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SURE-WAYS TO CANCEL BIR LETTERS OF AUTHORITY

7 “Nag-ramble ang mga kabataang lalaki sa tabi ko, hindi ako natakot. Ni-
raid ng mga pulis ang warehouse ko, hindi ako natakot.

“Bakit ganoon? Nang bumisitasa bahay ko ang isang may edad na babae
upang ipareceive ang makulay na letter, nagsimula ng lumabas sa
aking katawan ang napakalamig na pawis, biglang nagkaroon ng
kalabugan sa aking dibdib at para mya sumasakal sa akin.

“Nasabi ko tuloy sa aking sarili, “Magkakasakit ata ako ngayon.”

“Kahit hindi maiangat ang namimigat at nanginginig na mga paa, pinilit ko pa ring lumapit
sa kanya, ngumiti at abutin – iyon na nga - ang aking kinakatakutan - BIR LETTER
OF AUTHORITY [or ‘LA’]”

The above storyline is one of too many horror and funny stories that taxpayers voluntarily
shared to ETM.

Because of these types of stories that were passed on and are still being passed on from
parent to children, boyfriend to girlfriend to frienemy, etc., the deadly and dreadful
reputation, impression and character of LA and its bearers shaped up and is now
widely accepted and feared.

This should not be the case. Thus, it is the


objective of ETM to expose and explain
tax mistakes whether or not deliberately
planned and perpetuated.

Unknown to 4,000,000 active taxpayers,


wherein 45,000 of them more or less are
consistently receiving LAs either on a
yearly or once in every two-year basis,
LAs is a friend rather than a frienemy.
The term ‘FRIENEMY’ is synonymous to
‘bantay-salakay’

To remove fear in the hearts and minds,


taxpayers should always remember that
the LA is a direct and clear lawful
instruction and order, through the
Regional Director or Commissioner of
Internal Revenue for the concerned ROs
to factually verify the authenticity of
evidences vis-à-vis entries in the BIR
registered books and filed returns.

And, LAs just like other documents can be cancelled and voided. The term ‘cancel or void’
means to make something invalid and unenforceable.

Recently, ETM had cancelled two [2] LAs using the 7 sure-ways as discussed.
Most of the LAs for tax years 2009 and 2010 can be cancelled and voided if

‣ Erasure. There is an erasure that altered, modified and changed the original
entry or entries on the face of LA
‣ Audit Program. The issued LA is not supported by an Audit Program which
must be deliberately planned, prepared and released for specific
jurisdiction and tax year
‣ Signatory. The issued LA for cases falling within their respective jurisdiction, is
not signed by the Regional Director or the Commission of Internal
Revenue
‣ Jurisdiction. The assigned ROs are not under the jurisdiction of the signing
authority
‣ Abuse of authority. The procedures in selecting audit candidate was not strictly
followed by the Revenue District Officer
‣ Lack of power. The Regional Director without a written approval from the
Commissioner of Internal Revenue issued a LA
‣ Selection criteria. The LA showed wrong or no selection criteria

Now that the reasons for cancelling had been laid out, the question is ‘How to proceed in
doing the same?’ It is the policy of the State that in silence, there is a direct
admission. Thus, a taxpayer should advertise his intention to cancel or void the 2009
or 2010 LA by writing a legal notice to all concerned ROs as soon as possible.

What will happen to the Notice for Informal Conference, Preliminary or Final Assessment
Notice or Subpoena Duces Tecum? According to the State’s New Civil Code, acts
executed against substantive or procedural rules or originated from irregular and
illegal acts shall also be considered irregular and illegal. Thus, they too are
cancellable and voidable.

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