Rmo 1984

December 17, 1984 December 17, 1984
REVENUE MEMORANDUM ORDER NO. 44-84*
SUBJECT : Prescribed Formats of the Quarterly Accomplishment Reports for

the Newly Created Divisions/Unit of the Specific Tax Office and Sector Operations
Office.
TO : Revenue Service/Division Chief, Specific Tax Office, Revenue

Service/Division Chief, Sector Operations Office, Others Concerned
In view of the recent reorganization of the Specific Tax Office (STO) and the Sector
Operations Office (SOO) under RAO Nos. 2-841 and 4-842, respectively, the prescribed
formats of the Quarterly Accomplishment Reports (QAR), copy of which is attached,
have been prepared to be used by the following new divisions: Field Operations Division,
Tobacco Tax Division and BIR Laboratory Unit of STO and Real Estate and Transfer
Taxes Division, Banks, Financing and Insurance Division, Construction and Service
Industries Division and Franchise and Miscellaneous Taxes Division of SOO.
Pursuant to Revenue Memorandum Order No. 18-833, accurate preparation and timely
submission of these reports are required. Basically, the overall guidelines in the
implementation of the QAR still remains, However, the specific instructions were made
to facilitate reporting.
This Order shall take effect immediately.
RUBEN B. ANCHETA
Acting Commissioner
ACCOMPLISHMENT REPORT
BIR LABORATORY UNIT
For the Quarter Ending ______________, 19_____
: : : : TOTAL FOR :
: (Month : (Month) : (Month) :
THE QUARTER :
I. Total laboratory testing/ : : : :
:
analysis conducted : : : :
:
II. Total verifications made : : : :
:
on the compliance of set-up : : : :
:
standards and required : : : :
:
specifications of products : : : :
:
subject to tax : : : : :
III. Total researches conducted : : : :
:
IV. Total seminars conducted : : : :
:
V. Other activities (Specify) : : : :
:
: : : : :
SPECIFIC INSTRUCTIONS AND GUIDELINES

1. The actual number of laboratory testing and analysis conducted during the quarter
shall be reflected in the report.
2. The frequency of verifying compliance of set up standards and required
specifications of products for taxation purposes shall likewise be reflected in the report.
3. Researches and seminars that were conducted shall be reflected correspondingly.
QUARTERLY STATUS REPORT

On Work Plan Submitted
For the Quarter Ending ___________, 19____ ----------
(Name of Office)
------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------
SPECIFIC PROGRAMS/ : : :
PROPOSED
ACTIVITIES : STATUS REPORT : PROBLEMS/CONSTRAINT :
SOLUTION REMARKS
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------
: : :
: : :
: : :
: : :
: : :
: : :
: : :
: : :
: : :
: : :
: : :
: : :
: : :
: : :
: : :
------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------
GENERAL INSTRUCTIONS
1. The Division Chief shall attest to the veracity and accuracy of the
Accomplishment Report submitted.
2. The preparation, certification, and timely submission of the report is the
responsibility of the Assistant Chief of Division.
3. All blank spaces in this form shall be properly filled up. Indicate "NONE" if there
are no cases or amounts corresponding to the data called for.
4. The quarterly status on the work plan submitted shall be presented in the format
provided in this report. "Problems/Constraints" and "Proposed Solutions" shall be stated
in clear and concise statements. Offices with assigned goals shall state in quantifiable
terms the status of their accomplishments for the given quarter.
5. Use additional sheets whenever the spaces in the forms are not adequate.
CERTIFICATION
TO WHOM IT MAY CONCERN:

I hereby certify that the foregoing is a true and accurate report on the accomplishment
and pertinent activities of this division/unit for the Quarter ending ______________,
19_____.
________________________
Chief, ___________________
ATTESTED:
_________________________
(Revenue Service Chief)
TOBACCO TAX DIVISION
-----------------------------------------------------------------------------------
: ---- : ---- : ---- : :
: (Month) : (Month) : (Month) :
TOTAL FOR THE :
: : : : QUARTER
:
------------------------------------------------------------------------------------
COLLECTION : : : : :
(Cumulative per year) : : : : :
: : : : :
Carried forward from : : : : :
preceding month/quarter : : : :
:
: P_______ : P_______ : P_______ :
P____________ :
Add: : : : : :
1. Tobacco Products : : : :
:
a) Cigarettes (Local) : ________ : ________ :
________ : _______________ :
b) Cigarettes (Imported) : ________ : ________ :
________ : _______________ :
c) Cigars : ________ : ________ : ________
: _______________ :
d) Manufactured Tobacco : ________ : ________
: ________ : _______________ :
: : : :
:
2. Inspection Fees : : : :
:
a) Finished Products : ________ : ________ :
________ : _______________ :
b) Leaf Tobacco : ________ : ________ :
________ : _______________ :
c) Partially Manufactured : : :
: :
products of tobacco : ________ : ________ :
________ : _______________ :
d) Others : ________ : ________ : ________
: _______________ :
: : : :
:
Total Collection : P_______ : P_______ : P_______
: P ______________ :
: : : :
:
TOTAL PERMITS PROCESSED : : : :
:
AND RELEASED : ________ : ________ : ________
: _______________ :
: : : :
:
ASSESSMENTS : ________ : ________ : ________
: _______________ :
--------------------
REMARKS: (State briefly other information to be used for evaluation purposes,
i.e. reason for increase/decrease in gross collection)
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
1. No figure shall be reflected under "Carried forward from preceding
month/quarter" for both January and TOTAL FOR THE QUARTER COLUMN if it is
the beginning of the year.
2. The monthly accomplishments shall be added and the sum extended in the total
for the quarter column.
3. Only permits processed and released during the month/quarter shall be reported in
the same month/quarter.
4. Assessments shall include the number of protested cases involving specific taxes
prior to action by Appellate Division.
FIELD OPERATIONS DIVISION
-----------------------------------------------------------------------------------
: ---- : ---- : ---- : :
: (Month) : (Month) : (Month) :
TOTAL FOR THE :
: : : : QUARTER
:
------------------------------------------------------------------------------------
COLLECTION : : : : :
(Cumulative per year) : : : : :
: : : :
:
A. TOBACCO PRODUCTS : : : :
:
Carried forward from : : : :
:
preceding month/quarter : P_______ : P_______ :
P_______ : P____________ :
Add: : : : : :
: : : :
:
1. Cigarettes : ________ : ________ :
________ : _______________ :
2. Cigars : ________ : ________ : ________ :
_______________ :
3. Manufactured Tobacco : ________ : ________
: ________ : _______________ :
4. Finished Products : ________ : ________ :
________ : _______________ :
5. Leaf Tobacco : ________ : ________ :
________ : _______________ :
6. Partially Manufactured : ________ : ________
: ________ : _______________ :
products of tobacco : ________ : ________ :
________ : _______________ :
7. Others : ________ : ________ : ________
: _______________ :
Total Tobacco Products : P : P : P : P

:
: ======= : ======= :
======= : ============== :
B. DISTILLED SPIRITS: : : :
:
: : : :
:
1. Domestic : : : :
:
: : : :
:
:
P_______ : P____________ :
: : : :
:
Add: : : : : :
: : : :
:
a) Alcohol Plans/: : : :
:
Rectifiers : ________ : ________ :
________ : _______________ :
b) Small Distilleries : ________ : ________ :
________ : _______________ :
c) Compound Liquors : ________ : ________ :
________ : _______________ :
d) Fermented Liquors : ________ : ________ :
________ : _______________ :
e) Imitation Wines : ________ : ________ :
________ : _______________ :
f) Distilled Alcohol : ________ : ________ :
________ : _______________ :
: : : :
:
Total Domestic : P_______ : P_______ : P_______
: P____________ :
2. Imported : : : :
:
: : : :
:
:
P_______ : P____________ :
: : : :
:
Add: : : : : :
: : : :
:
a) Distilled Spirits : ________ : ________ :
________ : _______________ :
b) Wines : ________ : ________ : ________
: _______________ :
b.1) Sparkling Wines : ________ : ________ :
________ : _______________ :
b.2) Still Wines 14% : : : :
:
or less : ________ : ________ :
________ : _______________ :
b.3) Still Wines : : : :
:
over 14% : ________ : ________ :
________ : _______________ :
c) Fermented Liquors : ________ : ________ :
________ : _______________ :
: : : :
:
Total Imported : P_______ : P_______ :
P_______ : P____________ :
: : : :
:
Total Distilled Spirits : P : P : P : P :
: ======= : ======= :
======= : ============== :
C. PETROLEUM PRODUCTS : : : :
:
: : : :
:
:
P_______ : P____________ :
: : : :
:
Add: : : : : :
: : : :
:
1. Gasoline : ________ : ________ : ________ :
_______________ :
a) Premium : ________ : ________ :
________ : _______________ :
b) Aviation : ________ : ________ :
________ : _______________ :
c) Regular : ________ : ________ :
________ : _______________ :
2. Diesel Fuel : ________ : ________ : ________
: _______________ :
3. Kerosene : ________ : ________ : ________
: _______________ :
4. Bunker Fuel : ________ : ________ : ________
: _______________ :
5. Lubrication Oil : ________ : ________ :
________ : _______________ :
6. Processed Gas : ________ : ________ : ________
: _______________ :
7. Aviation Turbo : ________ : ________ :
________ : _______________ :
8. LPG : ________ : ________ : ________
: _______________ :
9. Asphalt : ________ : ________ : ________
: _______________ :
10. Solvent/Thinner : ________ : ________ : ________
: _______________ :
11. Grease : ________ : ________ : ________ :
_______________ :
: : : :
:
Total Petroleum Products : P : P : P : P
:
: ======= : ======= :
======= : ============== :
MISCELLANEOUS : : : : :
: : : :
:
:
P_______ : P____________ :
: : : :
:
Add: : : : : :
: : : :
:
1. Matches : ________ : ________ :
________ : _______________ :
2. Others : ________ : ________ : ________
: _______________ : :
: : : :
Total Miscellaneous : P_______ : P_______ : P_______
: P____________ :
: : : :
:
TOTAL COLLECTIONS : P : P : P : P
:
: ======= : ======= :
======= : ============== :
: : : :
:
TOTAL PERMITS PROCESSED : : : :
:
AND RELEASED : ________ : ________ :
________ : _______________ :
: : : :
:
ASSESSMENTS : ________ : ________ : ________
: _______________ :
: ________ : ________ :
________ : _______________ :
1. The Service/Office Chief shall attest to the veracity and accuracy of the
2. The collation, review and timely submission of all portions of the report is the
responsibility of the Assistant Service/Office Chief.
3. The Chief of Division or the Official responsible for the preparation of the report
shall certify to the correctness of his portion of the report and shall initial all pages
thereof.
CERTIFICATION

