Delineation of Jurisdiction on Particular Assessment Functions

May 20, 1985 REVENUE MEMORANDUM ORDER NO. 15-85 SUBJECT : Delineation of Jurisdiction on Particular Assessment Functions TO : The Revenue Service Chief, National Assessment Office, Regional Directors, Revenue District Officers and All Others Concerned I. Objectives : This Order is issued to delineate jurisdictional authority on particular assessment functions with the following specific objectives: A. To broaden substantive authorities granted to Regional Directors pursuant to Letters of Instructions No. 448 dated August 18, 1973 and 1324 dated May 18, 1983; cd B. To expedite the processing of audit reports and the assessment and collection of deficiency taxes; C. To further improve BIR-Taxpayer relations through more expeditious action on taxpayers' needs; and D. To establish adequate controls in the submission, review and evaluation of audit reports on tax cases. II. Delineation of Authority A. On Approval of Reports and Issuance of Assessment Notices and Certificates of Clearance to Transfer Properties - Regional Directors shall: 1. Approve reports on tax cases not tainted with fraud within the jurisdiction of Regional Offices, provided that reports of investigation falling under any of the following cases shall be forwarded to the National Assessment Office for review and approval by authorized officials: a. Where the tax due per return exceeds P100,000 and the resulting deficiency tax recommended after investigation is less than 40% thereof; and b. Where the gross receipts per return exceeds P5,000,000.00 for Revenue Regions 4A and 4B and P3,000,000.00 for all other regions, or in case of transfer tax cases where the assessed value of real properties and value of personal properties exceed P3,000,000.00 as declared in the return (except when there are real properties located in more than one region) regardless of the tax due per return and the determined deficiency tax. 2. Issue letters of demand and/or assessment notices to enforce collection of tax cases within the regions' jurisdiction as defined in No. 1 above 3. Delegate to Revenue District Officers the issuance of certificates of clearance to transfer properties as follows: a. For classes A-1 and A Revenue District Offices (as classified under RAO No. 7-83), on gross estates where the assessed value of real properties and the value of personal properties do not exceed P100,000.00; and b. For classes B, C and D Revenue District Offices, on gross estates where the assessed value of real properties and the value of personal properties do not exceed P50,000.00 B. Jurisdiction of the Office Audit Section - Regional Directors shall determine the jurisdiction of the Office Audit Section in his Region considering the following: a. selective audit policy; b. the number of examiners assigned in the Office Audit Section and in the Revenue District Offices; and c. address of taxpayers within the territorial limits prescribed in RAO No. 4-77. C. The National Assessment Office shall establish adequate post-audit programs, procedures and techniques to insure the attainment of the objectives of this Order. The programs and procedures shall be submitted to the Deputy Commissioner's Office concerned. III. Procedures and Responsibilities A. Review of Audit Reports 1. The Revenue Regional Offices shall maintain a record of tax cases forwarded to the National Assessment Office for final approval and those requested for Post Review. 2. The National Assessment Office shall inform the Revenue Region concerned on the final action taken on tax cases transmitted for final approval of authorized officials in the National Office. Likewise, the results of the post review on tax cases shall be communicated to the Revenue Regions concerned. B. Issuance of Certificates of Clearance for Transfer of Properties 1. The procedures for filing, processing and investigation of estate tax returns provided in Revenue Memorandum Orders No. 26-82 and 31-82 shall be followed. 2. The Revenue District Officer shall issue the Certificate of Clearance upon completion of the investigation of estate tax cases referred to in Paragraph IIA3 of this Order. 3. The reports of investigation with a copy of the Certificate of Clearance issued shall be forwarded to the Regional Office for proper review and evaluation in accordance with existing procedures and policies within five (5) days after the issuance of the clearance. 4. The Certificate of Clearance shall be issued in the format attached as Annex "A". 5. Revenue District Officers shall maintain a Tax Clearance Certificate Register which shall indicate the following information: cd i a. CC No. - The number shall have the following components: RR No. RDO No. Serial No. Year of Issuance The serial numbers shall start from 0001 at the beginning of the year. b. Date of Issuance c. Name and address of the Estate d. Name and address of the Administrator, if there is one or the person responsible for the filing of the return. e. Date CC was received by taxpayer's representative C. On Office Audit Jurisdiction 1. The Regional Directors shall furnish the National Assessment Office with a copy of the issuance embodying office audit jurisdiction in their respective revenue regions. 2. The National Office shall see to it that the Regional Office Issuances on office audit jurisdiction are in accordance with guidelines provided in this Order and the provisions of RAO 4-77. cdt IV. Repealing Clause All issuances or provisions thereof which are inconsistent with this Order are hereby repealed. V. Effectivity This Order shall take effect immediately. (SGD.) RUBEN B. ANCHETA Acting Commissioner