The Bureau of Internal Revenue (BIR) has institutionalized a nationwide audit framework aimed at ensuring risk-based taxpayer selection, standardized procedures, and greater accountability among revenue officers.
In a statement Friday, the BIR said Revenue Memorandum Order (RMO) No. 22, issued Aug. 24, consolidates its previous audit programs and establishes uniform policies and procedures for tax audits nationwide.
BIR Commissioner Charlito Mendoza said the new program seeks to balance taxpayer fairness with accountability within the agency, requiring audits and assessments to be supported by proper procedures, facts, and law.
What Is the BIR’s New Nationwide Audit Program?
RMO No. 22 brings the BIR’s earlier audit programs together under one set of rules. Taxpayers and revenue officers now follow the same policies and procedures wherever they are in the country.
The Single-Instance Audit Framework
The program reinforces the Single-Instance Audit Framework, which generally limits taxpayers to one electronic Letter of Authority (eLA) per taxable year, subject to certain exceptions. Audits are also confined to the tax types and periods covered by the authority.
Risk-Based Case Selection and Anonymized Assignment
Priority cases will be selected through system-assisted, risk-based processes using verifiable data. Taxpayer identities will be anonymized during selection and assignment, as far as practicable, to reduce discretion in case distribution.
Revalida: The “Audit of Auditors”
The program also formalizes the Revalida, or “Audit of Auditors.” Audit reports and assessments go through technical and quality reviews. These reviews make sure findings are supported by facts and law and that due process was observed.
Compliance Requirements and Sanctions for Revenue Officers
Revenue officers and officials must comply with prescribed procedures, timelines, documentation, and monitoring rules. The following violations may result in administrative sanctions and other liabilities:
- Unauthorized audits
- Improper case classification
- Unjustified delays
- Other violations of the prescribed rules
Support for Public Trust and Better Public Service
The BIR said the reforms support President Ferdinand R. Marcos Jr.’s push to restore public trust in government and improve public service.
Mendoza said the new program fulfills the BIR’s commitment to clearer rules, stronger safeguards, and greater accountability while advancing a more taxpayer-centric approach to tax administration.
Key Takeaways for Taxpayers
- One eLA per taxable year is the general rule, with limited exceptions.
- Audits are limited to the tax types and periods stated in the authority.
- Case selection is risk-based and uses verifiable data.
- Assessments must be supported by facts, law, and due process.
Keeping accurate records makes any BIR audit easier. If you need help preparing for one, see our audit and finance services.
SOURCE: https://www.pna.gov.ph