19_____.
________________________
Chief, ___________________
ATTESTED:
_________________________
------------------------------------------------------------------------------------------------------------
------------------------------
: ________ 19___ : ______ 19 ___ : ______ 19 ___
: TOTAL FOR :
: (Month) : (Month) : (Month) : THE
QUARTER :
------------------------------------------------------------------------------------------------------------
-------------------------------
: No. of : Amount : No. of : Amount :
No. of : Amount : No. of : Amount :
: Cases : : Cases : : Cases : : Cases
: :
------------------------------------------------------------------------------------------------------------
-------------------------------
: : : : : : :
: :
I. ASSESSMENT AND : : : : : : : :
:
COLLECTION PER : : : : : : : :
:
INVESTIGATION : : : : : : : : :
(Cumulative per year) : : : : : : : :
:
: : : : : : :
: :
A. Assessments: : : : : : : : :
:
: : : : : : :
: :
Carried forward from : : : : : : : :
:
preceding quarter : ______ :P_______ : ______ :P_______ :
______ : P_____ : _______ :P______ :
Add: Assessments made : : : : : : : :
:
during month/quarter : ______ : ________ : ______ : ________
: ______ : ______ : _______ : _______ :
Total Assessments to : : : : : : : : :
date : :P : :P
: :P : :P :
: : : : : : :
: :
B. Collections: : : : : : : : :
:
: : : : : : :
: :
:
preceding quarter : ______ :P_______ : ______ :P_______ :
______ : P_____ : _______ :P______ :
Add: Collections made : : : : : : : :
:
during month/quarter : ______ : ________ : ______ :
________ : ______ : ______ : _______ : _______ :
Total Collections to date : :P : :P
: :P : :P :
: : : : : : :
: :
II. COLLECTIONS : : : : : : : :
:
FROM : : : : : : : : :
VOLUNTARY : : : : : : : :
:
COMPLIANCE : : : : : : : :
:
(Specify) : ______ :P_______ : ______ :P_______ :
______ : P_____ : _______ :P______ :
: : : : : : :
: :
III. INVENTORY OF TAX : : : : : : :
: :
CASES AND : : : : : : : : :
DOCKETS : : : : : : : : :
: : : : : : :
: :
:
preceding quarter : ______ : ________ : ______ : ________
: ______ : ______ : _______ : _______ :
Add: Received during : : : : : : : :
:
the month : ______ : ________ : ______ : ________ :
______ : ______ : _______ : _______ :
Total for action : ______ : ________ : ______ : ________ :
______ : ______ : _______ : _______ :
Less: Terminated/acted : : : : : : : :
:
upon : ______ : ________ : ______ : ________ :
______ : ______ : _______ : _______ :
Balance and of the quarter : ______ : ________ : ______ : ________
: ______ : ______ : _______ : _______ :
: : : : : : : : :
-----------------------------------
IV. REMARKS (State briefly other information you may deem important for
inclusion in the
Bureau's Annual Report)
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
____________

1. This form shall be accomplished by the following divisions:
a. Banks, Financing and Insurance Division
b. Real Estate and Transfer Taxes Division
c. Construction and Service Industry Division
d. Franchise and Miscellaneous Taxes Division
e. Manufacturing Division I
f. Manufacturing Division II
g. Agriculture and Natural Resources Division
2. No figures shall be reflected under total of the previous months/quarter, for both
January and total for the quarter columns if it is the beginning of the year.
3. The monthly accomplishments shall be added and the sum extended in the total
for the quarter column.
4. Total pending at the end of the month/quarter shall be entered as the beginning
balance in the following month/quarter unless adjustments have been made. However, the
adjustments shall be explained.
QUARTERLY STATUS REPORT ON WORK PLANS SUBMITTED
For the Quarter Ending ___________, 19_____
------------------------------------------------------------------------------------------------------------
------------------------
SPECIFIC : PROGRESS/STATUS REPORT :
:
PROGRAMS/ : ------------------ : :
: GOAL
ACTUAL : % INCREASE : PROBLEMS MET :
ACTIVITIES : PROPOSED
IMPLEMENTED : : : (DECREASE) : ON
IMPLEMEN- : ADDITIONAL
: : : : TATION :
ACTION TO
: : : : :
TAKEN
: : : : :
PENALTIES
------------------------------------------------------------------------------------------------------------
------------------------
: : : : :
: : : : :
: : : : :
: : : : :
: : : : :
: : : : :
: : : : :
: : : : :
: : : : :
: : : : :
: : : : :
: : : : :
: : : : :
: : : : :
------------------------------------------------------------------------------------------------------------
------------------------
1. The Service/Office Chief shall attest to the veracity and accuracy of the
2. The collation, review and timely submission of all portions of the report is the
responsibility of the Assistant Service/Office Chief.
3. The Chief of Division or the Official responsible for the preparation of the report
shall certify to the correctness of his portion of the report and shall initial all pages
thereof.
CERTIFICATION
19_____.
________________________
Chief, ___________________
ATTESTED:
_________________________
Copyright 2 0 0 4 ACCESSLAW, Inc.
RMO 43-84
RMO 43-84 Prescribing the use of Revised BIR Form 12.31 Monthly Report of
Collections.
November 14, 1984 January, 1985
SUBJECT : Prescribing the use of Revised BIR Form 12.31 Monthly Report of
Collections.
TO : Revenue Service Chief (Collection Office), Regional Directors,

Revenue District Officers, Revenue Collection Supervisors, Collection Agents and others
Concerned.
I. Purpose:
To improve the reporting system on BIR collections through the use of an updated form,
BIR Form No. 12.31, Monthly Report on Internal Revenue Collections is hereby revised.
This form, as revised, shall properly identify the types of taxes collected and shall
provide more meaningful data and information on revenue collections for top
management policy decisions and preparation of collection guidelines and procedures.
II. Procedure:
1. Instructions for the proper accomplishment of the revised BIR Form No. 12.31 is
printed at the back of the form.
2. Together with the Consolidated Report on Internal Revenue Collections (BIR
Form 12.01) this report shall be submitted every fifth day of the succeeding month in four
copies distributed as follows:
Original Copy - City/Provincial Auditor
Duplicate Copy - Chief, Accounting Div.
Triplicate Copy - Revenue District Officer
Quadruplicate Copy - Collection Agent's file
III. Effectivity:
This Order shall take effect in January, 1985.
(Sgd.) ROMULO M. VILLA

Acting Commissioner
RMO 42-84
RMO 42-84 Reimbursement of Travelling Expenses of Personnel Performing Liaison
and Other Administrative Work
October 29, 1984 October 1, 1984
SUBJECT : Reimbursement of Travelling Expenses of Personnel Performing

Liaison and Other Administrative Work
TO : All Revenue Officials and Employees and Others Concerned.
It has come to the attention of this Office that some Bureau personnel performing liaison,
messengerial and other administrative duties and who are entitled to travelling expenses
whenever they go out of their work station on official business, are not receiving what is
due them under Revenue Memorandum Order No. 11-801 dated February 27, 1982, as
amended. They claim that they are being paid on the basis of the daily pro-rata portion of
the monthly travelling allowance as authorized under the RMO rather than their daily
actual travelling expenses which usually amount to a much bigger sum.
To ensure compliance with the objectives of the said RMO, it is hereby directed that
these employees should be reimbursed their travelling expenses by first determining their
actual expenses incurred per day as shown in the Disbursement Voucher and thereafter
adding up the daily expenses to arrive at the total monthly expenses, which in all cases,
shall not exceed the maximum monthly allowable limit as provided in the said RMO.
This Revenue Memorandum Order shall take effect October 1, 1984.
(Sgd.) RUBEN B. ANCHETA

Acting Commissioner
Copyright 2 0 0 4 ACCSESSLAW,Inc.
RMO 41-84
RMO 41-84 Reimbursable Transportation Allowance and Gasoline Expenses of BIR
Officials and Employees
October 31, 1984 November 1, 1984
SUBJECT : Reimbursable Transportation Allowance and Gasoline Expenses of

BIR Officials and Employees
TO : All Revenue Officials and Employees Concerned
Considering the increases in the cost of transportation and gasoline during the last three
years as well as the limitations of the BIR budget, the granting of additional P50
transportation allowance and gasoline expenses to revenue officials and employees
entitled to such allowance and expenses under RMO No. 11-801 dated February 27, 1982
as amended, is hereby authorized. Revenue officials and employees concerned shall be
paid the increased allowance and expenses, using the same procedures heretofore
enforced. However, those who shall receive more than P325 per month allowance under
this RMO shall be reimbursed their expenses by filing the usual Disbursement Vouchers,
including supporting documents, required for domestic travels.
This Revenue Memorandum Order shall take effect November 1, 1984.

