Practice question
After brief surveillance, the BIR issues a compliance notice demanding deficiency VAT and argues that its surveillance power makes the normal LOA and Section 228 assessment process unnecessary. The facts mirror Elric Auxiliary, with no applicable exception changing the required process. Which answer is correct?
- Surveillance automatically supplies every assessment safeguard
- The BIR must follow the required LOA and assessment procedures before imposing the deficiency; a compliance notice does not itself excuse them
- All surveillance findings are inadmissible in every case
- No VAT can ever be assessed after surveillance
- Only the taxpayer may issue an LOA
Legal references
- NIRC Sections5–6,13 and228: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/3896
- CIR v. Standard Insurance, GR259729, November17 2025, main decision: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/70327
- CIR v. Elric Auxiliary Services, GR226945, February19 2026, main decision: https://lawphil.net/judjuris/juri2026/feb2026/gr_226945_2026.html
- BIR RMO1-2026 official digest: https://bir-cdn.bir.gov.ph/BIR/pdf/RMO%20No.%201-2026%20Digest.pdf
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