Tuesday November 21 , 2017

What taxpayers should know of electronic Letters of Authority (Revenue Memorandum Order No. 44-2010)

Revenue Memorandum Order (RMO) No. 44-2010
dated May 12, 2010

By this time, most taxpayers must have already received a Letter of Authority issued by the BIR.  In this connection, taxpayers are advised of the important features of a valid electronic LA, as follows:

1. The electronic LA  shall bear the name, designation and electronic signature of the approving BIR official.

2. The serial number of an electronic LA shall be system-generated, while the date of the LA shall reflect the date when it was printed.

3. The names of the Revenue Officers (ROs) assigned to a particular case shall be printed on the corresponding electronic LA, anyone of whom shall serve the LA to the taxpayer.

4. The tax types and taxable period to be covered by the audit shall be reflected on the electronic LA.

5. The basis for the audit (i.e. regular audit program, special audit, etc.) shall be indicated in the LA.

6. The electronic LA shall contain a notation stating that the taxpayer is requested to verify the validity of the LA with the authorized BIR official, at the address and contact information provided therein.

No manually-prepared LA shall be issued after the date of effectivity of the 2010 Audit Program. Any manually-written character (alphabetical or numeric), notation or erasure shall render the LA invalid. Any other violation of the provisions of RMO 44-2010 shall only be translate to disciplinary sanctions on the concerned BIR officials or employees.

Please be advised that beginning June  1,  2010, there is no need for revalidation of the LA even if the prescribed audit period has been exceeded.

To read the full text of RMO 44-2010, please click on the following link http://www.bdblaw.com.ph/index.php?option=com_dms&view=category&layout=table&Itemid=183&limitstart=0.

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