QuestionsQuestions (BIR REVENUE MEMORANDUM ORDER NO. 10-2013)
It is anchored on Section 5 of the National Internal Revenue Code (NIRC) of 1997, as amended, which vests the Commissioner with authority to obtain information, summon and examine persons, and take testimony for ascertaining correctness of returns, determining tax liability, collecting taxes, or evaluating compliance.
The Order is meant to ensure full implementation of Sections 5, 14, 266 and related provisions of the NIRC, as amended.
BIR Form No. 0713 shall be used for SDTs.
The Order covers: (1) the person liable for tax or required to file a return, any officer or employee of such person, and any person having possession/custody/care of books and accounting records containing relevant entries; and (2) any person other than the audited/under investigation taxpayer, including officers/employees of national and local governments, government agencies and instrumentalities (including BSP) and GOCCs.
The concerned head (or delegated officer) must issue a written notice requiring the person to provide information or pertinent books/accounting records and specific documents, with an acknowledged duplicate forming part of the case docket.
A request is made when the requested information/records are not furnished within the period prescribed in the written notice, or when submissions are incomplete.
It must state the relevant facts, specify the particular documents/records not made available, and identify the taxpayer or the third party/office concerned, with the records attached.
The Prosecution Division at the National Office, the Legal Divisions at the Regional Offices, or any other delegated officer evaluates the request within two (2) working days from receipt.
Either (1) return the case to its origin for further documentation/action, or (2) prepare the SDT in three copies for the signature of the proper approving authority (e.g., Assistant Commissioner, Enforcement and Advocacy Service; Assistant Commissioner, Large Taxpayers Service; Revenue Regional Director; or other delegated officer).
The compliance date for submission of books/accounting records is set on the 14th day from the date of issuance of the SDT.
The required time must be during regular business hours (from 8:00 AM to 5:00 PM on workdays excluding holidays). The venue shall be the BIR office of the signatory of the SDT.
Revenue officers may access, among others, the latest General Information Sheet filed by the corporation with the Securities and Exchange Commission.
Service is primarily by personal service (delivering a copy to the party at registered/known address or where found). If personal service is not practicable, substituted service or mail service may be used.
The SDT may be left at the registered address with the clerk or person in charge; if at the known address used for business, with clerk/person in charge; if at residence, with a person of legal age residing therein; and if no person is found, the server brings a barangay official and two disinterested witnesses to attest absence, then gives the SDT to the barangay official, with details recorded on the SDT bottom portion.
The server must accomplish the bottom portion of the SDT and submit a written report under oath before a Notary Public or authorized officer under Section 14 of the NIRC, stating manner/place/date of service, the name of recipient/witnesses, courier/postal details if applicable, and other relevant information.
If substantially complete, the documents are consolidated with the case records and referred back for continuation of investigation, with a written report to the issuing office. If no submission or incomplete presentation, the action lawyer requests a conference with revenue officers on the 5th working day from the compliance date set.
Non-compliance subjects violators to administrative liability, and revenue officers must be present during the appointed time/date/place to check completeness of the records.
No. Payment of the administrative penalty shall not excuse the taxpayer/person summoned from complying with the SDT.
The action lawyer recommends prosecution for violation of Section 266 (Failure to Obey Summons) of the NIRC, as amended, and files the Letter-Complaint with the Complaint-Affidavit and supporting documents with the Office of the Prosecutor that has jurisdiction over the case.