Amendment of Revenue Memorandum Order No. 11-98 (Priority Audit of 1996 and 1997 Value-Added Tax Returns)

March 31, 1998 REVENUE MEMORANDUM ORDER NO. 38-98 SUBJECT : Amendment of Revenue Memorandum Order No. 11-98 (Priority Audit of 1996 and 1997 Value-Added Tax Returns) TO : All Regional Directors, Revenue District Officers, Chiefs of the Assessment Divisions, Heads of Revenue Data Centers and All Internal Revenue Officers Concerned I. OBJECTIVE The Objective of this Revenue Memorandum Order (RMO) is to extend the period for the investigation of Value-Added Tax (VAT) returns from thirty (30) to sixty (60) days. II. AUDIT POLICIES AND PROCEDURES A. Paragraph III (B) (3) of RMO 11-98 is hereby amended to read as follows: 3. The Revenue Officer shall be required to finish the case and submit the report of investigation within 60 days from date of issuance of the LA. This constitutes as an exception to the 120-day rule on the reporting of cases with LAs. B. Paragraph III (C) (2) of RMO 11-98 is hereby amended to read as follows: 2. The RDC shall upload the list of taxpayers selected for audit to the Assistant Commissioner, Assessment Service for approval. The procedures for specific taxpayers request, approval of audit candidates at the National Office, conduct of audit, preparation of reports of investigation and all other activities related to audit prescribed in the ITS Operations Manual shall be followed, except for the 120-day rule for templates. The 60-day rule shall apply to all VAT cases. III REPEALING CLAUSE The provisions of RMO 11-98 and all other revenue issuances and/or provisions thereof inconsistent herewith are hereby modified and/or repealed accordingly. IV. EFFECTIVITY This Order shall take effect immediately. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue