Guidelines on Special Investigation Teams of the BIR

December 2, 1986 REVENUE MEMORANDUM ORDER NO. 43-86 SUBJECT : Guidelines on Special Investigation Teams of the BIR TO : All Revenue Officers Concerned per RSO No. ____ Special teams of examiners are hereby formed for the purpose of investigating in depth the tax liabilities of specific groups of taxpayers. Each team shall be made up of 4 examiners headed by a Group supervisor who shall be the most senior member unless the Commissioner of Internal Revenue decides otherwise. The teams shall be under the administrative control and supervision of the Regional Director of Quezon City and/or Manila who will attend to all routine matters connected with the determined investigations including the issuance of the necessary Letters of Authority. There will be a room set aside at the National Office where teams can meet and where two secretaries shall be stationed to perform secretarial functions for any and all team beginning December 2, 1986. The teams thru the said Regional Director will operate under the Office of the Commissioner and shall report to the Commissioner on the status of all investigations and the resulting assessments and collections if any as may be warranted by the circumstance. cdt The initial areas of investigation shall include: a. movie and TV personalities and producers b. gambling habitues c. owners of expensive cars and homes (1983 or newer) d. taxpayer with children studying abroad e. newspaper owners, editors and columnists f. owners of expensive recreational facilities such as yacht, beach homes, airplanes, etc. g. business agencies h. restaurants If any of the foregoing taxpayers are under the jurisdiction of the Investigation Divisions (except Tax Fraud Division) of the National Office, their investigative jurisdiction should be transferred to the special teams. PROCEDURE: Initially 6-4 man teams will be formed, 3 under Manila and 3 under Quezon City. The area of operation of each team however, may as circumstance warrant go beyond the physical limits of the Regions of Manila and/or Quezon City. All Team members shall work on this project full time and so present case loads shall be finished and cleared on or before December 31, 1986. For the period up to March 31, 1987 team members shall concentrate on learning the characteristics and idiosyncrasies of the business or activity they are investigating, the important characters involved, the amount of money and property involved and other facts that can lead to an assessment and collection. Investigation must aim at specifics and quantifiable evidence not rumors or speculations. All investigations must be done in the field and in the places of business of taxpayers included. All investigations must be done courteously without harassment but firmly and professionally. Results must be secured expeditiously and without delay. Monthly proper reports shall be given by the Group Supervisor to the Commissioner thru the designated Regional Director. casia After March 31, 1987, the Group Supervisor, Regional Director and the Commissioner will meet to determine the progress of the investigation and assessments that can be made as a result of the investigation and/or the need for further investigation. This Order takes effect immediately. (SGD.) BIENVENIDO A. TAN, JR. Commissioner