Delegation of Authority to Approve and Sign Audit Reports

August 6, 2007 REVENUE DELEGATION AUTHORITY ORDER NO. 05-07 SUBJECT : Delegation of Authority to Approve and Sign Audit Reports for the Taxable Year Ended December 31, 2004 and Prior Years by the Large Taxpayers Service (LTS), Including the Large Taxpayers District Office (LTDO) TO : All Internal Revenue Officers and Employees Concerned I. Delegated Authority In order to expedite the issuance of Notices of Informal Conference, Preliminary Assessment Notices (PAN) and Final Assessment Notices (FAN) and thereby hasten the collection of deficiency internal revenue taxes on all cases with taxable period ending December 31, 2004 and prior years handled by the LTS and LTDOs, the approval and signing of the Revenue Officers audit reports is hereby delegated to the respective Head Revenue Executive Assistants (HREAs) of the LTS. 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. II. Payment of Deficiency Tax/es Payments for deficiency taxes resulting from the audits mentioned above shall only be accepted after the dockets or reports of investigation have been approved by the HREA-LTS and the taxpayer has signed the agreement form manifesting or enunciating his/its agreement to the deficiency tax/es assessed as a result of the tax audit or investigation. Nonetheless, if the taxpayer is willing to make early payments of deficiency taxes and penalties so as to halt the running of interest period, said early payments may be accepted. III. Post-Audit Any superior office, in the exercise of its supervisory powers, may, at any time, conduct or order a post audit of the outputs of the herein delegated authority. IV. Mandatory Post Audit of Delegated Authorities For delegated authorities, there will be mandatory conduct of post audit of cases with LNs and referrals from Board of Investments (BOI) and Philippine Economic Zone Authority (PEZA). V. Effectivity Clause This Revenue Delegation Authority Order shall take effect immediately. IcHSCT (SGD.) LILIAN B. HEFTI OIC-Commissioner of Internal Revenue