Unified Investigation of Withholding Tax-At-Source

February 28, 1974 REVENUE MEMORANDUM ORDER NO. 13-74 SUBJECT : Unified Investigation of Withholding Tax-At-Source TO : All Internal Revenue Officers and Others Concerned It has come to the attention of this Office that the investigation of cases involving liability to the withholding tax-at-source due on interest, dividends, rents, royalties, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, or other fixed or determinable annual, periodical, or casual gains, profits, and income, and capital gains under Sections 53 and 54, in relation to Section 24, all of the Tax Code, is being handled by fieldmen of the different investigating divisions in the National Office. This situation is not conducive to an efficient and effective investigation of such cases; on the contrary, it causes confusion, suffers from lack of coordination, and leads to overlapping and duplication of functions and to waste of efforts. It has even come to a point where some taxpayers were investigated on data and information which were the very bases of assessments already issued. This is, indeed, embarrassing and does not add to the tremendous gains the Bureau has achieved in its relations with the taxpaying public under the New Society. cd In order to correct the situation and so as to achieve a unified, coordinated and well programmed action in the investigations of withholding tax-at-source above-cited, it is hereby ordered that such investigations be henceforth undertaken by the Tax Compliance Group in the Intelligence Unit. The personnel force of the said Group will be augmented by the assignment thereto, in a concurrent capacity, of fieldmen from the different operating divisions in the National Office. In this connection, the Tax Compliance Group of the Intelligence Unit is hereby vested with the authority, at the exclusion of all others, to conduct investigations of cases involving withholding taxes-at-source. Accordingly, all examiners or fieldmen presently conducting investigations involving said taxes are instructed to immediately inform the head of the Tax Compliance Group for proper coordination and consolidation with other current investigations. The head shall henceforth exercise supervision and control over all these cases for a more effective and systematic approach of conducting the investigations. It is likewise understood that all reports of investigations including those cases at present being handled by the examiners outside of this Group shall be submitted to the head of the Tax Compliance Group. The following are hereby detailed with the Tax Compliance Group of the Intelligence Unit to assist and/or conduct investigations of cases involving withholding taxes-at-source in addition to their present duties in their respective units: 1. Domingo Laeno 2. Pacifico Chico 3. Artemio Boquiren Any examiner or fieldman or chief of division, unit or group who fails to comply with this Order or in any way violates the same will be dealt with accordingly. This Order takes effect immediately. MISAEL P. VERA Commissioner of Internal Revenue TAN 1182-568-4