Tax Notes

BIR suspends all audit, other field operations effective Dec. 15, 2020

The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) 127-2020 to inform all concerned on the suspension of all field audit and other field operations of the BIR with respect to the conduct of examinations and verifications of taxpayers’ books of accounts, records and other transactions for the period Dec. 15, 2020 to Jan. 7, 2021.

The Bureau emphasized that no field audit, field operations, or any form of business visitation in execution of eLetters of Authority/Audit Notices, or Mission Orders should be conducted.

Further, no written orders to audit and/or investigate taxpayers’ internal revenue tax liabilities shall be served except in the following cases:

1. Investigation of cases prescribing on or before April 15, 2021;

2. Tax evasion cases;

3. Processing and verification of estate tax returns, donor’s tax returns, capital gains tax returns and withholding tax returns on the sale of real properties or shares of stocks together with the documentary stamp tax returns related thereto;

4. Examination and/or verification of internal revenue tax liabilities of taxpayers retiring from business;

5. Audit of National Government Agencies, Local Government Units, and Government-Owned and Controlled Corporations (GOCCs) including subsidiaries and affiliates of GOCCs;

6. Monitoring of privilege stores (tiangge); and

7. Other matters/concerns where deadlines have been imposed or under the orders of the Commissioner of Internal Revenue.

Examiners and investigators are encouraged to continue working on their cases within office premises and accomplish the necessary reports in this time period.

Lastly, to ensure maximum revenue collection throughout the year, service of Notices to avail of the Tax Amnesty on Delinquencies, Estate Tax Amnesty and Voluntary Assessment and Payment Program should still be effected. Taxpayers may voluntarily pay their known deficiency taxes without the need to secure authority from concerned Revenue Officials.

Please be guided accordingly.

Source:

P&A Grant Thornton

Certified Public Accountants

 

As published in SunStar Cebu, dated 16 December 2020