Acting Commissioner
RMO 40-84
RMO 40-84 Amendment to Revenue Memorandum Order No. 35-84 on the
investigation of business tax returns for 1983 and unverified prior years.
November 15, 1984
REVENUE MEMORANDUM ORDER NO. 40-84 *
SUBJECT : Amendment to Revenue Memorandum Order No. 35-841 on the

investigation of business tax returns for 1983 and unverified prior years.
TO : All internal revenue officers and others concerned
In order to give time for the taxpayers to adjust themselves to the new amendments under
Executive Order No. 9902 and Presidential Decree No. 19593 on the new procedures in
the audit of their internal revenue taxes, Revenue Memorandum Order No. 35-84 dated
October 31, 1984 is hereby amended to include in the investigation of their 1983 business
taxes of income tax liabilities. In other words, the package right system shall still be
observed for taxable year 1983 with unverified prior years.

Acting Commissioner
RMO 39-84
RMO 39-84 Transmittal of Income Tax Returns of BIR Employees
SUBJECT : Transmittal of Income Tax Returns of BIR Employees
TO : All Revenue Regional Directors and Others Concerned.
Pursuant to Revenue Administrative Order No. 7-841 dated April 26, 1984, the
Inspection Service through the Fiscal Control Division is entrusted with the function of
verifying the correctness and accuracy of the income tax returns of revenue personnel. In
order that this function could be effectively carried out, it is essential that the duplicate
copies of the income tax returns of all revenue officials and employees should be
transmitted to the Fiscal Control Division through the Revenue Service Chief
(Inspection) within sixty (60) days after April 15 of every year.
In this connection, all Revenue Regional Directors are instructed to transmit promptly
henceforth said duplicate copies of the income tax returns concerned within the
aforementioned period of sixty (60) days after April 15 of every year and after processing
by the Chief, Assessment Branch of the Region to the Revenue Services Chief
(Inspection), Attention: Fiscal Control Division, for appropriate action.
Strict compliance herewith is enjoined.

Acting Commissioner
RMO 38-84
RMO 38-84 Monitoring of Investigation of Business Tax Returns
November 8, 1984 November 8, 1984
SUBJECT : Monitoring of Investigation of Business Tax Returns

TO : All Revenue Regional Directors, Revenue District Officers, and
Chiefs of the Special Investigation Units The Service Chief and All Division Chiefs,
Sector Operations Office The Chiefs of the Collection Office and Tax Fraud Division All
Others Concerned
In support of the program for strengthening business tax enforcement and administration,
the results of field investigation of business tax returns (BTRs) shall henceforth be
regularly reported by the regional investigating units to the National Assessment Office
(NAO) and by the audit divisions to the Sector Operations Office (SOO).
The reports shall cover the period from the time a letter of authority to investigate is
issued to the time the tax due per investigation is fully paid.
During the interim period from 1 November 1984 to 31 January 1985, the Special Task
Force (STF), created under Revenue Special Order No. 87-84 dated 12 October 1984,
shall have primary authority and responsibility for monitoring the investigation of BTRs
for 1983 and uninvestigated prior years. For this purpose, the following revenue
personnel are hereby directed to prepare and submit the following accomplishment and
status reports to the STF, c/o NAO, on the deadlines indicated:
1. List of Letters of Authority Issued (Business Tax Returns), STF Form No. 02-84 -
To be prepared semimonthly by the Regional Coordinator Group created under Revenue
Special Order No. 90-84 and by the Chief of the Sector Operations Office for submission
every 15th and end of the month starting 15 November 1984;
2. List of Letters of Authority Cancelled (Business Tax Returns), STF Form No. 03-
84 - To be prepared semimonthly by the Regional Coordinator Group and by the Chief of
the Sector Operations Office for submission every 15th and end of the month starting 15
November 1984;
3. Report of Investigated Business Tax Cases, STF Form No. 04-84 - To be prepared
monthly by the Revenue District Officer and the Audit Division Chief for submission
every end of the month starting 30 November 1984; and
4. Report of Collections Covered by Letters of Demand, STF Form No. 05-84 - To

be prepared monthly by the Regional Coordinator Group and the Chief of the Collection
Office for submission every end of the month starting 30 November 1984.
The prescribed reports formats for STF Form Nos. 02-84 to 05-84 are attached and shall
form part of this Order.
After 31 January 1985,1 the National Assessment and Sector Operations Offices shall
assume primary authority and responsibility for keeping track of the results of field
investigation of BTRs within their respective jurisdiction.
Any and all issuances inconsistent with this Order are deemed repealed.
This Order shall take effect immediately upon approval.

Acting Commissioner
RMO 37-84
RMO 37-84 Incremental Revenue from Business and Miscellaneous Taxes to be
Generated from New Tax Measures
November 6, 1984
SUBJECT : Incremental Revenue from Business and Miscellaneous Taxes to

be Generated from New Tax Measures
TO : All Revenue Regional Directors, Revenue District Officers and

Other Revenue Personnel Concerned.
In line with the policy decision to give greater impetus to the collection of business and
miscellaneous taxes, several tax measures have been instituted, all aimed at strengthening
business tax enforcement and administration.
Specifically, the said measures consist of the following:
1. Lifting of tax exemptions and preferential tax treatment of government-owned or

controlled corporations and private business entities;
2. Increase in rates of documentary stamp taxes,1 percentage taxes on selected
services, tax on insurance premiums and amusement taxes;2
3. Change in method of inventory valuation from LIFO to moving average method.
4. Improvements in business tax administration such as stricter enforcement and
closer monitoring of compliance, removal of package audit and simplification of tax
credit application.
The foregoing reforms are expected to generate incremental revenues from business and
miscellaneous taxes. Revenue estimates of such increase have been made on the basis of
the 1983 tax collection from such sources.
For the information and guidance of all revenue officials and employees concerned, the
targeted increase in business and miscellaneous tax revenues to be generated from the
aforesaid tax measures has been set as follows:
a. For the remaining two months of 1984, a ten per cent (10%) increase in business
and miscellaneous taxes over that of the 1983 collections; and
b. For the whole year of 1985; a sixty per cent (60%) increase over that of the 1983
collections.
All revenue regional and district officers and employees concerned are, therefore,
instructed to orient their activities towards the attainment of the abovestated internal
goals in the collection of business and miscellaneous taxes. The said goals are not
intended to limit the performance of the field offices, but rather should be regarded only
as standards against which the realization of the full potential of the regional and district
offices shall be measured and their performance appraised.
All concerned are urged to be guided accordingly.

Acting Commissioner
RMO 36-84
RMO 36-84 Verification of Gross Compensation Income of Employees of Private
Firms
SUBJECT : Verification of Gross Compensation Income of Employees of

Private Firms
TO : All Sector Operations Divisions, Regional Directors and Revenue

District Officers
We have received reports that employers escape compliance with existing revenue
regulations regarding the collection at source of income tax on compensation income of
their employees, by designating a substantial portion of the latter's compensation income
as "reimbursements" for alleged expenses incurred in pursuit of company business. They
support this scheme by asking the employees to submit receipts which may either be fake
or fabricated. This is not only a leak in our income tax collections effort, but is outright
tax evasion which must be stopped immediately.
Accordingly, all Internal Revenue Officers concerned are directed to exert special effort
in verifying the true gross compensation income of employees of private firms and to
enforce strictly the provisions RR 6-821, as amended by RR 9-832 on the accounting and
substantiation of reimbursements/advances for traveling, representation or entertainment
expenses. For this purpose the following guidelines are hereby issued for the observance
of all concerned:
1. Look into all documents to ascertain if the true compensation income of

employees were subjected to withholding. Go as far as company by-laws, board
resolutions, "201" files or similar confidential or personal folders of the employees kept
by the company or employer, invoking Sec. 73 of the Tax Code which empowers the
Commissioner or his authorized representative to obtain information, examine, summon
and take testimony in order to determine the liability of any person for any internal
revenue tax or to collect any such liability.
2. For advances/reimbursements of transportation and representation expenses

claimed as business expense, ascertain in all of the following conditions are present.
a) the nature of duties of employees require the expenditure of traveling and
transportation expenses.
b) the expenses for which the reimbursements were made are ordinary and
necessary. Inherent in the term "ordinary and necessary" is the element of reasonableness,
that is, the expense is not lavish or excessive under the circumstances.
c) traveling and representation expenses are paid or incurred by the employee in the
pursuit of trade or business of the employee. This condition requires a direct connection
between the expense and the carrying on of trade or business of the employer and such
expense is necessary and appropriate to the development and maintenance of the business
or trade of the employer.
d) the employee made an accounting/liquidation for such expense by submitting to
his employer an expense account/report, together with the documentary evidence
supporting each element of expenditure: (1) amount, (2) time it was incurred, (3) place
and (4) business purpose.
Any violation of existing revenue regulations on the collection of income tax at source
and substantiation of business expenses should immediately be subjected to the
applicable penalties and surcharges, provided under said regulations.
This Memorandum Order takes effect immediately.

Acting Commissioner
RMO 35-84
RMO 35-84 Investigation of business tax returns for 1983 and uninvestigated prior
years.

SUBJECT : Investigation of business tax returns for 1983 and uninvestigated
prior years.
TO : All Internal Revenue Officers and Others Concerned.
In order to maximize collections from business taxes, it is hereby directed that the field
investigation of all business or excise tax returns (including premium tax returns of all
insurance companies and gross receipts tax returns of commercial banks and financing
companies) for 1983 and uninvestigated prior years be immediately conducted by the
regional offices and the Sector Operations Office.
The jurisdiction to investigate business tax returns for 1983 and uninvestigated prior
years is defined as follows:
1. For regional offices - Business tax returns which are not listed in Revenue
Memorandum Order No. 31-83;1 and
2. For the Sector Operations Office - Business tax returns which are listed in
Revenue Memorandum Order No. 31-83 for investigation by the National Office.
Accordingly, letters of authority to investigate business tax returns may now be issued in
accordance with existing procedures and guidelines. All these Letters of Authority shall
be entered in the Authority Register subject to inspection and spot-checking at any time.
For this purpose, each examiner shall be initially assigned a maximum of ten (10)
business tax returns for immediate investigation, subject to replenishment. The business
tax cases assigned shall be in addition to the present workload of an examiner.
In this connection, every investigating office shall render accomplishment reports on

November 30, 1984, December 30, 1984, and January 30, 1985 in accordance with
supplemental procedures and guidelines which will be issued in a separate memorandum
order.
Strict adherence to these instructions is hereby enjoined.
This Revenue Memorandum Order shall be effective immediately.

