BIR Audit Suspension: Key Details

In a recent development, the Bureau of Internal Revenue (BIR) of the Philippines has announced a temporary suspension of all audit and field operations. This directive, outlined in Revenue Memorandum Order No. 051-2024, is set to take effect from December 16, 2024, to January 12, 2025. This article will explore the implications of this order for taxpayers and internal revenue officers.

Key Highlights of the Suspension Order

1. Suspension Period

The memorandum mandates the suspension of all field audits and related operations concerning the examination and verification of taxpayers' books of accounts, records, and other transactions. The suspension is set to last from December 16, 2024, to January 12, 2025.

2. Exceptions to the Suspension

Despite the suspension, certain scenarios will still necessitate the issuance of written orders for audit or investigation:

• Cases prescribing on or before April 15, 2024

• Instances of tax evasion

• Processing and verifying estate tax returns, donor’s tax returns, capital gains tax returns, and withholding tax returns related to the sale of real properties or shares of stock, including associated documentary stamp tax returns

• Examination and verification of internal revenue tax liabilities for taxpayers retiring from business

• Monitoring of privilege stores (tiangge)

• Other concerns subject to specific deadlines

3. Utilization of Suspension Period

During the suspension period, examiners and investigators are encouraged to focus on completing office-based tasks and finalizing reports on cases where fieldwork has already been completed.

4. Emphasis on Revenue Collection

The BIR underscores the importance of continuing revenue collection efforts throughout the year. Consequently, the issuance of Assessment Notices, Warrants, and Seizure Notices will persist as required. Taxpayers are also encouraged to voluntarily pay their known deficiency taxes without necessitating approvals from Revenue Officials.

Conclusion

The suspension of BIR audit and field operations is a critical directive aimed at streamlining processes and ensuring efficient revenue collection. Taxpayers and revenue officials must be aware of the suspension period and the outlined exceptions to comply with the new guidelines effectively.

Reference: RMO No. 51-2024