BUREAU of Internal Revenue Commissioner Caesar R. Dulay has ordered tax examiners of Revenue Region (RR) 7-Quezon City to explain why the outcome of their tax investigations has not been made public yet, despite the lapse of a considerable period of time.
Dulay previously gave instructions to all investigating officers to submit an inventory of all their outstanding letters of authority (LOA) and letter notices (LN) through Revenue Memorandum Circular (RMC) 70-2016. The LOA/LN authorizes a tax examiner to examine the books of accounts and related taxpayer accounting records to determine if the correct tax had been paid and whether a taxpayer had complied with the requirements of existing tax laws.
After a careful review of the inventory, Dulay discovered that many tax examiners failed to terminate their investigation/verification of tax cases assigned to them and submit the required reports within the prescribed period of 180 days. Under Revenue Memorandum Order (RMO) 69-2010, reports of investigation/verification of cases covered by LOAs other than value-added tax claims for refund/credit shall be submitted within 180 days from the date of the authorizing document.
At least 66 revenue examiners from RR 7-Quezon City were ordered to explain their failure to submit their reports within the required period. An aging of the LOAs of this group showed tax cases remained outstanding for a period of up to 5,701 days. Thirty-two examiners on the list have held tax cases for at least 1,000 days and 17 of them had a caseload of up to 61.