Amending Certain Provision of RMO No. 19-2015 Pertaining to Audit Policies

November 7, 2016 REVENUE MEMORANDUM ORDER NO. 064-16 SUBJECT : Amending Certain Provision of RMO No. 19-2015 Pertaining to Audit Policies TO : All Internal Revenue Officers and Others Concerned I. OBJECTIVE This Order is issued to amend the policies and procedures requiring the approval of the Commissioner of Internal Revenue before a taxpayer may be audited for the third (3rd) time and the removal of the fifty percent (50%) surcharge. II. AMENDMENT For purposes of auditing a taxpayer for the three succeeding years, the policy stated in Sec. III No. 4 of RMO No. 19-2015 is hereby amended to read as follows: "If the taxpayer has been audited for the last two (2) years and has been selected for audit on the current or third (3rd) year, the RDO/LTD/LTAD shall encode right away the requested audit of the subject taxpayer in eLAMS/eTIS-CMS which shall be approved by the Regional Director/Assistant Commissioner who heads the investigating office. The Selection Code shall depend on the reason why the taxpayer has been selected." "The deficiency assessment on these cases shall only be imposed with twenty-five percent (25%) surcharge unless the under declaration of income or overstatement of expenses/deductions reaches 30% or more which shall be imposed with fifty percent (50%) surcharge." III. REPEALING CLAUSE All revenue issuances and/or portions thereof that are inconsistent herewith are hereby repealed, revoked, amended or modified accordingly. IV. EFFECTIVITY This Order shall take effect immediately. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue