Rmo 1983

November 28, 1983 January 2, 1984
REVENUE MEMORANDUM ORDER NO. 41-83*
SUBJECT : Prescribing the Procedures in the Receipt, Transmittal and

Processing of Withholding Tax Returns.
TO : All Internal Revenue Officers and Others Concerned.
I. OBJECTIVE - To achieve an effective system in the receipt, transmittal and

processing of withholding tax returns and other prescribed declarations.
II. COVERAGE - The returns and declarations covered by this Order are:
TYPE OF RETURN DUE DATES
A. WITHHOLDING TAX ON COMPENSATION
Monthly Remittance W-1A Not later than

Statement Feb. 10, March 10 - 1st quarter
May 10, June 10 - 2nd quarter
Aug. 10, Sept. 10 - 3rd quarter
Nov. 10, Dec. 10 - 4th quarter
Quarterly Return W-1 Not later than
April 25 - 1st qtr.
July 25 - 2nd qtr.
Oct. 25 - 3rd qtr.
Jan. 25 - 4th qtr.
Annual Return W-3 Not later than Jan. 31

of the following year
B. EXPANDED WITHHOLDING TAX
Monthly Remittance 1743A-1 Not later than

Statement Feb. 20, March 20 - 1st quarter
May 20, June 20 - 2nd quarter
Aug. 20, Sept. 20 - 3rd quarter
Nov. 20, Dec. 20 - 4th quarter
Quarterly Return 1743A Not later than
April 30 - 1st qtr.
July 31 - 2nd qtr.
Oct. 31 - 3rd qtr.
Jan. 31 - 4th qtr.
Annual Return 1743-B Not later than Mar. 1

of the following year
C. FINAL WITHHOLDING TAX
Quarterly Return 1743C Not later than

1745 April 25 - 1st qtr.
July 25 - 2nd qtr.
Oct. 25 - 3rd qtr.
Jan. 25 - 4th qtr.
Annual Return 1743D Not later than Jan. 31

1745A of the following year
D. WITHHOLDING TAX ON GOV'T. MONEY PAYMENTS
Monthly Return 7.50A Not later than the 10th

day of the following month.
E. OTHER DECLARATIONS
Employer's WithholdingW-4 For employees, 5 days

Exemption Certificate from commencement
and Employer's Compen- of employment/10
sation Payment Certificate days from change of
exemptions. For
employers, within
30 days from receipt.
Application for W-5 10 days from becoming

Registration as Withholding withholding agent.
Agent
III. RECEIPT OF RETURNS AND ACCEPTANCE OF PAYMENTS -
A. Place of Filing Returns and Payment of Tax. - Withholding Tax Returns shall be
filed with and taxes withheld remitted to the Revenue District Officer (RDO) or
Collection Agent (CA) or Authorized Municipal Treasurer (AMT) of locality where
withholding agent (WA) has his legal residence or principal place of business, or if the
WA is a corporation, where its principal office is located. The same rule shall apply in the
case of a branch duly registered as WA.
B. Mandatory Acceptance of Taxes Withheld. - Remittance of taxes withheld shall

be accepted even if the return is "imperfect" or the amount to be remitted is less than the
amount declared on the return or less than the amount due upon application of the correct
rate of tax.
An "imperfect return" refers to any of the following -
* return on which the identification number and/or tax account number of the WA
is not indicated;
* wrong type of return for the tax remitted. e.g., when W-1 is being used for
expanded withholding tax;
* annual return (W-3, 1743B and 1743D) without the attachment of the alpha list of
employees or list of income recipients with corresponding TAN of each employee or
payee and/or if any of the payments indicated are incomplete as to amount, date of
payment and confirmation receipt (CR) or revenue official receipt (ROR) number;
* monthly 7.50A return without list of payees;
* unsigned return.
IV. DUTIES AND RESPONSIBILITIES -
A. Collection Agent. -
1. Receives all kinds of returns (whether taxable or exempt) and other declarations
and stamps date of receipt on the proper space on all 3 copies.
2. Checks if the return is properly accomplished paying particular attention to:
* name, address taxpayer account number and identification number of the WA,
and TAN of employees or payees if an annual return (W-3, 1743B and 1743D) or
monthly 7.50A return;
* month or quarter and year for which the return is filed; and
* signature of the withholding agent or his authorized office.
3. Segregates imperfect returns.
4. Issues Payment Order (PO) for the amount declared on the return in places where
payment thru banks is prescribed, or Revenue Official Receipt where there are no
authorized agent banks for taxable returns. Releases immediately to WA his copy of
exempt return.
5. Indicates the amount paid, date of payment, PO number and Confirmation Receipt
Number or ROR number on all copies of the return. DO NOT RELEASE the WA's copy
of the return until after the confirmation receipt is presented.
6. Retains original and triplicate of the return and releases duplicate to the WA after
the CR has been presented by the WA and the required information of amount paid, date
and number of the CR or ROR has been duly indicated on the return.
7. Sorts and batches by type of return in 50's or less. Accomplishes separate

transmittal sheet (W-6) in five (5) copies for each batch of return. INDICATES THE
CORRESPONDING ID NO. OF EACH WA ON THE W-6. IMPERFECT RETURNS
SHOULD BE BATCHED SEPARATELY. If the return is imperfect because the ID no.
of WA is not indicated, use the name of WA in transmitting the return.
8. Segregates out-of-city or municipality and out-of-district returns, batches and

transmits same under separate W-6 to Revenue District Officer.
9. Totals taxes indicated as remitted on all returns in each batch.
10. Numbers batches of WTRs consecutively per type of return for the entire taxable
year. For example, if there are 4 batches of returns of W-1 for 4 quarters of 1983, the
number will be from W-1-01-83 to W-1-012-83. A logbook should be maintained for this
purpose, allocating appropriate pages for each type of return.
11. Transmits all batches of WTRs (both original and triplicate copies) to RDO not
later than 3 working days after the last filing date, whether perfect or imperfect.
12. Requires the attachment of a copy of the imperfect return to the perfected return
being refiled after the 3-day period.
B. Revenue District Officer. -
1. Checks regularly the availability of returns in every Collection Office, particularly

the type of return needed for a certain filing date.
2. Assigns Revenue Examiners to assist Collection Agents, in the receipt and

transmittal of returns on a need basis.
3. Sees to it that the returns are transmitted by the Collection Agent not later than 3
days after the last filing date. To avoid delay, the return should be personally collected.
4. Acknowledges receipt of returns on proper space on all copies of W-6 and gives
back 5th copy to CA.
5. Counts and determines if the number of returns transmitted by the Collection

Agents corresponds to the ID numbers of WA stated on the transmittal sheet. Makes the
proper notation in case of discrepancy on the 4 copies of W-6.
6. Transmits the returns (both original and triplicate copies) using 1st, 2nd and 3rd
of W-6 directly to the WTD not later than 5 working days from the date of receipt of the
returns from Collection Agents. Do not disturb transmittal by CA except to correct an
error or note down discrepancy in the number of returns even in the case of imperfect
returns.
7. Totals taxes collected under all W-6 by type of withholding tax for reporting
purposes.
8. Sends 4th copy of the covering W-6 to Regional Director not later than 5 days
from date of receipt.
9. Processes W-4.
° preaudits W-4 - upon receipt and indicates total exemption on the upper left hand
corner;
° numbers consecutively preaudited certificates;
° communicates to employer, copy furnished employee, any changes or corrections
in exemptions;
° transmits original to WTD not later than thirty (30) days from date of receipt.
10. Reports the following to Regional Director not later than tenth (10th) day of the
second month after the end of each quarter.
° the number of returns transmitted to the WTD per type of returns;

° number of newly registered withholding agents;
° amount of collections per type of withholding tax;
° number of preaudited and transmitted W-4s.
11. Processes W-5 and assigns to applicant an ID number, which will correspond to
his district and region, and transmits the original to WTD not later than 10 days from date
of registration. For example: 23-4A-0001 for W-A where principal place of business is in
Binondo, Manila. If the applicant is a transferee from another district, the application
shall be approved only upon presentation of a letter from the former district that its
registration has already been cancelled.
C. Revenue Regional Director. -
1. Coordinates and monitors the prompt transmittal of returns to the Withholding

Tax Division.
2. Takes immediate action on cases of non-transmittal by RDO's and reports

delinquencies to the Commissioner through WTD.
3. Sees to it that WTR forms are readily available in every RDO.
4. Maintains control record of W-6s received from RDOs.

5. Reports collection per type of withholding tax and per revenue district office to
the Commissioner thru WTD not later than the 20th day of the second month after each
quarter.
D. Withholding Tax Division. -
1. Acknowledges receipt of returns on proper space of W-6 and sends back 3rd copy
to RDO.
2. Preaudits monthly and quarterly returns as to -
° monthly and quarterly tax due against tax remittances.

° due date against date of remittance.
° correctness of rate of tax applied.
3. Preaudits annual returns as to -
° completeness of return - Name, TAN and ID of WA

° total tax due against total tax remittances.
° attachment of alpha list of employees or list income recipients.
° TAN of payees or employees.
° filing date against date return was filed.
4. Transmits returns (monthly, quarterly and annual) to RISSI immediately but not
later than twenty (20) days from receipt of WTRs from field offices using 1st and 2nd
copies of W-6 as transmittal documents.
5. Issues assessment notices for the collection of -
° underremitted and/or unremitted tax withheld plus ad valorem penalties.

° ad valorem penalties for non-filing and late filing of returns.
Credits appropriate field offices with assessment collection by preparing separate Form
40's for each revenue region.
6. Applies sanctions on WAs who file returns out of city or municipality or out of
district in violation of Sections 54 and 93, NIRC1.
7. Coordinates the follow-up of cases referred to field offices for action.
8. Follows up transmittal of WTRs.
9. Forwards triplicate of WTR to RDO.
10. Distributes computer reports received from RISSI to users.

E. Revenue Information System Services, Inc. (RISSI). -
1. Acknowledges receipt of returns on proper space of W-6 and sends back duplicate
copy to WTD.
2. Prepares the following lists per type of withholding tax specifying WA's name,
address, ID no. by RDO:
Frequencies
Monthly Quarterly Annually
1. Late WTRs / / /
2. Non-remittance / / /
3. Underremittance / / /
4. Late remittance / / /
5. Imperfect returns / / /
6. Non-filer / / /
The above listings should be submitted to WTD, with the corresponding WTRs, on the
following dates:
Monthly List - within 30 days - from dates of

Quarterly List - within 45 days - receipt of returns
Annual List - within 90 days - from the WTD
3. Processes other declarations -
A Captures from W-4:
° names of qualified dependent children and dates of birth.

° names and dates of birth of qualified dependents for heads of family.
B determines qualified dependents for the taxable year.
C Matches exemptions of employees claimed in ITR with W-4.
D Matches tax credit claimed in ITR of employees and income recipients against
certificates of taxes withheld (W-2 and 1743) and against credits in alpha list or annual
list.
E Consolidates compensation income of husband and wife who filed separate

returns.
4. Provides an updated master list of WA per RDO on a quarterly basis.

V. EFFECTIVITY . - This Order shall take effect January 2, 1984 and repeals or
amends Orders or portions thereof inconsistent therewith.
RUBEN B. ANCHETA
Acting Commissioner
Copyright 2 0 0 4 ACCESSLAW, Inc.
RMO 40-83
RMO 40-83 Simultaneous examination of the estate, income and other internal revenue
tax liabilities of a decedent and those of his estate.
November 29, 1983
SUBJECT : Simultaneous examination of the estate, income and other internal

revenue tax liabilities of a decedent and those of his estate.
TO : All Internal Revenue Officers and Others Concerned
1. The estate tax return of a decedent and all his unverified income tax returns five
years prior to his death shall be simultaneously investigated by one examiner or a group
of examiners. Only one letter of authority to investigate shall be issued but separate
reports of investigation of the estate tax and income tax, including other internal revenue
tax liabilities, if any, shall be submitted by the examiner(s) who conducted joint and/or
simultaneous investigation.
2. The separate reports shall be consolidated into one docket for audit-review and
approval and shall embody the following documents -
(a) The estate tax return filed for the estate of the decedent.
(b) The income tax return of the decedent for prior years and for the period from
January 1 to the date of death.
(c) The formal report in forms prescribed therefor, including working papers, analysis
and computation sheets, etc.
3. If, under the existing Revenue Memorandum Orders or issuances, the

investigation of the estate tax liability of a decedent comes under the jurisdiction of the
Financing, Real Estate and Transfer Taxes Division (FRETT), the income tax return of
the decedent from January 1st up to the date of death as well as all his unverified income
tax returns for five years prior to his death shall be requisitioned by the Chief of the
FRETT and the same shall be forwarded to the said Division by the regional offices
concerned. If the investigation of the estate tax liabilities come under the jurisdiction of
the regional office, both the estate tax return and all the unverified income tax return of
the decedent, as well as his final income tax return for the period from January 1 up to the
date of his death shall be assigned to one (or two examiners, if necessary) for
simultaneous audit and investigation.
4. This Revenue Memorandum Order shall be applicable to estate tax returns which
will be filed beginning 1984.
RUBEN B. ANCHETA
Acting Commissioner
Copyright 2 0 0 4 ACCSESSLAW,Inc.
RMO 39-83
RMO 39-83 Creation of committee on contested appointments
November 18, 1983 November 18, 1983
SUBJECT : Creation of committee on contested appointments
In order to ensure an impartial and objective study and review of protested appointments
and in conformity with Civil Service rules and policies on promotion, a Committee on
Contested Appointments is hereby created to decide on all protested appointments as
follows:
Chairman
RICARDO J. MATEO
Asst. Service Chief
(Inspection)
Members
JOSE A. RESURRECCION
Asst. Revenue Service Chief
(Personnel & Administrative)
BALBINO E. GATDULA, SR.
Asst. Rev. Service Chief
(Legal)
RIZALINA S. MAGALONA
Asst. Rev. Service Chief
(Nat'l. Assessment Office)
Secretary
SEGUNDA DE ANDRES
(Legal Office)
The Committee may call the members of either Promotion Board; the Chief, Personnel
Division; the supervisors of the contending parties, as well as the parties themselves, to
give further information, clarification, or justification, in connection with the contested
appointment.
Decisions should be promulgated within sixty (60) days from the issuance of the
contested appointment pursuant to Section 10, Rule V, of the Civil Service Rules on
Personnel Actions and Policies, and should be submitted to the Commissioner for
approval within the same period.
This Order takes effect immediately.
RUBEN B. ANCHETA
Acting Commissioner
RMO 38-83
RMO 38-83 Guidelines for Allowance of Deductions for Certain Income Payments
Under Section 30 (1) of the Tax Code.
SUBJECT : Guidelines for Allowance of Deductions for Certain Income

Payments Under Section 30 (1)1 of the Tax Code.
TO : All Internal Revenue Officers Concerned
1. Background
1.1 Section 30(1) of the National Internal Revenue Code, as amended by Batas
Pambansa Blg. 1352, provides:
"(1) Additional requirement for deductibility of certain payments. - Any amount paid
or payable which is otherwise deductible from, or taken into account in computing gross
income for which depreciation or amortization may be allowed under this section and
Section 293, shall be allowed as a deduction only if it is shown that the tax required to be
deducted and withheld therefrom has been paid to the Bureau of Internal Revenue in
accordance with this section, Sections 54 and 93 of this Code4."
1.2 The abovequoted provisions of the Tax Code is frequently cited by Revenue
Examiners in their reports of investigation to justify disallowances of certain expense and
other itemized deductions for which the taxpayer is obliged to make a withholding under
Sections 54 and 93 of the Code and implementing regulations. Since the amounts
otherwise deductible are substantial, some taxpayers have vigorously protested the literal
application of the said provision in the audit and investigation of their income tax
liabilities.
1.3 In order to minimize audit controversies and to achieve uniformity in
implementing the aforequoted provision of Section 30(1), this Revenue Memorandum
Order is hereby issued to prescribe guidelines that shall be observed by revenue officers
for allowing or disallowing items of deductions referred to in the said Section.
2. The Rationale of Section 30(1)

2.1 PD 13515 which became effective April 17, 1978 added Section 30(1) to the
Code (originally as paragraph (m) of Section 30) as an additional requirement for
deductibility of itemized deductions representing income payments which are subject to
withholding. Batas Pambansa Blg. 1256 which was approved September 7, 1979
expanded the scope of the items of deductions subject to the requirement by including
amounts taken into account in computing gross income for which depreciation or
amortization may be allowed. The obvious purpose of this provision is to compel
compliance with the requirements of Sections 54 and 93.
2.2 Considering that the existing ad valorem (surcharges and interests), as well as the
specific penalties (fine and imprisonment), are adequate to compel taxpayers/withholding
agents to comply with the requirements of the withholding tax law and regulations,
outright disallowance of deductions representing income payment for mere failure to
withhold and remit will in effect, in case of corporations, be tantamount to the imposition
of additional 25% or 35% "surcharge" (equivalent to the normal corporate tax rates).
2.3 In order to minimize the onerous effect of literal application of Section 30(1),
allowance or disallowance of a deduction falling under the said paragraph of Section 30
shall be determined in accordance with the following guidelines.
3. Guidelines For Applying Section 30(1).

3.1 An amount claimed as deduction on which a tax is supposed to have been
withheld under Sections 54 and 93 shall be allowed if in the course of his audit and/or
investigation, the examiner discovers that:
3.1/1 No withholding of creditable or final tax was made but the payee reported the
income and the withholding agent/taxpayer pays during the original audit and
investigation the surcharges, interest and penalties incident to the failure to withhold the
tax.
3.1/2 No withholding of creditable or final tax was made and the recipient-payee failed
to report the income on due date thereof, but the withholding agent pays during the
original audit and investigation the amount supposed to have been withheld, inclusive of
surcharges, interest and penalties incident to his failure to withhold.
3.1/3 The withholding agent erroneously underwithheld the tax but pays during the
original audit and investigation the difference in the amount supposed to have been
withheld, inclusive of surcharges, interest and penalties incident to such error.
3.2 Items of deductions disallowed due to non-compliance with Section 30 (1), the
deficiency income tax assessment for which had been issued before the effectivity of this
Revenue Memorandum Order may be allowed upon payment not later than May 15, 1984
of the withholding tax required and supposed to have been withheld and/or surcharges,
interest and penalties. However, no refund or credit arising from such re-allowance of a
previously disallowed deduction shall be granted.
4. Effectivity
This Revenue Memorandum Order shall take effect immediately.
RUBEN B. ANCHETA
Acting Commissioner
RMO 37-83
RMO 37-83 Creation of Ad Hoc Group to assume functions of the Taxpayer's
Complaint Unit
October 21, 1983 October 21, 1983
SUBJECT : Creation of Ad Hoc Group to assume functions of the Taxpayer's

Complaint Unit
TO : All Internal Revenue Officials and others concerned.
Pursuant to Revenue Administrative Order No. 6-831, there is hereby created in the
Inspection Service an Ad Hoc Group which will assume the functions of the Taxpayer's
Complaint Unit composed of the following:
1) Assistant Chief, Personnel Inquiry Division, Concurrently Head of the Group
2) Two representatives of the Chief, Internal Security Division
The Ad Hoc Group based in the Inspection Service shall receive complaints and/or
grievances from taxpayers against revenue personnel; expeditiously refer such
complaints/grievances to the primary head of the proper unit, division or service for
comment and recommendation without prejudice to causing an investigation thereof thru
the Chief, Internal Security Division and, if evidence so warrant, to institute formal
administrative charges against the erring revenue personnel.
The Group shall submit a monthly report of its activities/accomplishments to the Revenue
Service Chief (Inspection) for eventual transmittal to the Commissioner of Internal
Revenue.
It shall perform such other related functions as may be assigned to it from time to time by
the Assistant Revenue Service Chief or Revenue Service Chief (Inspection), the Deputy
Commissioner and Commissioner of Internal Revenue.
All existing orders, circulars and issuances or portions thereof inconsistent herewith are
deemed superseded, revoked or repealed.
(Sgd.) RUBEN B. ANCHETA

Acting Commissioner
RMO 36-83
RMO 36-83 Pilot Test of the Computerized Tax Collection Information System - Tax
Receipt and Deposit Module (TX - CIS - TAX REDEP)
SUBJECT : Pilot Test of the Computerized Tax Collection Information System

- Tax Receipt and Deposit Module (TX - CIS - TAX REDEP)
TO : Regional Director, Revenue Region IV-B Chief, Collection

