I.

Best kept weapon of the BIR: Tax Audit/Investigation/Assessment

II. How long should I worry about a BIR tax audit/assessment?

The 3-year and 10-year prescriptive period

Reckoning the start and counting of the days and years

Effect of amendment of tax return on prescription

When an assessment is made or deemed made?

How often can I be examined?

III. Rounding up the usual suspects: BIR audit selection criteria

The Red Flags

Whistleblower: Third party information

My eyes adore you: Surveillance and verification drives

BIR computer tagged you: RELIEF/TPM-BOC/TRS discrepancies

Keeping the BIR at bay: What will not bring the BIR to your door?

RATE program: Are you on the run?

IV. What types of assessment notices will I receive and how do I deal with each?

Electronic Letters of Authority (eLA)

Letter Notice (LN)

Memorandum of Assignment (MOA)

Mission Orders (MO)

V. Stages of tax assessments: A walkthrough

Investigation stage

Required records and documents

How BIR conducts the audit: what do they look for?

What to do when issued a subpoena duces tecum?

Informal Conference Notice

Preliminary Assessment Notice (PAN)

Final Assessment Notice (FAN)

Final Decision on Disputed Assessment (FDDA)

VI. How should I act during tax assessment?

Cooperate or resist?

When a new examiner takes over the assessment

Standing up to the BIR

When I should be silent and let others do the talking

VII. Questioning the validity of an assessment

Prescriptive period: Period to assess has prescribed

Validity of waiver of statutes of limitation

Non-issuance of PAN: A violation of due process

VIII. Addressing usual issues assessments: factual and legal

Unreported/unaccounted expenses, undeclared income

Unsupported expenses, tax credits, input VAT, etc.

Failure to withhold, under-withholding (compensation, FBT, EWT, FWT)

Not subjected to VAT

IX.

Let the courts have the final say: Appealing to the CTA

Time is of the essence: When is the right time to appeal?

Factors to consider in deciding to appeal

X.

Render unto BIR what properly belongs to the BIR

When assessments become collection cases

How long BIR can collect deficiency taxes?

Warrants of distraint, levy or garnishment

Final notice before seizure

Sale or forfeiture of property

Your remedies and courses of action

Paying little tax as possible: Compromise and abatement

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