RMC 38-2013 (LPN)

Kim Henares' Allegations, No Legal and Factual Basis (RMC 38-2013)
The Truth About the Legal Petition Notice (LPN)

Kim: ON THE AUDIT/INVESTIGATION PURSUANT TO ISSUED LETTERS OF AUTHORITY. The normal process and/or procedures related to audit/investigation arising from eLA issued will not be suspended notwithstanding the receipt of LPN pertaining to the case. Moreover, the National Office shall no longer entertain any LPN questioning the validity and enforceability of the eLA duly issued by the concerned Regional Director for the audit of taxpayer within the region inasmuch as the issue has already been clarified under RMC No. 6-2013. Thus, there shall be no impediment on the investigation of the  taxpayer’s internal revenue tax liabilities and the eventual recommendation for an issuance of SDT, if warranted, in accordance with Revenue Memorandum Order (RMO) Nos. 45-2010 and 88-2010.

ETM: I don't know why Kim and her associates are so fearful and afraid of the LPN. Notwithstanding that the LPN was invented or the brainchild of EmelinoTMaestro (ETM). The BIR's acts that are executed against the prohibitory and mandatory law are either void ab initio or cancellable at the option of the person of interest. One of such action is the issuance of electronic Letter of Authority without a valid and established AUDIT PROGRAM AND SELECTION CRITERIA which is required by the law (Revenue Administrative Order No. 10-2000). I only want to help and assist the BIR because so many eLAs were issued without complying with the stated law so that the criminal and civil cases that it would pursue against all the erring taxpayers may have a change of winning. I have no intention, whether in my dreams or in the reality, to deprive any revenue officer to extinguish his legal obligation to the Republic of the Philippines as well as to the taxpayers.. BEAR THAT IN MIND.

Kim: ON THE ISSUANCE OF PRELIMINARY ASSESSMENT NOTICE (PAN), FORMAL LETTER OF DEMAND (FLD) AND FINAL ASSESSMENT NOTICE (FAN). Correspondingly, upon receipt of the PAN or FLD and FAN, the taxpayer is given fifteen (15) or thirty (30) days, as the case may be, to rebut the assessment upon his compliance with the requirements of filing a protest pursuant to Revenue Regulations (RR) No. 12-99. Thus, any LPN, declaration or any similar document protesting the assessment addressed to the Commissioner or any official in the National Office without the issuance of a Final Decision on Disputed Assessment (FDDA) from the regional office shall be considered premature and invalid.

ETM: Well-said. However, the very reason why the LPN is directly addressed to the BIR Chief is in compliance with Section 6(A), National Internal Revenue Code (NIRC). In the said law, only the Commissioner of Internal Revenue (CIR) has the power and authority to audit investigate a taxpayer. However, such power may, at the option of the CIR, delegate to an inferior officer such as the revenue officers (Section 7, NIRC). To evade the legal obligation vested by the CIR to the said revenue officers, many of them knowingly failed and refused to receive documents, papers, evidences and the likes from the concerned taxpayers. In order to avoid this repeated nonfeasance, it is proper and appropriate that the CIR must be provided with all the LPNs including their supporting evidences. However, a news had come to my attention that certain Larry Barcelo from the CIR's office is allegedly acting as a CIR by way of refusing to receive such LPNs and their supporting documentations. If the same will happen to you, the readers hereof, please use the power of Republic Act Nos. 9485 and 6713 and send the erring revenue officers to jail/suspension.

Kim: RESPONSIBILITY OF TAXPAYERS ON THEIR LPN. As stated in Section 9 of RR No. 11-2006, as amended, and clarified in RMC No.6-2013, the BIR can refuse to transact official business with tax agents/practitioners who are not accredited before it. Therefore, the responsibility is on taxpayers to ensure that the tax agents/practitioners whom they choose to engage are accredited with the BIR.
Aside from knowing whether consultants are accredited or not, taxpayers are forewarned to be more circumspect in scrutinizing the credibility and competence of the consultants and the veracity of the contents of the LPN/Declaration or any document before affixing their signature therein since these documents will not gain merit and may lead to adverse consequences, such as the filing of the necessary charges in court.

ETM: Well said. However, under the New Civil Code and numerous SC-jurisprudence, a taxpayer or any person may be represented by another person via special power of attorney (SPA) or notarised Board Resolution. Thus, it is not only that the BIR's accredited tax agent may represent a taxpayer before its revenue officers. Also, it is commonly accepted that the tax laws are the waterloo of so many taxpayers due to no comprehensive curriculum had been in use in any university and college. And, most of the trainings and seminars being offered to the public are not designed and developed to empower a taxpayer but to institute a very big fear into their hearts and many more questions into their minds. I am disappointed to read a legal threat which is usually the recourse of many public officials - so disgusting (Pwe!). The LPN was conceptualised, designed and developed using the legal parameters and proceedings set forth by the BIR itself and the established jurisprudence. These parameters and proceedings are required to be observed and obeyed by every revenue officer without mental reservation and purpose of evasion and keep the taxpayer away from the harassment and abuses of so many revenue officers. The LPN is the only way and available defence that can shield a taxpayer from further attacks via malfeasance, misfeasance and nonfeasance. Get's mo..

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