REPUBLIC OF THE PH'LIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE, REVENUE MEMORANDUM ORDER NO. 53-98 Subject: Checklist of Documents to be Submitted by a Taxpayer upon To Audit of his Tax Liabilities as well as of the Mandatory Reporting Requirements to be Prepared by a Revenue Officer, all of which comprise a Complete Tax Docket. : All Internal Revenue Officers, Employees and Others Concerned Checklist Maiidatory Req Background It has been observed that for the same kind of tax audit case, Revenue Officers differ in their request for requirements from taxpayers as well as in the attachments to the dockets resulting to tremendous complaints from taxpayers and confusion among tax auditors and reviewers. For equity and uniformity, this Bureau comes up with a prescribed list of requirements from taxpayers, per kind of tax, as well as of the internally prepared reporting requirements, all of which comprise a complete tax docket Objective This order is issued to: a. Identify the documents to be required from a taxpayer during audit, according to particular kind of tax; and b. Identify the different audit reporting requirements to be prepared, submitted and attached to a tax audit docket, LIST OF REQUIREMENTS PER TAX TYPE Income Tax/ Withholding Tax - Annex A (3 pages)Value Added Tax - AnnexB (2 pages) - Annex 8-1 (5 pages) Percentage Tex - AnnexC (2 pages) Documentary Stamp Tax - AnnexD (1 page) Esiate Tax - AnnexE (4 pages) Donor's Vax - AnnexF (2 pages) Withholding Tex Remittance Return/Capital_ Gains Return/Documentary Stamp Tax - (For transactions invo! onerous transfer of real property) - AnnexG (2 pages) Capital Gain's Tax Return/Documentary Stamp Tax transactions involving onerous transfer of shares of stock not trq through a local stock exchange) - AnnexH (1 page) fthholding Tax Remittance Retum/Capital_ Gains Retum (For transactions involving cnerous transfor of md vehicies) - Annex! (1 page) it is to be emphasized that before a docket be released bv investigating office, each and every page thereof be conseculi numbered. It is worth mentioning, tikewise, that an investigating Revei| Officer/Tax Auditor must always request ior the presentation of bo of accounts, and accounting/business records, specifically, reco affecting the income, receipts, deductions, estate and other taxa] transi tion of a taxpayer during the audit. Checklist Mandeory Reg Page'2affecting the income, receipts, deductions, estate and other taxable transaction of a taxpayer during the audit IV, REPEALING CLAUSE ‘All existing issuances or parts thereof which are inconsistent herewith are hereby repealed Vv. EFFECTIVITY This order takes effect immediately. Aba LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue eternal Afi Servic Crk Manaaary Reg Page 3‘Annex A INCOME TAX / WITHHOLDING TAX ‘A) Requirements from Taxpayer 1) Certified Financial Statements, including comparative Profit and Loss ‘Statement with Statement of Cost of Goods Manufactured and Sold, if applicable 2) Proof of claimed tax credit! s, if applicable 3) Proof of the claimed "Interest Expense’, if applicable 4) Proof of claimed Bad Debts/ worthlessness of credits, if applicable 5) Reconciliation of "Book Income" and "Taxable Income" 6) Certificate of Registration issued by the appropriate regulatory agency, together with the conditions attached to such registration, if applicable 7) Proof of Exemption under special laws, if applicable 8) Certification of the appropriate regulatory agency as to taxpayer's entitlement to tax incentives, if applicable 9) Xerox copy of used Tax Credit Certificate with annotation of issued TDM at the back, if applicable 10)Proof of payment of deficiency tax , if any/applicable a) current year / period b) previous year / period 11)Reports submitted to applicable regulatory agency that reflects the financial condition and result of operation of the taxpayer e.g., Annual Statement prepared by insurance companies submitted to the Insurance Commission etc,, if applicable B.) Reporting Requirements to be prepared and/or submitted by the Revenue Officers 1) Letter of Authority / Audit Notice 2) Duly filed Income Tax Return with all the required attachments (Account Information Form, Schedule of Taxes and Licenses, Schedule of Income Producing Properties, Schedule of Depreciation, Breakdown of Selling and Administrative Expenses, etc). 3) Proof of payment of the tax, including Tax Debit Memo/ TCC 4) Quarterly Income Tax Returns 5) Proof of payment of second installment- INCOME TAX, if applicable 6) Beginning and Ending Inventory List, if material/applicable = more - page 1(INCOME TAX/ WITHHOLDING TAX ) 7) Notice of Loss; Proof of claimed Losses , if applicable 8) Duly validated Monthly Withholding Tax Returns 9) Duly validated Quarterly Withholding Tax Returns, if applicable 10)Duly validated Annual Withholding Tax Retums together with the required attachments ( Alpha List) 11)Duly received Information Returns 12)Form 1717 Series / Form 0500 Series (Audit Reports) 13) Narrative Memorandum Report 14)Revenue Officer's Activity Report / Log Sheet 15)Table of Contents 16)Working Papers of the monthly debit and credit balances of all accounts duly signed by the Tax Auditors/Revenue Officers 17) Working Papers showing computation of income and/or withholding taxes due duly signed by the Tax Auditors/Revenue Officers 18)Schedule of Advances 19)Schedule of Interest Expense and Loans / Notes Payable (mention the creditor/s, date contracted/ granted, principal loan, interest rate and interest expense), if applicable 20)Schedule of Bad Debts, if applicable 21)Schedule of Loss, if applicable 22)Schedule of Advances from Officers and Stockholders, if applicable 23)Schedule of Advances to Officers and Stockholders, if applicable 24)Schedule of Miscellaneous Income, if material/applicable 25)Schedule of Miscellaneous Expense, if material/applicable 26)Schedule of Interest Income ( give details as to source/s and amount ), if material/applicable 27)Schedule of Other Receivables / Miscellaneous Receivables, if materiaVapplicable 28)Schedule of Other Payables, if material/applicable 28)Computation of Realized Gross Profit and Unrealized Gross Profit, ifthe taxpayer is engaged in the business of selling real estate, whether by installment or lump sum 30)Computation of Realized Gross Profit and Unrealized Gross Profit, if the taxpayer is engaged in the business of selling personal properties by installment - more - page 2