Branch Revenue Region IV-B Revenue District Officer, RD - 30 Chief, Collection
Service Chief, Financial and Management Service Information Systems Development
Staff, and Collection Agents of Revenue District 30, and Others Concerned.
I. SCOPE -
Promulgated hereunder are the rules and procedures for the guidance of all concerned in
connection with the pilot test of the Tax Collection Information System - Tax Receipt and
Deposit Module.
II. PILOT TEST OBJECTIVE -
The objective of the Pilot Test is to determine the flaws and possible areas for
improvement of the system by using Collection Stations where a fairly large number of
Tax Returns are filed. The National Office Collection Station in RDO 30 Region 4B was
chosen for meeting the aforementioned criteria.
The new procedures under the proposed system will not replace the existing procedures
until implementation is ordered accordingly.
III. DESCRIPTION OF THE SYSTEM
The computerized Tax-Collection Information System - TAXREDEP module aims to
mechanize the collection system with the use of Electronic Cash Register Machines
which shall be installed at the Collection Stations. The Systems will have the following
features:
a) Automatic data capture and editing of the data enumerated in Annex "A"
b) Machine validation of the following documents:
i) Tax returns;
ii) Dummy Sheet;
iii) Letter of Demand;
iv) Assessment Notices;
v) Auxiliary invoices;
vi) Documentary Stamp Sale Form; and
vii) ROR.
c) Printing of payment orders
d) Printing of the following daily reports:
i) List of Payment Orders
ii) Collection per Bank
iii) Collection by type of tax
IV. PARTICIPANTS
The units of the Bureau directly involved in this project are:
a) Revenue Region IV-B
b) Revenue District No. 30, (National Office Collection
Station)
c) Information System Development Staff, OCIR
d) RISSI
Corollary to this, a Steering Committee composed of the representatives from the various
units is hereby created as follows:
* Mr. Abdon M. Mendigorin - Chairman, Chief, Collection Office
* Mr. Mauro G. Calaguio - Co-Chairman, Regional Director
* Mrs. Paz B. Suarez - Member Chief, Financial and Management
Service
* Mr. Honorio A. Todino - Member Chief, Personnel and
Administrative Service
* Mr. Dionisio M. Herrera - Member Revenue District Officer
* Mr. Dennis S. Deveza - Member ISDS-OCIR
* Mr. Vicente F. Ruaro - Member RISSI
* Miss Ma. Venida Ong - Member RISSI
The Steering Committee shall monitor the progress of the pilot tests, and shall approve
whatever changes may be deemed necessary, in the mechanics of the implementation, as
well as in the procedures.
V. PILOT TEST PLAN
The Pilot Test of the System shall consist of Phase I and Phase II. Phase I shall start on
the date of effectivity of this Memorandum Order and shall have a duration of one (1)
month unless otherwise extended by the Steering Committee. The pilot test shall not
adopt or move to Phase II unless and until Phase I is fully operational.
In Phase I, the manual tax collection system will still be done in parallel with the
computerized system. Computerized processing for tax payments shall be done one day
after the actual date of filing the tax returns/basic documents. All tax returns/basic
documents filed during the day together with the payment order data slip shall be batched
and forwarded to RISSI. The computerized processing shall be the joint responsibility of
ISDS-OCIR and RISSI. All tax returns/basic documents shall be returned one (1) day
after to the Collection Agent after it has been processed by the computerized system.
Existing procedures shall still be followed.
1. Responsibility of Collection Agents
a) Receive tax returns and/or above enumerated documents from taxpayers.
b) For tax returns/basic documents with tax payments:
i) Issue payment orders.
ii) Batch tax returns/basic documents together with Payment Orders. Batching shall
be by booklet (twenty-five (25) per batch of payment orders).
iii) Forward immediately to ISDS-OCIR representative assigned thereat for
preparation of Payment Order Data Slip.
iv) Retrieve on the same day the tax returns/basic documents together with the
Payment Orders and Payment Order Data Slip and Batch Slip from ISDS-OCIR
representative for the preparation of the report.
v) After preparation of the required daily reports, prepare transmittal slips and
forward the same together with the batched tax returns/basic documents and their
corresponding Payment Order Data Slip to RISSI the following day.
c) For tax returns without tax payment
i) Batch tax returns as one (1) batch
ii) Prepare transmittal slip and forward the same together with the batched
documents to RISSI at end-of-day.
d) Furnish one (1) copy of the manually prepared report to ISDS-OCIR.
2. Responsibility of ISDS-OCIR
a) For the representative assigned at the Collection Agent:
i) Accomplish and attach Payment Order Data Slip to the tax returns and payment
order.
ii) Accomplish and attach Batch Slip to the batched documents.
iii) Return batched documents to the Collection Agent.
b) Receive one (1) copy of the manually prepared reports from Collection Agent.
c) Receive generated reports and Sample Payment Orders (Facsimile) from RISSI.
d) Compare reports prepared by Collection Agent with that of RISSI.
e) Analyze the computerized system and come up with the recommendations
regarding the implementation of the system.
f) Provide all necessary control, coordination, and monitoring of all pilot test
activities.
3. Responsibility of RISSI
a) Receive batched documents from Collection Agent.
b) Encode Documents and generate sample Payment Orders.
c) At end-of-day, print daily list of Payment Orders issued, daily collection per bank,
and collection by type of tax.
d) Forward generated reports and Payment Orders to ISDS-OCIR.
e) Return processed documents per original batch to Collection Agent one day after
processing.
4. Responsibilities of Financial and Management Service/Collection
Service/Personnel and Administrative Service/Revenue Region IV-B Revenue District
Office 30
a) Provide the necessary control, support, supervision, coordination and monitoring
of all pilot test activities.
b) Analyze the computerized system and come up with recommendations regarding
implementation of the system.
VI. EFFECTIVITY
This Memorandum Order shall take effect on November 16, 1983.

Acting Commissioner
RMO 35-83
RMO 35-83 Amendment to the Listing of Cases Under Revenue Memorandum Order
No. 31-83.
SUBJECT : Amendment to the Listing of Cases Under Revenue Memorandum

Order No. 31-83.
The following taxpayers are delisted from Annex "B" of Revenue Memorandum Order
No. 31-831. Accordingly, the said taxpayers shall come under the primary audit
jurisdiction of Revenue Region No. 3-B, Valenzuela, Metro Manila.
Manufacturing Division II
1. Continental Steel Mfg. Corp. 60 Kapt. Akong, Valenzuela, Metro Manila
2. Filipinas Electro-Ind. Corp. 3411 Mac Arthur Highway, Valenzuela, Metro
Manila
3. South Asia Steel Mfg. Corp. Int. 413 Mac Arthur Highway, Valenzuela, Metro
Manila
4. Osaka Steel Mfg., Inc. Bo. Lambakin, Marilao, Bulacan
5. Filipino Metals Corp. Valenzuela, Metro Manila
6. Fil-Hispano Ceramics, Inc. Km. 14 Mac Arthur Highway, Valenzuela, Metro
Manila
7. Hermiz Trading Inc. Meycauayan, Bulacan
8. Manila Umbrella Mfg. Co. Polo, Valenzuela, Metro Manila
9. Sheraton Bedding Corporation Valenzuela, Metro Manila
10. Modern Fishing Gear Dev. Corp. 707 Bo. Bagbaguin, Valenzuela, Metro Manila
Agriculture & Natural Resource Division
1. Oceanic Sawmill Bulacan
2. Panama Sawmill Co. Valenzuela, Metro Manila
3. Sahara Wood Corporation Valenzuela, Metro Manila
4. Tabang Sawmill Inc. Bulacan
5. Extensive Wood Processing Corp. Valenzuela, Metro Manila
6. Liberty Paper, Inc. 265 Paso de Blas, Valenzuela, Metro Manila
Gov't. & Tax-Exempt Corporations Division
1. Coston Metal Mfg. Corp. 578 MacArthur Highway, Valenzuela, Metro Manila
2. Foodmaster Worldwide, Inc. Marilao, Bulacan

Acting Commissioner
RMO 34-83
RMO 34-83 Amendment to Revenue Memorandum Order No. 23-80 Delegating More
Administrative and Substantive Authority to Regional Directors.
SUBJECT : Amendment to Revenue Memorandum Order No. 23-801

Delegating More Administrative and Substantive Authority to Regional Directors.
TO : Regional Directors and All Others Concerned.
In accordance with Letter of Instruction No. 13242, the subject matter of which is
delegation of administrative and substantive authority to Regional Directors, Paragraph 1
of Revenue Memorandum Order No. 23-80 dated June 11, 1980 is hereby amended as
follows:
1. Exercise appointing authority over original and promotional appointments and
reinstatements to all positions at range 55 and below and the positions enumerated
hereunder allocated to their respective regions, subject to Civil Service Law and Rules,
LOI No. 7993 and the Revised Merit Promotion Plan of the BIR.
POSITION TITLE RANGE SALARY
1. Tax Returns Processor II 56 P17,724
2. Legal Officer II 57 18,636
3. Research Attorney II 57 18,636
4. Revenue Administrative Assistant II 57 18,636
5. Tax Returns Processor III 58 19,584
6. Revenue Collection Analyst 58 19,584
7. Revenue Seizure Agent II 58 19,584
8. Senior Revenue Collector 58 19,584
9. District Collection Coordinator II 58 19,584
All provisions of RMO 23-80 and other issuances which are inconsistent herewith are
hereby revoked.
This order takes effect immediately.

Acting Commissioner
RMO 33-83
RMO 33-83 Competitive examinations for applicants to revenue examiner position.
October 7, 1983

SUBJECT : Competitive examinations for applicants to revenue examiner
position.
The following rules are hereby adopted for the implementation of RMO No. 29-831 dated
September 12, 1983.
1. The first competitive examination for applicants to revenue examiner position
shall be held on November 26, 1983, at the BIR Bldg., East Triangle, Quezon City, from
8:30 in the morning to 12:00 noon.
Thereafter, competitive examinations shall be held on the last Saturday of May and
November of each year.
2. Applications for examination must be filed at the Personnel Division not later
than November 15th.
3. Application papers which are already on file in the Personnel Division shall be
considered as applications for the examination and shall be processed accordingly.
4. The Committee on Examination shall determine the candidates who qualify for
admission to the test. The Personnel Division shall then notify the applicants who
qualified for admission not later than November 15, 1983, and thereafter on or before
May 15 and November 15 of each year.
5. Applicants who do not qualify for admission shall likewise be duly informed, and
will no longer be qualified to take subsequent examinations.
6. Only the highest 40 examinees shall be considered for training in the basic
examiner's course. Their names shall be posted in the Bulletin Boards on the First and
Seventh Floors, BIR Bldg., immediately after correction of the examination papers shall
be completed, and they shall likewise be notified by letter.
7. The names of the successful trainees shall then be submitted to the Selection
Board which shall recommend them for appointment pursuant to the President's Letter of
Instructions No. 7992.
RUBEN B. ANCHETA
Acting Commissioner
RMO 32-83
RMO 32-83 Coordinated Examination Program Procedures
SUBJECT : Coordinated Examination Program Procedures
TO : The Revenue Service Chief, Sector Operations Office All Regional

Directors All Others Concerned
1. Joint and Concurrent Examination
1.1 The coordinated (joint and concurrent) examination program as prescribed in
Revenue Memorandum Order No. 31-83 (Annex "A") shall be applied in the
investigation of taxpayers beginning with the taxable year 1982. Under this program
examiners from an investigating unit (e.g. audit division or revenue district office) having
primary audit jurisdiction and revenue examiners from an audit Division having
functional audit jurisdiction shall jointly and concurrently audit a taxpayer selected for
investigation.
1.2 Taxpayers listed in Annex "B" of Revenue Memorandum Order No. 31-83 shall
be under the primary audit jurisdiction of the respective Audit Divisions of the National
Office (herein referred to as primary audit divisions). All other taxpayers not listed in the
said Revenue Memorandum Order shall be under the primary audit jurisdiction of the
Regional Offices.
1.3 Unless otherwise prescribed in this and subsequent or separate Revenue
Memorandum Order, the Investment Incentives Division (IID) and the international
Operations Division (IOD) (herein referred to as functional audit divisions) shall exercise
functional audit jurisdiction over all taxpayers which are under the primary audit
jurisdiction of other investigating units and which shall be jointly and concurrently
investigated in the following cases:
1.3/1 The IID shall have functional audit jurisdiction over taxpayers enjoying fiscal
incentives under the Investment Incentives Policy Act of 1983 (Batas Pambansa Blg.
3911) and other special laws.
1.3/2 The IOD shall have functional audit jurisdiction over taxpayers engaged in
overseas contracting business, transnational enterprises, the tax liabilities of which
involve problems of international allocation of income and deductions as specified or
defined in this or subsequent revenue memorandum order(s) and transactions or issues
involving implementation of tax treaties.
1.3/3 Examiners in the IID and IOD shall confine their audit activities to the accounts
or items involving investment incentives and overseas construction contracts, internal
allocation of income and deduction and other items as may be specified from time to time
in a separate Revenue Memorandum Order.
1.4 An examiner in the other Audit Divisions may be assigned by the Revenue
Service Chief, Sector Operations Office, to conduct functional audit jointly and
concurrently with other examiners in a different Division or in any Revenue District
Office for the purpose of gathering data to be used in a specialized study or project to be
undertaken in formulating or amending existing revenue regulations, orders or circulars
applicable exclusively to a particular line of industry.
2. Assignment of Examiners for Coordinated Examination
2.1 Investment Incentives Division
The Chief, Investment Incentives Division, shall identify the taxpayers listed in Annex
"A" of RMO No. 31-83 (or in subsequent amendments thereto) which are grantees of
fiscal incentives under existing investment incentive laws and shall furnish each Chief of
Division having primary audit jurisdiction with a list of such taxpayers. He shall also
designate the revenue examiner who should be included in the letter of authority to be
issued by the Chief of the Audit Division having primary audit jurisdiction.
2.2 International Operations Division
The Chief, International Operations Division, (IOD), shall identify the taxpayers listed in
Annex "A" of RMO No. 31-83 (or subsequent amendment thereto), the determination of
the tax liabilities of which involves overseas construction contracts, international
allocation of income and deductions as specified or defined in the attached "Guidelines
for Functional Audit of Multinationals." He shall furnish the Chief of the Division having
primary audit jurisdiction with a list of such taxpayers and designate the revenue
examiners who should be included in the letter of authority to be issued by the Chief of
the Audit Division having primary audit jurisdiction.
2.3 Functional Audit of Selected Cases not Listed in RMO No. 31-83
2.3/1 The Chief, IID, and the Chief, IOD, may also exercise functional audit
jurisdiction over taxpayers not listed in RMO No. 31-83 (Annex "B") or subsequent
amendments thereto and shall furnish the Revenue District Officers, thru their respective
Regional Directors, with a list of such taxpayers, as well as the names of the revenue
examiners who will jointly and concurrently conduct the audit with the examiners in the
revenue district offices.
2.3/2 In cases where, due to lack of information it is not feasible to prepare a list of
taxpayers subject to joint and concurrent audit, and therefore such list is not available at
the time of issuance of letters of authority to investigate, it is the responsibility of the
examiner who is assigned primary audit jurisdiction over the case to submit a referral to
the appropriate division vested with functional audit jurisdiction if, during the course of
the examination, the examiner finds that the taxpayer has international or other
transactions which are prescribed for functional audit. The functional audit division will
evaluate the referral and make his recommendation as to whether an examiner will
participate.
2.3/3 If the functional audit division decides that an examiner should participate in the
case, the original referral report will be assigned to an examiner. At that point he may
decide to withdraw, leaving procedural instructions in writing for the referring examiner.
If he decides to stay in the case, he may pursue the issue on his own or with the help of
the referring examiner, or withdraw at any point in the examination when he feels his
expertise is not required. When, however, he pursues an issue to its conclusion, his
recommendation will be made to the referring examiner thru the latter's immediate Chief
in the form of a written report.
3. Letters of Authority and Reporting Procedures
3.1 The Chief of the Division having primary audit jurisdiction (or the Revenue
District Officer, as the case may be) shall not issue letters of authority to investigate a
taxpayer which is subject to joint and concurrent audit unless (a) the participating
examiner from the IID or IOD is investigation the authority to investigate or (b) unless
the Chief of the IID or IOD has duly informed him that an examiner in the functional
audit division will not participate in the investigation.
3.2 A report of investigation shall not be recommended for approval unless it
constrains the recommendation and report of the Chief of the IID or IOD in cases where
joint and concurrent examination was conducted and the same is taken into account in the
determination of the deficiency tax liability of the taxpayer.
3.3 It shall be the duty and responsibility of the respective heads of the primary audit
divisions/revenue district officers and the functional audit divisions to coordinate the
joint and concurrent audit activities of their respective revenue examiners.
4. Effectivity

Acting Commissioner
RMO 31-83
RMO 31-83 Mission of the audit divisions in the national office
REVENUE MEMORANDUM ORDER NO. 31-83 *
SUBJECT : Mission of the audit divisions in the national office
1. BACKGROUND
In order to implement the provisions of Executive Order No. 6081, this Revenue
Memorandum Order re-states the mission of the audit divisions of the National Office
and prescribes general guidelines for:
* Grouping of examiners in the National Office;
* Allocation of workloads and assignment of tax returns;
* Coordinated examination of taxpayers who come under
more than one sectoral or industry classification;
* Industry classification;
* Compilation of data from audit and investigation
designed to accomplish the objectives stated herein.
2. MISSION OF THE AUDIT DIVISIONS UNDER THE SECTOR OPERATIONS
OFFICE
2.1 The audit divisions under the Sector Operations Office were organized primarily
with the following fundamental objectives.
2.1/1 To perform staff advisory and consultative functions relating to the package audit
system along the lines-of-industry approach to investigation.
2.1/2 To develop, formulate, and recommend audit guidelines, techniques and
procedures and work programs for determining the correct internal revenue tax liabilities
due from corporate, as well as other enterprises, engaged in a particular line of industry.
2.1/3 To recommend necessary tax legislations and regulations in the light of their
operations and experiences which will serve as inputs to tax planning and research
efforts.
2.1/4 To develop audit data bank for computerization as reference by revenue
examiners in the performance of their audit duties.
2.1/5 To establish industry profile and standards as a basis for a more effective tax law
enforcement and administration.
2.2 To attain the above objectives the audit divisions shall -
2.2/1 Examine selected internal revenue tax returns of taxpayers engaged in a line of
industry or business to be identified on the basis of examination cycles designed to cover
major industry categories over a period of years.
2.2/2 Gather data internally from the Bureau of Internal Revenue and externally from
other government offices, agencies and from other private sources for purposes of
developing industry profile, statistics, and audit data bank.
2.2/3 Perform quality and thorough audit, the scope of which shall be such that the
result thereof shall guarantee, not only optimum tax assessment and collection, but also
the adequacy of data and information required to attain the above objectives.
3. EXAMINATION GROUPS
3.1/1 In order to rationalize allocation of audit and investigation workload, groupings of
revenue examiners into sections in the Audit Divisions of the National Office should be
alphabetically designated as Group "A", Group "B", Group "C", etc., instead of
designating the same under the present system by descriptive nomenclature such as
"Chemical & Coal Products Section," "Multinational Companies Section," "Transfer Tax
Section," etc.
3.1/2 Authorities to investigate internal revenue tax cases should be assigned to
examiners in accordance with the following guidelines -
3.1/21 Subject to the requirements or exigencies of the coordinated examination
program, to the extent that it is feasible, all revenue examiners should be assigned equal
number of internal revenue tax returns for audit and investigation, including inventory of
pending cases.
3.1/22 If the Chief of Section or Chief of Division has reason to believe that a particular
revenue examiner is not qualified to audit a number of returns equal to that assigned to
other examiners in the Division, he should indicate such reasons in a memorandum to the
Revenue Service Chief, Sector Operations Office, for evaluation.
3.1/3 Chiefs of Audit Divisions may restructure the groups of examiners in their
respective divisions and may recommend designation of chiefs of section to supervise
new or additional groups, the composition of which shall not be less than four (4) but not
more than seven (7), excluding the chief of section, for each group.
4. COORDINATED EXAMINATION PROGRAM
4.1 A coordinated examination program shall be employed in cases where a taxpayer
comes under more than one sectoral classification and the audit thereof comes under the
functional jurisdiction of two or more audit divisions. Accordingly, under the coordinated
examination program, the audit should be carefully planned and should involve more
than one examiner from two or more divisions having functional audit jurisdiction over
the same case. (Annex "A". Coordinated Examination Program.)
4.2 A coordinated program shall be conducted jointly by revenue examiners of the
various audit divisions concerned in the following cases -
4.2/1 BOI registered industries.
4.2/11 Examiners in the Investment Incentives Division (IID) and from the other audit
divisions under which a taxpayer enjoying tax incentive privileges is listed for line of
industry examination, as well as examiners assigned in a revenue district office in cases
of taxpayers not listed for investigation by the audit divisions, shall conduct a joint
investigation of the taxpayer. The examiners of IID shall confine their audit to the
accounts involving investment incentives and the examiners under the other audit
divisions or revenue district offices shall confine their audit to the other accounts.
4.2/12 The Chief, Investment Incentives Division, may submit a selective list of
taxpayers who are under the primary audit jurisdiction of the revenue district offices for
joint investigation.
4.2/2 Contractors. - Revenue examiners from the Investment Incentives Division,
Service and Miscellaneous Tax Division, and International Operations Division shall
conduct joint investigation of taxpayers engaged in construction industry.
4.2/3 Other Cases. - Taxpayers engaged in multi-line businesses or industries, the
examination of each of which line comes under the jurisdiction of different divisions
shall be audited and investigated jointly by examiners from the various audit divisions
concerned.
4.3 The authority to investigate shall be issued by the audit division having primary
audit jurisdiction over the taxpayer.
4.4 An audit division has primary audit jurisdiction over a taxpayer if the taxpayer is
engaged in a line of business/industry and is listed under the said division in Annex "B"
(List of Taxpayers Subject to Investigation by the National Office). The examiners
designated in the letter of authority to investigate shall simultaneously conduct the audit
and shall submit their reports of investigation to their respective division chiefs who in
turn will forward the report to the chief of the division having primary audit jurisdiction.
5. INDUSTRY SECTORS TO BE INVESTIGATED
5.1 Beginning with the taxable year 1982, the following lines of industry shall be
investigated by the audit divisions of the National Office -
5.1/1 Agriculture & National Resources Division
Forestry
Mining
Special Project - Fishing
5.1/2 Financing, Real Estate & Transfer Taxes Div.
Real Estate & Transfer

Taxes Banks & Financing Institutions
5.1/3 Government and Tax Exempt Corporations
Rural Banks
NACIDA
5.1/4 Investment Incentives Division
Automotive Industry
5.1/5 International Operations Division

