Guidelines for Listing and Assignment of 1988 Taxable Year Cases for Field Audit of the Audit Divisions of the Special Operations Service

February 6, 1989 REVENUE MEMORANDUM ORDER NO. 11-89 SUBJECT : Guidelines for Listing and Assignment of 1988 Taxable Year Cases for Field Audit of the Audit Divisions of the Special Operations Service TO : All Regional Directors, Assistant Commissioners (Special Operations Service and Assessment Service) and Others Concerned Purpose This revenue memorandum order prescribes guidelines for the listing of 1988 taxable year cases which will be audited by the audit divisions of the Special Operations Service (SOS). Procedure for listing 1. The Assistant Commissioner (Special Operations Service) shall develop a sectoral industry tax profile program on the basis of which, he shall prepare a list of taxpayers that shall be subject to audit and investigation by the audit divisions of the Special Operations Service, namely: the Industry Audit Division; Banks, Financing and Insurance Division; International Tax Affairs Division, and the VAT Division. Returns selected and listed by the Assistant Commissioner (Special Operations Service) and approved by the Commissioner in a separate revenue memorandum order shall come under the primary audit jurisdiction of the audit divisions under the said Service. cd i 2. Taxpayers whose income tax liability have been audited by revenue enforcement officers under the audit division of the SOS or then Sector Operations Office for the past three consecutive taxable years shall not be listed for audit jurisdiction by the said audit divisions. This rule, however, shall not apply to the taxpayers coming under the audit jurisdiction of the Banks, Financing and Insurance Division, the International Tax Affairs Division, and Value-Added Tax Division. 3. In determining the total number of taxpayers to be listed for audit jurisdiction of the audit divisions of the SOS, each revenue enforcement officer assigned in any of these divisions shall be allowed a workload of not more than 10 cases. Assignment of cases to each revenue enforcement officer shall be made in accordance with RMO NO. 33-84. 4. The cases to be listed for audit by the Special Operations Service shall be representative of each sector of industry which, in the judgment of the Assistant Commissioner (Special Operations Service) and the chiefs of audit divisions, will result in the generation of data that will reflect the tax profile of each industry as a basis for administrative and policy formulation purposes. The Commissioner, however, may require the Special Operations Service to undertake audit programs as the exigencies of tax administration and legislation may require. 5. The revenue directors and revenue district officers concerned shall expedite the processing of duplicate income tax returns immediately after the last day for filing income tax returns for the taxable year 1988 (and annually thereafter) so that the duplicate of all the returns that will be listed for audit by the SOS can be promptly transmitted to the audit Divisions without delay. cd Repealing Clause Provisions of other issuances which are inconsistent herewith are hereby revoked or amended accordingly. Effectivity This revenue memorandum order shall take effect immediately and shall be applicable to taxable year 1988. (SGD.) JOSE U. ONG BIR Commissioner