September 5, 1998
REVENUE AUDIT MEMORANDUM ORDER NO. 1-99
| SUBJECT | : | Value-Added Tax Audit Manual |
| TO | : | All Internal Revenue Officers And Others Concerned |
I. OBJECTIVE
This Order is issued to provide Revenue Officers with the basic procedures and techniques in the audit of Value-Added Tax (VAT) returns and prescribe the use of the Updated Value-Added Tax Manual (Annex "A").
II. QUALITY AUDIT
The audit of a tax return is a tool utilized by management to determine the degree of taxpayers' compliance with existing laws, rules and regulations. While collection of taxes thru audit has been one of the major initiatives of this Bureau, the primordial purpose for conducting the same should be focused more on identifying the weaknesses in tax administration that need to be properly addressed with the end view of enhancing the level of taxpayer's voluntary compliance. This objective can only be accomplished by conducting a quality audit of taxpayers' books of accounts and other pertinent records in sufficient depth in order to ascertain correctness and validity of entries therein and the propriety of interpretation and application...