International Carriers
Multinational Corporations
5.1/6 Manufacturing Division I
Food Industry
Chemicals
5.1/7 Manufacturing Division II
Basic Metal
Textile, Wearing Apparel, and Leather Industries
5.1/8 Service & Miscellaneous
Tax Division
Contractors
Trading
Public Utilities - Special Project with COA
5.2 The Investment Incentives Division and the International Operations Division
shall have functional audit jurisdiction over the accounts of taxpayers enjoying tax
incentives and multinational, respectively, the scope of which is defined in Annex "A".
5.3 The list of taxpayers selected for investigation by the national office audit
divisions is embodied in Annex "B".
6. DATA TO BE COMPILED AND REPORTED
6.1 Revenue profile - A taxpayer's statistical report prescribed for each sector of
industry or line of business must be accomplished by the revenue examiners. The duly
accomplished taxpayer's statistical reports should be attached to the examiner's report of
investigation (Annex "C", Form for Taxpayer's Statistical Report).
6.2 Discrepancy analysis reports - A discrepancy analysis and evaluation sheet is also
prescribed for classifying and evaluating discrepancy patterns for each industry. (Annex
"D", Discrepancy Analysis Report.)
6.3 Description of the accounting system - A description of the accounting system
employed by the taxpayer should be embodied in a separate memorandum to be attached
to the report.
7. AUDIT TECHNIQUES AND GUIDELINES; REGULATIONS
7.1 Each examiner shall submit at least two audit techniques or procedures which is
peculiar and exclusively applicable to the particular line of industry.
7.2 The audit technique shall be such that when applied will effectively establish the
veracity of the taxpayer's declaration or will lead to the detection of
undeclared/understated income or taxable base.
7.3 Each audit division shall recommend revenue regulations applicable to the
industry or business sector which comes under its jurisdiction.
8. EFFECTIVITY
This Revenue Memorandum Order takes effect immediately.
RUBEN B. ANCHETA
Acting Commissioner
RMO 30-83
RMO 30-83 Implementation of RR 8-83 prescribing the Policies, Guidelines and
Procedures in the manner of Issuing Refunds or Credits in excess of taxes withheld on
individual incomes.
September 22, 1983 September 22, 1983
SUBJECT : Implementation of RR 8-831 prescribing the Policies, Guidelines

and Procedures in the manner of Issuing Refunds or Credits in excess of taxes withheld
on individual incomes.
TO : The Revenue Service Chiefs (Collection, Financial and

Management, Administrative and Personnel, Assessment), the Chiefs Withholding Tax
Division, General Services Division and others concerned.
In keeping with the policy of the Government to render the highest quality of service to
the taxpaying public and with the end-view of simplifying the processing and release of
tax refunds to individual refundees, the following guidelines and procedures are hereby
promulgated.
I. GENERAL POLICIES
The following policies shall be observed by all concerned:
A. Effective immediately, the Bureau hereby appoints the Philippine National Bank
(PNB) as its Tax Refund Disbursing Agent.
B. Prescribed documents are the following:
1) Refund Notice (RN) - shall mean the individual notices to be sent by BIR to
individual refundees on the basis of which they can claim payment of their tax refund
from the PNB Disbursing Office in accordance with the terms of said notice.
2) Tax Credit Certificate (TCC) - refers to the certificate of refund issued to an
individual refundee entitled to payment in accordance with said certificate.
3) Tax Refund Payment Voucher (Refund Voucher) - refers to the prenumbered non-
negotiable instrument to be issued by BIR to PNB (for distribution to the PNB Disbursing
Offices), which will serve as authority for PNB to deduct from the BIR main or sub-
accounts the amount indicated on the Refund Vouchers and pay the same to the
individual refundees concerned.
4) Refund Check - refers to the Treasury Warrant to be delivered by BIR from time
to time, to the PNB coordinating office. The Refund Check shall be (i) drawn in favor of
PNB, (ii) in such amount equal to the aggregate of the tax refunds payable under the
schedules of disbursement, and (iii) dated as of delivery of said check.
5) Schedule of Disbursements - shall mean the list to be sent, from time to time, by
the BIR to PNB Coordinating Office for distribution by the latter to PNB Disbursing
Offices, which list shall include names of individual taxpayers entitled to Tax Refunds
and corresponding amount payable to each taxpayer. Each schedule of disbursement shall
contain the names of not more than 2,000 individual refundees.
6) Post Office Listing (POL) - shall mean the list to be prepared by the Revenue
Computer Center containing the names of the individual refundees and their respective
home addresses stated in their Income Tax Returns (ITR's) and which shall be used by
the General Services Division in transmitting the tax refund notice through the Post
Office.
7) Refund Register - shall mean the computer printed list of the refundees including
their TAN, amount of refunds due to them which shall be sent to the Accounting Division
as their basis for preparing the General Voucher.
8) Taxref Alpha List - shall mean the master list of all individual refundees, the
amount of tax refunds, name of employers, home address and TAN of the refundees.
9) Tax Refund Report Sheet - is a summary of each refund issuance and shall
contain among others the following: (i) PNB Branch; (ii) inclusive serial number of
corresponding Refund Vouchers; (iii) number of payees; and (iv) total amount of refund.
10) Computer Report of Discrepancies - shall mean the computer listing of employers
to include the discrepancies between the Annual Return of Income Tax Withheld on
Compensation (W-3) and the Employee's ITR. It will also include among others
additional data that are required to be submitted.
11) Report of Deviations - shall mean the computer listing of individual taxpayers
whose declared income and taxes withheld did not match the amounts as reported by the
employers in their W-3.
C. From time to time, BIR shall deliver to the PNB Coordinating Office the (i)
Schedule of Disbursement; (ii) Refund Vouchers for the taxpayers named in the Schedule
of Disbursements; (iii) The Tax Refund Report Sheet; and (iv) The Refund Check. The
Refund Check shall be deposited to the BIR Main Account.
D. BIR shall begin sending out the Refund Notices to the taxpayers two (2) calendar
weeks after delivery of the documents mentioned in "C" above.
E. The authorized PNB Disbursing Office shall pay the Tax Refund of the individual
refundee provided that:
1. He presents his Refund Notice prior to the Payment Expiry Date;
2. He submits such form of identification acceptable to PNB such as, but not limited
to, the acknowledged copy of his ITR, Tax Account Number card, Office ID, Driver's
License; and
3. There is no discernible discrepancy whatsoever in the data indicated in the
refundee's ITR and in the Schedule of Disbursement with respect to information relative
to the refundee's identification; and there is no discernible discrepancy whatsoever in the
data indicated in the Refund Notice and in the Refund Voucher with respect to the
amount of the Tax Refund Payable and the Payment Expiry Date.
In meritorious cases, and with the approval of the Commissioner of Internal Revenue or
the Regional Director or the Revenue District Officer, refunds may be claimed through an
authorized representative of the refundee.2
F. If the requirements above are met, the PNB Disbursing Office shall pay the Tax
Refund in cash. The refundee shall acknowledge receipt of said payment by signing the
acknowledgement portion of the Refund Voucher and surrenders the same with the
corresponding Refund Notice to the PNB Disbursing Office.
G. If the refundee fails to claim his refund before expiry date, another Refund Notice
shall be issued upon written request and surrender of the expired Refund Notice.
H. If the amount of excess withholding tax is Two Hundred Pesos (P200.00) or less,
the refund or credit shall be made with the issuance of the Tax Credit Certificate (TCC).3
The TCC authorizes the employer to credit the said amount against the income tax which
would otherwise be withheld from the employee for the year in which payment or
application is made, or serves as an authority for the refundee to use the tax refund in
payment of his income tax obligations with the BIR.
I. Before the individual refundee is credited for the amount of refund, he shall be
required to affix his signature on the original copy of the TCC. The employer who
credited the amount thereof against the tax required to be withheld from the refundee
shall attach said signed certificate to its return, BIR Form W-1, for the quarter in which
credit was made.
J. The TCC shall be valid for one (1) year from date of issue. After the lapse of such
period, but within five years from date of issue, the refundee may request the
Commissioner of Internal Revenue for its reissuance.
II. PROCEDURE
The foregoing Procedures/Guidelines shall be observed by the following:
A. Collection Agent
1. Receive, segregate and classify income tax returns as follows:
a) Exempt
b) Even
c) Refundable
d) Plain Taxable
e) Taxable with Tax Credit
2. Batch the classified returns at one hundred (100) returns per batch.
3. Transmit to the RDO the batched returns
B. Revenue District Office
1. Receive and collate all Income Tax Returns from all its Collection Agents.
2. Transmit to the Assessment Branch giving priority to all refundable returns.
C. Assessment Branch (Regional Office)
1. Receive documents from RDO.
2. Assign Assessment Numbers giving first priority to refundable returns.
3. Transmit immediately ITRs on Purely Compensation Income (1701-A) to the
Revenue Computer Center (RCC).
4. Conduct Pre-audit of Refundable Returns or returns of those declaring Mixed or
Purely Business Income (1701) before transmittal to the Revenue Computer Center.
5. Receive Report of Discrepancies from RCC and direct the investigation on the
violations of Withholding Agents.
6. Prepare Assessment of Deficiency in taxes withheld and impose the penalties as
provided by law.
D. Revenue Computer Center (RCC)
1. Receive the returns from the Assessment Branch.
2. Process all refundable returns employing normal computer procedures with the
following computer outputs:
a) Tax Refund Report Sheet
b) Refund Register
c) Disbursement Schedule
d) Tax Refund Payment Voucher
e) Refund Notice
f) Tax Credit Certificate
g) Post Office Listing
h) Tax Refund Alpha List
i) Computer Report of Discrepancies
j) Report of Deviations
3. Transmit two (2) copies of Tax Refund Report Sheet and Refund Register to the
Accounting Division.
4. Transmit the Disbursement Schedule and the corresponding Tax Refund Payment
Vouchers to the General Services Division for transmittal to PNB Coordinating Office.
5. Forward one copy of the Refund Register to General Services Division for
transmittal to the proper Revenue District Offices.
6. Seal the Tax Refund Notices or Tax Credit Certificate in individual envelopes and
transmit the same together with 2 copies of the Post Office Listing to the General
Services Division for mailing on the specified date.
7. Receive from General Services Division Refund Documents consisting of:
a) "PAID" Refund Vouchers (with the "ACKNOWLEDGEMENT" portion signed
by the refundee) and the corresponding Refund Notices surrendered by the refundees.
b) The 'CANCELLED' Refund Vouchers cover the Refund Notice which remains
unclaimed by the refundee after the Payment Expiry Date.
8. Prepare reconciliation of returns issued/unissued for each refund issuance and
forward the same to the Accounting Division.
9. Transmit the Tax Refund Alpha List, report of deviations and the corresponding
ITRs to the Refund Audit Division.
10. Transmit one copy of the report of discrepancies and the Tax Refund Alpha List
to the Withholding Tax Division.
E. Accounting Division
1. Receive two copies of the Tax Report Sheet and Refund Register from RCC.
2. Prepare the corresponding General Voucher for each Tax Refund Report Sheet.
3. Transmit the General Voucher with the required attachments to the General
Services Division.
4. Record in the books of accounts of the BIR the amount deposited with PNB for
individual Income Tax Refunds using journal entries indicated in Attachment A.
5. Record Tax Refund Payment Vouchers of claimed/unclaimed tax refunds based
on the reconciliation report submitted by RCC, using prescribed journal entries.
F. General Services Division
1. Receive the General Voucher with the attachments from the Accounting Division.
2. Prepare and issue a check in favor of PNB corresponding to the aggregate amount
of income tax refunds as indicated in the General Voucher.
3. Receive disbursement schedules and tax refund payment vouchers from RCC for
transmittal to PNB coordinating office.
4. Transmit Refund Register to the respective RDOs.
5. Receive sealed envelopes containing the Refund Notices or Tax Credit
Certificates with PO listing from RCC. Mail said notices or TCC on specified date after
checking the notices or TCCs with the PO listing.
6. Coordinate with the RCC representative on the following:
A. Transmittal to the PNB Coordinating Office of the following:
a) Refund Check
b) Disbursement Schedule
c) Tax Refund Payment Vouchers
d) Tax Refund Report Sheet
B. Receipt from PNB of:
a) Check corresponding to cancelled tax payment
vouchers
b) Cancelled tax refund payment vouchers
c) Paid refund vouchers with corresponding
Refund Notices.
7. Issue Official Receipt for the check and remit the same to the Bureau of Treasury
furnishing as copy of the remittance advice to the Accounting Division for recording.
8. Mail all Refund Notices or Tax Credit Certificates making sure that the file copy
of the Post Office list is stamped with the date of mailing.
9. Maintain a separate record of all transactions pertaining to individual income tax
refunds for control purposes.
G. Refund Audit Division
1. Receive the Computer Report of deviations, tax refund alpha list and the
refundable income tax returns from RCC.
2. Direct the Post-Audit of refundable income tax returns
H. Withholding Tax Division
1. Receive the Tax Refund Alpha List and a copy of the report of deficiencies from
RCC.
2. Verify deficiencies as reported and determine appropriate measures to correct
such deficiencies.
3. Answer queries from the taxpayer with regards to released refunds.
III. REPEALING CLAUSE

All issuances, orders or portions thereof which are inconsistent with the provisions of this
Revenue Memorandum Order are hereby amended or revoked accordingly.
IV. EFFECTIVITY
This order shall take effect immediately.

Acting Commissioner
RMO 29-83
RMO 29-83 Competitive Examinations for Applicants to a Revenue Examiner
Position.
SUBJECT : Competitive Examinations for Applicants to a Revenue Examiner

Position.
I. Objectives:
Revenue Memorandum Order No. 9-821 dated March 31, 1982 provides for positive
steps to institute a National Tax Service. Along this line, this order is issued to attain the
following objectives:
A. Set-up recruitment requirements for the position of Revenue Examiners.
B. Improve technical proficiency of and instill professionalism among new
appointees to examiner positions.
C. Give incentives to deserving employees who intend to pursue a career as internal
revenue examiners.
II. Policies and Procedures:

In order to attain the aforementioned objectives, the following policies and procedures
are hereby promulgated for compliance by all concerned:
A. Competitive Examination
All qualified applicants to a Revenue Examiner position shall be required to take a
competitive examination which shall be given twice a year. The examinees who passed
said examination shall undergo a rigid examiner's training course, the results of which
shall determine the applicants' eligibility for appointment to available examiner positions.
The cut-off/passing mark of the examination shall be determined by an Examination
Committee, who shall see to it that those who will undergo the training program do not
exceed forty (40). In case, more than forty (40) examinees passed, only the top 40 will be
considered for training.
B. Examinees' Qualifications
Applications who meet the following requirements are qualified to take the examinations:
1. Insiders who are CPAs or lawyers with 18 units of accounting not holding
examiner items:
2. Insiders who are not CPAs/lawyers but possess the following qualifications:
a. Bachelor of Science in Commerce or Bachelor of Science in Business
Administration major in Accounting; or Bachelor of Laws with 18 units in Accounting;
b. First Grade Civil Service Eligible;
c. Must occupy a position with salary range not lower than Range 52; and
d. Must have had five (5) years of relevant experience.
3. Outsiders (seeking employment in the BIR as revenue examiners) who are
Certified Public Accountants or Members of the Bar with 18 units in Accounting.
C. Scope of Examination
1. Accounting and Auditing Theory and Practice
2. Basic Taxation
3. Ethics, human/public relations and effective communication
D. Application for Examination
All interested and qualified parties must file their application for examination on or
before deadline dates set by a special committee created by the Commissioner. Said
committee shall screen applicants for, schedule and administer the examinations.
III. Effectivity:
This Order shall take effect upon approval.
RUBEN B. ANCHETA
Acting Commissioner
RMO 28-83
RMO 28-83 Prescribing the use of the Revised Letter of Authority Form (BIR Form
19.65) and the Issuance of a Termination Letter in Lieu of the Letter of Confirmation.
SUBJECT : Prescribing the use of the Revised Letter of Authority Form (BIR
Form 19.65) and the Issuance of a Termination Letter in Lieu of the Letter of
Confirmation.
TO : All Revenue Service Chiefs, Regional Directors, Revenue District

Officers, Revenue Examiners and all others concerned.
I. PURPOSE
In line with announced policies for a more progressive tax administration geared towards
a clearer definition of responsibility for the issuance of letters of authority to investigate
tax cases, and a more effective supervision of the reporting and disposition of tax
investigations, the following policies and procedures are hereby promulgated for
compliance by all concerned:
II. POLICIES
A. The Letter of Authority Form revised in 1981 is prescribed for use as soon as the
supply of the old letters of authority is exhausted.
B. Letters of Authority shall be issued only by the Commissioner of Internal
Revenue or the Deputy Commissioners in accordance with the delegation of authority
prescribed in RMO 6-81 dated March 31, 1981 or by other officials authorized by the
Commissioner for Investigating Units in the National Office and by the Revenue
Regional Directors in the Regional Offices.
C. The issuance of Confirmation Letters prescribed under RMC 27-67 dated July 1,
1967 is hereby disauthorized. Instead, an appropriate Termination Letter (samples
attached) shall be issued upon approval of the Report of Investigation submitted by the
Investigating examiner.
D. All existing procedures on the printing, custody, requisitioning and distribution of
Letters of Authority shall continue to be in effect except the following:
1. Blank forms of letters of authority being accountable forms shall be in the custody
of the Accountable Forms Division.
2. All requisitions of the form shall be addressed to the Chief, Accountable Forms
Division.
3. The Accountable Forms Division shall maintain a permanent Record Book
wherein issuance of the blank forms shall be recorded. The Record Book shall contain the
following information:
1) Date of Requisition
2) Requisitioning office
3) Name & designation of Requisitioning Officer
4) Serial numbers of the letters issued
III. PROCEDURES AND GUIDELINES
A. Issuance of Letters of Authority
1. Letters of Authority shall be prepared in the Audit Divisions in the National
Office and in the Revenue District Offices in the Regional Offices.
2. Only one Letter of Authority shall be issued for the verification of the income and
business tax liabilities of a taxpayer.
3. The Authority to investigate income and business tax liabilities of a taxpayer may
be issued to only one examiner. However, where the complexity of a tax case so
warrants, two or more examiners may be authorized to conduct the tax investigation.
4. The years for which the authority is issued shall be specified. However, the phrase
"and all uninvestigated prior years" may be used in cases where the unverified years
cannot be determined from the records of the investigating units.
5. The name and designation of the Division Chief or the Revenue District Officer
concerned shall be indicated in the space provided at the bottom of the form under the
caption "Important".
6. Erasures shall render the Letter of Authority null and void.
7. Letters of Authority shall be served to the taxpayer within thirty days from the
date of issue.
8. Reports of investigation on a tax case shall be submitted within one hundred
twenty (120) days from the date of issuance of the letter of authority. In case the final
report cannot be completed within the required period, a progress report shall be
submitted and the letter of authority shall be returned for revalidation.
9. Letters of authority issued to a Revenue Examiner shall not, at any given time, be
more than ten in the case of examiners in the investigating divisions in the National
Office and twenty in the case of those in the revenue district offices.
IV. REPEALING CLAUSE
All revenue memorandum orders, revenue memorandum circulars and other issuances, or
provisions thereof, which are inconsistent herewith are hereby revoked or amended
accordingly.
Strict compliance herewith is enjoined.

