The Bureau of Internal Revenue (BIR) announces the lifting of the suspension on conducting Tax Compliance Verification Drives (TCVDs) in Revenue Memorandum Circular (RMC) No. 115-2022, published on July 19, 2022.
Tax revenue officers have regained the authority to conduct TCVDs to expand the tax base further and enhance tax compliance.
This memorandum was issued to update RMC No. 77-2022, which suspended all field audits and other field operations on May 30, 2022. These audits were related to examinations and verifications of taxpayer's books of accounts, records, and other transactions; its implementation ensured that no field audit, field operations, or any form of business visitation in the execution of Letters of Authority/Audit Notices (LOAs) or Mission Orders (MOs) are to be conducted. Suspensions also included TCVDs and any new Letters of Authority/Mission Orders.
Resumption of TCVD conductions
To continue the bureau’s mandate on collecting taxes, it is required that TCVDs resume conduction. It’s estimated that this action will increase tax compliance and tax base size and give revenue officers the capacity to investigate better and verify complaints regarding the alleged violations of the internal revenue tax laws perpetrated by certain taxpayers.
To return the ability of revenue officers to conduct TCVDs, the BIR needed to remove the suspension on the issuance of Mission Orders (MOs) authorising the action. Officers can now verify the complaints regarding the alleged violations of the 1997 National Internal Revenue Code (NIRC). RMC 155-2022 mandates the immediate lifting of the suspension, additionally, it orders that everyone must comply with the updated rules and regulations given by the bureau regarding the issuance and implementation of such MOs. Lastly, the RMC clarifies that other MO issuances not used for TCVD will remain suspended until otherwise stated by the BIR.