DOF stops BIR from creating special audit groups

MANILA, Philippines — The Department of Finance (DOF) has ordered the Bureau of Internal Revenue (BIR) to stop the creation of special audit groups investigating property developers, multilevel marketing, Philippine offshore gaming operators (POGOs) and e-sabong.

Finance Secretary Carlos Dominguez ordered the agency to suspend the revenue special orders (RSOs) and operations memoranda (OMs) creating special audit groups due to a redundancy in functions and roles.

In response, the BIR issued a memorandum calling off until further notice the RSOs designating special audit task force for property developers and multi-level marketing.

Similarly, the BIR suspended the OMs putting up special audit groups for POGOs and e-sabong.

Dominguez said the functions assigned to these audit groups fall in conflict with the responsibilities of various BIR offices listed under revenue administrative orders (RAOs).

“The functions and responsibilities of the different units in the BIR are provided in RAOs issued by the secretary of finance, upon the recommendation of the commissioner. The issuance of the RSOs and OMs has distorted this and this caused uncertainty for some taxpayers,” Dominguez said.

Dominguez said all of the existing probes under the RSOs and OMs would be transferred to revenue district offices where concerned taxpayers are registered.

According to Dominguez, the DOF and the BIR are working on the review of orders creating special audit task force to prevent a duplication in roles.

“We are working with the BIR to review these issuances and ensure that these do not create redundancies and cause taxpayer confusion,” the DOF chief said.

Dominguez said that all field audits and other operations under the special audit task force authorized to examine and verify a taxpayer’s books of account, records and transactions were suspended.

Therefore, no business visitations in execution of letters of authority and audit notices should be carried out by the suspended teams.

The RSOs and OMs allowed certain auditors to conduct an examination of books of accounts of taxpayers.

The issuances also granted the auditors the power to issue letters of authority in connection with the investigation results of the special audit task force.