Acting Commissioner
RMO 27-83
RMO 27-83 BIR Motorcycle Plan Guidelines and Procedure
August 26, 1983
SUBJECT : BIR Motorcycle Plan Guidelines and Procedure
TO : Service Chiefs, Regional Directors, Division Chiefs, Branch

Chiefs, Revenue District Officers, Collection and Enforcement Personnel and Others
Concerned
In view of the urgent need to improve the mobility of collection and enforcement
personnel to enable them to contact taxpayers more frequently and effectively in their
efforts to improve tax collection, and in consonance with the insistent requests of
Regional Directors and District Officers, the Bureau of Internal Revenue, with the
assistance of the Philippine National Bank, hereby adopts a BIR Motorcycle Plan
whereby qualified personnel shall be entitled to apply for a PNB loan for the purpose of
acquiring one brand-new-Honda 4-stroke, 125 cc motorcycle, said loan to be paid under a
5-year payroll deduction plan.
All concerned are hereby enjoined to observe the following guidelines for the successful
implementation of the Plan:
GUIDELINES
Qualified Personnel
Qualified to apply for the purchase of one unit each are collection agents, seizure agents
and/or other personnel duly appointed to regular items in the collection and assessment
groups who are assigned to collection or enforcement work, and who are not facing any
administrative case or investigation involving malversation or infidelity in the custody of
revenue collections.
I. Applicant
The applicant shall accomplish and file with his Chief of Unit, such as the district officer,
branch chief or division chief, as the case may be, the following documents, after
retaining the sixth copy of the Application form for his file:
a) Application form in 5 copies
b) PNB Chattel Mortgage form in 7 copies
c) PNB Promissory Note in 4 copies
II. Chief of Unit
1. Immediately upon receipt of the application, the Chief of Unit shall evaluate the
application, and indicate his favorable endorsement of the applicant by signing the
application form in the space provided for;
2. Simultaneously, sees to it that the PNB Chattel Mortgage form and Promissory
Note are also properly accomplished and signed by both the applicant and his spouse, if
he is married;
3. Prepares in six (6) copies a covering report/list of all the applicants endorsed
favorably, indicating therein their name, TAN, position, station and annual income;
4. Forwards the report/list and loan documents in batches (i.e. the application forms
together with all other PNB documents mentioned above) to the Regional Director or
Service Chief concerned, indicating whether all those who were canvassed and willing to
avail of the plan have qualified/submitted the required papers; and
5. Keeps for his file the following copies:
a) 5th copy of Application form
b) 6th copy of the list of the report/list of the applicants endorsed
The District Officer/Branch, Chief/Division Chief, should not retain any copy of the
Chattel Mortgage and Promissory Note; such copies will be retained and kept by the
Regional Director/Service Chief.
III. Regional Director/Service Chief
1. Immediately after his receipt of the batches of report/list of applications and loan
documents, the Regional Director or Service Chief -
a) Processes further the documents for accuracy, their completeness and eligibility
of the applicant considering his record of service, his annual income and historical
behaviour and performance in the service;
b) Signs as recommending officer the application form, and signs as witness the
Promissory Note and the Chattel Mortgage and causes the Chattel Mortgage to be
notarized by a BIR notary public;
c) Keeps the following documents for the official files of his office:
1. 4th copy of Application Form
2. 6th copy of Chattel Mortgage (7th copy retained by Notary Public)
3. 5th copy of the report/list for his file He shall also retain the 4th and 5th copies of
the Chattel Mortgage for filing and registration with the Register of Deeds and the
Bureau of Land Transportation after delivery of the motorcycles has been made by the
supplier.
d) Forwards the remaining copies of the covering report/list deleting therein the
name/s of applicants he disapproved together with the batches of the loan documents to
the Revenue Service Chief, Personnel and Administrative.
IV. Revenue Service Chief, Personnel & Administrative
1. Further processes and screens the applicants recommended as to their eligibility to
avail of the privilege and capability to pay the monthly amortizations consulting in the
process the chiefs of units in charge of pertinent records that may be deemed necessary;
2. Keeps for his office files, the following copies:
a) 3rd copy of Application form
b) 3rd copy of Chattel Mortgage
c) 4th copy of the report/list of endorsed applicants
3. Prepares/processes and transmits remaining copies of loan documents to the PNB
as follows:
3.1 To the PNB
a) Original of Application Form
b) Original and 2nd copy of Chattel Mortgage
c) Original to 4th copy of Promissory Note
d) Original of report/list of approved applicants
3.2 To the Supplier
a) 2nd copy (duplicate) of Application Form
b) 3rd copy of the report/list of endorsed applicants
4. Prepares the Delivery Order in five copies and transmits the same to the Supplier
to its Metro Manila address for it to effect the delivery of the motorcycles;
5. Prepares the BIR Motorcycle Loan Release Form in three copies and transmits the
same as follows:
a) The original to the Philippine National Bank, Cubao Branch;
b) The duplicate to the Supplier; and
c) The triplicate for his office file
V. Delivery and Acceptance of Motorcycle
1. Upon receipt of the Delivery Order from the Personnel and Administrative
Service, the supplier delivers to the Regional Directors concerned the requisitioned
motorcycle units in batches corresponding in number to the number indicated in the
Delivery Orders.
2. The Regional Director shall receive the units and upon necessary inspection to his
satisfaction, accepts the units delivered on behalf of the applicants he has recommended
under his jurisdiction, and signs the five copies of the Delivery Order as well as the
attached List of Delivered Motorcycles;
3. Thereupon, the Director shall notify the applicants concerned to take actual
possession, custody and ownership of their respective motorcycle units, and signs the List
of Delivered Motorcycles as a witness to the actual delivery of motorcycles to the
applicants;
4. The supplier then forwards the duly acknowledged and signed 2nd and 3rd copies
of the Delivery Order with the attached list of Delivered Motorcycles Form together with
his Official Invoice to the BIR Personnel and Administrative Service in Quezon City for
payment; gives the Revenue Director the 4th copy for his file and keeps the 1st copy for
his own file;
5. The Personnel & Administrative Service then forwards the 3rd copy of the
Delivery Order with its attached Delivered Motorcycles Form to the Accounting Division
and the 2nd copy to the Philippine National Bank, Cubao Branch.
VI. Payment to Supplier
1. The Philippine National Bank, Cubao, Branch, shall pay the supplier for delivered
and accepted units upon receipt of the original of the duly accomplished BIR Motorcycle
Loan Release Form, together with the 3rd copy of the Delivery Order from the Revenue
Service Chief, Personnel & Administrative Service and its attached supporting list of
delivered motorcycles which also indicates the names of applicants to whom the
deliveries were actually made and for whom payments are demanded by the supplier.
VII. Repayment of Loan/Payroll Deduction
1. Upon receipt of the original of the BIR Motorcycle Loan Release Form, from the
Revenue Service Chief, Personnel & Administrative together with the list of approved
applicants to whom the units were delivered by the Revenue Director, the Accounting
Division shall immediately take the necessary steps to initiate and implement the payroll
deduction of the necessary amounts from the applicants' monthly salaries the amount of
which is indicated in the Application Form of each applicant for 60 months until the unit
is fully paid. The Accounting Division shall effect the first deduction not later than 30
days after its receipt of the 2nd copy of the acknowledged Delivery Order form from the
Personnel & Administrative Service.
2. The Accounting Division shall remit to the PNB, Cubao Branch, monies collected
during the month, 10 days after the end of each month, together with a report/list
prepared by Revenue Information Systems Services, Inc. (RISSI) of the individuals who
paid their monthly amortizations indicating therein the amount of payment made during
the month and balances until due.
RUBEN B. ANCHETA
Acting Commissioner
RMO 26-83
RMO 26-83 Submission of List of Promotable Personnel
August 10, 1983 August 10, 1983
SUBJECT : Submission of List of Promotable Personnel
TO : All Revenue Service Chiefs, Regional Directors, Division Chiefs,

Revenue District Officers and Others Concerned.
I. Objective:
This Order is promulgated to systematize and rationalize the promotion process among
revenue personnel and thus, eliminate the practice of soliciting recommendations for
promotion.
II. Guidelines:
1. All Division Chiefs, Branch Chiefs, RDOs and Unit Heads shall prepare in
triplicate the List of Promotable Personnel at the end of every semester. The List shall be
distributed as follows:
Original and Duplicate - Service Chief/Regional Director concerned. The duplicate copy
is for attachment to the Final List for the Personnel Division.
Triplicate - Office file copy
2. A minimum of two (2) personnel unless there is only one (1) next-in-rank or a
maximum of 20% of the total number of candidates per position title shall be included in
the List.
To illustrate:
A division under Sector Operations Office has the following positions, excluding Chief
of division, and number of personnel holding the specific positions:
Asst. Chief Rev. Officer III - 1

Supervising Rev. Examiner III - 5
Supervising Rev. Examiner II - 6
Supervising Rev. Examiner I - 6
Senior Revenue Examiner - 6
Revenue Examiner II - 10
Supervising Clerk - 1
Revenue Stenographer - 1
Senior Revenue Clerk - 1
Revenue Clerk I - 7
Revenue Messenger - 1
Asst. Chief Revenue Officer III
Although the minimum requirement is 2, since there is only 1 ACRO III under the
division, only his name will be included in the List.
Supervising Rev. Examiner III
Following the minimum requirement = 2

Following the maximum requirement 20% of 5 = 1
Out of the 5 Supervising Rev. Examiner III, 2 may be included in the List of Promotable
Personnel
Supervising Rev. Examiner II

Following the maximum requirement 20% of 6 = 1.2
Out of the 6 Supervising Revenue Examiner II, 2 may be included in the List of
Promotable Personnel
Revenue Examiner II

Following the maximum requirement 20% of 10 = 2
Out of the 10 Revenue Examiner II, 2 may be included in the List of Promotable
Personnel
Revenue Stenographer
Although the minimum requirement is 2, since there is only 1 Stenographer under the
division, only his name will be included in the List.
3. The provisions in the revised Merit Promotion Plan embodied in RMO No. 16-79
dated July 9, 1979 shall be followed in preparing the List, with emphasis on the policy
that no one with a pending administrative case (formal charges filed) shall be considered
for promotion, especially where the offense charged is serious and evidence of guilt is
strong.
4. The column for "Proposed Promotion" shall contain the position to which the
employee is being recommended. It may be the next position to his present item or
whatever position to which he is qualified, in case he has signified his preference to be
promoted to another occupational group.
5. All Service Chiefs and Regional Directors shall review the Lists submitted to
insure compliance with the revised Merit Promotion Plan (RMO 16-79) and shall in turn
prepare a final List in Annex B, in four (4) copies for the national office and five (5)
copies for the revenue regions. Annex B shall be distributed as follows:
Original - CIR
Duplicate - Promotion Board
Triplicate - Personnel Division
Quadruplicate - Office file copy
Quintuplicate - Regional Personnel Officer (for the region only)
6. In the consolidation, a maximum of 20% of the total number of candidates within

the same level of position shall be included in the Final List.
7. Individual recommendations for personnel not included in the Final List of
Promotable Personnel shall hereafter be returned without action to the Revenue Service
Chief/Regional Director/Unit Head concerned.
III. Procedures:
A. The Chief of Division/Branch/District/Unit in preparing the List of Promotable

Personnel shall:
1. Prepare a complete listing of position titles, based on those allotted to the division
or unit. In case there are employees whose item do not belong to the division/unit
concerned but also deserve to be promoted, their position titles must be included in said
list.
2. List down the names of all the candidates (Personnel next-in-rank) to each
position, indicating therein all the information required in the List of Promotable
Personnel.
3. Evaluate every candidate to each position, on the basis of qualifications, fitness

and ability to perform the duties and assume the responsibilities of the position to be
filled. Educational attainment, relevant training, skills and experience, civil service
eligibility and performance rating are fundamental factors in the determination of the best
qualified and most competent personnel to occupy the position to be filled. For those in
the assessment group, their performance rating must be determined in accordance with
RMO No. 14-811 dated April 2, 1981.
4. Rank the employees accordingly and list the upper 20% of the candidates for
promotion to each position title in the prescribed form.
In case a candidate has made a significant/outstanding achievement in the performance of

his official tasks, a short narrative report may be prepared and attached to the List of
Promotable Personnel.
B. The Revenue Service Chief/Regional Director, upon receipt of the List of

Promotable Personnel from the divisions/offices within his jurisdiction shall:
1. List down all positions considered next-in-rank to a particular position title based
on the System of Ranking of Positions.
2. Review the Lists submitted by every Chief of Office under his jurisdiction and
consolidate into one List of Promotables, the candidates for every position title.
In case the Revenue Service Chief/Regional Director decides to make changes in the
Lists by revising the rankings, deleting any name or adding other qualified candidates,
such changes shall be justified in an attachment to the Final List.
3. List the upper 20% of the candidates for promotion to each position title in the
prescribed form, Final List of Promotable Personnel.
C. The Chief, Personnel Division/Regional Personnel Officer, upon receipt of the

Final List of Promotable Personnel shall:
1. Use the Final Lists as a ready reference in proposing candidates to a vacant

position in any of the functional groups.
2. Review and compare the data in the Final Lists and the attached Lists of
Promotables with their own evaluation on the basis of existing records of the Personnel
Division, including those on the ratings obtained in prescribed written examinations.
Should the Division find any material discrepancy to warrant corresponding changes, the
justification for such changes shall be attached to its recommendation to the Promotion
Board.
3. Identify the employees most qualified and competent for promotion and list them
in the form, Candidates for Promotion, for submission to the Promotion Board.
IV. Submission Date:
The List of Promotable Personnel shall be submitted by the Division Chiefs, Branch
Chiefs, RDOs and Unit Heads to their respective Service Chief/Regional Director within
thirty (30) days after the end of every semester. On the other hand, the Final List of
Promotable Personnel shall be submitted by the Service Chief/Regional Director to the
proper offices within fifteen (15) days after due date of submission of List of
Promotables.
For the first semester of 1983, the List of Promotables and Final List shall be submitted
on or before September 15 and September 30, 1983, respectively.
V. Repealing Clause:
All memoranda, orders, circulars or portions thereof which are inconsistent with this
Order are hereby amended or revoked.
VI. Effectivity Clause:
This revenue memorandum order takes effect upon approval.

Acting Commissioner
RMO 25-83
RMO 25-83 Issuance of BIR Identification Cards and the Administration Thereof.
July 27, 1983 July 27, 1983
SUBJECT : Issuance of BIR Identification Cards and the Administration

Thereof.
TO : All Internal Revenue Officers, Employees, and Others Concerned.
I. PURPOSE
To effectively control the issuance of identification cards to all internal revenue officials
and employees and to tighten security measures in all offices of the Bureau of Internal
Revenue, this Order is hereby promulgated.
II. CENTRALIZED ADMINISTRATION OF I.D. ISSUANCE

The Personnel Division shall be responsible for the issuance of all identification cards
(I.D.'s). Its responsibility shall cover the following areas: (1) Custody, operation, and
maintenance of the I.D. machine and its accessories; (2) Custody of blank or unissued
I.D. cards and personal data forms; (3) Issuance of I.D.s in accordance with the
provisions of Revenue Memorandum Order No. 23-811 dated July 2, 1981; (4) Ensuring
a continuing adequate supply of I.D. cards and personal data forms in coordination with
the Property Division; and (5) Continuing development and implementation of control
measures upholding the integrity of the BIR I.D. card system.
The Chief, Intelligence Division, is hereby directed to: (1) Turn over custody of the I.D.
machine, its accessories, all unissued I.D. cards and personal data forms, and all records
relating to the issuance of I.D. cards, to the Chief, Personnel Division; (2) Submit an
inventory report on I.D. cards purchased, issued, wasted or destroyed, and on hand as of
the turnover date to the Chief of the Personnel Division, copy furnished the Office of the
Commissioner of Internal Revenue; and (3) Turn over custody of all records relative to
the acquisition and maintenance of the I.D. machine and its accessories to the Chief,
Property Division.
III. MONTHLY INVENTORY REPORT ON I.D. CARDS

As part of its I.D. card control system, the Chief, Personnel Division shall prepare a
monthly inventory report on the I.D. cards in his custody. The inventory report shall
account for the number or red and blue I.D. cards during the month which are: (1) On
hand at the beginning of the month; (2) Purchased; (3) Issued; (4) Wasted or destroyed;
(5) Surrendered for replacement; and (6) On hand at the end of the month. In addition, a
supporting schedule of red and blue I.D. cards issued or surrendered for replacement shall
be attached to the inventory report. The schedule shall list the full names of the persons
who have been issued I.D.s or who have surrendered their I.D.s, their corresponding I.D.
number, and date of issue or surrender.
A copy of the inventory report and supporting schedule shall be furnished the Office of
the Commissioner of Internal Revenue. Deadline for submission is the fifth working day
of the ensuing month.
IV. IMPLEMENTATION OF THE WEARING OF I.D. REQUIREMENT

The Revenue Service Chief (Inspection), and Chiefs of the Personnel Division and
Intelligence Division are hereby directed to institute the necessary measures for the strict
enforcement of the requirement that all personnel issued BIR I.D. cards should wear
these within BIR office premises at all times. As an initial step, the Chief of the
Intelligence Division is hereby instructed to require all BIR personnel to wear their I.D.s,
as a precondition for entry to the BIR National Office Building effective October 1, 1983.
All Chiefs of unit, both in the National Office and regional offices, are hereby enjoined to
require their personnel to acquire and use their IDs within BIR office premises at all
times. Violation of this requirement shall subject the erring officer or employee to
appropriate disciplinary action.
V. APPLICATION FOR I.D.

All personnel applying for a new I.D. should fill up a "BIR Employee Information Stub"
provided by Personnel Division. This stub together with the facsimile of the I.D. shall be
filed by Personnel Division to keep track of its I.D. issuances.
VI. REPEALING CLAUSE

This Order shall supersede inconsistent provisions of RMO No. 23-81 dated July 2, 1981
and all other previous issuances on the same subject.
VII. EFFECTIVITY
This Order shall take effect immediately.

Acting Commissioner
RMO 24-83
RMO 24-83 Adoption of a New Personnel Records Management System
July 14, 1983 July 14, 1983
SUBJECT : Adoption of a New Personnel Records Management System
TO : All Revenue Officials and Employees Concerned

In order to ensure greater confidentiality of the personal files of BIR employees, and in
order to improve the maintenance and control of the same, a new Personnel Records
Management System is hereby adopted.
I. Rationale
201 files must at all times be kept confidential. Aside from the rules strictly adhered to in
the care of the records, built-in safeguards should be installed. Unauthorized persons
therefore, will not have immediate access into the 201 files even if they have gained
entrance into the Records Room.
This project is therefore designed to apply the OPTIMAL RECORDS SYSTEM in 201
files. The Optimal File classification is the process of analyzing records in order to
arrange them into groups or categories for systematic filing. It uses also the "Number
System" of registration. Code numbers will appear on the 201 folders in place of the
names of the Personnel.
II. Objectives
Specifically, this project aims to:
1. Be able to arrange personnel records in 201 files in such a way that a particular
document can be retrieved easily when needed.
2. Improve maintenance and safekeeping of 201 files.
III. Scope and Duration
This project targets all 201 files in the National Office and the Regional Offices.
This project shall be implemented in two phases as follows:
PHASE I - All active 201 files in the National Office.
PHASE II - All active 201 files in the Regional Office.
IV. Responsibility
The Personnel Division and the Administrative Branches shall be responsible for the
planning and implementation of this project. Project Teams will be created.
V. Approach
A. Identification and Study of different activities involved.
B. Development of units of work measurement and targets.
C. Determination of manpower and material needs.
VI. Expected Outputs
A. Records arranged into groups or categories for systematic filing.
B. 201 files indexed and coded.
C. 201 files arranged in shelves in a bigger room.
VII. Timetable of activities
Activity
1. Organization of Project Team
2. Requisition of Supplies
3. Initial Implementation of Phase I:
Personal/Group
Responsible
Asst. Chief, Personnel Division
Team Leader
Duration
Start Finish
Aug. 1 - Aug. 5, 1983
Aug. 1 - Sept. 30, 1983
Oct. 1, 1983 - Dec. 31, 1984
a. Removal of Excess papers
b. Grouping of Records into:
GROUP I
- Movements/Designations
- Promotions
- Recommendations
- Performance Ratings
- Job Description
GROUP II
- Seminars
- Courses
- Special Citations
GROUP III
- Warnings
- Admonitions
- Disciplinary Actions
- Administrative Cases
GROUP IV
- Pre-Employment Tests
- Eligibilities/Certificates
- Accountabilities
- Medical Certificates/Clearances
- Previous Employee's Service Records
GROUP V
- Updated Personal Data Sheets
- Accomplished Application Form
- Background Checkings
- Marriage Contract
- Transcript of Records/Diploma
- Birth Certificate
- Baptismal Certificate
- Basic Personal Data
c. Change of folders
d. Installation of the Number System
4. Initial Implementation of Phase II: December 1, 1983
a. Memo to Regional Offices for briefing
b. Same as in Phase Ia-o - To be done in the Regions
5. Evaluation of the Project
January 10, 1984,
and every 3 months
thereafter.
Overtime work necessary to complete the project on schedule is hereby authorized,
provided that funds are available, subject to the usual accounting and auditing
procedures.

