
REVENUE MEMORANDUM CIRCULAR NO. 10-2007 issued on February 5, 2007 circularizes the memorandum of the Commissioner of Internal Revenue (CIR) dated January 19, 2007 directing all Regional Directors, Revenue District Officers and Revenue Officers to intensify their tax mapping operations/activities on taxpayers engaged in rental business/leasing of real properties nationwide (e.g. lands, house and lots, houses, warehouses, establishments used for commercial/business undertakings, subdivisions, townhouses, apartments, condominium units, dormitories, boarding houses, etc.).
BIR field officials and employees were also directed to coordinate with and/or gather and access pertinent information from building/subdivision/ condominium administrators and from such other potential sources of information to ensure that properties being rented/leased out are duly monitored by the BIR and proper taxes are collected accordingly. Compliance with and adherence to existing procedures in the conduct of the tax mapping activities are expected from BIR officials and personnel who shall participate in the said activities to avoid conflict between them and the taxpayers concerned.
The Regional Directors (RDs) are directed to submit a monthly report to the Office of the Commissioner of Internal Revenue (OCIR), through the Deputy Commissioner–Operations Group (DCIR-OG), every 5th day of the month following the month during which the tax mapping activities are undertaken. The report shall contain the names and addresses of the tax mapped taxpayers with status of their compliance and violations of tax laws, rules and regulations, if any; the list of names recommended for audit/investigation and the reasons and justifications that would warrant such audit/investigation pursuant to existing issuances. The report shall be evaluated and final approval thereof shall be made by the CIR, which shall serve as the basis and authority for the concerned RDs to issue Letters of Authority to audit/investigate the covered taxpayers.
The RDs are also directed to submit quarterly summary report on the result of their audit/investigation to the OCIR, copy furnish the DCIR-OG, every 15th of the month following each quarter. The quarterly summary report shall include the names and addresses of taxpayers under audit/investigation, deficiency tax assessments and/or payments made as a result thereof, other findings and the action/s taken on such findings.