Suspension of issuance of eLAs

Suspension of issuance of eLAs

The BIR has suspended the issuance of electronic Letters of Authority (eLA) which should have taken effect beginning July 01, 2010 pursuant to RMC 56-2010 as updated in our Tax Alert dated July 05, 2010.  Said RMC which discontinued the use of manually-issued letters of authority (LAs) is now revoked.

In the meantime, manual LAs may be issued for the conduct of investigation.  However, effective July 01, 2010, only the Commissioner of Internal Revenue can manually issue and sign LAs.

For manually issued LAs which were issued prior to July 01, 2010, authority has been given to examiners or revenue officers to continue conducting their investigation. Thus, taxpayers served with manual LAs without counterpart eLAs cannot invoke his right to refuse investigation as provided under RMC 56-2010.

Lastly, effective July 12, 2010, the manual issuance of tax verification notice (TVN) shall only be allowed for one-time transactions, donor’s tax, estate tax and request for reinvestigation.

Please see attached for a copy of RMC 61-2010.

P&A Tax Alerts are issued to keep our clients updated with the latest tax developments.  These are not intended to be a substitute for professional advise.   For inquiries and suggestions on how the Tax Alert may be even more useful to you, e-mail Lina.Figueroa@ph.gt.com or Senen.Quizon@ph.gt.com or call 886-5511.

For other tax concerns, please check out our other tax services.