Acting Commissioner
RMO 23-83
RMO 23-83 Extension of the ongoing Second Phase of "Operation Linis" and
amendments to Revenue Memorandum Order No. 33-82 dated October 8, 1982.
June 14, 1983 July 1, 1983
SUBJECT : Extension of the ongoing Second Phase of "Operation Linis" and

amendments to Revenue Memorandum Order No. 33-821 dated October 8, 1982.
TO : All Operation Linis Task Forces, Revenue Service Chiefs,

Revenue Regional Directors, Revenue District Officers and Others Concerned
I. RATIONALE
There was not much time afforded the field collection units to concentrate fully on the
Second Phase of "Operation Linis" The period from January to April, 1983 was directed
primarily to the seasonal renewal of privilege tax receipts, payment of percentage taxes,
filing of income tax returns, the yearly tax information campaigns, etc. RMO No. 9-832
dated March 16, 1983, which contains the latest issuance on "Operation Linis", was
received by the field collection units in April this year. Thus, they had barely a little over
two months to implement its provisions.
II. EXTENSION
It is therefore imperative that "Operation Linis" be extended, as it is hereby extended up
to December 31, 1983, to enable the operating units to maximize their collection
performances under this Program.
III. AMENDMENTS
The coverage of "Operation Linis" is hereby broadened to include all tax delinquencies
involving 1980 and prior years, assessed/demanded as of December 31, 1982, to enable
as many taxpayers as possible to avail of its benefits. However, transfer taxes are
excluded from this coverage in addition to withholding taxes, and other tax liabilities
previously paid with cheques subsequently dishonored for one reason or another, as
provided in Section II - Amendments and Inclusions - of Revenue Memorandum Order
No. 9-83, dated March 3, 1983.
IV. EFFECTIVITY
This Order shall take effect on July 1, 1983.
Acting Commissioner
RMO 22-83
RMO 22-83 Creation of the Non-Filers Task Force
May 26, 1983 May 26, 1983
SUBJECT : Creation of the Non-Filers Task Force
TO : All Service/Office Chiefs Concerned. All Regional Directors All

Others Concerned
To ensure that all taxfilers perform their duty and obligation to file their income tax
returns, the Non-Filers Task Force is hereby created to carry out special assignment,
activities and procedures.
I. SCOPE
The task force, composed of:
1. Steering Committee
- Hon. Romulo M. Villa, Deputy Commissioner
- Eufracio D. Santos, National Assessment Office
Service Chief
- Reynoso A. Floreza, Legal Office Service Chief
- Victor A. Deoferio, Jr., Section Operations Office
Service Chief
- Dennis S. Deveza, RISSI General Manager;
2. Selected National Office/RD Examiners; and,
3. Technical/Clerical Staff
shall require and see to it that all taxfilers (Corporations/Partnerships) who failed to file
their ITRs for the calendar year 1981 as per the Preliminary List of Non-Filers released to
the Regional Directors on May 20, 1983, file their ITRs at the National Office or the
nearest RDO.
II. FLOW OF ACTIVITIES

In general, the sequence of activities shall be as follows:
Arrow 1.1 - The Steering Committee shall release the list to each regional director.
1.2 - The regional directors shall distribute the list to the Assessment Branch Chiefs and
the RDO examiners concerned for preliminary non-contract verification of the listed
entities.
1.3 - The Assessment Branch/RDO shall submit to their regional directors the
reports/recommendations based on their preliminary verification.
1.4 - The regional directors shall consolidate the reports/recommendations from the
Assessment Branch and the RDOs and submit them to the Steering Committee.
1.5 - The Steering Committee shall evaluate the consolidated reports and assign to the
Tax Fraud & Intelligence Divisions those cases for thorough investigation.
1.6 - The Tax Fraud & Intelligence Divisions after thorough investigation shall submit to
the Steering Committee those cases for prosecution.
1.7/1.8 - The Steering Committee shall assign the cases for prosecution to the Prosecution
Division, Legal Office (for Metro Manila cases) or to the Regional Directors (for
Provincial cases).
1.9 - The regional directors shall assign the provincial cases for prosecution to the Legal
Branch under them.
III. ASSIGNMENT, ACTIVITIES, PROCEDURES

A. STEERING COMMITTEE
The Committee, who shall be reporting directly to the Commissioner, shall have the
following functions:
1. Distribute the Preliminary List of Non-Filers to the respective regions.
2. Receive the consolidated reports and recommendations from the regional
directors.
3. Handle the transactions for compromise, as recommended by the appropriate
offices.
4. Evaluate 'for prosecution' recommendations and prepare the grounds, if necessary,
prior to turnover of the said cases to the Prosecution Division (for Metro Manila cases) or
to the Regional Director/Legal Branch (for Provincial cases).
5. Coordinate and monitor the activities of all personnel concerned.
B. REGIONAL DIRECTORS
1. Receive and dispatch the list to the Assessment Branches and the Regional
District Offices (RDOs) under their jurisdictions.
2. Receive and consolidate the reports/recommendations of the Assessment Branch
and the RDO on the following data:
a. Whether the ITRs of the listed entities have been duly received by the Assessment
Branch or the RDO but have not been transmitted to the National Office. In which case,
they should be sent immediately to the National Office.
b. Whether the Assessment Branch or the RDO has transmitted them to the National
Office, but were lost in transit. In which case, copies of the ITRs must be sent
immediately to the National Office.
c. Whether the listed entities are not in their logbooks/records, which means they did
not actually file their ITRs.
d. Whether the address of the listed entities are not updated/accurate. In which case,
the complete and accurate addresses must be indicated.
3. Compile the second copy of the Preliminary List of Non-Filers from their
Assessment Branches as per attached instructions to the Memorandum dated May 30,
1983.
The resulting figures and documents must be transmitted to the National Office on or
before June 10, 1983.
4. Receive and transmit to the Legal Branch under them, the 'for prosecution' cases,
i.e. cases which require legal action.
C. ASSESSMENT BRANCH
1. Conduct preliminary verification on the entities included in the List of Non-Filers
in their jurisdiction, per the conditions enumerated in Section B-2.
2. Submit their reports/recommendation on their preliminary verification to their
Regional Director.
D. NATIONAL OFFICE INVESTIGATION GROUP
This group shall be composed of examiners from the:
a. National Assessment Office
b. Sector Operations Office
c. Tax Fraud Division
d. Intelligence Division
Their functions are as follows:
1. Receive the 'for investigation' cases from the Steering Committee.
2. Conduct a thorough investigation on the said cases.
3. Refer all cases requesting for a compromise to the Steering Committee.
4. Recommend the cases requiring prosecution to the Steering Committee.
E. PROSECUTION DIVISION (For Metro Manila Cases)
LEGAL BRANCH (For Provincial Cases)
1. Carry-out the necessary legal actions on the cases submitted to them by the
Steering Committee.
2. Report to the Steering Committee on the developments of each of the cases.
IV. EFFECTIVITY

Acting Commissioner
RMO 21-83
RMO 21-83 Amendment of Revenue Memorandum Order No. 27-81, dated September
1, 1981, regarding the creation of Inspection and Acceptance Committees.
June 10, 1983
SUBJECT : Amendment of Revenue Memorandum Order No. 27-811, dated

September 1, 1981, regarding the creation of Inspection and Acceptance Committees.

In order to expand the composition of the Inspection and Acceptance Committee in the
Central Office to include revenue officials not otherwise specifically mentioned in
Revenue Memorandum Order No. 27-81 such as the Chief, Accountable Forms Division,
whose technical expertise may be needed to determine the acceptability of the supplies,
materials, spare parts and/or equipment delivered, paragraph II-A2 thereof, is hereby
amended to read as follows:
"II Organization
A. National Office Committee3
The Acceptance and Inspection Committee in the Central Office shall be composed of the
following officials:
Chairman - Chief, Fiscal Control Division or his authorized representatives;
Members - Chief, Property Division or his authorized representative;
- A representative of the Requisitioning Unit whose technical expertise may be needed to
determine the acceptability of the supplies, materials, spare parts and/or equipment
delivered, who may be but is not limited to the following:
xxx xxx xxx
4. The Chief, Accountable Forms Division or his authorized representative for
accountable forms, and other forms, supplies, materials, spare parts and/or equipment
falling under the custody of the said division."
Deliveries of accountable forms printed by the Government Printing Office and the APO-
NEDA Production Unit, Inc., which are supervised and controlled by special committees
of the Bureau of Internal Revenue, need not be inspected again by the Inspection and
Acceptance Committee.
This Order shall have retroactive effect with Revenue Memorandum Order No. 27-81.

Acting Commissioner
RMO 20-83
RMO 20-83 Compromise settlement or abatement of estate tax or donor's tax under
Section 295 of the National Internal Revenue Code as amended
June 14, 1983 June 14, 1983
SUBJECT : Compromise settlement or abatement of estate tax or donor's tax

under Section 295 of the National Internal Revenue Code as amended
TO : The Revenue Service Chiefs (Sector Operations Collection Office,

Legal Service and National Assessment Office) all Revenue Regional Directors, The
Chiefs (Receivable Accounts Division - and Sector Audit Review Division) all BIR Task
Forces implementing the current Operation Linis pursuant to Section 2951 of the Tax
Code and all others concerned
It had been observed that estate tax or donor's tax cases are sometimes being
compromised/abated on the ground that the taxpayer concerned is financially incapable
of paying the assessed tax.
Section 295(b)2 of the National Internal Revenue Code, as amended, permits

compromise settlement only when the taxpayer is clearly financially incapable of paying
the tax:
"The Commissioner may - (1) compromise the payment of any internal revenue tax when
. . . (b) the financial position of the taxpayer demonstrates a clear inability to pay the
assessed tax . . ." (Sec. 295 (b), NIRC, as amended).
The taxpayer's financial predicament envisaged by the law may not be reasonably
considered present in transfer tax cases since for estate tax purposes, there shall always
be properties (hereditary estate) that sufficiently meet the estate tax obligation. In the
same manner, financial incapacity cannot be alleged by the donor since donation is purely
an act of liberality. No binding obligation rests upon the donor to gratuitously dispose his
property.
In view of the foregoing, all are advised not to pursue compromise settlement of transfer
tax cases, if the taxpayer's application in this connection is solely premised upon the
taxpayer's financial condition.
Immediate and strict compliance herewith is enjoined.
RUBEN B. ANCHETA
Acting Commissioner
RMO 19-83
RMO 19-83 Handbook on Tax Numeric Code of Revenue Sources - Third Revision
June 1, 1983 June 1, 1983
SUBJECT : Handbook on Tax Numeric Code of Revenue Sources - Third

Revision
TO : All Collection Agents, RPO-Issuing Officers, Cash Clerks and

Others Concerned
To conform with international standards in the classification and identification of
government revenues while at the same time allowing for convenience in the retrieval of
data for the formulation of sound tax policies, all sources of internal revenues were
translated into codes, vis-a-vis the BIR Tax Numeric Codes, BTR/GFS and National
Accounting Codes. Since its inception in January 1, 1969, the codes which are compiled
into a handbook, have undergone two revisions, one in January 20, 1978 and another in
August 15, 1979 under Revenue Memorandum Orders Nos. 5-78 and 17-79, respectively.
This third revision incorporates the latest amendments to the National Internal Revenue
Code and includes new taxes imposed under Presidential Decrees, Special Laws and
Regulations which took effect on or before December 31, 1982.
All BIR employees whose functions include the preparation of Revenue Payment Orders,
Revenue Official Receipts and/or acceptance of all other documents where tax numeric
codes are required, are enjoined to use the correct updated codes to ensure accuracy of
statistical information derived from them and to facilitate the accounting and proper
disposition of internal revenue collections.
REPEALING CLAUSE:
This Revenue Memorandum Order supersedes Revenue Memorandum Order No. 17-79
dated August 15, 1979.
EFFECTIVITY:
The provisions of this Revenue Memorandum Order take effect immediately.
RUBEN B. ANCHETA
Acting Commissioner
RMO 18-83
RMO 18-83 Submission of Quarterly Accomplishment Reports by All Divisions/Units
of the Central Office using Prescribed Forms
May 31, 1983 May 31, 1983
SUBJECT : Submission of Quarterly Accomplishment Reports by All

Divisions/Units of the Central Office using Prescribed Forms
TO : All Revenue Service Chiefs, Division Chiefs and Others

Concerned
I. Objectives:
This Order is issued to simplify the reporting requirements of all Divisions/Units in the
Central Office and to attain the following specific objectives:
A. Promulgate policies, procedures and guidelines in reporting accomplishments to
top management;
B. Improve the evaluation of performances by divisions/units in the Central Office;
and
C. Serve as reference materials in preparing quarterly accomplishment reports, the
Annual Report of the Bureau and/or reports requested by the Ministry of Finance or other
agencies of the government from time to time.
II. Policies and Procedures:

A. Every division/unit shall use the prescribed format, copy of which is attached, in
submitting their Quarterly Accomplishment Reports.
B. General and specific instructions provided in the format shall always be observed
and followed by all concerned.
C. The Quarterly Accomplishment Reports shall be prepared in three copies to be
distributed as follows:
1. Original copies (integrated by the pertinent Service/Office to which the
division/unit belongs) - to the Financial & Management Service.
2. Duplicate copies - to the respective Service/Office to which the division/unit
belongs.
3. Triplicate copies - division/unit file.
III. Submission Date:

These Quarterly Accomplishment Reports shall be submitted on or before the tenth (10th)
day of the month following the end of the quarter. For this year, however, initial
submission shall consist of two (2) separate quarterly reports (the first and second
quarters) which shall be due on or before the 10th of July, 1983.
IV. Repealing Clause:

This Order amends and supersedes Revenue Memorandum Order No. 10-66, Revenue
Memorandum Order No. 19-711, the Unnumbered Memorandum of the Assistant
Commissioner dated January 5, 1981, and other issuances which are inconsistent
herewith.
V. Effectivity:
This memorandum shall take effect immediately.
ROMULO M. VILLA
Deputy Commissioner
TAN: V4656-G0636-4-3
RMO 17-83
RMO 17-83 Reimbursable Travelling Expenses of Revenue Collectors and Cash
Clerks
February 16, 1983 March 1, 1983

SUBJECT : Reimbursable Travelling Expenses of Revenue Collectors and

Cash Clerks
TO : All Revenue Regional Directors, Revenue District Officers and

Others Concerned
Revenue Memorandum Order No. 11-801 dated February 27, 1980 as amended by
Revenue Memorandum Order No. 13-812 dated May 22, 1981 allows revenue collectors
and cash clerks to collect actual travelling expenses on reimbursement basis when
travelling in their station towns in an amount not exceeding (a) P150 for those holding
one (1) municipality and (b) P180 for those holding 2 or more municipalities plus actual
and necessary expenses when travelling outside of their station towns to attend
conferences or to deposit their collections.
Under the system now in force, these expenses are paid by pro-rating the maximum
allowable amount to the number of work days in a given month. This method of
computation has been found not equitable in cases where the actual transportation
expenses incurred exceed the proportionate amount allowed.
Since the reimbursable travelling expense allowed under said order is only a refund or
reimbursement of what has been actually spent by claimant and considering the need for
uniformity in processing travelling expense claims of revenue collectors and cash clerks,
it is directed that the manner of payment of said claims shall be made as follows:
1. The travelling expenses shall be computed and paid using as basis the actual
expenses incurred per day as shown in the claim voucher, provided that the total amount
to be paid during the month shall not exceed the maximum monthly allowable limit.
2. The disbursement voucher which shall invariably bear the approval of the
Revenue District Officer concerned shall continue to be submitted, together with the
Itinerary of Travel (Appendix A) whether the travel is within or outside the official
station of claimant and used transportation tickets as supporting documents. A certificate
of appearance shall also be submitted in case of travels outside of the station town of
claimant.
3. The use of taxi or hire of special taxi as means of transportation shall be allowed
only in cases where it can be clearly established that the route taken is not being plied by
regular transportation and upon submission of written authority from the Regional
Director concerned allowing the claimant to avail of taxi or extraordinary means of
transportation. In such cases, the approximate distance travelled or travel time consumed
shall be indicated in the itinerary.
Receipts for taxi fare or special hires in excess of P20 each way shall be submitted, using
the prescribed Reimbursement Expense Receipt (GF 3A) for the purpose.
This Revenue Memorandum Order shall take effect March 1, 1983.
(Sgd.) ROMULO M. VILLA

Acting Commissioner
RMO 16-83
RMO 16-83 Local and Foreign Entertainment
May 20, 1983
SUBJECT : Local and Foreign Entertainment
Pursuant to the Memorandum Order No. 13-831 dated April 27, 1983 creating the Interim
Task Force for Entertainment Ventures, the following order is hereby promulgated and
shall be known as the Local and Foreign Entertainment Memorandum Order.
Sec. 1. Scope. - This Order is aimed at centralizing authority and pinpointing

responsibility for the enforcement and collection of taxes due on local and foreign
entertainers in respect of their performance in concerts, stage appearances, shows and
other presentations of similar nature.
Sec. 2. Who are Liable. - Persons or entities who are promoting any local or foreign live
presentations are constituted as withholding agents in accordance with Section 532 and
Section 543 of the National Internal Revenue Code.4
Sec. 3. Printing of Tickets and/or Invitations
a. Authority to print tickets or invitation for live performances with local talents
shall be referred to the Interim Task Force for Entertainment Ventures for local
entertainment.
b. The permit for the authority to print tickets or invitations for live performances
with foreign talents shall be submitted to the International Operations Division (IOD) for
initial processing. The International Operations Division with the concurrence of the
Interim Task Force for Entertainment Ventures shall, after the submission of the
following documents, recommend to the Revenue District Office the granting of the
permit to print the tickets or invitations (BIR Form No. 1953-A).
(i) a copy of contract of service of the local and/or foreign entertainers; or
(ii) a copy of the surety bond filed with accredited companies to answer for any tax
liability that may arise from said presentation. The amount of the bond to guarantee the
payment of tax shall be P10,000 for each performance.
c. Permits for performance with a combination of both foreign and local entertainers
must be secured in accordance with the procedures outlined in paragraph (b) above.
d. The final approval of the permit to print such tickets and/or invitations shall be
with the Revenue District Office having jurisdiction of the venue of such presentation.
Sec. 4. Submission of Cost of Production Report. -
a. The promoter and/or Producer is required to submit the Cost of Production Report
(BIR Form No. 3700) fifteen (15) days after the end of presentation to the Office of the
Commissioner of Internal Revenue.
b. The Head of the Stamping and Registration Unit of every Revenue District Office
where application for the authority to print tickets and/or invitations have been filed shall
submit to the Commissioner of Internal Revenue copies of the approved application
within fifteen (15) days after the end of each calendar quarter.
Sec. 5. Payment and Remittance of Taxes Withheld
(a) (i) For local entertainers - the provisions of Revenue Regulations No. 13-78,
as amended, by Revenue Regulations No. 6-79 as further amended (Expanded
Withholding Tax Regulations) shall apply.
(ii) The taxes due from local entertainers shall be collected by the Revenue District
Office having jurisdiction of the venue of such presentation.
(b) (i) For foreign entertainers - the provisions of Section 535 in relation to Section
546 of the National Internal Revenue Code shall apply.
(ii) The taxes due from entertainers shall be collected by the International Operations
Division.
Sec. 6. Effectivity. - This Order shall take effect fifteen (15) days from the date of
publication in newspapers of general circulation.

Acting Commissioner
RMO 15-83
RMO 15-83 Intensification of Criminal Prosecution of Tax Fraud Cases
May 9, 1983 May 9, 1983
SUBJECT : Intensification of Criminal Prosecution of Tax Fraud Cases

It has been observed that neither the continuous voluntary tax compliance campaigns
undertaken by the Bureau nor the magnanimous gestures of the State in the form of a
series of tax amnesties have succeeded in reforming many taxpayers who persist in their
tax evasion activities. Reports from the field offices and computer statistics indicate that a
very small percentage of the potential tax filers, both individual and corporate, are
complying with their tax obligations.
Consistent with previous announcements to criminally prosecute those who will persist in
flouting revenue laws, the Bureau will now pursue a course of action of vigorously
pursuing its tax fraud program to the full extent of the law. At this initial stage, priority
shall be given to the criminal prosecution of taxpayers who refused to file the tax returns
as required by law.
By way of implementing this policy, the following orders are hereby issued for
compliance by all concerned:
I. Field Offices
aa. Regional Directors and Revenue District Officers shall undertake expeditious
measures to ferret out, identify and document cases involving taxpayers within their
jurisdiction who, being required by law to file tax returns, have repeatedly failed to do so
within the time or times required.
bb. Pursuant to the provisions of Section 82 of the Tax Code the list of taxpayers for
the preceding taxable year in each municipality or city shall be posted at the main
entrance of the respective municipal building or city hall.
cc. These potential taxpayers in each revenue district must be made aware of the
following penalties for non-filing:
1. Administrative penalties/increments for non-filing of income tax return and late
payment of income tax:
a. 50% surcharge if no income tax return has been filed due to willful intent or a
return was filed but found later to be fraudulent or false with intent to evade the tax; or
b. 25% surcharge if the income tax return is voluntarily filed after the due date but
there is no meritorious case for the delay;
c. 10% surcharge for late payment;
d. In addition to either of the above surcharges, 20% interest per annum on the tax
due.
2. Civil and/or criminal penalties:
a. In case of individuals a fine of not more than P2,000.00 or imprisonment of not
more than six months, or both;
b. In case of corporations, which includes duly registered general co-partnership, a
fine of not exceeding P20,000.00;
c. In addition thereto, any individual or any officer of such entity who is responsible
for the filing of the return and payment of tax shall be punished by a fine of not less than
P5,000.00 and imprisonment of not less than two years.
dd. Once these non-filers are identified and their reportable income/receipts, whether
complete or partial, are established, their cases shall be referred to the Legal Branches for
evaluation and, if warranted by the evidence, for filing of the appropriate criminal charge.
ee. A monthly report of performance, as well as monthly list of non-filers shall be
submitted by the Revenue District Officer, thru the Regional Director, to a Monitoring
Committee which shall be headed by the Revenue Service Chief (Legal Office) with the
Chiefs of the Tax Fraud and Prosecution Divisions as members.
ff. The compromise penalties for non-filing or late filing of returns shall not be
collected in any case so discovered without the recommendation of the Monitoring
Committee and the approval of the Commissioner.
II. Regional Special Investigation Units
aa. The regional Special Investigation Units created under Revenue Administrative
Order No. 5-801 dated November 6, 1980, shall intensify and expedite their tax fraud
investigation and development programs in accordance with the procedures, guidelines
and techniques prescribed under Revenue Memorandum Order No. 5-832 dated February
25, 1983 and shall report for prosecution purposes at least one (1) quality tax fraud case a
month, starting June, 1983.
bb. Quality tax fraud case shall be understood as one involving a tax assessment,
wherein the intention to evade payment of tax is clearly and convincingly established by
the evidence gathered.
cc. Every quality tax fraud case developed and reported which results in tax
assessment and collection and/or criminal prosecution of the taxpayer shall be credited to
the examiner/s concerned who shall thus be rated accordingly for promotion and
assignment purposes.
III. Enforcement Divisions in the National Office
aa. The different enforcement divisions in the National Office are hereby directed to
develop and report tax fraud cases within their areas of jurisdiction. However, tax fraud
investigation reports emanating from these divisions shall be subject to review and
evaluation by the Tax Fraud Division which, may either refer the case to the Prosecution
Division for criminal action, return the same to the division of origin or undertake further
documentation thereon.
bb. The same incentives as provided in paragraph II, cc., shall be accorded to all
examiners from enforcement divisions who shall submit quality tax fraud reports that
result in tax assessment and collection and or prosecution of the taxpayer.
Strict compliance with this Order is hereby enjoined.