Acting Commissioner
RMO 34-84
RMO 34-84 Prescribing Uniform Standards in Determining Punctuality and
Attendance of Employees, and Prescribing for Monitoring of Purposes.
SUBJECT : Prescribing Uniform Standards in Determining Punctuality and

Attendance of Employees, and Prescribing for Monitoring of Purposes.
TO : All BIR Officials and Employees
I. OBJECTIVES
1. To establish a rational and fair system of rating employees on punctuality and

attendance under the New Performance Appraisal System (NPAS) pursuant to
Memorandum Circular No. 2, s. 1979, of the Civil Service Commission as implemented
by Revenue Memorandum Order No. 31-79.
2. To monitor effectively the implementation of the system.
II. DEFINITION AND STANDARDS
To achieve the foregoing objectives, the following definitions and standards are hereby
adopted and prescribed:
A. DEFINITIONS
1. Absence - an employee is considered absent when he does not report to duty for at
least 4 continuous hours or longer.
An absence of continuous duration exceeding one day shall be considered as one absence.
For instance, if an employee is absent from 1:00 o'clock in the afternoon of a Monday up
to the following Wednesday, his absence is counted as one for performance rating
purposes. His absence for 2 1/2 days should correspondingly be reflected in the time
sheet as in his time record.
2. Tardiness - For performance rating purposes, tardiness of an employee shall be

determined from the number of days such employee was late to office for 15 minutes or
longer as shown in the timesheet of each office: Provided, that when an employee is late
for less than 15 minutes, this fact should be properly reflected in the employee's time
record (CS Form No. 48) and in the timesheet of the office.
3. Undertime - This is the time covered when an employee is authorized to leave the
office for personal reasons after signing in the time sheet in the morning or in the
afternoon, which should be for a duration of less than 4 hours. Undertime includes
leaving the office before 5:00 o'clock in the afternoon.
4. Habitual Tardiness - An employee shall be considered habitually tardy if he has
been tardy as defined above at least 8 times a month for the 6 months covering the
performance rating period.
5. Absenteeism - Absenteeism shall mean having been habitually absent once a

week, or at least 20 times for the months (26 weeks) covering the performance rating
period.
6. Perfect Attendance - This shall mean that an employee has not incurred any
absence, tardiness or undertime for the entire performance rating period.
B. STANDARDS
Attendance shall be given point scores under the NPAS as follows:
Point Score
1. Perfect Attendance 10 (Outstanding)

2. Average of 4 monthly absences, 8 (Very Satisfactory)
tardiness and undertimes.
3. Average of monthly absences, 6 (Satisfactory)
tardiness and undertimes.
4. Average of monthly undertimes. 4 (Fair)
absences, and
5. Average of more than 6 monthly 2 (unsatisfactory)
absences, tardiness and undertimes.
The average of an employee's monthly absences and or/tardiness and undertimes is

computed as follows:
No. of times absent (Not the number of days absent)X

No. of times tardy/undertime Y
---
Total X + Y
Average - X + Y
---
2
Examples:
(a) No. of times absent 1

No. of times tardy/undertime 4
--
Total 5
Average - 2 1/2
Point Score - 8 (Very Satisfactory)
(b) No. of times absent 2
--
Total 10
Average -5
Point Score - 6 (Satisfactory)
(c) No. of times absent 0

--
Total 12
Average -6
Point Score - 4 (Fair)
(d) No. of times absent 6

--
Total 14
Average -7
Point Score - 2 (Unsatisfactory)
At the end of the 6-month rating period, the average point score shall be the employee's
rating on punctuality and attendance.
III. MONITORING
A. To effectively monitor the implementation of the foregoing rules, the Chiefs of

the Personnel Division and the Internal Security Division and/or their authorized
representatives, are hereby directed to:
1. Check the closing of the timesheets of the Offices assigned to them at around 8:15
and 9:00 o'clock in the morning, and at 1:30 in the afternoon. If the timesheets have not
been closed by the offices concerned as directed under paragraph IV (1) hereof, they
should close the timesheets by drawing a red line and indicating the time thereon.
2. To mark in red ink the names of those who are late for 15 minutes or more, and
those who are absent.
3. Coordinate with the chief or head of unit with respect to employees who are out
on undertime.
Assignments shall be determined by the Revenue Service Chief, Personnel and

Administrative Service, in coordination with the Revenue Service Chief (Inspection).
In the Regional Offices, the above functions shall be exercised by the Assistant Regional
Directors and Assistant Revenue District Officers, and/or their authorized representatives.
IV. GENERAL PROVISIONS
1. Heads of offices, divisions and units, shall maintain timesheets (Daily Record of
Attendance) of employees in the prescribed form (Annex "A").
Timesheets should be closed by the Assistant Chief of office, division, or unit at 8:00,
8:15, and 9:00 o'clock in the morning; and again at 1:00, 1:15, and 1:30 o'clock in the
afternoon.
2. Employees requesting permission to go on partial leave (undertime) shall file a

partial leave form duly approved by the head of office concerned (Annex "B").
3. In case there are no bundy clocks, employees shall accomplish the daily time
record (C.S. Form 48), and shall submit the same to the Chief of Office, division, or unit
at the end of each month.
The time indicated in the daily time record must tally with the Daily Record of
Attendance, duly certified by the Assistant Chief of Office, division or unit.
4. Top officials, from Revenue Service Chief down to Assistant Division Chiefs, in
the Central Office, and Branch Chiefs, Assistant Branch Chiefs, Revenue District
Officers and Assistant Revenue District Officers, in the Regional Offices, are not
required to time in on the timesheets of their offices, but they should submit to their
immediate chiefs their daily time records (C.S. Form 48) for each month.
5. Monthly summary reports of attendance shall clearly reflect the entries in the
timesheets of the office and shall be submitted to the Chief, Personnel Division, if in the
Central Office, or to the Chief, Administrative Branch if in the Regional Office within
10-days after the end of each month.
6. An employee who is on a prolonged leave of absence for 3 months or longer shall

not be rated on his performance for the semester affected by his absence.
7. Frequent absences or tardiness in reporting for duty, or frequent absences from

duty during regular office hours are grounds for disciplinary action. Likewise an
unsatisfactory rating on punctuality and attendance for 2 consecutive performance rating
periods shall be cause for disciplinary action.
V. REPEALING CLAUSE
All provisions of orders, circulars, and memoranda inconsistent herewith are hereby
repealed.
VI. EFFECTIVITY
This Order takes effect immediately.

Acting Commissioner
RMO 33-84
RMO 33-84 Amendment to pars. 2 and 3 of Revenue Memorandum Order No. 19-84
dated 20 July 1984.
SUBJECT : Amendment to pars. 2 and 3 of Revenue Memorandum Order No.

19-841 dated 20 July 1984.
TO : All Concerned
Paragraphs 2 and 3 of Revenue Memorandum Order No. 19-842 are amended to read as
follows:
"2. An examiner who has in possession twenty or more pending cases for original
investigation shall not be assigned additional letters of authority to investigate. If his
pending cases are less than 20, he may be assigned additional tax returns or cases to
replenish those cases the investigation of which were terminated and report thereon
submitted to the Division Chief or Revenue District Officer, respectively, thru channel. In
no case shall the total number of cases for original investigation by an examiner exceed
twenty.
A final report of investigation of a tax case shall be accomplished and submitted by the
examiner to his supervisor within 120 days from the date of issuance of the letter of
authority. In case of failure to do so, the Division Chief or Revenue District Officer,
respectively, shall require the examiner to show cause why sanctions should not be
imposed against him for failure to render report of a tax case within the period required.
A letter of authority which is not served within 30 days from date of issuance thereof
must be revalidated by requiring the examiner to submit, thru channel, to the Division
Chief or Revenue District Officer, respectively, a memorandum stating the reason for or
causes of his failure to serve said authority.
The Supervisor, thru channel, shall act, i.e. recommend the issuance of a 10-day
preliminary letter to the taxpayer; or return the final report of an examiner for valid
reasons; or take such other appropriate actions on the tax case as are authorized by rules
and regulations, within 15-days from date of submission thereof by the investigating
examiner.
The Division Chief or Revenue District Officer, respectively, shall act, i.e., issue a 10-
day preliminary letter to the taxpayer; or return final report of the investigating examiner
for valid reasons; or take such other appropriate actions on the tax case as are authorized
by rules and regulations, within 30-days from date of submission of the reported tax case.
A report tax case which is returned to the investigating office or unit by the Sector Audit
Review Division or the Assessment Branch or other offices discharging review functions,
for want of additional data or information involving findings of fact, or submission of
document required by rules and regulations, shall be acted upon by the revenue officials
concerned not later than 30 days after receipt thereof.
For purposes of recording due dates of reported tax cases, the Division Chief, Revenue
District Officer and Supervisor, respectively, shall maintain separate log books of the
aforesaid cases.
The foregoing procedural requirements shall be complied with by revenue examiners and
officials in the sectoral and regional offices.
For replenishment of tax returns or cases, an audit or investigation of a tax case shall be
deemed terminated when the examiner's final report of investigation has been submitted
to the Division Chief or Revenue District Officer, respectively, and a 10-day preliminary
letter to the taxpayer has been issued. However, in crediting an examiner for assessment
and collection performances, a tax case is deemed terminated when the examiner's final
report of investigation on a tax case is actually approved by the Sector Audit Review
Division or Assessment Branch, respectively."
"3. All revenue examiners having pending cases in excess of twenty shall terminate
the investigation thereof and submit the corresponding report thereon within 60-days
from date of approval of this Order in order to reduce their workload to a maximum of
twenty cases each."
REPEALING CLAUSE:
Paragraphs III A.8 and III A.9 of Revenue Memorandum Order No. 28-833, dated 9
September 1983, and other issuances or provisions thereof which are inconsistent
herewith are hereby revoked or amended accordingly.
EFFECTIVITY:
Herein amendatory provisions shall take effect immediately.

