Identification, Investigation and Prosecution of Persons Found to Have Evaded the Payment of Correct Internal Revenue Taxes

March 31, 1989 REVENUE MEMORANDUM ORDER NO. 20-89 SUBJECT : Identification, Investigation and Prosecution of Persons Found to Have Evaded the Payment of Correct Internal Revenue Taxes TO : All Assistant Commissioners, Regional Directors, Chiefs of Investigating Divisions Under Special Operations Service and Special Investigation Branches, Revenue District Officers, and All Others Concerned I. Objectives : This order is issued: 1. To provide a more efficient and effective system of implementing the tax fraud investigation and intelligence programs of the Bureau; and 2. To improve the taxpayer's level of voluntary tax compliance and thus enhance revenue collections. II. Policies : In order to attain the above objectives, the following are hereby prescribed for the information and strict compliance by all concerned. 1. All investigating divisions under the Special Operations Service and all Revenue District Offices of the regional office are now tasked to develop and close potential tax fraud cases within their respective areas of jurisdictions similar to the Intelligence and Investigation Office and the Special Investigation Branch. 2. A Tax Fraud Evaluation Committee shall be created to review and evaluate all potential tax fraud cases developed and closed and to adopt measures to purge the administrative mechanism and procedures of any defects or constraints which may render them ineffective or non-productive of the intended results. 3. The minimum requirement on the number of potential tax fraud cases to be developed and closed by each of the above offices is as follows: 1st 2nd 3rd 4th Total Name of Office Qtr. Qtr. Qtr. Qtr. Annum a. Investigating divisions under 1 1 1 1 4 Special Operations Service b. Revenue District Offices 1) within Metro Manila 1 1 2 2 6 2) outside Metro Manila 1 1 1 1 4 c. Intelligence and Investigation Office 2 2 2 2 8 d. Special Investigation Branches 1) within Metro Manila 3 3 3 3 12 2) outside Metro Manila 2 2 2 2 8 III. Guidelines and Instructions : 1. The offices concerned should apply the investigation and tax audit guidelines embodied in Annex "A" on the cases selected for investigation pursuant to this Order to ensure uniformity of action. 2. The investigating offices concerned shall forward to the Committee all pertinent records and papers of the cases developed and closed by them within a period of four (4) months or one hundred twenty (120) days from the date the corresponding Letters of Authority (LA) were issued. cd i 3. The Committee shall submit to the Commissioner its recommendation arising from the evaluation and review of every case submitted to it within a reasonable period from the date of receipt of the entire docket from the investigating office. 4. A quarterly Report on Tax Fraud Cases, see form attached marked Annex "B" shall be prepared in triplicate by the investigating offices and submitted within 15 days following the close of the preceding quarter to the following: original Tax Fraud Evaluation Committee duplicate Mgmt. Info. & Data Control Systems Div. (MIDCS) triplicate office file copy 5. Corollary to the above, Management Information and Data Control Systems Division shall assess the performance vis-a-vis the goal set in this Order. IV. Repealing Clause : All other orders which are inconsistent herewith, are hereby revoked. V. Effectivity : This order shall take effect immediately. (SGD.) JOSE U. ONG Commissioner of Internal Revenue TAN: 05220-C1831-A-9