Now that several multinational companies have fully transitioned to flexible working arrangements for their employees, will the Bureau of Internal Revenue (BIR) also boost its so called 'no-contact approach' to tax audits?

In Revenue Audit Memorandum Order 1-20 (Updated Handbook on Audit Procedures and Techniques), the BIR prescribed indirect approaches to investigations and developed general methods for reconstructing a taxpayer's income. One such approach is the Third Party Information (TPI) Access to Records Method, wherein revenue officers utilize pre-processed data provided by the Audit Information, Tax Exemptions and Incentives Division. In most audits, this involves the computerized matching of sales and purchases as reported by sellers and buyers in their tax returns and attachments.