Acting Commissioner
RMO 14-83
RMO 14-83 Roving Revenue Attache
April 15, 1983 April 15, 1983
SUBJECT : Roving Revenue Attache

In order to save funds which could be channeled and utilized for development projects of
the government, Roving Revenue Attaches are hereby created in lieu of regular attaches
posted abroad.
Initially, there will be two (2) Roving Revenue Attaches. They will cover the posts in
Hongkong, Taipei, Singapore, Bangkok, Port Moresby, Papua New Guinea and Guam.
The Roving Attaches shall have their home base in the National Office, East Triangle,
Diliman, Quezon City.
GUIDELINES
I. Funding:
1. Plane Fare
2. Per Diem and Daily Allowance ($35.00 + $10.00)
3. Representation expenses per month ($160.00 per month).
II. Qualifications:
1. High degree of academic preparations, viz; a lawyer or Certified Public

Accountant.
2. A person of good moral character.
3. At least three (3) years of experiences in tax assessment and collection.
4. Must have attended seminars on income tax, business tax, transfer tax,
miscellaneous tax report making on collection.
5. Must have attended the Integrated Service Attaches Course (ISAC).
III. Appointment of Roving Revenue Attache should be prepared at least six (6)
months before intended departure.
IV. Preparation of Travel Papers:
1. NISA Clearance
2. NBI Clearance
3. Passports
4. VISA
PROCEDURES
1. The duly appointed Roving Attache will leave for his assigned post before the
start of the tax filing season. He will bring with him sufficient number of official receipts
(BIR Form No. 25.24), the necessary number of Income Tax Returns (BIR Form No.
1701C, 1701 and 1701A), pertinent forms for the accomplishment of his report abroad,
and other forms required by the Joint Ministry Order (Ministry of Foreign Affairs Order
No. 8-82 and Ministry of Finance Order No. 1-82).
2. Upon arrival at his post, he will immediately report to the Chief of Mission or
Principal Officer concerned to present his credential and inform the latter of his mission
in order that he may be provided with space within the premises of the Embassy or
Consulate wherein the collection functions may be performed. The Roving Attache must
at all times maintain good rapport with the Chief of Mission or Principal Officer
concerned and other personnel of the Philippine Embassy or Consulate.
3. The Roving Attache shall undertake the collection of internal revenue taxes and
issue BIR official receipts (BIR Form No. 25.24) to the non-resident Filipino citizens in
the country of his assignment. The daily collection shall be remitted to the Finance
Officer every afternoon who shall in turn issue the corresponding liquidation receipt
(MFA Form 89).
4. Upon the termination of his tour of duty abroad and before his departure for the
Home Office, the Roving Attache shall accomplish the Overseas Abstract of Collection
(BIR Form No. 12.32b) and Monthly Report of Accountability (General Form No. 16-A),
with the unused receipts, if any, duly turned over and properly receipted by the Finance
Officer in accordance with the provisions of the Joint Ministry Order (Ministry of
Foreign Affairs Order No. 8-82 and Ministry of Finance Order No. 1-82).
5. The Roving Attache shall submit his report to the Office of the Revenue Attaches'
Unit within fifteen (15) days after the completion of his assigned work abroad. He shall
include in his report all the activities undertaken relevant to the performance of his duties
abroad including problems encountered and the recommended solutions.
6. In the Home Office, the Roving Attache will undertake the verification of the
income tax returns (BIR Form No. 1701C, 1701 and 1701A) to ascertain whether or not
the correct amount of tax had been paid by the taxpayer in accordance with Revenue
Memorandum Order No. 31-811 dated November 11, 1981.
7. In case it is ascertained that the correct amount of tax had not been paid by the
taxpayers, and, therefore, still liable for deficiency income tax, the Roving Attache shall
prepare the corresponding demand letters against said taxpayers for the payment of the
deficiency tax due plus the incremental penalties, for the signature of the Commissioner
or the Deputy Commissioners.
CLEARANCE OF ALL ACCOUNTABILITIES

a. Accountable Forms
b. Collections
c. Cash Advance
The clearance must be submitted by the Roving Attache to the Office of the Revenue
Attaches' Unit within thirty (30) days following the completion of his work abroad. If no
clearance is submitted within the said period, the Revenue Attaches' Unit will
recommend to the Accounting Division the suspension of his salary until compliance
with the required clearance.
This Memorandum Order shall take effect immediately.

Acting Commissioner
RMO 13-83
RMO 13-83 Creation of Interim Task Force for the Implementation of Revenue
Regulations No. 9-82 and other Regulations related to other Entertainment Ventures.
April 27, 1983 April 27, 1983
SUBJECT : Creation of Interim Task Force for the Implementation of Revenue

Regulations No. 9-821 and other Regulations related to other Entertainment Ventures.
TO : All Internal Revenue Officers and others Concerned.
As per implementation of Revenue Regulations No. 9-82 and other regulations related to
other entertainment ventures and in the light of the BIR's effort to correctly assess the
taxes due from the local show business and collect the corresponding amount of tax,
Section 15 of the Revenue Regulations No. 7-67 has been amended better known as
Revenue Regulations No. 9-82 as approved by the Honorable Minister of Finance dated
December 3, 1982.
With the end in view of facilitating, processing and eliminating red tapes in the
processing of papers, this Interim Special Task Force is hereby created.
In general, the Task Force will be solely responsible for the enforcement and
implementation of the said Revenue Regulations relating to submission of cost of
production and procedures; assessment and collection of taxes of the local show business.
This is also intended to centralize authority and to pinpoint responsibility for any act or
omission in the enforcement of said regulations and other regulations related to
entertainment ventures.
In particular, the Interim Task Force shall exercise the following powers and discharge
the following functions:
1. To draw the process flow of the present monitoring system and evaluate the
efficacy of this system with emphasis on the following aspects:
1.1 improvement of procedure
1.2 tightening of controls
1.1.2 provisions of effective check and balance control
1.3 simplification and facilitation
2. To gain a working knowledge of the operations of all entertainment ventures so as

to appreciate and be familiar with the aspects concerning the bureau.
2.1 analysis of budget and justification of cost.
2.1.1 overhead expenses
2.1.2 indirect expenses
2.1.3 film processing
2.1.4 booking
2.1.5 advertising contracts
2.1.6 telecast order
3. To adapt the procedures for computerization.
4. To draw and implement the various forms necessary to facilitate the procedures.
5. To conduct a continuing dialogue and tax information campaigns with the tax
payers concerned for proper dissemination of revised procedures.
6. To update the list of active production outfits and to be more aware of their
present engagement.
7. To provide timely and relevant information to the Bureau Examiners regarding

taxes due from production outfits and those involved in local production.
8. To plan future projects on other entertainment ventures such as television

programs, the recording business, stage plays, concerts, betamax tapes, foreign
entertainers, etc.
9. To draw a continuing study on the monitoring system of the industry.
10. To demand from the Producer a detailed financial statement and log book of films
as the need arises and not on a regular, yearly basis.
11. To provide venues whereby representatives of the BIR and production outfits
could discuss ongoing projects with regards to budget.
12. To provide venues whereby representatives of the BIR and actors, actresses, and
production staff could discuss on going projects/engagements with regards to their
respective rates.
13. To issue memoranda relevant to the projects to any BIR office.
14. To recommend to the Commissioner the investigation of delinquent producers,
talents and production staff.
15. To conduct a spot or random checking of theaters where a particular film is being
shown to ensure that the no. of prints paid for specific tax tallies with the no. of prints
withdrawn.
16. To request any assistance from any unit in the Bureau in the effective
administration of regulations related to entertainment ventures.
The following persons have been selected to comprise the governing body of the Interim
Task Force for Entertainment Ventures:
Chairman:
Mr. O.C. Yumping
Over-all Coordinator
Co-Chairmen:
Mr. Pedro Aguillon
Procedure
Mrs. Josefa Javier
Rules and Taxation
Mr. Dennis Deveza
System (Programming)
Mr. Jaime Maza
Prosecution
Mr. Bernardo Frianeza
Withholding Tax
Mr. Ed Nepomuceno
Mr. Asclepiades Bunao
Specific Tax
(Cinematographic films)
Mr. Robert Taylo
Research and Tax Information
Members: (Implementing Body)
Valentin C. Paz - RDO No. 31
Jose R. Ruivivar - Region 4-B
R.A. Manalili - RDO No. 32
Zenaida Suguitan - RDO No. 32
Dennis Rosales - RDO No. 35
Pablo Guzman - RDO No. SMTD
Ricardo Villaruel - RDO No. 23
Ernesto De Guia - RDO No. 24
Pacifico Villanueva - SMTD
- RDO No. 28
Pablo Amanse - RDO No. 29
Aroncito Manapsal - RDO No. 30
Julito Andal - RDO No. 33
Mr. Gerry Florendo - RDO No. 34
Hector Tanchingco - RDO No. 25
Zenon Padua - RDO No. 36
Susan San Pedro - Region 4-B
Task Force Consultants:
Mr. Reynaldo Suarez
Mr. Leopoldo Bercasio
Mr. Mariano Aguilar, Jr.
Mr. Victor A. Deoferio, Jr.

Acting Commissioner
RMO 12-83
RMO 12-83 Availment of PAL Passage on credit terms
March 30, 1983 March 30, 1983
SUBJECT : Availment of PAL Passage on credit terms
TO : All Internal Revenue Officers and Employees Concerned.
OBJECTIVE:
This Order is issued to ensure Revenue Officers and employees, authorized to travel via
PAL, within or outside the country on official time, of getting their plane reservations on
the desired date and afford the Bureau better control over expenditures on air travel.
POLICIES:
Following are the guidelines and procedures for compliance by all concerned:
1. All transactions of the National and Regional Offices involving PAL passage
shall be on credit chargeable against the Customer Code Number assigned to the offices
concerned. Any exception to this policy may be made only with the Approval of the
Commissioner.
2. Travel Order Form Order No. 001 shall be prepared in quadruplicate for every
purchase of the plane ticket, to be distributed as follows:
Original - to be presented to PAL for
attachment to the charge invoice/bill.
Duplicate - file copy of PAL
Triplicate - to be attached to the Certificate of
Travel Completed.
Quadruplicate - file copy of the signing official
3. In no case shall a Travel Order Form No. 001 be issued unless supported by a
Revenue Special Order (RSO), or Revenue Travel Assignment Order (RTAO), a
subpoena/duly approved letter of authority with an accompanying directive from the
Revenue Service Chief/Division Chief concerned, or in case of travel abroad, the
approval of the Office of the President.
4. The Revenue Service Chief, Financial and Management, or in her absence, the
Assistant Revenue Service Chief for the National Office and the Regional Director, or in
their absence, the Assistant Regional Director for the Revenue Region shall sign Travel
Order Form No. 001.
5. Travel Order Form No. 001 must be duly certified as to funds availability by the
Chief Accountant/Regional Accountant or their designated representative as the case may
be. They shall likewise be responsible for numbering and controlling the Travel Form
Order No. 001.
RESPONSIBILITIES AND PROCEDURES:

1. The officer or employee travelling officially via PAL shall:
a) Accomplish Travel Order Form No. 001 in addition to the requirements under
RMO 26-811 dated August 27, 1981.
b) Prepare the disbursement voucher for the other travelling expenses allowed such
as per diems, etc. The usual procedures for processing of vouchers shall be followed.
c) Submit Travel Order Form No. 001 to the Chief Accountant/Regional Accountant
or their authorized representative for certification of availability of funds and assignment
of control numbers.
d) Forward the certified Travel Order Form No. 001 to the Revenue Service Chief,
Financial and Management/Regional Director or their authorized representative as the
case maybe for approval.
e) Present duly approved Travel Order Form No. 001 at Sto. Domingo, Cubao, or
Manila Domestic Airport Ticket Offices, if from the National Office, Revenue Regions 3-
A, 3-B, 4-A, 4-B, and/or 4-C. For those in the other Regions, the plane ticket may be
secured from the PAL office in the region.
f) Surrender unused ticket for refund purposes to the Accounting Division or Fiscal
Operations Units, as the case may be.
g) Present his duly approved Travel Order Form No. 001, with the passport and
travel tax exemption certificate, if applicable at the PAL's Government Travel Ticket
Office (GTTO) at the 2nd Floor, S&L Office, Roxas Boulevard, Manila, in case of travel
abroad. For returning officer, the Revenue Attache Unit shall take charge of the required
Travel Order Form No. 001 so that necessary arrangement could be made to ensure that
the returning officer will get his plane ticket to the Philippines on time.
2. The Chief, Budget Division/Region Budget Examiner shall:
a) Earmark an account corresponding to the estimated expenses on Air Travel per
Office/Region every month.
b) Prepare Request for Obligation of Allotment (ROA)
3. The Chief Accountant/Regional Accountant shall:
a) Certify as to the availability of funds.
b) Assign the control number of Form No. 001 and maintain a logbook specifically
for the purpose.
c) Expedite processing of vouchers covering PAL charges.
4. The Chief, General Services Division/Chief, Administrative Branch shall:
a) Receive the charge invoice with copies of duly approved Form No. 001.
b) Prepare the disbursement voucher for the above charge.
c) Deduct from the total payments the value of credit memos received and attach the
original copies of the credit memos to the voucher.
d) Pay to PAL within 30 days from the date the bills are received. All transactions
emanating from the National Office shall be charged to the National Office Account with
PAL while transactions emanating from the Regional Offices are chargeable to the
respective Regional Offices Accounts. Accounts of the National Office and Revenue
Regions 3-A, 3-B, 4-A, 4-B, and 4-C are to be paid directly to PAL Vernida Office while
those of other regions are to be paid to the PAL Office in the region.
REPEALING CLAUSE:
This Revenue Memorandum Order modifies, amends or revokes portions of RMO No.
29-822 dated August 16, 1982 which are inconsistent with the provisions of this Order.
EFFECTIVITY:

Acting Commissioner
RMO 11-83
RMO 11-83 Prescribing the Policies, Guidelines, and Procedures in the
Implementation of the Memorandum of Agreement, dated March 7, 1983 between the
Philippine Airlines (PAL) and the Bureau of Internal Revenue (BIR).
March 29, 1993 March 29, 1993
SUBJECT : Prescribing the Policies, Guidelines, and Procedures in the

Implementation of the Memorandum of Agreement, dated March 7, 1983 between the
Philippine Airlines (PAL) and the Bureau of Internal Revenue (BIR).
TO : The Service Chiefs, Personnel and Administrative Service, and

Financial and Management Service; Regional Directors; Division Chiefs of the General
Services Division, Accountable Forms Division, Property Division, Accounting Division,
Budget Division, and all others concerned.
I. OBJECTIVE:
This Order is issued to implement the above Memorandum of Agreement between the
Philippine Air Lines (PAL) and the Bureau of Internal Revenue (BIR) with the primary
objective of attaining a fast, reliable, efficient and yet inexpensive means of document
transmittal from the Bureau Field Offices to the National Office and vice-versa.
II. SCOPE:
This Order also prescribes the policies, guidelines and procedures governing the
implementation of the first module of the Revenue Input Preparation Systems." (RIPS)
III. POLICY:
To carry out the above objective, the following policies shall be observed by all
concerned:
1. Effective March 7, 1983, PAL shall ensure the carriage of BIR shipments to and
from the National and Field Offices and the BIR to pay PAL on the basis of the
accumulated weekly shipments for both incoming and outgoing shipments.
2. Shipments payable to PAL shall be based only on authorized cargoes by any of
the BIR officials previously designated in the Agreement.
3. Prescribed documents are BIR Form 1010 (Shipment Order) and BIR Form 30.07
(Acknowledgment Receipt) and should be accomplished by the authorized BIR
designated units distributed as follows:
a) BIR Form 1010 (Shipment Order) - To be prepared in quadruplicate.
Original - To be presented to PAL for
attachment to the charge
invoice/bill.
Duplicate - file copy of PAL
Triplicate - Recipient of the shipment
Quadruplicate - copy for the signing
official/sender unit.
b) BIR Form 30.07 (Acknowledgment Receipt) - to be prepared in triplicate
Original - to be acknowledged by the
consignee and to be returned to
the sender unit.
Duplicate - file copy of the consignee.
Triplicate - file copy of the sender unit.
4. The acceptance from and delivery to BIR offices for cargo matters shall always be
covered by an airwaybill, a copy of which should be furnished the Chief of the General
Services Division, Property Division, or Accountable Forms Division for outbound cargo
from the National Office and the sender Region or District Office.
5. All transactions for outbound cargo emanating from the National Office shall be
charged to the National Office account with PAL while shipments from Regional Offices
are chargeable to the respective Regional Office Accounts, and collectible by PAL from
said offices. The basis of payment will be the original copy of the PAL charge invoice
and airwaybill supported by the duly signed Form 1010.
6. The Chiefs of Property, General Services and Accountable Division at the
National Office and the Chief of the Administrative Branch in the Regional Offices or the
designated authorized representative shall determine the urgency or degree of importance
of shipments as follows:
Express Cargo - shipments lifted on a first-available space basis which enjoys priority
over those accepted as general cargo.
RUSH - very urgent shipments, limited to only five (5) kilograms. It arrives at the
destination within twenty four (24) hours.
General Cargo - shipment are lifted on a subject-to-availability of space basis.
V-Cargo - shipments under the classification of valuable cargo.
Express Baggage - accompanied baggage in excess of what is allowed to a passenger free
of charge.
7. Cargo weighing for every shipment are to be conducted by BIR AND PAL
authorized cargo agent (PAL ACA) where offices are available for PAL Freight Section
in the Airport Cargo Office where there are no ACA office. Weighing should be
conducted in the presence of an authorized BIR representative who will authenticate
registered weight by affixing such weight figures in BIR form 1010.
8. All BIR offices concerned should indicate the customers code number assigned to
them in all their credit requests and/or communications with PAL.
IV. PROCEDURE:
A. ACCOUNTABLE FORMS DIVISION - this division is authorized to commit
shipments consisting of Revenue Tax Receipts, Revenue Official Receipts, Confirmation
Receipts, Documentary Stamps, Cigarette and Liquor Strip Stamps and other classified
accountable forms.
1. Prepare for shipment accountable forms being requisitioned as indicated in
General Form No. 45 (Requisition and Issue Voucher)
2. Determine if the shipment is to be accompanied or not.
3. Accomplish BIR Form 8.06 (Invoice Receipt), Form 1010, Form 30.07 and Form
001 if shipment is to be accompanied by a BIR representative.
4. Send thru the accompanying BIR personnel copies of Form 8.06 and Form 30.07
or thru the Mail, if shipment is unaccompanied.
5. For unaccompanied shipment, inform the consignee thru radio or telegram the
nature of the shipment, Airway bill number and request for confirmation of receipt by
radio or telegram.
6. Forward all acknowledged copy of Form 30.07 to the General Services Division.
B. PROPERTY DIVISION - this division is authorized to send thru PAL forms of
TAX returns and Reports under its custody including computer processed tax returns and
other documents to the Field Offices.
1. Sort, classify, pack and label all shipping matters according to destination and
degree of urgency.
2. Accomplish BIR Form 1010 and Form 30.07 per destination and degree of
urgency.
3. Send the original and duplicate copies of Form 30.07 to the consignee.
4. Monitor all shipments to assure the efficient and fast arrival thereof at their
respective destinations.
5. Forward acknowledged Form 30.07 to the General Services Division.
C. GENERAL SERVICES DIVISION -
1. Handling of Outbound Cargo - The General Services Division shall perform the
following:
a) Exercise discretionary powers to determine if the cargo merits conveyance thru
the facilities of PAL.
b) Sort, classify, pack and label all cargoes clearly according to destination and
degree of shipment urgency.
c) Prepare BIR Form 1010 and BIR Form 30.07 per destination and degree of
shipping urgency.
d) Forward the original and duplicate copies of Form 30.07 to the consignee.
e) Monitor the arrival of all shipments at their respective points of destination and
expedite the return of the acknowledged original copy of Form 30.07.
f) Consolidate all airwaybill, original copy of BIR Form 1010 and Form 30.07 prior
to preparation of voucher and check.
2. Handling of Incoming Cargo - The following procedures shall be observed:
a) Demand for the presentation of the copy of BIR Form 1010 and airwaybill. In
case BIR Form 30.07 is not handcarried by the PAL ACA, locate for the form inside the
shipment.
b) Verify the completeness of the shipment paying particular attention to the
quantity and condition of the packages and the contents thereof. Any damage or pilferage
on the shipment shall be listed and reported to the sending regional office and the PAL
ACA.
c) Acknowledge the original Form 30.07 and transmit it to the sending unit.
d) Sort, classify and deliver all documents received to the respective office
destination in the National Office.
D. Other Organizational Units in the National Office - Documents bound for the
Field Offices weighing at least five hundred grams and which would be more expensive
to be mailed shall be coursed thru the General Services Division.
The following procedures shall be followed by the other organizational units:
1. Sort and classify shipping matters in a single package according to destination. To
illustrate - Documents intended for Legal, Assessment, Specific Tax and Administrative
Branches of the Regional Offices shall be placed in separate envelopes. All envelopes
intended for a regional office shall be packed in one parcel addressed to the Chief,
Administrative Branch.
2. Indicate in each package the degree of shipping urgency.
3. Prepare indorsement letter indicating the number of packages, destination and
degree of shipping urgency.
4. Deliver the packages together with the indorsement letter to the General Services
Division, Receiving Section.
E. ACCOUNTING DIVISION - the following procedures shall be followed in the
processing of claims for payment to PAL:
1. Receive from the General Services Division the following documents:
a) Vouchers
b) Airwaybill
c) Original Copy of BIR Form 1010.
d) Original Copy of BIR Form 30.07
e) Charge Invoice
2. Verify if the airwaybill, BIR Forms 1010 and 30.07 refer to a common shipment.
3. Examine and verify the authenticity of the signatures appearing in BIR Forms
1010 and 30.07.
4. Determine the accuracy of the money claims of PAL by checking the
weight/volume of the shipment and degree of shipping urgency against the applicable
rates.
5. Official Receipt should be required for all payments.
F. REGIONAL OFFICES - The Administrative Branch of the Regional Office shall
handle all incoming and outgoing shipments including the requisitioning of all forms
from the National Office.
1. Handling of Outbound Cargo - The Administrative Branch shall perform the
following:
a) Sort, classify, pack and label all cargoes clearly according to destination and
degree of shipping urgency.
b) Accomplish BIR Form 1010 and 30.07.
c) Effect transfer to shipment to airport within 24 hours.
2. Handling of Incoming Cargo - with regards to the Incoming Cargo the following
procedures shall be followed:
a) Require the presentation of BIR Form 1010 and 30.07.
b) Check the condition of the package and verify completeness of the contents. Any
damage or pilferage on the shipment shall be listed and reported to the sending office and
the PAL ACA.
c) Acknowledge BIR Form 30.07 if shipment is in order and transmit the original
copy to the sending unit.
d) Deliver all shipments to their final destination in the Regional Office.
3. Payment of Bills - PAL thru its provincial branches shall send all the airwaybills
with corresponding Form 1010 attached to the Administrative Branch of the Regional
Offices.
a) Form 30.07 shall be consolidated with the Airwaybills and BIR Forms 1010 prior
to voucher preparation.
b) The Administrative Branch shall transmit to the Regional Accountants' Office the
consolidated Forms 1010 and 30.07, Airwaybill, Voucher, and Charge Invoice.
c) The Regional Accountant shall determine the accuracy of the money claims of
PAL by considering the weight of the shipment, degree of shipping urgency and the
applicable rates prior to check signing by the Director or Asst. Director.
V. MONITORING - To determine the efficiency of the system and the costs

involved, the following units are mandated to perform the following:
1. The different instrumentalities of the BIR as well as the PAL stations/offices
concerned shall see to it that the airwaybill and BIR Form 1010 are properly
accomplished including prompt transmittal to Domestic Revenue Accounting Division,
Vernida, Makati in order that its monthly summary report to include flight details on a
per shipment basis copy could be made, of which shall be furnished the Information
Systems Development (ISDS), Office of the Commissioner.
2. The Revenue Computer Center shall accomplish on a monthly basis a report
containing details on the:
a) Volume of documents received per Region, and
b) Time-duration of shipment
3. The Budget Division shall monitor charges in the utilization patterns of the
organizational units.
Any unusual increase or decrease of expenses as compared with the previous years, shall
be summarized monthly, a copy of which shall be forwarded to the ISDS.
4. The Accountable Forms, Property and General Services Divisions shall monitor
the compliance of Regional Officer with regards to prompt transmission of BIR Form
30.07. A summary of Form 1010 whose corresponding Form 30.07 have been received
after three (3) weeks should be furnished the ISDS.
VI. REPEALING CLAUSE:

