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    States: Court " of For All

    Uploaded by

    Mau Z MacDay
    1) This document is a Revenue Memorandum from the Philippine Bureau of Internal Revenue highlighting a Supreme Court ruling regarding the mandatory requirement for a Letter of Authority (LOA) before any tax assessments can be issued or audit/examination functions performed. 2) The Court ruled that any tax assessment issued without a LOA first obtained from the Commissioner of Internal Revenue is a violation of taxpayer due process rights and is void. 3) The memorandum instructs all revenue officers to obtain a LOA before initiating any tax assessments or audit functions and that failure to do so will result in administrative sanctions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    States: Court " of For All

    Uploaded by

    Mau Z MacDay
    148 views2 pages
    1) This document is a Revenue Memorandum from the Philippine Bureau of Internal Revenue highlighting a Supreme Court ruling regarding the mandatory requirement for a Letter of Authority (LOA) before any tax assessments can be issued or audit/examination functions performed. 2) The Court ruled that any tax assessment issued without a LOA first obtained from the Commissioner of Internal Revenue is a violation of taxpayer due process rights and is void. 3) The memorandum instructs all revenue officers to obtain a LOA before initiating any tax assessments or audit functions and that failure to do so will result in administrative sanctions.

    Original Description:

    BIR RMC 75-2018

    Original Title

    RMC No 75-2018

    Copyright

    © © All Rights Reserved

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    1) This document is a Revenue Memorandum from the Philippine Bureau of Internal Revenue highlighting a Supreme Court ruling regarding the mandatory requirement for a Letter of Authority (LOA) before any tax assessments can be issued or audit/examination functions performed. 2) The Court ruled that any tax assessment issued without a LOA first obtained from the Commissioner of Internal Revenue is a violation of taxpayer due process rights and is void. 3) The memorandum instructs all revenue officers to obtain a LOA before initiating any tax assessments or audit functions and that failure to do so will result in administrative sanctions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    148 views2 pages

    States: Court " of For All

    Uploaded by

    Mau Z MacDay
    1) This document is a Revenue Memorandum from the Philippine Bureau of Internal Revenue highlighting a Supreme Court ruling regarding the mandatory requirement for a Letter of Authority (LOA) before any tax assessments can be issued or audit/examination functions performed. 2) The Court ruled that any tax assessment issued without a LOA first obtained from the Commissioner of Internal Revenue is a violation of taxpayer due process rights and is void. 3) The memorandum instructs all revenue officers to obtain a LOA before initiating any tax assessments or audit functions and that failure to do so will result in administrative sanctions.

    Copyright:

    © All Rights Reserved
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    suRErrj O} ltrIExnAL HtvEiuE

    REPUBLIC OF THE PHILIPPINES


    o:50 P;4,
    DEPARTMENT OF FINANCE
    BUREAU OF INTERNAL REVENUE
    necon--os MG T. D lV I SION
    September 5, 20'18

    Revenue Mermrorandum circutan tt,o. 75- 20l8


    Subject: The Mlandlatory Statutory Requirenrent and Function of a
    Letten of Authority .

    To All lnternal Revenue Officers anrd Others Concerned

    This Circular is being issuerd to highlight the d,cctrinal rule enunciated by the
    Supreme Court in the case o1' " Medicard Philippine$, lnc. vs. Commissioner of
    lnternal Revenue" (G.R' No. 22?-743, 05 Aprtl 2017) 'rn the mandatory statutory
    requirement of a Letter of Authority (LOA), for the guidance of all concerned,
    particularly internal revenLle officerrs tasked with assessment and collection functions
    and review of disputed assessments.

    The judicial ruling , invol<ing a specific statutory' mandate, states that no


    assessments can be issued or no assessment functions or proceedings can be dcne
    without the prior approval and authorization of the Cornmissioner of lnternal Revenue
    (ClR) or his duly authorized re;rresentative, through an LOA. The concept of an LOA
    is therefore clear arrd unequiv,cc;il . Any tax: assessrnent issued without an LOA is a
    violation of the taxpayer's right to due process and is therefore "inescapably void."

    The Court further emphatioally clarified that :

    1. The circumstances contemplated under Section 6 of the National


    lnternal revenue Code (NIRC) , as amended, "where the taxpayer
    may be assessed through best evidence obtainable , inventory-
    taking or surveillance, among others, l'ratre nothing to do with the
    LOA. These erre simpiy methods of exarnirring the taxpayer in order
    to arrive at the correct amount of taxes. llence unless undertaken by
    the CIR hims;eli' or his duly authrorizecl representatives, other tax
    agents nray rrot validly conduct any of ttrese kinds of examinations
    without prior authoritY."

    2. A Letter Notice (LN) "is entirely different and serves a different


    purpose than an LOA'. lt is not founcl in.the NIRC and is not an
    authority to conduct an audit or examinertion of the taxpayer leading
    to the issuance of deficiency assessments . Due process demands
    that after an LI\ has served its puroose , the revenue officer should
    ha,re properl!' s,ecureC an LO,A hefore proceeding with the further
    examination atnd assessment of taxpiayer.

    U',
    a

    con13y13V anO to encourage due


    To help forestall any unnecessary inv exanri.er or revenue officer initiating
    judiciar pronou.c,3rrents,
    functio.s without an LoA shall
    observance of the be
    tax assessments ti purr"rm.ing ,r*utt*"ni
    sanctions'
    subject to approprrate administratirre

    Theprovisionsofanyinternalrevenueissuanceinconsistentherewithare
    hereby repeated , '*1"0*O
    tr accordingly'
    nrodified

    Allinternalrevenueofficialsanclemployeesconcernedareherebyenjoinedto
    give tnis'iircular as wide
    publicitli as possible'

    / ffi
    i:trrsnRR. DULAY
    Cornmlssioner of lnternal Revenue
    t' 019397
    cuREru ot" lNr E!!11 lFv-ryb
    b"60 F h'
    sEP o 5,2018

    [econ'bi Mor. otvtstox

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