Tax Alert No. 11 [Revenue Memorandum Circular (RMC) No. 33-2023 dated 17 March 2023]

Clarification on the Issuance and Enforcement of Subpoena Duces Tecum

RMC No. 33-2023 was issued to further clarify that the issuance and enforcement of Subpoena Duces Tecum (SDTs) does not only apply to taxpayers who are under audit or investigation, but shall also apply to the assessment of tax compliance of taxpayers in general.

The following are the salient points in the Circular:

• The guidelines in issuance and enforcement of SDT shall apply to any examination of book, paper, record or other data which may be relevant in evaluating the tax compliance of taxpayers who are liable for tax or required to file tax return.
  
• Compliance of registered taxpayers may be evaluated through examination of the following documents:
  
  • Payment of annual registration fee;
  • Issuance of sales invoices or official receipts;
    
  • Keeping of books of accounts;
    
  • Timely filing of requisite tax returns and the payment of taxes due thereon;
    
  • Withholding of tax on income payments subject to withholding and timely remittance of tax withheld;
    
  • Filing of required information returns, such as the summary list of sales/ purchases (SLSP), annual alphalist of payees, etc. on or before the due dates prescribed by law or existing revenue issuances, whenever applicable; and
    
  • Other data which may be relevant or material in making such inquiry.
    
• Unregistered taxpayers shall be notified to register and pay voluntarily any unpaid taxes. In case of failure to register or to pay unpaid taxes, the concerned office shall endorse the case to Regional Investigation Division or National Investigation Division for the conduct of preliminary investigation in preparation for the filing of a Run After Tax Evaders (RATE) case and/or other tax enforcement actions.
  

You may access the full version of this Circular through the BIR website.