New BIR Commissioner suspends effectivity of recent issuances and audit activities; Revokes RMOs on transfer of properties

(Revenue Memorandum Circular Nos. 69 and 70-2016)

This Tax Alert is issued to inform all concerned that the new BIR Commissioner has suspended the effectivity of revenue issuances issued within June 1-30, 2016, alongside audit activities by the BIR until further notice.

Revenue Memorandum Order Nos. 24 and 25 which require determination of financial capacity in transfers of properties have been revoked effective immediately.

The suspension of issuances will cover the following:

1. Revenue Regulation No. 5

2. Revenue Memorandum Oder Nos. 22, 23 and 26-37, and

3. Revenue Memorandum Circular Nos. 59-68.

The suspension of audit activities will cover the following:

1. All field audits/operations/visitation pursuant to audit notices

2. Issuance of written orders to audit and/or investigate any internal revenue tax liabilities except for:

a. Investigation of cases prescribing on or before October 31, 2016

b. Processing and verification of one-time tax payments (estate, donor's, capital gains, withholding tax returns, and DST on the sale of real properties or shares of stocks);

c. Examination of taxpayers retiring from business;

d. Audit of government agencies and corporations

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

However, service of Assessment Notices, Warrants and Seizure Notices should still be effected. Taxpayers may still opt to pay their known deficiency taxes even without securing authority from revenue officials.

All concerned BIR offices shall submit an inventory of all outstanding LOAs and Letter Notices as of June 30, 2016 on or before July 16, 2016.