Analyses DOJ Resolution BIR subpoena duces tecum failure to submit books accounting record open case

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Revised Guidelines on Tax Investigation and
Issuance of Subpoena Duces Tecum
It is the responsibility of the taxpayers to comply with the
requests of the BIR to produce their books of accounts
and/or other records and documents in the course of a tax
investigation and/or access to records requests. Those
who will refuse to produce the requested documents and
records will be dealt with in accordance with these
guidelines.
After ten (10) calendar days from receipt of a Letter of
Authority (LA) and checklist of the requirements for the
audit or access to records request, a First Notice will be
issued to the taxpayer by the revenue officer signed by
himself and/or his group supervisor. If the taxpayer
ignores and continues to disregard the demand for the
submission of the required documents, a Second and
Final Notice signed by the Head of the Office concerned
shall be sent to the taxpayer after ten (10) calendar days
from receipt of the First Notice.
If the First and Second Notice fails to convince the
taxpayer to comply with the requirements the Head of the
Office shall request the issuance of a Subpoena Duces
Tecum (SDT) from the Legal Service of the BIR National
Office, Legal Division of the Regional Office, or any
other authorized office after ten (10) calendar days from
receipt of the Second and Final Notice. The authorized
office shall act on the request for the issuance of SDT
within five (5) calendar days from receipt of such request.
The SDT must be served immediately and the revenue
officer shall return a served copy to the office who issued
the same within five (5) calendar days from issuance
thereof.
Any taxpayer who refuses to comply with the subpoena
duces tecum may be charged of a criminal case against
the taxpayer for violation of Section 5 in relation to
Sections 14 and 266 of the National Internal Revenue
Code and/or may be charged for contempt under Section
3(f), Rule 71 of the Revised Rules of Court.
When there is a request for the dismissal of the cases
filed in court, the BIR shall concur upon payment of ten
thousand pesos (PHP 10,000.00) as penalty for the
delayed compliance and violations of pertinent revenue
regulations and upon submission of the requested
information. The Expanded Senior Citizens Act of 2003 was amended
to further grant our Senior Citizens, aside from the
twenty percent (20%) discount, an entitlement to the
exemption from the value added tax (VAT), if applicable,
for the exclusive use and enjoyment or availment of the
senior citizen on the following:
1. Purchase of medicines, including the purchase of
influenza and pneumococcal vaccines, and such
other essential medical supplies, accessories and
equipment to be determined by the Department of
Health (DOH) xxx;
2. Professional fees of attending physician/s in all
private hospitals, medical facilities, outpatient
clinics and home health care services;
3. Professional fees of licensed professional health
providing home health care services as endorsed
by private hospitals or employed through home
health care employment agencies;
4. Medical and dental services, diagnostic and
laboratory fees in all private hospitals, medical
facilities, outpatient clinics, and home health care
services, in accordance the rules and regulations to
be issued by the DOH, in coordination with
Philhealth;
5. In actual fare for land transportation travel in
public utility buses, public utility jeepneys taxis,
Asian utility vehicles, shuttle services and public
railways, including Light Rail Transit (LRT), Mass Rail
Transit (MRT), and Philippine National Railways
(PNR);
6. In actual transportation fare for domestic air
transport services and sea shipping vessels and the
like, based on the actual fare and advanced
booking;
7. On the utilization of services in hotels and similar
lodging establishments, restaurants and recreation
centers;
8. On admission fees charges by theatres, cinema
houses and concert halls, circuses, leisure a The BIR issued assessment notices to Kudos Metal
Corporation beyond the three-year prescriptive period,
but claims that the period was extended by the two
waivers executed by its accountant. The Supreme Court
ruled that the waivers are defective and hence, the
assessments issued by the BIR are void. When receiving a notice of audit from the BIR, don’t fret.
Worrying upon the receipt of a notice of audit from the BIR will result in unnecessary nervous tension. As we know, the notice of audit or a letter of authority (LOA) only means that the taxpayer’s case will be reviewed by BIR examiners. While it is true that a notice of audit means future work on the part of taxpayers, there are no tax findings yet at such time. So, worrying too much at the LOA stage is premature.

For all we know, the BIR’s audit may turn up only minimal findings. Unless you are a tax evader, there should be no reason to fear BIR examiners.