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Using the BIR Chief's Power to your advantage

0 Views· 11/26/23
Aryel Narvasa
Aryel Narvasa

First, the BIR Chief was reluctant to extend the filing of Annual Income Tax Return even if the public health and public safety dictate. He gave the taxpaying public more than what it is asking an extension to other relevant forms and documents. Thank you very much, Bossing BIR Chief. However, he did not touch the amnesty due date for the reason that he has no power and authority to do so. So, he asked the DOF Chief's approval, who signed the RR 5-2020. The enforceability of RR demands the lapse of 15 days from its publication in a newspaper of general circulation. BIR people must act faster. I am confident that the RMC extending the amnesty due date will be released after such 15 days. Please, Filipino taxpayers, do not worry much. Such RMC is due to come.
The RR 5-2020 is my piece of evidence that the BIR Chief has no power to introduce new terms and conditions such as non-acceptance of the STOP-FILER/OPEN CASES' Application for Tax Amnesty. This video explains. Thanks for watching and learning the dangerous tactics of some BIR officials.
More than 180 days from the date when the LoA was issued were wasted. Still, the revenue officers involved exerted no concrete and complete efforts to hold a closing conference prior to the preparation and delivery of the ‘Notice For Informal Conference’. 
RAMO 1-2000. Essential to an effective audit of internal revenue tax liabilities is the holding of a closing conference with the taxpayer before the preparation of the Final Report of Investigation by the Revenue Officer assigned to the tax case. During this time, the Revenue Officer and his supervisor explain to the taxpayer how the assessment of his tax liability was arrived at. Necessary time and patience should be devoted to a discussion of any proposed adjustments to ensure that the taxpayer has a proper understanding of the issues. Tact and discretion are required in pointing out errors in books and records in order to avoid discrediting an employee or representative of the taxpayer. If necessary, the records of the case shall be presented to the taxpayer to document the Revenue Officer’s findings. The taxpayer shall then be allowed to examine such records and to present his arguments. If the taxpayer agrees with the audit findings, he shall be made to sign an Agreement Form. If not, the Revenue Officer shall give the taxpayer enough time to document his objections to the proposed assessment.
RR 12-99. Notice for informal conference. – The Revenue Officer who audited the taxpayer’s records shall, among others, state in his report whether or not the taxpayer agrees with his findings that the taxpayers is liable for deficiency tax or taxes. If the taxpayer is not amenable, based on the said Officer’s submitted report of investigation, the taxpayer shall be informed, in writing, by the Revenue District Office or by the Special Investigation Division, as the case may be (in the case Revenue Regional Offices) or by the Chief Division concerned (in the case of the BIR National Office) of the discrepancy or discrepancies in the taxpayer’s payment of his internal revenue taxes, for the purpose of “Informal Conference,” in order to afford the taxpayer with an opportunity to present his side of the case. If the taxpayer fails to respond within fifteen (15) days from date of receipt of the notice for informal conference, he shall be considered in default, in which case, the Revenue District Officer or the Chief of the Special Investigation Division of the Revenue Regional Office, or the Chief of Division in the National Office, as the case may be, shall endorse the case with the least possible delay to the Assessment Division of the Revenue Regional Office or the Commissioner or his duly authorized representative, as the case may be, for appropriate review and issuance of a deficiency tax assessment, if warranted.
It is imperative that the administrative penalty shall be imposed on the revenue officers involved without further hearing and demand thereof. 
I culled from the relevant BIR revenue issuances that the penalty for the failure and refusal, and continuing failure and refusal to conduct and conclude an audit investigation is 6-month suspension without pay.
G.R No. 185371. The persuasiveness of the right to due process reaches both substantial and procedural rights and the failure of the CIR to strictly comply with the requirements laid down by law and its own rules is a denial of Metro Stars right to due process. G.R. No. 222743. The ease by which the BIR’s revenue-generating objectives is achieved is no excuse for its non-compliance with the statutory requirement under Section 6 and with its own administrative issuance.

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