Expansion of the Coverage of Audit of Special Team on Banks, Insurance and Financial Intermediaries Under Revenue Special Order No. 697-98

January 4, 1999 REVENUE MEMORANDUM ORDER NO. 07-99 SUBJECT : Expansion of the Coverage of Audit of Special Team on Banks, Insurance and Financial Intermediaries Under Revenue Special Order No. 697-98 TO : All Revenue Officers Concerned In view of the apparent similarities in the nature of business of pre-need companies to those of insurance companies, and in order to clarify the conflicting views on the classification and treatment of these companies (whether as insurance or dealer in securities), RSO No. 697-98 is hereby amended to include the audit of all pre-need companies for taxable year 1997 and unverified prior years. This audit shall have the following output: 1. To be able to understand fully the nature of business of pre-need companies and to make the necessary recommendations to clarify its classification and/or tax treatment; 2. To recommend for revenue guidelines and procedures for the audit of pre-need companies; 3. To coordinate with and make recommendations to Insurance Commission (IC) for inclusion in IC jurisdiction, if necessary. The same procedures and guidelines set-forth under Revenue Memorandum Order No. 61-97 with respect to submission of reports and other procedural guidelines shall be followed. LexLib This Order shall take effect immediately. (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue