As gov’t moves to bloat purse, tax audits resume

Bureau of Internal Revenue (BIR) Commissioner Caesar R. Dulay has given his go signal to resume all tax audits following a two-month suspension on investigations.

Dulay, through Revenue Memorandum Circular (RMC) No. 91-2016 dated Aug. 31, lifted RMC 70-2016 issued on his first day in office. The latter suspended all field audits and other field operations of the BIR’s revenue officers.

In lifting the suspension of investigations relative to examinations and verifications of taxpayers’ books of accounts, records and other transactions, Dulay cited that “the conferred authority under the laws to the [BIR] for the collection of taxes, to be more efficiently administered and implemented, requires some form of enforcement activities to ensure the collection of correct taxes at the times prescribed by law.”

“As such, all field audits, field operations, or any form of business visitation in execution of letters of authority/electronic letters of authority/audit notices, letter notices, or mission orders can already be conducted,” Dulay said. A letter of authority is an official document that empowers revenue officers to examine and scrutinize taxpayers’ books.

Last week, Dulay also lifted the suspension of BIR audits for cases under its Run After Tax Evaders (Rate) program, which brings alleged tax evaders to court.

The BIR chief earlier assured the public that the government “has the means to safeguard the rights of taxpayers and the mechanism to discipline erring revenue officers and employees.”

Dulay dismissed taxpayers’ fears the resumption of the investigations would give the BIR’s field officers the leeway to harass and continue with their old ways.

To ensure that tax investigations would be an effective tool to go after deficient taxpayers, Dulay had said the BIR was already looking into questionable tax audits that were revealed during the suspension of the program.