Acting Commissioner
RMO 32-84
RMO 32-84 Monthly Collection Reporting and Monitoring
SUBJECT : Monthly Collection Reporting and Monitoring

TO : All Internal Revenue Officers Concerned
I. PURPOSE
This Order on monthly collection reporting and monitoring is being promulgated to

achieve the following objectives:
1. To report monthly top management all tax collections covered by revenue official
receipts (ORs) and validated payment orders (POs) within one month from the time of
payment, broken down as follows:
a. By major source of revenue;
b. By selected tax categories; and,
c. Current year versus preceding year;
2. To determine the additional revenues arising from improvements in tax
administration, including the revision in certain tax rates and the removal of tax
exemptions effective the last quarter of 1984; and,
3. To institute a comprehensive, standard, and up-to-date manual system of reporting
actual tax payments and monitoring trends in internal revenue collections from the level
of the collection agent up to the level of top management.
II. MONTHLY COLLECTION REPORTS TO BE PREPARED

To attain the preceding goals, the following revenue personnel are hereby directed to
prepare and submit the following monthly collection reports:
Report Title Prepared by Submitted to Submission Deadline
1. Monthly Report Collection Revenue Within five (5)
of Collections Agent/Collection District working days
(PO-CR) (BIR Coordinator/ Officer from the end of
Form No. ___)PO-Issuing the month covered
Revenuer by the report.
2. Monthly Report Revenue District 1) PO/CR 1) For revenue
of Collections Officer Monitoring districts in
(BIR Form No. Center,RR-4A and 4B-
.......) Collection within ten (10)
Office working days
from the end
of the month.
2) Collection 2) For all other
Branch revenue districts-
within fifteen (15)
working days from
the end of the month.
3. Consolidated PO/CR Monitoring 1) Commissioner On or before
Monthly Report Center Collection of Internal the last day
of Collections Office Revenue of the month
(Comparative 2) Deputyimmediately following
Analysis) (BIR Commissioner the month covered
Form No. .....) of Internal by this report.
In-charge of
Collection Office
4. Monthly Collection Same as Item Same as Item Same as Item
Report on Selected (3) (3) (3)
Internal Revenue
Taxes (Comparative
Analysis) (BIR Form No. ....)
III. REPORT CONTENTS AND SOURCES

The contents and sources of the preceding reports are briefly summarized as follows:
A. Monthly Report of Collections (PO-CR) [BIR Form No. 12-08]
This report breaks down tax collections monthly, based on payment orders (POs) issued
only, into four general categories and into selected categories for monitoring purposes at
the level of the collection agent. Accumulated total collections from January 1 to the
current month of any calendar year are also reflected.
B. Monthly Report of Collections [BIR Form No. 12.01]
This report breaks down tax collections district-wide covered by revenue official receipts
(ORs) and validated POs into four general categories and into selected categories
monthly for monitoring purposes at the level of the Revenue District Officer (RDO).
Accumulated total collections from January 1 to the current month of any calendar year
are also reflected. The figures are sourced from the monthly reports of collection based
on POs issued BIR Form No. 12.08 and on ORs issued [BIR Form No. 12-31, Revised
January 1984 and BIR Form No. 12.01, Revised August 1981], and adjusted for
unvalidated POs based on the monthly "Report of Unvalidated RTRs (POs)" (BIR Form
No. 12.35).
THIS REPORT SHALL BE THE BASIS FOR PART I OF THE REGIONAL
ACCOMPLISHMENT REPORT (BIR Form No. 40.21).
C. Consolidated Monthly Report of Collections (Comparative Analysis) [BIR Form
No. 12-10]
This report consolidates on a monthly basis tax collections nation-wide covered by ORs
and validated POs based on the reports in (B), broken down into four major categories,
for monitoring purposes at top management level. Changes in collections for the month
and for the year to date, both in amounts and percentage-wise, over that of the previous
year are also reflected.
D. Monthly Collection Report on Selected Internal Revenue Taxes (Comparative
Analysis) [BIR Form No. 12.11]
This report consolidates on a monthly basis tax collections from selected categories
nationwide covered by ORs and validated POs, based on the reports in (B), for
monitoring purposes at top management level. Incremental collections over that of the
previous year, both for the month and for the year to date, are also reflected.
IV. REPORT FORMS, GUIDELINES AND INSTRUCTIONS

The attached report forms and accompanying "Guidelines/Instructions" which detail how
to accomplish the reports, including suggested worksheets, shall form part of this Order.
V. REPEALING CLAUSE
Any and all issuances inconsistent with this Order is deemed repealed.
VI. EFFECTIVITY CLAUSE

This Order shall take effect immediately upon approval.

Commissioner of Internal Revenue
RMO 31-84
RMO 31-84 Revoking Revenue Memorandum Order No. 2-81 to Restore the Powers,
Duties and Responsibilities Relative to the Implementation of RMO 7-79 to the Regional
Directors of Revenue Region Nos. 3-B Valenzuela 4-A, Manila and 4-B, Quezon City
SUBJECT : Revoking Revenue Memorandum Order No. 2-81 to Restore the

Powers, Duties and Responsibilities Relative to the Implementation of RMO 7-79 to the
Regional Directors of Revenue Region Nos. 3-B Valenzuela 4-A, Manila and 4-B,
Quezon City
TO : The Regional Directors of Region Nos. 3-B, Valenzuela; 4-A,

Manila; 4-B, Quezon City; the Chief, Intelligence Division; and all Other Internal
Revenue Officers Concerned
In line with the intensification of the campaign for a more effective enforcement of the
sales and other business taxes, it becomes imperative that the implementation of
Presidential Decree Nos. 12541 and 12552 be given greater impetus. Accordingly, all
officials and employees in all the revenue regions should be involved in the campaign to
compel compliance with the requirement of issuing sales invoices and receipts by all
taxpayers concerned.
It is for this reason that RMO No. 2-813 transferring the powers, duties and
responsibilities conferred on the Regional Directors of RR-3B, Valenzuela; 4-A, Manila
and 4-B, Quezon City relative to the implementation of RMO No. 7-79 to the Chief,
Intelligence Division should be, as it is hereby, revoked.
Accordingly, the Regional Directors of the aforesaid regional offices shall resume their
exercise of the pertinent powers, duties and responsibilities under RMO No. 7-79 to
strengthen the campaign in their respective regions against non-issuance of sales invoices
and receipts and the use of unregistered invoices or receipts.
However, the Intelligence Division shall continue to have concurrent jurisdiction with the
three Metro Manila Regional Offices in the enforcement of Presidential Decrees Nos.
1254 and 1255. While the Regional Directors of Revenue Regions 3-B, 4-A and 4-B shall
be competent to supervise the campaign within their respective regions, the Chief,
Intelligence Division shall have authority to launch an independent drive for compliance
with P.D. 1254 and 1255 within the entire Metro Manila area.
This Memorandum Order shall take effect immediately.

Acting Commissioner
RMO 30-84
RMO 30-84 Examination of Books of Accounts and Other Subsidiary and Accounting
Records of Taxpayers Retiring from Business
August 6, 1984 August 6, 1984
SUBJECT : Examination of Books of Accounts and Other Subsidiary and

Accounting Records of Taxpayers Retiring from Business
TO : All Internal Revenue Officers and Others Concerned
Section 3241 of the National Internal Revenue Code, as implemented by Section 222 of
the Bookkeeping Regulations3, provides that all corporations, partnerships or persons
that retire from business shall, within ten (10) days from the date of retirement or within
such period of time as may be allowed by the Commissioner in special cases, submit their
books of accounts, including the subsidiary books and other accounting records to the
Commissioner or any of his deputies for examination, after which they shall be returned.
Corporations and partnerships contemplating dissolution must notify the Commissioner
and shall not be dissolved until cleared of any tax liability. Also under Section 193 (a) (1)
(i)4 of the Code, any person retiring from a business subject to the percentage tax shall
notify the nearest internal revenue officer, file his return or declaration and pay the tax
due thereon within twenty (20) days after closing his business.
As required in the bookkeeping regulations, the examination of the books of accounts and
records of retiring taxpayers shall be conducted immediately to ascertain if all the taxes
due from the taxpayer have been paid.
In view thereof, and to make certain that the pertinent provisions of the Tax Code and the
bookkeeping regulations are complied with, all Regional Directors in the regional offices
and the Revenue Service Chief of the audit divisions in the National Office, are hereby
authorized to issue Letters of Authority to immediately investigate taxpayers retiring
from business, observing at all times, however, the provisions of Revenue Memorandum
Order No. 31-835, dated October 7, 1983, as amended by Revenue Memorandum Order
No. 32-836 dated October 18, 1983, regarding the respective audit jurisdictions of the
national and the regional offices.
The Regional Directors and the Audit Division Chiefs shall submit to the National
Assessment Office and the Sector Operations Office, respectively, within the first five (5)
days of every month a list of retiring taxpayers subjected to investigation in the preceding
month, indicating the kind and amount of internal revenue taxes assessed against each of
the said taxpayers and if paid, the date and number of the confirmation receipt evidencing
such payment.
Strict compliance herewith is hereby enjoined.