All issuance, orders or portion thereof which are inconsistent with this memorandum
order are hereby amended or revoked.
VII. EFFECTIVITY:

Acting Commissioner
RMO 10-83
RMO 10-83 Examination for Revenue Examiners, Revenue Inspectors, Seizure Agents
and Others.
March 28, 1983 March 28, 1983
SUBJECT : Examination for Revenue Examiners, Revenue Inspectors, Seizure

Agents and Others.
TO : All Internal Revenue Officials and Others Concerned.
I. OBJECTIVES
This Order is issued in line with the Bureau's human resources development program to:
A. Improve technical proficiency of and to instill professionalism among BIR
personnel;
B. Prepare them for the establishment of a National Tax Service; and
C. Encourage self-improvement.
II. POLICIES AND PROCEDURES

In order to attain the aforementioned objectives the following policies and procedures are
hereby promulgated for compliance by all concerned.
A. Periodic written examinations shall be given to BIR employees;
B. The examinations shall be given by sector or functional grouping and in
accordance with the hierarchy of positions in the Bureau;
C. Examinations for Revenue Examiners, Revenue Inspectors, and Seizure Agents
shall be held in July, 1983. The specific date shall be announced later.
D. Examinations for Collection Agents, Accountants, Budget Examiners & Officers,
Records Officers, Information Officers, Planning Officers, etc. are scheduled later this
year;
E. Subject coverage of the examinations shall be those pertinent to the positions
examinees hold and the functions discharged; and
F. Employees who would like to qualify for the positions for which examinations are
given may apply to take the same.
III. EFFECTIVITY

Acting Commissioner
RMO 9-83
RMO 9-83 Amendments and Inclusions to Revenue Memorandum Order Nos. 33-82
and 2-83 under the Second Phase of "Operation Linis"
March 16, 1983 March 16, 1983
SUBJECT : Amendments and Inclusions to Revenue Memorandum Order Nos.

33-821 and 2-832 under the Second Phase of "Operation Linis"
TO : All Operation Linis Task Forces, Revenue Service Chiefs,

Revenue Regional Directors, Revenue District Officers and Others Concerned.
I. PURPOSE
There is an insistent clamor from "Operation Linis" Task Forces at all levels, as well as
from the taxpaying public, to simplify the manner of computing the amount of taxes to be
paid in the abatement or compromise of tax delinquencies under "Operation Linis".
Likewise, the resolution of issues concerning the treatment of tax delinquencies under
"Operation Linis" arising from (1) the issuance of dishonored checks in payment of
internal revenue taxes, and (2) the implementation of the New Withholding Tax System,
requires immediate attention for the information, guidance and faithful compliance by all
concerned.
II. AMENDMENTS AND INCLUSIONS

The following amendments and inclusions to Revenue Memorandum Order Nos. 33-82
and 2-83 dated October 8, 1982 and January 31, 1983, respectively, are hereby
promulgated in the proper implementation of all issuances under "Operation Linis":
1. The bases of the computation of the amounts to be paid in the
abatement/compromise of delinquent accounts under this Program are the taxes and
increments due as they appear in the IBM and Form 40.00 accounts. In other words,
updating of the increments due up to the day of payment is no longer required. This
method would do away with the complicated computation of interests and other charges
to be added to the accounts due as indicated in said lists of delinquent accounts, and
would likewise be more acceptable to delinquent taxpayers who desire to take advantage
of this liberalized way of settling their tax liabilities. What remains to be done by the
different task forces is to multiply the taxes due including the increments appearing on
the IBM and Form 40.00 Accounts by the percentages set forth under Section III -
JURISDICTIONAL RESPONSIBILITY - of RMO 2-83. The product thereof is the sum
to be paid by the taxpayer.
2. In case part of the tax delinquency has already been paid, the outstanding balance
thereof shall be the basis of the computation as detailed above.
3. Dishonored checks in payment of internal revenue taxes shall not be the subject of
abatement or compromise. Full settlement of the tax liability, including increments
subject to delinquency up to the day of payment must be required.
4. Likewise, withholding tax liabilities are not entitled to abatement or compromise.
Settlement thereof shall include the collection of surcharges, interests and compromise
penalties incident to violations of the Withholding Tax Laws and Regulations. Internal
revenue taxes withheld by withholding agents partake of the nature of trust funds for the
Government and failure to remit the same is a criminal offense.
III. REPEALING CLAUSE

The provisions of Revenue Memorandum Order Nos. 33-82 and 2-83, dated October 8,
1982 and January 31, 1983, respectively, and other issuances inconsistent herewith are
hereby repealed or modified accordingly.
IV. EFFECTIVITY
This Order shall take effect immediately.

Acting Commissioner
RMO 8-83
RMO 8-83 Last Priority in Audit and Investigation.
March 23, 1983

SUBJECT : Last Priority in Audit and Investigation.
TO : The Service chiefs, Sector Operations and National Assessment

Offices, Division Chiefs, thereunder, Regional Directors, Revenue District Officers and
Others Concerned.
I. STATEMENT OF POLICY -
A policy to encourage voluntary tax compliance, reduce administrative costs and
minimize irritants incident to the investigation of taxpayers is hereby adopted, whereby
taxpayers complying with certain prescribed conditions will be given the last priority in
the audit and investigation of tax returns.
II. SCOPE -
The privilege of last priority in audit and investigation shall extend only to the income
and percentage tax returns of taxpayers in a given year starting 1982, and shall not
include the gross income tax returns of individuals reporting gross compensation income
under Sec. 28(b) of the Tax Code. As used herein, the term "taxpayers" refers to
individuals, corporations, estates and trusts.
III. DETERMINATION OF LAST PRIORITY PRIVILEGE -
1. "Last priority" means that the audit and investigation of returns shall be conducted
only when authorized by the Commissioner of Internal Revenue. The privilege of last
priority shall not, however, apply to the following cases:
1.1 Where there is strong evidence showing the commission of fraud; or
1.2 Where verification is necessary for the Commissioner of Internal Revenue to
obtain information relevant to the tax liability of another person pursuant to Sec. 7(b) of
the National Internal Revenue Code, as amended; or
1.3 Where the taxpayer requests for a refund or credit of any taxes paid.
2. Taxpayers who in their income or percentage tax returns in a given year have
made payments amounting to at least 25% above the payments made in the immediately
preceding year shall be entitled to qualify for the privilege of last priority herein granted,
subject, however, to the conditions prescribed under 2.1, 2.2 and 2.3 hereof. Likewise,
amendments to income and percentage tax returns as well as deficiency tax assessments
issued by this Office shall be included, in the computation of the 25% needed for the
availment of this privilege.
To illustrate:
INCOME TAX
a. Percentage tax paid for taxable year

a. Income tax paid for taxable year 1982
per return P125,000.00
b. (1) Income tax paid for taxable year
1981 (per return and deficiency
tax assessment, if any) 100,000.00
(2) Add: 25% thereof 25,000.00
(3) Total income tax paid for the year
1981 plus 25% thereof 125,000.00
c. Percentage increase of tax payment 25%
PERCENTAGE TAX
a. Percentage tax paid for taxable year
1982 per return P100,000.00
b. (1) Percentage tax paid for taxable
year 1981 (per return and deficiency
tax assessment, if any) 80,000.00
(2) Add: 25% thereof 20,000.00
(3) Total percentage tax paid for
the year 1981 plus 25% thereof 100,000.00
c. Percentage increase of tax payment 25%
2.1 Where the tax payment for a given year in either the income or percentage tax
returns does not exceed that of the immediately preceding year by 25%, the taxpayer
concerned shall not be accorded the privilege of last priority with respect only to that
return which does not comply with the 25% requirement. In such a case, the return which
fails to comply with said requirement shall be still subject to the regular audit and
investigation. For instance, a taxpayer made the following payments for 1981 and 1982:
1981 1982 Percentage Increase
of tax payment
Income Tax P100,000.00 P125,000.00 25%

Percentage Tax 80,000.00 92,000.00 15%
As seen from the above illustration, the taxpayer cannot avail of the privilege with
respect to his percentage tax return since his tax payment for percentage tax in 1982 is
only an additional of 15% which is less than the 25% requirement.
2.2 In the case of either income or percentage tax returns where no tax payments are
declared per return, the same shall not qualify for availment of the privilege of last
priority unless the minimum tax payments in 2.3 hereof are made.
2.3 Minimum income and percentage tax payments for any given year, starting 1982
must not be lower than P10,000 for individuals and P50,000 for corporations in order that
availment shall be effective.
IV. MECHANICS FOR AVAILMENT -
1. A taxpayer availing of this privilege should upon filing the current income and
percentage tax returns accomplish a "SUPPLEMENTARY STATEMENT", (ANNEX
"A" AND/OR ANNEX "B") in duplicate to be attached to the corresponding tax returns.
2. Two xerox or photostat copies of the following documents must be attached to the
supplementary statement:
To Annex A:
a) Income tax returns filed for the current and prior taxable years; and
b) Confirmation receipts covering income tax payments for the current and prior
taxable years, per return and per investigation.
To Annex B:
a) Percentage tax returns filed for the current and prior taxable years; and
b) Confirmation receipts covering percentage tax payments for the current and prior
taxable years, per return and per investigation.
It is desired that this Order be strictly complied with and should be given as wide a
publicity as possible.
Acting Commissioner
RMO 7-83
RMO 7-83 Issuance of Permanent Tax Account Numbers.
March 4, 1983 March 4, 1983
SUBJECT : Issuance of Permanent Tax Account Numbers.
TO : All Service Chiefs, Division Chiefs, Regional Directors, Revenue

District Officers, Collection Agents and Others Concerned.
To ensure that all taxpayers (individual and corporate) are issued permanent Taxpayer
Account Numbers (TAN) for the purpose of facilitating their easy identification in all
their transactions with the Bureau, the following procedures are hereby promulgated.
I. SCOPE:
All taxpayers (individual and corporate) who have not been issued a permanent TAN or
are presently using a temporary or old TAN as of the promulgation of this Order shall be
required to file an application for the same with their respective Revenue District Offices.
II. PERMANENT TAN:

The permanent TAN consists of a combination of twelve (12) numbers and letters and
incorporates the initial of the family name of the taxpayer. The temporary TAN consists
of seven (7) digits while the old TAN consists of eight (8) digits. The format of each type
of TAN is exemplified as follows:
a. Temporary :. . .
b. Old : ...
c. Permanent : ...
Within five (5) days after receipt of the application, the Data Processing Center shall
generate the taxpayer's permanent TAN. While the application is being processed, the
application number together with the RDO code shall serve as temporary TAN until the
ID card bearing the permanent TAN shall have been issued to and received by the
taxpayer-applicant.
III. FILING, RECEIPT AND HANDLING OF APPLICATION:

A. Taxpayer
If a taxpayer has no TAN or if the TAN used is temporary or old as shown in Section II
hereof, a new permanent TAN must be secured as follows:
a. Secure an application form (sample attached) from the nearest Revenue District
Office (RDO) or from the National Office receiving clerk (if he must file any document
with the Bureau).
b. Fill up the application form by printing in block letters, except the signature, and
taking note of the instructions printed in the application form.
c. Submit the accomplished form to the receiving clerk.
d. Secure the taxpayer's copy of the application from the Revenue District Officer or
BIR receiving clerk and use the pre-printed number on the form as temporary TAN
pending receipt of the TAN ID Card.
e. Thirty (30) days after filing the application, secure the permanent TAN ID Card
from the BIR Office where the application was filed.
B. BIR Receiving Clerk (Collection Agent or National Office)
Upon receipt of any document, any BIR employee authorized to receive documents from
the taxpayers shall first determine whether the document being filed reflects the
permanent TAN. If it does not, he shall observe the following procedure:
1. For National Office receiving clerks:
a. Request the taxpayer to fill up an application form for permanent TAN.
b. See to it that the application form submitted by the taxpayer is duly accomplished.
c. Certify the application by affixing his signature thereon.
d. Indicate the pre-printed number as the taxpayer's temporary TAN on the
document being filed.
e. Detach the certificate and return to the taxpayer.
f. Transmit all applications to the DPC at the end of day.
g. Distribute the permanent TAN ID Cards to the taxpayer's concerned.
h. Maintain a logbook containing the serial application number and the
corresponding applicant's name.
2. For Collection Agent receiving clerks:
a. Request the taxpayer to secure and file an application form for permanent TAN
from the nearest RDO.
b. Indicate the pre-printed number, from the taxpayer's copy of the application form,
as his temporary TAN on the document being filed.
C. Revenue District Officer or His Duly Designated Representative.
The Revenue District Officer or His Duly Designated Representative shall process TAN
applications filed at his office. The procedure is as follows:
1. See to it that the application form submitted by the taxpayer is properly
accomplished. All entries shall be in block letters except the signature. Inform the
taxpayer that the TAN ID Card may be secured from him after thirty (30) days.
2. Maintain a logbook containing the serial application number and the
corresponding applicant's name.
3. Certify the application by affixing his signature thereon.
4. Detach the certificate and return to the taxpayer.
5. Forward to the Data Processing Center all applications received within the week
every last working day of the week. The document shall be transmitted through the Pouch
System, if available, or through the regular transmittal routes (e.g., messengerial service,
mail, etc.)
6. Distribute the permanent TAN ID Card to the taxpayers concerned or to the office
of origin. File the registers for reference.
D. Data Processing Center
The Data Processing Center must process all application for TAN daily and generate
TAN within five (5) days, at most, from receipt thereof. The procedure is as follows:
1. Log all applications received.
2. Generate the permanent TAN.
Note: Applications from the National Office must be given priority in processing.
3. Print the permanent TAN ID Cards and the covering registers.
4. Update permanent TAN master file accordingly.
5. Return to originating RDO or to the National Office the printed TAN ID Cards,
registers and applications.
IV. EFFECTIVITY
This Order supersedes all instructions and issuances inconsistent herewith and shall be
effective immediately.

Acting Commissioner
RMO 6-83
RMO 6-83 Operation of the Data Processing Center
March 15, 1983 March 15, 1983
REVENUE MEMORANDUM ORDER NO. 6-83
TO : The Officer-in-Charge, Data Processing Center All DPC Personnel

Concerned.
In order to meet the exigencies of the service and to improve operation of the Data
Processing Center, the following personnel are hereby instructed to transfer:
NAMEFROM TO
1. Ms. Zenaida Austria Acting Division OIC, in charge of

Chief All data control of
Machine Operations transactions of new
Division systems developed
by RISSI.
2. Mr. Jess Ramos ISDS (Information OIC, in charge of
Systems Development Staff, Machine Operations
Office of the Commissioner Division (including
DPC Computer
Library and Data
Entry)
3. Mr. Carlitos Camillo Systems and Programming Machine Operations
Division Division
Ms. Rosital Kasil shall be the Officer-in-Charge of all data control of transactions of
existing systems.
The order shall take effect on 15 March 1983.
RUBEN B. ANCHETA
Acting Commissioner
RMO 5-83
RMO 5-83 Policies, guidelines and procedures on Tax Fraud Investigations conducted
by Special Investigation Units in Revenue Regions.
February 25, 1983 February 25, 1983
SUBJECT : Policies, guidelines and procedures on Tax Fraud Investigations

conducted by Special Investigation Units in Revenue Regions.
TO : All Regional Directors Chief, Tax Fraud Division, Chiefs of

Special Investigation Units and all Others Concerned.
Pursuant to the provisions of Revenue Administrative Order No. 5-80 dated December 8,
1980 and in order to effectively implement the tax fraud program of the Bureau, the
policies, guidelines and procedures set forth in this RMO are hereby prescribed for
compliance by all concerned.
I. JURISDICTION
A. Special Investigation Units organized in Revenue Regions shall have jurisdiction
over the following:
1. Tax fraud cases referred to the Region by the Tax Fraud Division;
2. Tax fraud cases initiated within the Region under the following conditions;
a) where the taxpayer's legal residence or principal place of business as indicated in
his tax returns is within the jurisdiction of the Revenue Regional Office;
b) where the taxpayer has his legal residence or principal place of business in one
Region but has businesses or engages in transactions in one or two other adjacent
Revenue Regions, the Special Investigations Unit that initiated the investigation shall
have jurisdiction over the case. However, investigation of such cases shall be done in
coordination with the Special Investigation Unit for the other regions involved.
c) Examples of cases which have fraud potentials that may be initiated by the Unit:
(1) Where taxpayers declaration in their return show a very low percentage of net
income compared to gross sales or receipts, after due consideration of the normal
percentage rates of similarly situated businesses within the region or district;
(2) Where there is an apparent disparity of the income declared by taxpayers
compared to their standard of living and lifestyle, their property acquisitions and their
extra curricular activities such as, as members of exclusive clubs and resorts;
(3) Apparently uniform income declarations of taxpayers every taxable period, for the
past three years, and where the findings of the Revenue District Offices in the routine
examination of the accounting records of said taxpayers are minimal or that the
discrepancies discovered are practically the same for the past three years;
(4) Those covered by letters or affidavits of denunciation of tax evasion schemes of
taxpayers within the Region.
3. Examination of accounting records of taxpayers whose businesses or sources of
income are located in two or more districts within the Revenue Region;
4. Examination of transfer tax cases where the real and personal properties of the
deceased are situated in two or more Revenue Districts within the Region;
5. Examination of accounting records of branch offices for percentage tax purposes,
under Revenue Memorandum Circular No. 1-82;
6. Gathering of facts on administrative cases of Regional personnel in close
coordination with the Legal Branch.
B. Where investigation would involve two or more non-adjacent Regions, the fraud
case shall come under the investigative jurisdiction of the Tax Fraud Division.
C. If a taxpayer is being investigated simultaneously by two or more Regions or by
the Tax Fraud Division and another Region (without one unit knowing of the other
investigation), the Chief, Tax Fraud Division shall, upon learning of the multiple tax
probes being conducted, and after considering all factors involved, recommend to the
Commissioner the unit that should pursue the investigation. The Commissioner shall
make the decision on which investigating unit shall have jurisdiction over the case.
D. Policy cases shall fall under the investigate jurisdiction of the Tax Fraud Division
or any other investigating unit designated by the Commissioner.
E. The Regional Director may, when circumstances so warrant, refer any tax fraud
case to the Tax Fraud Division for completion.
II. RECORDING
A. Special Investigation Units shall:
1. Maintain a system of retrieval of information to serve as basis for initiating tax
fraud cases in the Region; information obtained in the Region which would affect tax
liabilities of taxpayers of other revenue regions shall be forwarded to the Regional
Director concerned.
2. Maintain a record of tax fraud cases handled by the Unit;
3. Keep a separate log book on all denunciations or information received in the
Region;
4. Submit monthly reports on the prescribed format on its tax fraud cases and
information received, to the Commissioner, Attention: Tax Fraud Division, within ten
(10) days after the end of each month.
B. The tax Fraud Division shall:
1. Maintain a systematic record of tax fraud cases handled including information and
denunciations received by Regional Offices so that investigations conducted by two or
more investigating units on the same taxpayer can be easily detected;
2. Consolidate reports submitted by the Revenue Regions on the status of tax fraud
cases being handled by the Special Investigation Units for submission to the
Commissioner.
III. INVESTIGATION PROCEDURE
A. Preliminary Investigation -
1. Upon receipt of an information or denunciation, a preliminary investigation of the
taxpayer concerned shall be conducted.
2. Even if no information is received on a taxpayer, but if a review of at least the
past three years of his tax declarations shows a wide disparity between income declared
and property acquisitions or expenses incurred for the same period, a preliminary
investigation may be conducted to establish a tax evasion case.
3. The examiner shall refer to returns and other records available in the Region or
districts, other offices or any third party without contact with the taxpayer concerned to
establish the veracity of the information or denunciation received. Access to records of
government or private offices, as authorized under Section 7 of the Tax Code, as
amended, must be availed of for this purpose.
4. A report shall be rendered on the results of the preliminary investigation for the
approval of the Regional Director or of the Assistant Director if so authorized by the
Regional Director.
B. Formal Investigation -
1. If a prime facie case is established on the taxpayer, a letter of authority shall be
issued by the Regional Director.
2. Tax fraud investigations shall be conducted with minimum contact with the
taxpayer. Only after a strong case is established shall the taxpayer be appraised of the
results of the investigation and be given the opportunity to present his own evidence or
explanations.
3. Examiners shall exert particular efforts to obtain the necessary documentation for
the successful prosecution of a fraud case. Assistance of the Legal Branch shall
continuously be sought particularly on the kind and quality of evidence needed.
4. If no finding of criminal fraud can be established at any time during the
development of a case, the Chief of the Special Investigation Unit shall render a report to
the Regional Director. If the Director, after consultation with the Chief, Legal Branch
concurs with the recommendation, he shall arrange a coordinated investigation with the
Revenue District Officer concerned for purposes of completing the case. In all cases
(whether civil or criminal) the resulting tax collections or assessment shall be credited to
the Revenue District Office concerned. The examiners concerned shall be given credit for
purposes of their individual performance.
IV. PROCESSING OF INVESTIGATION REPORTS -
The following procedure shall be followed in the processing of reports of investigation
emanating from the Special Investigation Units.
1. Reports of investigation on completed tax fraud cases shall be submitted to the
Office of the Regional Director.
2. The Regional Director shall refer the case to a Special Review Team composed of
representatives from the Legal Branch and the Review Unit of the Assessment Branch for
proper review and evaluation.
3. When the recommendation of the Special Investigation Unit is for the criminal
prosecution of the taxpayer, the Regional Director shall transmit the docket of the case to
the Prosecution Division for appropriate evaluation and review. If the Chief, Prosecution
Division, after said evaluation and review, finds the case for the criminal prosecution of
the taxpayer to be in order, be shall return the docket to the Revenue Region, for the
filing of the necessary criminal complaint.
4. When a criminal fraud case has not been established, but the case calls for the
imposition of the civil fraud penalty of 50%, the entire docket of the case shall be
forwarded to the Legal Office, Attention: Prosecution Division, for review. If the
Prosecution Division finds that the evidence of fraud is clear and convincing and,
therefore, the imposition of the 50% surcharge is proper, he shall forward the docket to
the Office which has the authority to approve the particular case, as provided for under
RMO 65-75 and RMO 22-80, for the issuance of the assessment notice or letter of
demand.
5. Non-fraud cases handled by the Special Investigation Unit shall be processed in
accordance with the procedures on the flow of reports of such cases, as provided for
under general rules and issuances.
6. The Regional Director shall submit a capsule report to the Commissioner on all
tax fraud cases closed in the Revenue Region.
V. REPEALING CLAUSE -
The provisions of Revenue Memorandum Orders and other pertinent issuances
inconsistent herewith are hereby revoked or amended accordingly.
VI. EFFECTIVITY -
Acting Commissioner
RMO 4-83
RMO 4-83 Enjoining Revenue Officials to Avail of the Exchange of Information
Provision of RP Tax Treaties.
SUBJECT : Enjoining Revenue Officials to Avail of the Exchange of

