Income Payments Exempt from Withholding Tax (BIR Form No. 1604-E) (for LTDOs only); e. Summary List of Sales and Purchases (for LTDOs only);and f. List of Regular Suppliers (for LTDOs only). 15. Notice for non-submission of the following: a. Official Register Books (ORBs); b. Audited financial statements prescribed as attachment to the filed income tax returns; and c. Other declarations, statements, reports prescribed to be submitted to the BIR. DTcASE Processing and approval of Refunds and Tax Credit Certificates (TCCs) for internal revenue taxes as well as related transactions thereto are covered by separate revenue issuance. In all instances, a superior official can always conduct a post audit of the dockets, documents, permits, notices and other actions approved and/or signed by a subordinate official. For this purpose, the LTDO Chief shall submit to the HREA-Administrative and Enforcement a monthly report containing the individual listing of dockets, documents, notices, actions undertaken, etc. The said monthly report shall be submitted to the concerned HREA not later than the 20th day of the following month. II. Payment of Deficiency Tax and Review of Dockets The payment of deficiency tax(es) resulting from any audit/verification/investigation covered by LAs/ANs/TVNs/LNs/Discrepancy Notices/Missions Orders shall only be accepted after the docket or report of investigation has been approved by the herein authorized approving/signing officials, and the taxpayer or its duly authorized representative has signed an agreement form manifesting or enunciating his agreement to the deficiency tax(es) assessed after audit/verification/investigation. Nonetheless, if the taxpayer is willing to snake early payments of deficiency taxes and penalties so as to halt the running of interest period, said early payments may be accepted. III. Streamlining of the Assessment Process on Non-Audit Cases The pre-validation by LT Audit and Investigation Divisions (LTAID) I and II of the proposed deficiency tax assessments recommended by the other LTS divisions arising from taxpayers' violations of certain provisions of existing revenue laws and regulations (e.g. RPS assessment notices, deficiency assessment arising from ORB reconciliation, penalties for late/non-filing of returns, etc.), as prescribed under RMO No. 17-2006, shall be discontinued. Accordingly, all such deficiency tax assessments shall be directly submitted to the concerned HREA for appropriate action. All cases still pending pre-validation by LTAID I and II as of the effectivity of this Order shall be returned to the respective LTS divisions for continuation of the assessment process. IV. Designated Signatories on Dockets, Documents and Reports Under Certain Situations In the instance that a full-pledged ACIR-LTS has not yet been designated, all dockets, documents, reports, etc.,herein prescribed to be signed and approved by the ACIR-LTS shall be signed and approved by the concerned HREA of LTS. V. Mandatory Post Audit of Delegated Authorities For delegated authorities, there will be mandatory conduct of post audit of cases with LNs and referrals from BOI and PEZA. IECcaA VI. Repealing Clause All existing revenue memorandum circulars, orders and other issuances inconsistent herewith are hereby repealed, modified or amended accordingly. VII. Effectivity Clause This Revenue Delegation Authority Order shall take effect immediately. (SGD.) LILIAN B. HEFTI OIC-Commissioner of Internal Revenue