Suspension of Tax Audit, Examination, Investigation and/or Verification of Taxpayers' Books of Accounts and Records

December 14, 2001 REVENUE MEMORANDUM ORDER NO. 35-01 SUBJECT : Suspension of Tax Audit, Examination, Investigation and/or Verification of Taxpayers' Books of Accounts and Records TO : All Internal Revenue Officers, Employees and Others Concerned Effective December 18, 2001 up to January 15, 2002, all field operations of the Bureau relative to tax audit, examination and verification of taxpayers' books of accounts, records and other transactions are temporarily suspended. Thus, no Letters of Authority/Audit Notices, Tax Verification Notices, Mission Orders, or any written orders to audit and/or investigate internal revenue taxes shall be issued or made for internal revenue tax purposes, except in the following cases: 1. Investigation of cases prescribing on or before June 30, 2002; 2. Service of Assessment Notices, including Notice for Informal Conference and Preliminary Assessment Notices (PAN), for cases prescribing on or before June 30, 2002; 3. Processing and verification of estate tax returns, donor's tax returns, capital gains tax returns and withholding tax returns on the sale of real property and shares of stocks together with the documentary stamp tax returns related thereto; 4. Examination and/or verification of taxpayers retiring from business; 5. Investigation and processing of all claims for tax refunds/credits; 6. Requests for reinvestigation/reconsideration (protested tax cases); and 7. Audit of National Government Agencies (NGAs), Local Government Units (LGUs) and Government Owned and Controlled Corporations (GOCCs) including subsidiaries and affiliates of GOCCs. The suspension order does not cover the issuance of correspondence on financial discrepancies to taxpayers discovered by the Audit Information, Tax Exemption and Incentives Division under the Bureau of Internal Revenue's Third Party Information Program. However, any direct contact with the taxpayer by the said Division shall remain suspended until January 15, 2002. For your information and strict compliance . (SGD.) REN G. BAEZ Commissioner of Internal Revenue