Information Provision of RP Tax Treaties.
TO : All Revenue Service Chiefs, Regional Directors, Division Chiefs,

Revenue District Officers, Fieldmen and Others Concerned.
In view of the increasing internationalization of economic relations, it is essential that the

Bureau keep abreast of developments obtaining in other countries which are relevant to
the administration of our tax laws. Therefore, where the needed information is available
in countries with which the Philippines has tax treaties, all revenue officials are hereby
enjoined to request for such information, under the exchange of information provisions of
our tax treaties.
I. Information which may be requested. - The information which may be requested
includes but is not limited to the following:
a. Any information necessary for the proper determination/assessment of the income
tax of taxpayers. This includes -
(1) Name of a particular Filipino citizen, his investments, real property interest and
income in that country;
(2) Confirmation of whether or not a particular person claiming for a tax treaty
benefit is in fact a resident of that country;
(3) The true beneficial owner of a dividend, interest, or royalty held by a nominee or
trustee;
(4) Information needed for the proper allocation of taxable profits and expenses
between a related company in that country and in the Philippines. This refers to transfer
pricing, i.e., the nature and amount of expenses, prices, and charges by a head office,
parent company or any other controlling or controlled corporation which are charged,
wholly or partially, to its branch, subsidiary, or controlled corporation in the Philippines.
The transaction may cover -
a. sales of tangible goods,
b. interest on loans,
c. royalties,
d. payment for services rendered, and
e. others; and
(5) Income of public entertainers paid by a resident of a treaty country for services
rendered in the Philippines.
b. Any information which will help in the administration of our income tax laws
even if there is no question on the application of any particular provision in the
Convention between the Philippines and with our tax treaty partners, such as, laws,
administrative rulings, court decisions, official publications and others.
ILLUSTRATIVE CASE:
1. A Philippine company supplies goods to an independent company in a treaty
country. Information may be requested from that treaty country re: the price paid in that
country, to verify the price stated in the tax return of the Philippine company.
2. A Philippine company sells goods through a company in a third state (possibly a
tax haven country) to a company in a treaty country. The companies may or may not be
associated and there is no tax convention between the Philippines and the third state nor
between our treaty partner with that third state. Information may be requested from our
treaty partner about the price paid by the company in that country to ensure the correct
assessment of the profits of the Philippine company.
3. Information may also be requested from our treaty partner about the prices
charged by a company or group of companies in that country even if Philippine
companies have no business dealings with their companies, to check, by direct
comparison, the prices charged by Philippine companies (e.g., prices charged by
company or a group of company in a dominant position).
II. Countries where information may be requested. - Information may be requested
from the following countries:
C o u n t r y Date of Effectivity
of Treaty
1. Sweden January 1, 1970

2. Denmark January 1, 1974
3. Singapore January 1, 1977
4. Canada January 1, 1977
5. France January 1, 1978
6. United Kingdom January 29, 1978
7. Pakistan January 1, 1979
8. Australia January 1, 1980
9. Japan January 1, 1981
10. Belgium January 1, 1981
11. New Zealand January 1, 1982
12. United States of America January 1, 1983
13. Indonesia January 1, 1983
14. Finland January 1, 1982
15. AustriaJanuary 1, 1983
III. Procedure. - All request for information must be filed in BIR Form No. TC-003.
Revenue officials making the request shall accomplish the said form, secure the
endorsement of their superior indicated therein and transmit the same to the Revenue
Service Chief (Sector Operation Office, or National Assessment Office or Legal Office)
having supervision over them. Revenue officials from the National Office not under the
supervision of any of the said Service Chiefs shall course their request to the Revenue
Service Chief, Legal Office. The Service Chief concerned shall then indicate in the form
his comments and recommendation and submit the same to the Commissioner for his
consideration. If the recommendation is favorable, there should be attached to the form, a
draft letter-request of the Commissioner to the competent authority of the country where
the request is addressed.
Please be guided accordingly.
RUBEN B. ANCHETA
Acting Commissioner
BIR FORM NO. TC-003
REQUEST FOR INFORMATION
FROM A FOREIGN COUNTRY
____________________
DATE
The Commissioner of Internal Revenue
Diliman, Quezon City
The information hereinbelow described is requested.
1. Country where the information may be obtained. ______________________
2. Name of Taxpayer involved (if any). ________________________________
3. Nature and kind and information requested. ___________________________
_______________________________________________________________
______________________________________________________________
4. Purpose: _______________________________________________________
5. Is the information requested not available locally: _______________________
Reason: ________________________________________________________
6. Approximate date when the information is needed: ______________________
Approximate date when the need will prescribed: _______________________
________________________
(Official Requesting)
Position ___________________
Recommended by:
_______________________ ______________________
District Director Regional Director
Date ___________________ Date __________________
COMMENTS AND RECOMMENDATION

__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
___________________________
The Chief, Sector Operations Office
National Assessment Office or
Legal Office
Date _______________________
RMO 3-83
RMO 3-83 Strict compliance with Revenue Memorandum Circular No. 1-82
Regarding the place of filing of returns and payment of taxes of a branch
February 10, 1983 February 10, 1983
SUBJECT : Strict compliance with Revenue Memorandum Circular No. 1-821

Regarding the place of filing of returns and payment of taxes of a branch
It has been brought to the attention of this Office that some mining entities, whose places
of operation are located in the provinces, are still paying their mining taxes in the Metro
Manila Regional Offices where their head offices are situated, in violation of the
provisions of Revenue Memorandum Circular No. 1-82. And such violation has been
abetted by the said Metro Manila Regional Offices by accepting the payments of said
taxes.
Section 2562 of the Tax Code and the abovementioned Revenue Memorandum Circular
provide that the filing of the returns and payment of the taxes shall be done in the
Regional Offices where the mines are located. The returns must state the quantity and the
actual market value of the mineral or mineral products to be removed because these are
the bases for the imposition of the tax; and this tax is due and payable upon the removal
of the minerals from the locality where mined.
The purpose of requiring the filing of the return and payment of the mining taxes in the
place of operation is to achieve better tax enforcement and administration. Needless to
state, the local office of the BIR can better check the quantity and kind of the products
being removed than the Regional Offices in Metro Manila which are so far away from the
mine sites. The local jurisdiction scheme was adopted under Revenue Memorandum
Circular 1-82 so that the Bureau can pursue its continuing program of increased tax
collection, aside from the legal rationale discussed in the Circular. And the local office
was also given the authority to examine/investigate the tax liabilities of the mining
entities in its territorial jurisdiction so that the avowed purpose could easily be attained.
In this regard, therefore, all Regional Directors are hereby instructed not to accept
payments of taxes on minerals and mineral products removed from mine sites outside of
their jurisdiction even if the head offices of said sites are situated within their territory.
Violation of this instruction will subject the erring employees to an administrative
liability. On the other hand, the Regional Directors whose jurisdiction include the places
where the mining operations are actually being conducted, are hereby instructed to
always see to it that said operations are closely watched with the end in view of
maximizing the capability of the Bureau to collect all mining tax due.
The provisions of this Revenue Memorandum Order are hereby made applicable also to
the charges on forest products, as well as to the percentage taxes the returns on which
shall be filed and the taxes thereon to be paid with the offices of the Revenue District
Officer, Collection Agent or authorized Municipal Treasurer of the place of business
operations as provided for in Revenue Memorandum Circular No. 1-82.
Strict compliance with this Order is enjoined.

Acting Commissioner
RMO 2-83
RMO 2-83 Criteria for the abatement or compromise of a delinquent account due to
insolvency or financial difficulty of a taxpayer and other circumstances provided for in
RMO No. 33-82 dated October 8, 1982.
January 31, 1983 January 31, 1983
SUBJECT : Criteria for the abatement or compromise of a delinquent account

due to insolvency or financial difficulty of a taxpayer and other circumstances provided
for in RMO No. 33-821 dated October 8, 1982.
TO : All Revenue Service Chiefs, Revenue Regional Directors, Chiefs

of Branches, Revenue District Officers, Revenue District Collection Supervisors and
Others Concerned.
I. PURPOSE
This Revenue Memorandum Order is being issued as a complementing measure to
Revenue Memorandum Order No. 33-82 dated October 8, 1982 to establish the criteria or
guidelines in considering the offer by a taxpayer of abatement or compromise of his tax
delinquency based on the facts and/or circumstances enumerated therein to ensure
uniform implementation of the second phase of "Operation Linis"
II. CIRCUMSTANCES UNDER WHICH A DELINQUENT ACCOUNT MAY BE

ENTITLED TO ABATEMENT OR COMPROMISE
A. Insolvency or financially unable to pay
The taxpayer is insolvent or in financial distress if -
(a) His/Its liabilities, excluding tax liabilities, are equal to, or more than, his/its assets
as shown by his/its latest audited financial statement certified to by an independent
Certified Public Accountant (CPA) not black-listed by the BIR or certified correct by the
taxpayer if the financial statement does not require a CPA certificate; or
(b) His source of livelihood derived solely from compensation income is barely
enough to support his family.
B. The assessment or letter of demand was issued apparently to beat the prescriptive
period.
(a) Cases like jeopardy (table) assessments where all or 50% of the expenses claimed
were disallowed by the revenue examiner to beat the prescriptive period without giving
the taxpayer the chance to be heard or
(b) Where the taxpayer failed to respond to the notice of assessment or letter of
demand due to causes beyond his/its control, and that he/it would have paid the
deficiency tax had he/it been given a chance to present his/its side.
C. Liability of stockholder with unpaid subscribed stocks
If the corporation was dissolved, leaving no leviable properties and the successor-in-
interest cannot be ascertained, the Task Forces at all levels shall demand from all
stockholders with unpaid subscribed stocks to pay their proportionate shares in the tax
liability of the corporation, but not more than their unpaid subscribed stocks. No offers of
compromise will be entertained in these cases.
III. JURISDICTIONAL RESPONSIBILITY

A. Under RMO No. 33-82, delinquent taxpayers, whose tax liabilities are under the
jurisdictional amounts of District and Regional Task Forces, offering to abate or
compromise the same below 50% of the deficiency tax (including increments up to the
day of actual payment) shall be forwarded to the National Task Force for consideration,
except as authorized hereunder:
(a) The District Task Forces may accept offers of settlement by compromise of not
less than 25% of the deficiency taxes as defined above, if the tax liabilities are not over
P5,000.00 subject to the approval of the Regional Task Forces.
(b) The Regional Task Force may accept offers of settlement by compromise of not
less than 30% of the deficiency taxes as defined above, if the tax liabilities are over
P5,000.00 but not more than P20,000.00.
(c) The National Task Force may accept offers of settlement by compromise of not
less than 35% of the deficiency taxes as defined above, if the tax liabilities are over
P20,000.00 but not more than P50,000. Other offers of compromise settlement of
delinquent accounts involving P50,000 or more may be accepted subject to the approval
of the Commissioner or his authorized Deputy.
(d) Task Forces accepting compromise settlements of less than 50% of the deficiency
taxes under Sub-paragraphs a, b and c of this Section shall submit summary reports to the
Revenue Service Chief (Collection) concerning the same not later than the 10th day
following the end of each month. Said reports shall include (1) the name and address of
the taxpayer, (2) Assessment/Demand No., (3) Kind of tax, (4) Amount Due (including
increments), (5) Amount paid and (6) ROR or RTR/CR Number, date, and place of
payment.
B. Delinquent accounts elevated to a Court of competent jurisdiction may be
compromised upon agreement between the delinquent taxpayer and the BIR with the
approval of said Court. BIR trial attorneys handling delinquent tax cases in court shall be
guided by RMO No. 33-82 and these criteria or guidelines in considering the offer of
compromise by the taxpayer.
IV. REPEALING CLAUSE

The provisions of Revenue Special Order No. 40-81, dated May 14, 1981, Revenue
Memorandum Order No. 15-812, dated May 14, 1981, Revenue Memorandum Order No.
33-82, dated October 8, 1982 and other issuances inconsistent herewith are hereby
repealed or modified accordingly.
V. EFFECTIVITY

Acting Commissioner
RMO 1-83
RMO 1-83 Annual Work Plan of the Bureau of Internal Revenue
January 19, 1983 January 19, 1983
SUBJECT : Annual Work Plan of the Bureau of Internal Revenue
TO : All Service Chiefs, Division Chiefs, Regional Directors and Others

Concerned.
PURPOSE:
This Order prescribes the YEARLY submission of the Annual Work Plan (AWP) as well
as the guidelines in the preparation thereof which shall be geared to the attainment of the
following specific objectives:
1. To serve as a basis in the evaluation of the accomplishments of your respective
offices, and
2. To justify your budget proposals to carry out your projected activities for the year.
GUIDELINES:
The following guidelines shall be observed in the preparation of the AWP:
1. It shall contain the overall objectives of your office which are consistent with the
Bureau's goals and policies indicating the courses of action to be taken in the following
projects:
a. Revenue Assessment and Tobacco Regulatory
Services
b. Tax Collection
c. Revenue Legal Service
d. General Administration and Support Services
The program thrusts for each office should be reflected in their respective work plans. As
much as possible, the goal for each specific activity should be stated in concrete terms
specially when such goal is quantifiable.
2. It should be broken down into quarterly time frames so that one can readily
envision the work program or activities that will be accomplished at a given period of
time. This is important as the work plans will be compared with the quarterly reports of
accomplishments submitted by each unit for evaluation purposes.
3. It should be tied in with the proposed budget of your office stating the resources
required in accomplishing the planned activities.
4. It should also contain, in a brief narrative form, a background analysis of the
working environment including the economic situation and the areas tapped for tax
purposes.
5. The projected collection goal shall be submitted together with the work plan. The
procedures and guidelines in goal setting specified under Paragraph III, A and B, of RMO
No. 32-811 dated November 24, 1981, shall be adopted for this purpose. Offices not
involved in assessment and collection activities are EXEMPTED from this requirement.
6. The offices involved in each budgetary project are as follows:
a. Revenue Assessment and Regulatory Services - Sector Operations, National
Assessment and Specific Tax Officers including all divisions under them; Tax Fraud
Division; and Assessment and Specific Tax Branches.
b. Tax Collection - Collection Office including all divisions under it; Collection
Branches and Collection Units in Revenue District Offices.
c. Revenue Legal Service - Legal Office including all divisions under it and Legal
Branches.
d. General Administration and Support Services - Revenue Attache Unit;
Intelligence Division; Financial & Management Service; Personnel & Administrative
Service; Inspection Service; Planning & Policy Service and Data Processing Center
including all divisions under them.
FORMS TO BE USED:
1. The AWP Form (Annex A), with instructions at the back on how to accomplish
them shall be used in the preparation of the work plan. However, this should not preclude
you from adding data or information which you think are necessary in the presentation of
a comprehensive work plan.
2. The monthly breakdown of collection goals shall be submitted in the attached
forms (Annexes B and C).
SUBMISSION:
The AWP shall be submitted to the Financial & Management Service with your budget
proposals. However for 1983, the deadline of submission shall be on or before February
25, 1983.
REPEALING CLAUSE:
This Order modifies the instructions contained in the Commissioner's Unnumbered
Memo dated January 5, 1981 and revokes any provisions or existing issuances which are
inconsistent herewith.
Immediate and strict compliance herewith is enjoined.

Acting Commissioner

Rmo 1983

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Rmo 1983

Uploaded by

Copyright:

Available Formats

November 28, 1983 January 2, 1984

REVENUE MEMORANDUM ORDER NO. 41-83*

SUBJECT : Prescribing the Procedures in the Receipt, Transmittal and

TO : All Internal Revenue Officers and Others Concerned.

I. OBJECTIVE - To achieve an effective system in the receipt, transmittal and

TYPE OF RETURN DUE DATES

A. WITHHOLDING TAX ON COMPENSATION

Monthly Remittance W-1A Not later than

Annual Return W-3 Not later than Jan. 31

B. EXPANDED WITHHOLDING TAX

Monthly Remittance 1743A-1 Not later than

Annual Return 1743-B Not later than Mar. 1

C. FINAL WITHHOLDING TAX

Quarterly Return 1743C Not later than

Annual Return 1743D Not later than Jan. 31

D. WITHHOLDING TAX ON GOV'T. MONEY PAYMENTS

Monthly Return 7.50A Not later than the 10th

Employer's WithholdingW-4 For employees, 5 days

Application for W-5 10 days from becoming

III. RECEIPT OF RETURNS AND ACCEPTANCE OF PAYMENTS -

B. Mandatory Acceptance of Taxes Withheld. - Remittance of taxes withheld shall

* monthly 7.50A return without list of payees;

IV. DUTIES AND RESPONSIBILITIES -

2. Checks if the return is properly accomplished paying particular attention to:

* signature of the withholding agent or his authorized office.

3. Segregates imperfect returns.

7. Sorts and batches by type of return in 50's or less. Accomplishes separate

8. Segregates out-of-city or municipality and out-of-district returns, batches and

9. Totals taxes indicated as remitted on all returns in each batch.

B. Revenue District Officer. -

1. Checks regularly the availability of returns in every Collection Office, particularly

2. Assigns Revenue Examiners to assist Collection Agents, in the receipt and

5. Counts and determines if the number of returns transmitted by the Collection

° the number of returns transmitted to the WTD per type of returns;

C. Revenue Regional Director. -

1. Coordinates and monitors the prompt transmittal of returns to the Withholding

2. Takes immediate action on cases of non-transmittal by RDO's and reports

3. Sees to it that WTR forms are readily available in every RDO.

4. Maintains control record of W-6s received from RDOs.

D. Withholding Tax Division. -

2. Preaudits monthly and quarterly returns as to -

° monthly and quarterly tax due against tax remittances.

3. Preaudits annual returns as to -

° completeness of return - Name, TAN and ID of WA

5. Issues assessment notices for the collection of -

° underremitted and/or unremitted tax withheld plus ad valorem penalties.

7. Coordinates the follow-up of cases referred to field offices for action.

8. Follows up transmittal of WTRs.

9. Forwards triplicate of WTR to RDO.

10. Distributes computer reports received from RISSI to users.

Monthly List - within 30 days - from dates of

3. Processes other declarations -

A Captures from W-4:

° names of qualified dependent children and dates of birth.

B determines qualified dependents for the taxable year.

C Matches exemptions of employees claimed in ITR with W-4.

E Consolidates compensation income of husband and wife who filed separate

4. Provides an updated master list of WA per RDO on a quarterly basis.

November 29, 1983

REVENUE MEMORANDUM ORDER NO. 40-83*

SUBJECT : Simultaneous examination of the estate, income and other internal

TO : All Internal Revenue Officers and Others Concerned

3. If, under the existing Revenue Memorandum Orders or issuances, the