Acting Commissioner
RMO 29-84
RMO 29-84 Guidelines on the Payment of Salaries and Travelling Expenses,
Requisition of Supplies and Equipment, Allocation of Office Space and Submission of
Reports of Personnel of Specific Tax Area Teams (STATs) assigned in Regional Offices.
June 25, 1984 July 1, 1984
SUBJECT : Guidelines on the Payment of Salaries and Travelling Expenses,

Requisition of Supplies and Equipment, Allocation of Office Space and Submission of
Reports of Personnel of Specific Tax Area Teams (STATs) assigned in Regional Offices.
TO : Revenue Service Chiefs, Specific Tax and Financial &

Management, All Regional Directors and Revenue District Officers, Chief, Field
Operations Division, Area Team Leaders, and All Others Concerned.
Purpose:
This Order contains guidelines to provide uniform and effective means to implement
RAO 3-841 and insure cooperation among those involved.
The following shall be the guidelines for:
A. Payment of Salaries
Personnel of the Specific Tax Area Teams (STATs) in the regional offices shall continue
to draw their salaries in the region or district where they are assigned. In this connection,
the Budget Division shall include in the Request for Obligation of Allotment (ROA) for
personal services of every region, the amount corresponding to the salaries of STAT
personnel under each regional office on the basis of the statement furnished by
Accounting Division.
An initial list of STAT personnel in the regional offices has been prepared and attached
to this Order, marked as Annex A, for the information of the Regional Directors
concerned. For purposes of updating said list, the Field Operations Division (FOD) shall
notify the Regional Office concerned and Accounting Division for every change of
assignment of personnel.
B. Travelling Expense
Processing and payment of travelling expenses, whether Advances For Travelling

Expenses (COA 127) or the regular monthly TEV of STAT personnel in the regional
offices shall be centralized in the National Office.
1. Advances for Travelling Expense -
As a general rule, personnel of the STAT may be allowed to travel outside of his station
town only upon proper written permission from the Chief, FOD, except under the
following instances and the like:
a) When there is a directive from the Chief, FOD or higher authorities requiring the
travel of STAT personnel outside of his station town;
b) When there is an abrupt increase in the rates of specific taxes and there is a
necessity to close the books of concerned taxpayers, the Area Chief may use his sound
discretion to send his fieldmen to the affected establishments to undertake such closure;
c) Verification of requests for the issuance of permits;
d) Supervision of disposal of tobacco wastes;
e) Verification of requests for recomposition of returned wines and liquors and the
supervision thereof;
f) To act as members of the denaturing committee when designated by the Chief,

FOD;
g) Delivery of auxiliary or regular labels to establishments requisitioning the same;
h) Delivery of supplies to Zone-in-Charge assigned within the STAT;
i) When ordered by competent authority; and
j) When there is a similar urgent official necessity to travel outside of his/her station
town.
For purposes of economy, however, the Specific Tax Area Team Chief should assign, as
much as possible, fieldmen within the province where any of the above undertakings
should be performed.
Official travel from the Specific Tax Area to the National Office must always be with a
prior written permission from the Chief, FOD or higher authorities. When the travel to
Manila is urgent and by air, the Regional Director may be asked to approve Travel Order
Form No. 001. However, the officer/employee concerned shall secure his plane ticket out
of his personal funds for reimbursement later.
Below is the procedure for Claims of Advances for Travelling Expense:
a) The claimant, upon receipt of Travel Order/Advice shall submit either by mail or
personally whichever is more convenient, the voucher with all the required supporting
papers to his Area Team Leader who in turn shall forward the same to FOD;
b) FOD shall:
- screen the papers submitted and recommend for its approval by the Revenue Service
Chief (RSC), Specific Tax, or his duly authorized representative;
- undertake appropriate action during the processing stage to bring the claim to full
completion;
- in case STAT claimant is travelling by air, present at Sto. Domingo PAL Ticket Office
the approved Travel Order Form No. 001 so that PAL could make arrangement with its
office in the region regarding the issuance of the plane ticket;
- forward to the claimant, thru the Area Team Leader, the check and other documents
including a copy of Travel Order Form No. 001, if any, to enable him to secure a plane
ticket from the PAL Office nearest his place of assignment.
2. Regular Monthly TEV -
Each STAT shall prepare the payroll upon receipt from fieldmen of all the requirements
and forward the payroll with all the supporting documents to FOD for approval of the
Chief and the RSC, Specific Tax. FOD shall receive the check from General Services
Division for distribution to the corresponding payee.
C. Requisition for Office Supplies and Equipment
Office supplies, including additional equipment necessary to carry out the operations of
the STATs, shall be provided by the National Office, in case those made available by the
defunct Specific Tax Branch would not suffice. All requests for office supplies and
equipment shall be submitted by the Area Team Leaders to FOD for approval and
appropriate action.
D. Office Space
The Regional Director/Revenue District Officer in the Areas concerned shall provide an
office space for the use of the Field Inspector of the STAT.
E. Reporting
All reports of field inspectors, particularly those regarding accomplishments and

collections, shall be properly documented and submitted to the team leaders of the
STATs. Said leaders shall consolidate the individual reports in the prescribed format
under RMO No. _____ dated _____ for submission to the FOD.
Advance collection reports, however, should be transmitted directly by the Zone-in-

Charge or Revenue Inspector assigned in the province to the Chief, FOD on or before the
6th day of the following month using the fastest means of communication.
Other reports such as Application for Leave, Time Record, etc. for submission to FOD
shall likewise pass thru the STAT. The officer to sign the recommending approval
portion of the Application for Leave is the Area Team Leader.
Effectivity:
This RMO takes effect July 1, 1984.
RUBEN B. ANCHETA
Acting Commissioner
RMO 28-84
RMO 28-84 Issuance of a National Office Report Calendar
June 19, 1984 June 19, 1984
SUBJECT : Issuance of a National Office Report Calendar
TO : All Service Chiefs, Division Chiefs, Units Heads and Others

Concerned.
To cause timely submission of reports required of each service, including its divisions, a
National Office Report Calendar is hereby issued for the guidance of all concerned.
The attached calendar indicates the form number and its title, the issuance authorizing the
same, the division accomplishing the form, the date for submission, and its distribution.
The tabulated calendar is classified according to the different services:
1. Personnel & Administrative Service
The first nine reports falling under this classification shall be prepared by all the divisions
of every service. These are routinary administrative reports.
2. Collection Office
3. National Assessment Office
4. Sector Operations Office
5. Legal Office
6. Planning and Policy Service
7. Inspection Service
8. Financial and Management Service
9. Specific Tax Office
All Service Chiefs are requested to circularize this calendar to all concerned and make
sure that every working unit within his organization has a copy for ready reference.
This Memorandum takes effect immediately.
RUBEN B. ANCHETA
Acting Commissioner
REPORT CALENDAR
Personnel & Administrative Service

