REVENUE MEMORANDUM ORDER NO. 7-2020 issued on February 18, 2020 prescribes
the policies and guidelines in the audit/investigation of cooperatives for taxable years 2018
onwards.
Cooperatives which transact business with both members and non-members whose
accumulated reserves and undivided net savings is more than Ten Million Pesos
(₱ 10,000,000.00), including other cooperatives with income not related to the main/
principal business/es under their Articles of Incorporation, shall be prioritized for
audit/investigation by the Revenue District Offices having jurisdiction over the said
cooperatives.
The policy on the maximum workload of thirty (30) cases per Revenue Officer shall
not be applicable to the audit of cooperatives.
The Electronic Letter of Authority Monitoring System (eLAMS) shall be used in the
request, approval and issuance of electronic Letters of Authority (eLAs), as well as in
reporting the accomplishments on eLAs issued.
To ensure the close monitoring of cooperatives audited, the following reports shall
be prepared and submitted by the Revenue District Officers to the Assistant Commissioner
– Assessment Service, Attention: The Chief, Audit Information Tax Exemption & Incentives
Division through email address aiteid@bir.gov.ph, not later than the 10th day of each
month:
Name of Report Annex
List of Cooperatives with Electronic Letters
of Authority (eLAs) Issued
A
Monthly Summary of Accomplishment on
Audit of Cooperatives
B