BIR eases rules on third audits

THE Bureau of Internal Revenue (BIR) said it has relaxed its procedures for conducting a third audit of taxpayers.

Commissioner Caesar R. Dulay signed RMO 64-2016 last week, which amends the procedure for audits on taxpayers being assessed for a third year in a row.

In the one-page issuance, Mr. Dulay lowered the surcharge to an additional 25%-50% based on the overstatement or deductions discovered in the tax records after audit, from the previous rate of an additional 30% or more.

He also relaxed the approval level to that of a regional director or assistant commissioner instead of the commissioner.

This repeals parts of an issuance by former Revenue Commissioner Kim S. JacintoHenares, RMO 19-2015, which set guidelines for auditing and investigating taxpayers.

The 2015 RMO allowed for the BIR to conduct tax investigations and audits to the same taxpayer for three consecutive years.

This order, on the whole, was not repealed by the 2016 RMO signed by Mr. Dulay.

However, it eased the process by dispersing the responsibility of approving third audits to other BIR officials from just the Commissioner, and lowered the potential penalty.

Mr. Dulay, at the start of his term, called for the review of issuances by Ms. Henares.

He also suspended all revenue issuances filed by his predecessor during her last month of office. —