-------------------------------------
TITLE OF REPORT : AUTHORITY : PREPARED BY :
DATE OF : DISTRIBUTION
: : : SUBMISSION :
-------------------------------------
Summary Report of : RMO 33-681 : All Divisions : Monthly
: 1. Personal
Attendances : : : : Div.
: : : : 2. Service
: : : : Concerned
: : : : 3. Division's
: : : : file
: : : :
Current Personnel : RMO 19-722 : All Divisions : Monthly
: 1. Personal
Strength : : : : Div.
: : : : 2. Service
: : : : Concerned
: : : : file
: : : :
List of Promotable : RMO 26-833 : All Divisions : Semi- :
1. Personal
Employees : : : Annually : Div.
: : : : 2. Service
: : : : Concerned
: : : : file
: : : :
Quarterly Report of : RMO 18-834 : All Divisions : Quarterly
: 1. Financial Accomplishments : : :
: (Mngt.
: : : : Div.)
: : : : 2. Service
: : : : Concerned
: : : : file
: : : :
New Performance : RMO 31-79 : All Divisions : Semi- :
1. Personal
Appraisal System : : : Annually :
Div.
: : : : 2. Service
: : : : Concerned
: : : : file
: : : :
Annual Work Plan : RMO 1-835 : All Divisions : Annually
: 1. Service
: : : : Concerned
: : : : file
: : : :
Budget Proposals : RMO 2-726 : All Divisions : Annually
: 1. Financial
: : : : & Mngt./
: : : : Budget
: : : : Division
: : : : 2. Service
: : : : Concerned
: : : : file
: : : :
Inventory of equipment : RMO 18-737 : All Divisions :
Annually : 1. Personnel
and supplies : : : : & Adm.
: : : : Service
: : : : 2. Service
: : : : Concerned
: : : : file
: : : :
List of Authorized : Unnumbered : All Divisions : Quarterly
: 1. Financial Casuals : CIR Memo : :
: & Mngt.
: dated 7-13-82 : : : 2. Personnel
: : : : & Adm.
: : : : file
: : : :
Quarterly Survey on : Common- : Personnel Div.: Quarterly
: 1. Nat. Employment : wealth Act : :
: Census &
in the National Govt. : 5918 : : :
Statistics
: : : : Off.
: : : : file
: : : :
Monthly Inventory : RMO 25-839 : Personnel Div.: On the 5th
: 1. CIR's
Report on : : : working : Office
ID Cards : : : day of : 2. Division's
: : : following : file
: : : month :
: : : :
Annual Inventory : : Property Div. : Annually :
1. Asst.
Report of : : : : Rev. Ser.
Equipment : : : : Chief
: : : : (Pers. &
: : : : Adm.
: : : : Service)
: : : : file
: : : :
Procurement Program : : Property Div. : Annually :
: : : :
Report of Checks : COA : Gen. Services : Daily : 1.
Accoun-
Issued by : Circular : Div. : : ting
Div.
Deputized Officer : No. 78-8910 : : : 2.
National
(TCAA) : : : : Treasury
: : : : 3. COA
: : : :
Report of Checks : - do - : -do - : -do - : 1.
Treasury
Issued & Cancelled : : : : 2.
Accoun-
(TCAA) : : : : ting
: : : : 3. COA
: : : :
Agency Advice of : - do - : - do - : - do - : 1. PNB
Commercial - Checks : : : : 2. COA
Released & Checks : : : :
Cancelled (TCAA) : : : :
: : : :
Reports of Cash : - do - : - do - : Semi- : 1.
Accoun-
Advances & : : : Monthly : ting
Div.
Disbursements of : : : : 2. COA
Salaries of BIR : : : : 3.
National
Officials and : : : : Treasury
Employees of the : : : : 4. Chief,
National Office : : : : Gen.
: : : : Ser.
: : : : Division
: : : :
Reports of Cash : - do - : - do - : - do - : - do -
Advance & : : : :
Disbursement of : : : :
Wages of BIR Casual : : : :
Employees of the : : : :
National Office, Q. C. : : : :
: : : :
Report of Uncollected : - do - : - do - : - do - : - do -
Salaries of BIR : : : :
Employees : : : :
: : : :
Gen. Form 16(A) - : - do - : - do - : Monthly : 1.
Accoun-
Monthly Report of : : : : ting
Div.
Accountability on : : : : 2. COA
the number of checks : : : : 3.
National
issued & checks on : : : :
Treasury
hand at the end : : : : 4. Chief,
of the month : : : : Gen.
: : : : Services
: : : : Div.
: : : :
Monthly Report of : - do - : - do - : - do - : 1.
Accoun-
Disbursement : : : : ting
(Recapitulation) : : : : 2. COA
: : : : file
: : : :
Report of Checks : - do - : - do - : - do - : 1. COA
Cancelled : : : : 2. Division's
(TCAA) : : : : file
: : : :
Monthly Report of : - do - : - do - : - do - : 1.
Division's
Accomplishment No. : : : : file
of voucher paid by : : : :
CASH, TCAA, TW : : : :
: : : :
Monthly Report of No. : - do - : - do - : - do - : 1.
Division's
of TCAA checks : : : : file
released, on hand, : : : :
cancelled and mailed : : : :
: : : :
Report of Treasury : - do - : - do - : - do - : 1.
Accoun-
Warrants Issued : : : : ting
Div. 1. Fund 101 (Proper) : : : : 2.
Division's
2. Fund 102 (Income) : : : : file
: : : :
Monthly Report of : - do - : - do - : - do - : - do -
Treasury Warrants : : : :
(Type B) Issued and/or : : : :
Cancelled : : : :
: : : :
Bank Reconciliation : - do - : - do - : - do - : - do -
Statement Supported : : : :
by Schedule of : : : :
Outstanding Checks : : : :
: : : :
Monthly Report of : COA : Gen. Services : Monthly :
1. Account-
Accountability: Circular : Div. : : ing
Div.
on the number of PNB : No. 78-89 : : :
2. Division's checks issued and : : :
: file
balance on hand : : : :
: : : :
Monthly Report of : - do - : - do - : - do - : - do -
Accountability on the : : : :
number of Official : : : :
Receipts issued and : : : :
balance on hand : : : :
: : : :
Report of Disbursement : - do - : - do - : - do - :
- do -
(Supported by : : : :
Disbursement : : : :
Vouchers) : : : :
: : : :
Report of Collection : - do - : - do - : - do - : - do -
(Supported by OR's) : : : :
: : : :
Gen. Form 99 - : MOF, COA, : - do - : - do - : 1.
COA
Report of : BIR Joint : : : Unit
Collections : Memo No. : : :
Auditor
: 1-83 : : : (BIR)
: : : : 2. Chief
: : : : Account
: : : : ant -
: : : : COA
: : : : 3. Chief,
: : : : Acctg.
: : : : Div. BIR
: : : : 4. Chief,
: : : : With-
: : : : holding
: : : : Tax Div.
: : : : 5. RISSI
: : : : file
: : : :
Report of Checks : - do - : - do - : - do - : - do -
Issued (Commercial : : : :
Checks, PNB, Heart : : : :
Center) : : : :
: : : :
Bank Reconciliation : - do - : - do - : - do - : - do -
Report : : : :
: : : :
Report of the Lists of : - do - : - do - : - do - : - do -
Outstanding Checks : : : :
: : : :
Gen. Form 16-A - : - do - : - do - : - do - : 1.
Account-
Monthly Report of : : : : able
Accountability, : : : : Forms
Accountable Forms : : : : 2.
Division's
: : : : file
: : : :
Report of Operations : - do - : - do - : Annually : 1.
Chief
of the Trust : : : : Accoun-
Liability Account : : : : tant -
: : : : COA
: : : : 2. COA -
: : : : BIR
: : : : 3. Chief,
: : : : Rev.
: : : : Acctg.
: : : : & Monito-
: : : : ring - BIR
: : : : file
: : : :
Report of Unclaimed/ : - do - : - do - : Any day/ : 1.
COA
Uncashed Commercial : : : month/year :
Unit
Checks for the : : : : Auditor
Subsequent payment : : : : - BIR
which remains : : : : 2. Chief
outstanding for more : : : : Acctg.
than 2 years : : : : Div. - BIR
: : : : Accountant :
: : : 3. Chief,
: : : : Acctg.
: : : : Div. - BIR
: : : : file
: : : :
Monthly Report of : LOI 317, 46811 : Career Deve- :
Monthly : 1. Civil
Training Programs : : lopment : :
Service
: : : : Commis-
: : : : sion
: : : : 2. Pers. &
: : : : Adm. Ser.
: : : : 3. CIR's
: : : : Office
: : : : file
: : : :
16-A -Monthly Report : Sec. 62 of : Accountable :
Monthly : 1. Account-
of Accountability of: : the National : Forms Div. : :
ing
: Accounting : : : 2.
Auditing
a) miscellaneous : & Auditing : : :
3. Fiscal
accountable : Manual : : :
Inspection
forms : : : : 4. Division's
b) cigarette strip : : : :
file
stamps : : : :
c) cigars, chewing & : : : :
smoking tobacco : : : :
d) documentary : : : :
stamps : : : :
e) alcohol labels : : : :
: : : :
Summary of Issuances : - do - : - do - : - do - : 1.
Accoun-
of accountable forms : : : : ting
: : : : 2. Auditing
: : : : file
: : : :
Report of Deliveries of : - do - : - do - : - do - :
- do-
Accountable Forms : : : :
: : : :
Summary of issuances : RMO 38-7012 : - do - : - do - :
1. Account-
of cigarette strip : : : : ing
stamps : : : : 2. Auditing
: : : : 3. Statistical
: : : : file
: : : :
Record of Daily : RMO 38-70 : - do - : Daily : 1.
RISSI
Issuances - strip : : : : 2. CIR
stamps : : : : 3. Division's
: : : : file
: : : :
Monthly Progress : No order : - do - : Monthly :
1. CIR
Report of Collections : AFD own : : : 2.
Rev.
on Labels : report : : : Serv.
: : : : Chief,
: : : : Per. &
: : : : Adm.
: : : : Serv.
: : : : file
-------------------------------------
REPORT CALENDAR
Collection Office
-------------------------------------
DATE OF :
: : : SUBMISSION :
DISTRIBUTION
-------------------------------------
16A - Monthly Report: RMC 4-6313; : Receivable : Monthly
: 1. COA
of Accountability : 4-76; RMO : Accounts Div. : :
2. Fiscal
: 36-7714 : : : Control
: : : : Division
: : : : 3. Accoun-
: : : : ting
: : : : 4. Account-
: : : : able
: : : : Forms
: : : : file
: : : :
806 - Inventory of : RMO 5-7715; : -do - : - do - :
- do -
Booklets of RTR's on : 30-7816; 10-8017 : : :
hand : 3-8218 : : :
: : : :
809 - Daily List of : RMO 5-77; : - do - : Daily : 1.
Reconci-
RTR's Issued : 10-80; 3-8219 : : : liation
: : : : Unit
: : : : 2. Monitor-
: : : : ing Center
: : : : (RTR)
: : : : 3. Assess-
: : : : ment Off.
: : : : file
: : : :
1247 - Monthly List of : RMO 21-7720; : - do - :
Monthly : 1. RISSI
Accounts cancelled by : 8-8121 : : : 2.
Collection
ATCA : : : : Off.
: : : : file
: : : :
1248 - Monthly List of : - do - : - do - : - do - :
- do -
Accounts Paid : : : :
: : : :
General Control : - do - : - do - : - do - : - do -
Ledger Report on : : : :
National Accounts : : : :
: : : :
Consolidated Gen. : RMO 21-77 : - do - : - do - : 1.
Collection
Control Ledger : : : : Off.
Report on National, : : : : 2.
Division's
Regional & District : : : : file
Accounts : : : :
: : : :
1251 - Quarterly : RMO 21-77 : Collection : Quarterly
: 1. Recei-
Inventory of : 8-81 : Enforcement : : vable
Tax Accounts : : Div. : : Accts.
Suspended : : : : 2. Perfor-
: : : : mance
: : : : Control
: : : : Div.
: : : : file
: : : :
1252 - Quarterly : - do - : - do - : - do - : - do -
Inventory of Tax : : : :
Accounts under WDL : : : :
: : : :
Monthly Report of : RMO 36-70 : - do - : Monthly :
1. CIR
Dishonored Checks : 33-7222 : : : 2.
Bureau
(received & : : : : Auditor
redeemed) : : : : 3. Chief
: : : : Accoun-
: : : : tant
: : : : 4. To Audi-
: : : : tor with
: : : : juris-
: : : : diction in
: : : : cash
: : : : exami-
: : : : nation
: : : : file
: : : :
Dockets received, : RMO 21-7523 : - do - : - do - : 1.
Collection
referred and closed : : : : Off.
: : : : 2. Perfor-
: : : : mance
: : : : Control
: : : : Div.
: : : : file
: : : :
Yearly inventory of : RMO 18-73 : - do - : Yearly :
- do -
dockets & dishonored : : : :
checks pending : : : :
collection in the division : : : :
: : : :
Consolidation of : RMO 35-7324 : - do - : Monthly :
1. Collection
warrants, dishonored : : : : Off.
checks, monthly : : : : 2.
Division's
collections (with : : : : file
attachments: monthly : : : :
actual collections, : : : :
accomplishment report : : : :
of Collection Agents) : : : :
: : : :
Claim of oil companies : : Accounting : Monthly
: 1. Oil &
of tax credit, : : Div. : : Miscella-
replenishments or : : : : neous
tax refund (specific : : : : Tax
Div. taxes) : : : : 2. Financial
: : : : & Mngt.
: : : : file
: : : :
Tentative Report of : : Statistical : Monthly :
1. CIR's
BIR Collections : : Division : :
Office
(4 major type of taxes) : : : : 2.
Ministry
: : : : of Finance
: : : : 3. Office of
: : : : the Presi-
: : : : dent
: : : : file
: : : :
BIR Collection by BIR : : Statistical : Monthly
: 1. Financial
& GFS Classifications : : Division : Quarterly,
: & Mngt.
: : : Semestral : 2. Bureau of
: : : Annually : Treasury
: : : : 3. NEDA
: : : : 4. Acctg.
: : : : Div. (BIR)
: : : : file
: : : :
Regional & District : : Statistical : Monthly :
1. Financial
Collections (40.21) : : Division : Quarterly, :
& Mngt.
: : : Annually : 2. Division's
: : : : file
: : : :
Performance : : - do - : Semestral, : - do -
Evaluation of : : : Annually :
Revenue Regions : : : :
& Districts : : : :
: : : :
-------------------------------------
REPORT CALENDAR
Specific Tax Office

