February 10, 2020
REVENUE MEMORANDUM ORDER NO. 007-20
| SUBJECT | : | Audit/Investigation of Cooperatives |
| TO | : | All Regional Directors, Revenue District Officers, Chiefs of the Assessment Divisions of Regional Offices, Revenue Officers and Others Concerned |
I. Background
Republic Act (RA) No. 10963, otherwise known as the "Tax Reform for Acceleration Inclusion" (TRAIN) Law, has amended Section 6 (A) of the National Internal Revenue Code under RA No. 8424, now authorizing the Commissioner or his duly authorized representative to examine any taxpayer and the assessment of the correct amount of tax, notwithstanding any law requiring the prior authorization of any government agency or instrumentality. Thus, the requirement of securing authorization from the Cooperative Development Authority (CDA) before the examination of the books of accounts and other accounting records of the cooperative as provided under Section 61 (3) of RA No. 9520 otherwise known as the "Philippine Cooperative Code of 2008" is no longer applicable.
II. Objective
1. To ensure the correctness of availment of tax exemptions/incentives of cooperatives pursuant to Republic Act No. 9520; and
2. To effectively monitor...
