Publishing the Memorandum Agreement dated January 8, 1981 Between the Commission on Audit and Bureau of Internal Revenue Providing for a Joint and Simultaneous Audit of Franchise Holders

January 8, 1981 REVENUE MEMORANDUM CIRCULAR NO. 06-81 SUBJECT : Publishing the Memorandum Agreement dated January 8, 1981 Between the Commission on Audit and Bureau of Internal Revenue Providing for a Joint and Simultaneous Audit of Franchise Holders TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned the Memorandum of Agreement dated January 8, 1981 between the Commission of Audit and Bureau of Internal Revenue is quoted as follows: cdt "WHEREAS, the Commission on Audit and the Bureau of Internal Revenue, hereinafter referred to as COA and BIR, are government agencies authorized to conduct audit and examination of the books of accounts of franchise holders, the former for franchise tax and the latter for other internal revenue tax purposes; "WHEREAS, there are franchise holders whose franchise provides exclusive audit by the COA, but whose business operations invariably involve the payment of other internal revenue taxes; "WHEREAS, joint and concerted efforts of COA and BIR will result to an effective and expedient assessment and collection of government revenues and likewise preclude inconvenience and other irritants on the part of franchise holders. "NOW, THEREFORE, be it agreed, as it is hereby agreed that: 1. COA and BIR shall conduct joint and simultaneous investigation of the books of accounts of franchise holders, the former for franchise tax, and the latter, for other internal revenue tax purposes; 2. A committee of both government agencies be formed to formulate operational procedures and guidelines necessary in the coordinated and joint undertaking; 3. COA and BIR representatives shall meet and/or conduct periodic dialogues to exchange ideas and information on vital matters affecting the conduct of the investigation and the interests of the taxpayers; and 4. COA and BIR shall issue implementing rules and regulations to insure the effective implementation of the objectives sought to be attained by this MEMORANDUM OF AGREEMENT." Pursuant to the above Agreement COA will furnish the BIR, thru the Service & Miscellaneous Taxes Division, a list of franchise grantees to be audited by their Office, at least one (1) week before the start of the actual audit. The list will be forwarded to the respective regions and/or offices immediately upon receipt who shall thereafter promptly assign examiners to conduct the verification of other internal revenue taxes in coordination with the COA Auditors so that investigations of their cases would be made jointly and simultaneously. Effectivity . The foregoing memorandum of agreement took effect on January 8, 1981. aisa dc Enforcement . It is desired that this Circular be given as wide a publicity as possible. RUBEN B. ANCHETA Acting Commissioner