Legal Heads Up

BIR Revenue Memorandum Circular No. 75-2018 (5 September 2018)

The Mandatory Statutory Requirement and Function of a Letter of Authority (LOA)

The Supreme Court ruling in the case of “Medicard Philippines, Inc. vs. Commissioner of Internal Revenue” (G.R. No. 222743, April 5, 2017) states that no assessments can be issued or no assessment functions or proceedings can be done without the prior approval and authorization of the Commissioner of Internal Revenue (CIR) or his duly authorized representative through a LOA. Any tax assessment issued without an LOA is a violation of the taxpayer’s right to due process and is therefore “inescapably void.”

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