Internal Revenue Commissioner Kim Jacinto-Henares has suspended all field audit and other field operations of the Bureau of Internal Revenue (BIR) from today, December 16, 2014, until January 4, 2015, to minimize opportunities for corruption in the form of soliciting for Christmas gifts.
Henares issued Revenue Memorandum Circular 87-2014 preventing field operations relative to examinations and verifications of taxpayers’ books of accounts, records and other transactions.
“Thus, no field audit, field operations, or any form of business visitation in execution of Letters of Authority/Audit Notices, Letter Notices or Mission Orders should be conducted. Likewise, no written orders to audit and/or investigate taxpayers’ internal revenue tax liabilities shall be served,” the circular said.
However, field operations for the following may be continued: investigation of cases that will prescribe on or before April 15, 2015; 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; examination and verification of internal revenue tax liabilities of taxpayers retiring from business;
Audit of national government agencies, local government units, and government-owned and -controlled corporations (GOCCs), including subsidiaries and affiliates of GOCCs; monitoring of privilege stores (tiangge); stocktaking; and other matters where deadlines have been imposed or under the orders of the commissioner.
“Service of Assessment Notices, Warrants and Seizure Notices should still be effected. Most importantly, all efforts should be directed to ensure maximum collection in the remaining days of the year,” the circular said.
The circular said the suspension of field operations should be used by BIR personnel in doing office work on their cases, and in finishing the reports on those field operations that have already been completed.