Manila: The Bureau of Internal Revenue (BIR) released a new memorandum order institutionalizing audit reforms under a uniform nationwide audit framework for risk-based taxpayer selection, standardized audit procedures, and stronger accountability.

According to Philippines News Agency, Revenue Memorandum Order No. 22, issued on August 24, consolidates previous audit programs and establishes uniform policies, guidelines, and procedures for tax audits across investigating offices nationwide. BIR Commissioner Charlito Mendoza emphasized that the new audit program aims to ensure fairness for taxpayers and accountability within the BIR, with audits required to follow clear rules and proper procedures. Revenue officers are expected to provide support for the assessments they issue with facts and law.

The audit program introduces the Single-Instance Audit Framework for taxpayers, generally restricting audit authority to one electronic Letter of Authority per taxpayer per taxable year, with specified exceptions. Audits are confined to the tax types and taxable periods covered by the issued authority. For priority cases, a system-assisted, risk-based process using verifiable data is employed for taxpayer selection.

To minimize discretion, taxpayer identities are anonymized during the selection and assignment process as much as possible, with workload and eligibility controls governing case distribution. The program also outlines separate rules for mandatory cases and institutionalizes the Revalida or 'Audit of Auditors,' where audit reports and assessments undergo technical and quality reviews to ensure findings are supported by facts and law, and due process is observed.

Revenue officers and officials are required to adhere to prescribed audit procedures, timelines, documentation, and monitoring requirements. Unauthorized audits, improper case classification, unjustified delays, and other violations may lead to administrative sanctions and other liabilities under existing laws and rules.

The BIR stated that these reforms align with President Ferdinand R. Marcos Jr.'s directive to restore trust in government and enhance public service. Commissioner Mendoza reiterated the agency's commitment to establishing clearer rules, stronger safeguards, and greater accountability in audit conduct, highlighting the importance of fair treatment of taxpayers and firm enforcement of tax laws.