RMO No. 27-98 — Prescribes the audit policies and procedures of the 1998 Enforcement Audit Program Digest

REVENUE MEMORANDUM ORDER No. 27-98 issued March 25, 1998 prescribes the audit policies and procedures of the 1998 Enforcement Audit Program which covers 1996 and 1997 Income, Value-Added Tax, Percentage, Withholding and other tax returns and liabilities of the following sectors/industries: a) banks, insurance and other financial intermediaries; b) international carriers; c) telecommunication companies; d) pharmaceutical companies; e) top 1,500 large taxpayers as may be identified by the Large Taxpayers Division; f) Board of Investments, Export Development Authority and Philippine Export Zone Authority registered companies; g) exempt organizations pursuant to Sec. 30 of the Tax Code; h) SBMA and CDC enterprises; i) oil companies; j) breweries, distillers, rectifiers and compounders; k) cigarette manufacturers; l) cases covered by confidential information filed by informers; and m) tax fraud cases developed by the Tax Fraud Division and those elevated to it by the Regional Offices. All cases falling under said classification will be automatically excluded from the coverage of the 1998 Audit Program by the Assessment Service for Revenue District Offices. Taxpayers covered by the Enforcement Audit Program who availed of the Voluntary Assessment Program will not be included unless the availment was found to be substantially deficient by the Voluntary Assessment Program Committee.