REVENUE MEMORANDUM ORDER NO. 14-2007 issued on July 13, 2007 prescribes additional procedures to detect the presence of “Fly-by-Night” taxpayers in the current database of the BIR and to thwart their subsequent request to secure Authority to Print (ATP) sales invoices/ official receipts. “Fly-by-Night” business entities are taxpayers who do not have any legitimate businesses but nevertheless register themselves with the BIR just for the sole purpose of securing from the Bureau sales invoices and/or receipts which they subsequently sell to others. These taxpayers, upon inspection, cannot be located in their registered addresses and intentionally do not file the tax returns required by the Agency as registered taxpayers, but have conveniently utilized BIR registered-invoices/receipts for fictitious anomalous transactions, for a price or a fee. All new business registrants for a given month should be included in the monthly tax mapping operations regularly conducted by the Revenue District Office/Large Taxpayer Service (RDO/LTS) office that has jurisdiction over the physical location of the establishment. An ocular inspection should be done to verify actual physical existence of the business of the taxpayer in the registered address and to further determine whether there have been movements since the time the same have been registered. If it is found that the business of a particular taxpayer is no longer in the place where it has been registered with no corresponding communication given to the concerned RDO/LTS office as to the change of address or cessation of business, such taxpayer must be monitored strictly in terms of its compliance with the filing of returns/declarations and payments of taxes and its subsequent request for ATP sales invoices/official receipts. In addition to the documentary requirements provided under existing rules and regulations, all taxpayers subsequently applying to secure ATP sales invoices/official receipts shall submit the following: a. photocopy of latest annual Income Tax return filed; b. photocopy of Value-Added Tax (VAT) returns filed within a 12-month period where the last month pertains to the month preceding the month when the request for ATP is made, if the request for ATP pertains to VAT sales invoice or VAT official receipt; and/or c. photocopy of Percentage Tax returns filed within a 12-month period where the last month pertains to the month preceding the month when the request for ATP is made, if the request for ATP pertains to Non-VAT sales invoice or Non-VAT official receipt on transactions subject to Percentage Tax under Title V of the Tax Code, as amended. If no returns can be presented by the taxpayer, he shall be required to file all the returns that he/it failed to file since the time it registered with the concerned RDO/LTS office and shall pay the corresponding deficiency taxes due thereon. Used sales invoices/official receipts may be requested to validate the correctness of the declarations made on the returns filed. In cases where the taxpayer applying for a subsequent issuance of ATP sales invoices/official receipts is a newly registered taxpayer for less than one (1) year prior to the subsequent request for ATP sales invoices/official receipts, he/it shall only be required to present photocopies of the aforementioned returns filed from the time of his/its registration up to the month preceding the month when such subsequent request for ATP sales invoices/receipts is made. The ATP sales invoices/official receipts being applied for shall be issued within one (1) day after submission of all the requirements by the taxpayer after the above tax returns have been validated in the Integrated Tax System (ITS) or validated to have been filed in a non-ITS district office. In instances where the returns filed reflect taxes due that have remained unpaid as of the time of application, taxpayer should first be required to pay the unpaid taxes reflected on the returns before his/its subsequent request for ATP sales invoices/receipts may be given due course Registrants who have been identified as utilizing their BIR registration and registered sales invoices/official receipts for unscrupulous and fraudulent transactions shall be referred by the head of the concerned RDO/LTS office to the Legal Division of the Region/Legal Service of the National Office for criminal prosecution. Likewise, any taxpayer found to be utilizing such sales invoices/receipts from these illegitimate registrants for the purpose of claiming input taxes and/or deductions from taxable income shall be dealt with accordingly.