Lifting of Suspension of Tax Audit, Examination, Investigation and/or Verification in the RDOs, etc.

July 31, 2001 REVENUE MEMORANDUM CIRCULAR NO. 32-01 SUBJECT : Lifting of Suspension of Tax Audit, Examination, Investigation and/or Verification in the Revenue District Offices, Assessment Divisions and Special Investigation Divisions of the Regional Offices TO : All Internal Revenue Officers, Employees and Others Concerned For the information and guidance of all internal revenue officials, employees and others concerned, the suspension of field operations in the Revenue District Offices and Divisions in the Regional Offices relative to tax audit, examination and verification of taxpayers' books of accounts and records including other audit-related transactions, as enforced by Revenue Memorandum Order No. 10-2001 dated April 24, 2001 and disseminated through Revenue Memorandum Circular No. 20-2001 dated April 30, 2001, is hereby lifted effective immediately. As a clarification to the said issuances, the audit of large taxpayers, including excise taxpayers within the jurisdiction of offices under the Large Taxpayers Service and Large Taxpayers District Office Makati, as well as the investigation of tax fraud and policy cases, has never been suspended. ACIDTE In view of the foregoing, the following guidelines shall be observed: 1. In the Revenue District Offices, the lifting shall cover investigation of 1999 and prior years' cases, including LAs issued by then Commissioner Dakila Fonacier with the exception of LAs for taxable year 2000. In this regard, the Revenue District Offices may initiate the audit/investigation of new cases for taxable year 1999 provided that the selection criteria under Revenue Memorandum Order No. 24-2000 are strictly complied with. 2. Except for the audit of LGUs for 2000 and prior years which shall be continued by the Revenue District Offices, the audit/investigation of other 2000 cases shall remain suspended until the issuance of the 2001 Audit Program. 3. The audit/verification of cases with previously issued Letters of Authority (LAs), Mission Orders (MOs) or any written orders to audit and/or investigate internal revenue taxes may now be pursued by the Assessment Division and Special Investigation Division of the Regional Offices. However, no new LAs and MOs shall be issued by these offices. All internal revenue officers and others concerned are enjoined to give this Circular as wide a publicity as possible. (SGD.) REN G. BAEZ Commissioner of Internal Revenue