Philippines: Guidance regarding service of electronic letter of authority

Issues and concerns with respect to service of electronic letter of authority to taxpayer

Issues and concerns with respect to service of electronic letter of authority to taxpayer

The Bureau of Internal Revenue issued Revenue Memorandum Circular No. 82-2022 (30 June 2022) to address issues and concerns with respect to the service of the electronic letter of authority to the taxpayer within 30 days from its date of issuance under Revenue Memorandum Order No. 1-2000.

The circular provides:

  • Revenue Memorandum Order No. 1-2000 was already amended by Revenue Memorandum Order No. 1-2020 that provides that the mandatory 30-day period of serving the electronic letter of authority to the taxpayer has already been removed.
  • While there is no timeline required for the service of the electronic letter of authority, it is still in the best interest of the government that the letter be served to the taxpayer immediately upon issuance/assignment thereof considering that the entire audit process must be completed within 180 or 240 days (depending on the type of case) from the date of issuance of the letter.
  • The deletion of the 30-day period to serve the electronic letter of authority is no excuse for the concerned revenue officers to delay its service, nor for a taxpayer to refuse its service or to question its validity in case the same is served beyond the 30-day period.
  • An electronic letter of authority that remains unserved at the time the circular becomes effective or was served beyond the 30-day period from the date of its issuance is still considered valid and enforceable, provided that the 180-day/240-day period to complete the audit process has not yet expired.

Read a July 2022 report prepared by the KPMG member firm in the Philippines

 

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