Assessment based only on Letter Notice is void
Due to technological advances, taxpayers can actually find themselves under the scrutiny by the Bureau of Internal Revenue (BIR), even though no detailed examination of the books and records is conducted. This is possible through the BIR’s Reconciliation of Listing for Enforcement (Relief) System, which can detect possible tax leaks by matching the information available to the BIR from different sources. If the matching of data reveals discrepancies, the BIR may issue what is called a “Letter Notice (LN).”