BIR limits examination of income tax returns
Published Apr 19, 2018 11:47 am
By Jun Ramirez
The Bureau of Internal Revenue (BIR) has instructed its 20 regional directors nationwide to conduct one-time examination or inspections of the income tax returns (ITR) to preclude harassment charges from taxpayers.
(Mark Balmores / MANILA BULLETIN FILE PHOTO)
"As a general policy, only one letter of authority )LA) is issued for each taxable year covering the investigation of all internal revenue tax liabilities of the taxpayer." said Revenue Deputy Commissioner for Operations Arnel Guballa in Operations Memorandum Order No. 2018-04-03.
He said, however, the taxpayer's ITR may be audited again on certain other tax types, or arising from claim for tax refund or issuance of tax credit certificate as prescribed under Sections 13 and 235 of the Tax Code.
In the same directive, Guballa ordered regional director to recall or cancel letter ot authority (LA) to investigate assigned to a revenue officer who is transferred, on leave or resigned from the service.
He said the original LA must be changed with a new LA naming the new examiner, a move apparently aimed at getting favorable decision from the Court of Tax Appeals (CTA).
Records showed the CTA has dropped a number of important tax collection cases because regional directors did not replace the original LA, simply writing to the concerned taxpayer that a new officer has been assigned to audit his books of accounts.
Insiders said some regional directors resorted to the wrong procedure to avoid the tedious process in coming out with a new LA
(Mark Balmores / MANILA BULLETIN FILE PHOTO)
"As a general policy, only one letter of authority )LA) is issued for each taxable year covering the investigation of all internal revenue tax liabilities of the taxpayer." said Revenue Deputy Commissioner for Operations Arnel Guballa in Operations Memorandum Order No. 2018-04-03.
He said, however, the taxpayer's ITR may be audited again on certain other tax types, or arising from claim for tax refund or issuance of tax credit certificate as prescribed under Sections 13 and 235 of the Tax Code.
In the same directive, Guballa ordered regional director to recall or cancel letter ot authority (LA) to investigate assigned to a revenue officer who is transferred, on leave or resigned from the service.
He said the original LA must be changed with a new LA naming the new examiner, a move apparently aimed at getting favorable decision from the Court of Tax Appeals (CTA).
Records showed the CTA has dropped a number of important tax collection cases because regional directors did not replace the original LA, simply writing to the concerned taxpayer that a new officer has been assigned to audit his books of accounts.
Insiders said some regional directors resorted to the wrong procedure to avoid the tedious process in coming out with a new LA