Investigation of Income Tax Liabilities of Officials and Employees of the Bureau of Internal Revenue

August 29, 1977 REVENUE MEMORANDUM ORDER NO. 47-77 SUBJECT : Investigation of Income Tax Liabilities of Officials and Employees of the Bureau of Internal Revenue TO : All Internal Revenue Officers, Employees and Others Concerned I. Transmittal of Income Tax Returns All revenue regional directors shall transmit the duplicate copies of the income tax returns of all revenue officials and employees in their respective regions to the Inspection Service; National Office Building, Diliman, Quezon City, within sixty (60) days after April 15 of every year. II. Screening of Income Tax Returns The Revenue Service Chief (Inspection) or his authorized representative shall determine which returns should be investigated. Returns which do not need investigation like those showing only salary income and optional standard deduction shall be accepted as correct and stamped "Screened" and filed in the Office of the Revenue Service Chief (Inspection). III. Letters of Authority cdta Returns which need to be investigated shall be covered by the corresponding letters of authority. Letters of authority shall be prepared by the Inspection Service for the signature of the Commissioner with respect to income tax returns of personnel of the rank of section chief and above and for the signature of the Deputy Commissioner with respect to the returns of those below the rank of section chief. IV. Investigation of Returns The special agents of the Tax Fraud Division shall be utilized in the investigation of the returns, and, for this purpose, the Chief of the Tax Fraud Division shall submit to the Revenue Service Chief (Inspection) a list of the Special Agents whose services may be made available. The name of the special agent who shall conduct the investigation shall be indicated in the letter of authority. V. Reports of Investigation Reports of Investigation shall follow the same format pertaining to non-revenue personnel and shall be submitted to the Chief, Tax Fraud Division, for review and evaluation. The report shall then be forwarded to the Revenue Service Chief (Inspection) for further review and evaluation. If the report is found in order, it shall be forwarded to the Commissioner or Deputy Commissioner, as the case may be, for approval, after which, it shall be returned to the Revenue Service Chief (Inspection). If the approved report shows a deficiency assessment, the Revenue Service Chief (Inspection) shall transmit it to the Direct Taxes Division or Indirect Taxes Division, as the case may be, for the issuance of the assessment notice and/or letter of demand. VI. Letters of Confirmation Letters of Confirmation shall be signed by the Commissioner or Deputy Commissioner as the case may be. cd The corresponding letter of confirmation shall be prepared by the Revenue Service Chief (Inspection) and shall be submitted by him for signature at the same time when he forwards the report of investigation for the approval of the Commissioner or Deputy Commissioner, as the case may be. VII. Personnel Engaged in Business Where a revenue official or employee or his wife is engaged in business, separate letter of authority shall be issued to another special agent for the investigation of his business tax liabilities and the investigation shall be conducted in the same manner as is applicable to the investigation of the business tax liabilities of non-revenue personnel subject to the same procedure as are prescribed herein. VIII. Repealing Clause Revenue Memorandum Circular No. 20-72 dated May 3, 1972 and other orders or circulars inconsistent herewith are deemed repealed. IX. Effectivity This Order shall take effect immediately. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN P4519-F2828-A-8 ANNEX A AUTHORITY NO.________ ________________, 19____ ________________ ________________ ________________ Sir/Madam: Revenue Examiner ________________, whose signature appears below, is authorized to investigate and/or verify your income tax liabilities for the taxable year(s) 19________. In order that the investigation may be completed as promptly as possible, your cooperation is requested. Very truly yours, ___________________________ Commissioner of Internal Revenue TAN Recommended by: ___________________ Revenue Service Chief (Inspection) TAN ________________ Revenue Examiner ANNEX B LETTER OF CONFIRMATION No. __________ _____________ Date ________________ ________________ ________________ Sir/Madam: With reference to Letter of Authority No. _________ dated please be informed that the investigation of your internal revenue tax liabilities for the taxable year(s) _____________ had been terminated, and the corresponding report of Revenue Examiner ______________ already submitted, reviewed, and approved by this Office. Very truly yours, __________________________ Commissioner of Internal Revenue TAN-