revenue memorandum order no. 19-2012

1.4. Taxpayers filing VAT exempt tax returns due to availment of
tax incentives or tax exemptions (Selection Code: ETI );
1.5. Taxpayers with history of filing claim for refund and/or
request for issuance of Tax Credit Certificate (TCC)
(Selection Code: CTC);
1.6. Taxpayers with substantial sales but reporting net loss
(Selection code: SNL ) ;
1.7. Taxpayers with drastic decrease in reported sales/VAT
payments or with marked deviation from industry trends
(Selection Code: DIT); and
1.8. Taxpayers identified as High Risk based on the result of the
LTS Compliance Risk Matrix analysis (Selection Code:
CRM).
2. Compliance Risk Characteristics due to non-compliance to
administrative requirements.
2.1. Taxpayers with acquisition of more than one (1) million in
capital assets and failed to amortize the input tax as required
(Selection Code: ACA);
2.2. Taxpayers who are non-compliant in the submission of SLP
and SLS, MAP, SAWT and other mandatory requirements
(Selection Code: NCT);
2.3. Taxpayers who are non-compliant with RMO No. 12-2012 –
the Electronic Sales Reporting (Selection Code: ESR); and
2.4. Taxpayers transacting with the government or any of its
political subdivisions, instrumentalities or agencies,
including government owned or controlled corporation
(GOCC) (Selection Code: GPA).
B. Medium Risk Taxpayers
1. Business Issue Risks/Complex Industries due to industry issues and
changes in the status/registration of business.
1.1. Taxpayers with complex corporate structures, including
mergers/consolidations/split-up or down/ spin-offs and other
types of corporate reorganizations (Selection code: CCS);
1.2. Taxpayers with application for cessation/retirement of
business (Selection Code: CES);