July 26, 1982

REVENUE AUDIT MEMORANDUM ORDER NO. 3-82

SUBJECT : Procedure for Issuance of Subpoena Duces Tecum

TO : All Internal Revenue Officers and Others Concerned

1. Background
1.1 The investigation of tax cases is sometimes unnecessarily delayed due
to non-cooperation of taxpayers in making available their books of
accounts and other accounting records for inspection,
notwithstanding the following legal requirements: casia

1.11 Section 324 of the tax Code which provides that " . . .
Examination and inspection . . . shall be done in the taxpayer's
office or place of business or in the office of the BIR . . .";
1.12 Section 20 of the Bookkeeping Regulations (Rev. Reg. No. V-1)
which provides that ". . . All books, registers and other records,
and vouchers and other supporting papers required by these
regulations shall be kept at all times at the place of business of
the taxpayer, subject to inspection of any internal revenue
o cer, and upon demand, the same must be immediately
produced and submitted for inspection."
1.2 In order to deal more effectively with taxpayers who refuse to cooperate,
the following audit procedures shall be followed. cd

2. Audit Procedure
2.1 The Revenue Examiner shall request the taxpayer, in writing , to make
available for inspection, the pertinent books of accounts, accounting
records and particular or speci c documents indicating therein the
time and date within which these records should be made available.
2.2 The duplicate copy of this written request, duly acknowledged/received
by the taxpayer or his authorized representative shall form part of the
docket of the case.
2.3 If on the appointed time and date the requested records and/or
documents are not presented, an explanation for such delay shall be
sought and the Examiner shall again request in writing as to when he
wants the records de nitely presented, a date which should be
reasonable enough in order not to prejudice the government interest.
2.4 If the taxpayer fails further to present the required records at
subsequent appointed date, the Examiner should request an
explanation in writing to be signed by the taxpayer or his authorized
representative as to why the desired records are not still available. aisa dc

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 2.5 Memorandum of Interview —
2.51 During all the stages of the above proceedings a memorandum
of interview (an informal note or instrument embodying
something that a person desires to x in memory by the aid of
written word) must be promptly prepared, signed and dated by
the Examiner, indicating therein the date, time, place and
persons present as well as what transpired.
2.52 Since the memorandum of interview may be used in the event of
a trial, the Examiner should con ne the memoranda to the facts
developed in the interview, and should avoid opinions,
conclusions and other extraneous matters.
2.6 The Examiner in consultation with his supervisory o cials shall then
submit a written report, pinpointing the particular records not made
available to him, the responsible o cers liable, and the facts relating
to the unnecessary and/or unreasonable delay in his investigation. cdt

3. Transfer of the Case to the Legal Office

3.1 The Division Chief or Revenue District O cer shall then forward the case
to the Chief, Prosecution Division or Chief, Legal Branch, as the case
may be, for issuance of the Subpoena Duces Tecum or ling the case
in court if warranted under the circumstances.
3.2 If a Subpoena Duces Tecum is issued and the taxpayer complies to its
terms, these records shall be referred back to the assessing unit for
continuation of the delayed investigation. cda

RUBEN B. ANCHETA
Acting Commissioner

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