February 9, 2023

Filipino Guardian

Sentinels of Filipino Free Press

BIR suspends tax audits during the holiday season

Shoppers flock to a Tiangge in Taytay, Rizal in this undated file photo. – FILIPINO STAR/ MICHAEL VARCAS

ALL AUDITS and other field operations have been suspended by the Bureau of Internal Revenue (BIR) until January 8th.

In the Revenue Memorandum Order No. 55-2022, BIR Commissioner Romeo D. Lumagui, Jr. said all field audits and other field operations related to the audit and review of taxpayers’ records and accounts were suspended from Dec. 16 to Jan. 8. 2023

He said that during this period, no written orders to audit or investigate taxpayers’ tax liabilities will be served except in certain cases.

For example, the stay order will not cover tax evasion cases and investigations into cases prescribed on or before April 15, 2023.

The BIR will continue to process and review inheritance tax returns, gift tax returns, capital gains tax returns and withholding tax returns on the sale of real estate or stock and stamp tax returns.

Auditing and/or reviewing the internal VAT liabilities of back-to-back taxpayers will also continue during the holiday, as will monitoring of “Tiangge” stalls.

Matters in which deadlines are set are also excluded from the order.

“During the said period, BIR investigators and investigators will be directed to do clerical work on their cases and complete the report of those cases with fieldwork already completed,” BIR said in a separate statement.

The BIR also reminded staff to ensure maximum revenue collection is achieved.

“The delivery of assessment notices, arrest warrants and seizure notices should continue to take place,” it said.

Taxpayers can also voluntarily pay their known deficit taxes.

National government revenue for the January-November period was 3.27 trillion pesos, up 18.13% year-on-year. Tax revenue increased by 17.5% to P2.96 trillion tax revenue as of the end of November.

BIR accounted for the bulk of tax revenue for the 11-month period at P2.16 trillion, up 12.56% year-on-year.

The Development Budget Coordination Committee earlier this month raised the full-year revenue target to 3.51 trillion pesos, or 16.1% of gross domestic product, from the previous 3.3 trillion pesos. — KBTa-asan