Amending Certain Provisions of Revenue Memorandum Order No. 57-2000 as Amended by Revenue Memorandum Order No. 20-2002 Relative to the Authorized BIR-Official Designated to Approve Reports of the Review Board in Relation to the Conduct of Surveillance and Other Relevant Documents Pertaining Thereto

November 16, 2007 REVENUE MEMORANDUM ORDER NO. 35-07 SUBJECT : Amending Certain Provisions of Revenue Memorandum Order No. 57-2000 as Amended by Revenue Memorandum Order No. 20-2002 Relative to the Authorized BIR-Official Designated to Approve Reports of the Review Board in Relation to the Conduct of Surveillance and Other Relevant Documents Pertaining Thereto TO : All Internal Revenue Officers and Others Concerned I. Objective As the Bureau is looking on every possible way to immediately collect taxes due from taxpayers who have been subjected to the Bureau's surveillance activities, it is deemed necessary to amend certain provisions of Revenue Memorandum Order No. 57-2000, as amended by Revenue Memorandum Order No. 20-2002, relative to the authorized BIR Official designated to approve reports of Review Board in relation to the conduct of surveillance and other relevant documents pertaining thereto (i.e. 10-Day VAT Compliance Notice, Closure Order, Lifting of Closure Order, etc.). TcCEDS II. Amendatory Provision 1. All reports of the Review Board, reviewed and evaluated by the ACIR-Legal Service, except cases originating from the issuance of Letter Notices (LN) handled by the regional offices, shall be approved by the following BIR official: Commissioner of Internal For cases in the National Office Revenue (CIR) (those handled by the Enforcement Service and Large Taxpayers Service) Deputy Commissioner For cases handled by the Regional (DCIR)-Operations Group Offices other than cases originating from previously handled LN and cases under the National office Task Force on LN, if any. aEAcHI 2. Except for cases originating from the issuance of Letter Notices in the regional offices, where the 10-Day VAT Compliance Notice was changed to 5-Day VAT Compliance Notice and the signing thereof was delegated to the Regional Director pursuant to RMO No. 31-2002, the authorized signatory on the 10-Day VAT Compliance Notice (Annex "A"), shall be the CIR for cases under the National Office or the DCIR-Operations Group for cases under the Regional Offices other than the exceptions mentioned and cases handled by the National Office Task Force on LN, if any. 3. The issuance of the Closure Order (Annex "B") and Lifting of Closure Order (Annex "C") shall not be done without the appropriate approval of BIR Official concerned as required hereof. DAHEaT 4. All other documents not mentioned in this Order which were previously delegated to DCIR-Legal & Inspection Group for approval/signature, shall be signed by the CIR or DCIR-Operations Group, whoever is appropriate for the cases at hand. 5. On all reports and documents signed by either the CIR or DCIR-Operations Group, there is no need for the concurrence of another BIR Official as previously required under RMO 20-2002. 6. The Monthly Status Report of all VAT Compliance Notices/Suspension/Closure Orders issued and executed and the list of lifting of closure orders shall be submitted to the Office of the CIR/DCIR-Operations Group, copy furnished the Office of the Commissioner of Internal Revenue. ISaCTE III. Repealing Clause All issuances or pertinent provisions thereof inconsistent with the provisions of this Order are hereby amended/revoked/modified accordingly. IV. Effectivity This Order shall take effect immediately. (SGD.) LILIAN B. HEFTI Commissioner of Internal Revenue ANNEX A No. ______ 10-DAY VAT COMPLIANCE NOTICE Sir/Madam: The __________ of ___________ where your Office is located has reported that you have failed to: SCEDAI [ ] (A) Register as a Value-Added Taxpayer in violation of Section 236 of the National Internal Revenue Code of 1997; [ ] (B) Comply with the following requirements as a VAT-Registered person; [ ] (1) Issue sales invoices or receipts in violation of Sections 113 and 237 of the National Internal Revenue Code of 1997; [ ] (2) File your Value-Added Tax Return in violation of Section 114 of the National Internal Revenue Code of 1997; [ ] (3) Reflect your correct taxable sales/receipts for the taxable quarter/s ending; [ ] (4) Others (Specify). Notice is therefore hereby given and demand made upon you to rectify within ten (10) days from receipt hereof the above stated violations committed by: (a) Complying with the registration requirements set forth in Sections 236 and 238 of the National Internal Revenue Code of 1997 in case of failure to register; (b) Complying with the invoicing requirements as set forth in Sections 113 and 237, in case of failure to issue receipts/invoices; IDaEHC (c) Filing of VAT returns which have not been filed and paying the taxes due thereon; (d) Amendment of previously filed VAT returns to reflect the correct taxable sales/receipts which were previously understated due to failure to issue sales invoice/receipts or due to underdeclaration of sales/receipts. Issued this ______ day of _____________, Quezon City, Metro Manila. Recommending Approval: CIR/DCIR Operations Group ACIR Legal Service ANNEX B SN ____________ CLOSURE ORDER KNOW ALL MEN BY THESE PRESENTS: By virtue of the power vested in me under Section 115 of the National Internal Revenue Code of 1997 (R.A. No. 8424), and upon failure, refusal and/or neglect of the taxpayer, _____________________________ with TAXPAYER IDENTIFICATION NUMBER (TIN) ___________________ to comply with the requirements specified in the 10-Day VAT Compliance Notice No. ___________ dated ____________, Order is hereby given this ____________ day of ____________ for the closure of the business establishment/s of the above-named taxpayer at _________________________ based on the enclosed recommendatory report of the investigating office as reviewed by the Review Board and duly approved by the Commissioner of Internal Revenue/Deputy Commissioner-Operations Group. This Order shall remain in effect until it is lifted. CSEHcT Issued this _________ day of ___________ at Quezon City, Metro Manila. __________________________ Regional Director/ACIR-LTS/ ACIR Enforcement Service ANNEX C SN ___________ LIFTING OF CLOSURE ORDER KNOW ALL MEN BY THESE PRESENTS: By virtue of the power vested in the Commissioner or his duly authorized representative under Section 115 of the National Internal Revenue Code of 1997, and upon compliance with the requirements specified in the 10-Day VAT Compliance Notice No. __________ dated __________, ORDER is hereby given this ___________ for the lifting of the Closure Order of the business establishment of _____________________________________ with address at ___________________________________ pursuant to the enclosed recommendatory report of the investigating office as reviewed by the Review Board recommending for the lifting of the Closure Order, and duly approved by the CIR/DCIR-Operations Group. Issued this ____________________ at ____________________. _________________________ Regional Director/ACIR-LTS/ ACIR Enforcement Service