THE BUREAU of Internal Revenue (BIR) released a new memorandum order institutionalizing audit reforms under a uniform nationwide audit framework for risk-based taxpayer selection, standardized audit procedures, and stronger accountability.
On Friday, September 4, the BIR said Revenue Memorandum Order No. 22 issued on August 24 consolidated its previous audit programs, established uniform policies, guidelines, and procedures for tax audits across investigating offices nationwide.
“This new BIR Audit Program strengthens both sides of the process — fairness for taxpayers and accountability within the BIR. Audits must follow clear rules and proper procedures, and our revenue officers must be able to support the assessments they issue with facts and law,” BIR Commissioner Charlito Mendoza said.
For taxpayers, the new audit program reinforces the Single-Instance Audit Framework, generally limiting audit authority to one electronic Letter of Authority per taxpayer per taxable year, subject to specified exceptions. Audits are also limited to the tax types and taxable period covered by the authority issued.
For priority cases, taxpayers are selected through system-assisted, risk-based processes using verifiable data.
To reduce discretion, taxpayer identities are kept anonymized during selection and assignment, as far as practicable, while workload and eligibility controls govern case distribution.
The program also provides separate rules for mandatory cases and institutionalizes the Revalida or “Audit of Auditors,” under which audit reports and assessments may undergo technical and quality review to determine whether findings are supported by facts and law and whether due process was observed.
Revenue officers and officials must follow prescribed audit procedures, timelines, documentation, and monitoring requirements.
Unauthorized audits, improper case classification, unjustified delays, and other violations may result in administrative sanctions and other liabilities under existing laws and rules.
BIR said the reforms support President Ferdinand R. Marcos Jr.’s direction to restore trust in government and improve public service.
“When we began our comprehensive audit reforms at the start of the year, we committed to clearer rules, stronger safeguards, and greater accountability in the conduct of audits. This new BIR Audit Program delivers on that commitment and advances our taxpayer-centric approach to tax administration,” Mendoza said.
He added: “Fair treatment of taxpayers and firm enforcement of the tax laws have to go together. A credible audit system requires both.” (PNA)