-------------------------------------
DATE OF :
: : : SUBMISSION :
DISTRIBUTION
-------------------------------------
Daily Operations : RMO 12-8125; : Zones-in : not
later : 1. CIR's
Report : 5-8426 : Charge; : than the :
Office
: : Rev. Inspectors : close : 2.
Specific
: : : of business : Tax Off.
: : : of the : 3. Field
: : : following : Operations
: : : day : Division
: : : : 4. Cigarette
: : : : Factory's
: : : : Copy
: : : :
Daily Strip stamp : RMO 5-84 : - do - : on or : 1.
CIR's
Inventory Report : : : before : Office
: : : the close of : 2. Specific
: : : business : Tax Off.
: : : of the : 3. Tobacco
: : : following : Tax Div.
: : : day : (if in
: : : : Metro
: : : : Mla.)
: : : : 4. Field
: : : : Operations
: : : : Div. (if
: : : : outside
: : : : (Metro
: : : : Mla.)
: : : : 5. Account-
: : : : able
: : : : Forms
: : : : Division
: : : : Factory
: : : :
Report of Cigarettes : RMO 5-84 : - do - : every : 1.
CIR's
Returned to : : : Monday : Office
Manufacturer : : : of the : 2. Specific
: : : following : Tax Off.
: : : week : 3. Tobacco
: : : : Tax Div.
: : : : Factory
: : : :
Quarterly Report on : RMO 5-84 : - do - : every 8th :
1. CIR's
Average Raw : : : of the : Office
Material Yield and : : : month : 2.
Specific
Wastage : : : following : Tax
Off.
: : : the end of : 3. Tobacco
: : : the quarter : Tax Div.
: : : : Factory
: : : :
Revenue Tobacco : CIR Unum- : Rev. Tobacco : every 5th
: 1. Field
Inspector Monthly : bered Memo : Inspectors : day of the :
Operations
Report : dated : : next : Division
: 5-20-80 : : succeeding : 2. Inspec-
: : : month : tor's
: : : : file
: : : :
Updated List of : RMO 7-8127 : Tobacco : semi- :
1. Specific
Manufacturers : : Tax : annually : Tax
Off.
of Articles Subject to : : Division : (before the :
2. Tobacco
Specific Taxes: : : 20th of Jan. : Tax
Div.
and/or Leaf : : : and July) :
Tobacco Dealers : : : :
: : : :
Monthly Reports of : RMO 7-81 : Field Opera- : Monthly
: 1. Specific
Collection of Specific : : tions Div. : :
Tax Off.
Taxes and/or : : Tobacco Tax : : 2.
Division's
Tobacco Inspection : : Div., Alcohol : :
file
Fees : : Tax Div., Oil : :
: : & Misc. Tax : :
: : Division : :
: : : :
Rev. Tobacco : RMO 42-7728 : Rev. Tobacco : Monthly :
1. Specific
Inspector Monthly : : Inspectors : :
Tax Off.
Report on Exported : : : : 2. Field
Tobacco : : : : Operations
: : : : Division
: : : : 3. Inspec-
: : : : tor's file
: : : :
Report of Deposits of : : Alcohol : Monthly :
1. Specific
Specific Taxes: : Tax : : Tax Off.
: : Division : : 2. Division's
: : : : file
: : : :
Report of Committee : RMO 27-8129 : Fiscal Control : Monthly
: 1. Rev.
on Inspection & : : (Represen- : :
Serv.
Acceptance : : tative of Chief) : :
Chief
: : : : Per. &
: : : : Adm.
: : : : Serv.
: : : : file
: : : :
Monthly Report of : RMO 36-76 : Fiscal Control : Monthly
: 1. CIR
Committee on Printing : : (Chief of Div. : :
2. Every
of Specialized : : being the : :
member Accountable Forms : : Chairman :
: of the
: : : : Commi-
: : : : ttee
: : : : file
: : : :
-------------------------------------
REPORT CALENDAR
Financial & Management Service

-------------------------------------
DATE OF :
: : : SUBMISSION :
DISTRIBUTION
-------------------------------------
Evaluation Reports : : Management : Quarterly :
1. Service
(National) : : Div. : : Chiefs
: : : : 2. Financial
: : : : & Mngt.
: : : : file
: : : : 4. Analyst
: : : :
Evaluation Reports : : - do - : Quarterly : 1.
Regional
(Regional) : : : : Director
: : : : & Mngt.
: : : : file
: : : : 4. Analyst
: : : :
Physical Report of : RMO 1-8130 : Budget Div. : - do - :
1. National
Operations : : : : Acctg.
: : : : Off. (OB
: : : : & M)
: : : : file
: : : :
Trial Balance (with : COA : Acctg. Div. : - do - : 1.
COA
supporting documents) : Circular : : :
(Central
a) income statement : No. 78-89 : : :
Off.)
b) statement of : : : : 2. COA
operations : : : : (BIR)
c) obligations incurred : : : : 3.
Ministry
d) aging of accounts : : : : of
Budget
payable : : : : 4. Ministry e)
accounts payable of : : : : of Fin.
trust funds : : : : 5. Service
f) statement of : : : : 6. Division's
accounts payable : : : : file
g) statement of : : : :
accounts receivable : : : :
: : : :
Monthly share of : RA 261331, : Acctg. Div. : Monthly
: 1. Ministry
different agencies of : 555532, 544733, : : :
of
the government : 552634, 352335, : : :
Budget/
from the different : 603836, 143537, : : :
Treasury
taxes collected by : 663138, 663239, : : :
2. Division's
the Bureau : 403640, 416541 : : :
file
: PD 6942, 28843, : : :
: 1544, 69, : : :
: 18945, 56446, : : :
: 73947 : : :
: : : :
Collection Agents : : - do - : Monthly : 1.
Fiscal
delayed in submission : : : :
Control
of Collection : : : : Division
: : : : & Mngt.
: : : : file
: : : :
Report of Bouncing : COA Cir. : Acctg. Div. : Monthly
: 1. Collection
Checks : No. 81-78A48, : : : Office
Redeemed/Settled : Fin. Cir. No. : : : 2.
Financial
: 4-8149 : : : & Mngt.
: : : : 3. IOD (if
: : : : for
: : : : abroad)
: : : : file
: : : :
Monthly Collections of : COA : Acctg. Div. : Monthly
: 1. Fiscal
Different Collecting : Circular : : :
Control
Officers : No. 81-78A : : :
Division
(1201 vs. 1231) : Fin. Cir. : : : 2.
Financial
: No. 4-81 : : : & Mngt.
: : : : file
: : : :
Claim for individual/ : : Accounting : Monthly :
1. Financial
corporate tax refund : : Div. : : &
Mngt.
: : : : 2. National
: : : : Audit
: : : : Review
: : : : Division
: : : : file
-------------------------------------
REPORT CALENDAR
Sector Operations Office

-------------------------------------
DATE OF :
: : : SUBMISSION :
DISTRIBUTION
-------------------------------------
Quarterly Summary of : RMC 31-8150 : Gov't. & Tax :
Quarterly : 1. Account-
Payment Compliance : : Exempt Corp. : :
ing Div.
Certificate : : Division : : (5
copies)
: : : : 2. Sector
: : : : Operations
: : : : file
: : : :
Monthly Accomplish- : RMO 3-7251; : All Divisions : Monthly
: 1. SOO
ment Report of each : 20-7852; 51-6853 : under SOO :
: 2. Division's
Fieldmen re: Collection : : : :
file
& Assessments : : : :
: : : :
Comparative Statement : RMC 10-6654; : - do - : - do -
: - do -
of Monthly Assess- : CIR Memo : : :
ment & Collection : dated 7-3-79 : : :
: : : :
Report of Collection : Memo of : - do - : - do - : 1.
Statistical
: CIR dated : : : 2. SOO
: 8-17-76 : : : 3. Division's
: : : : file
: : : :
Schedule of Collection : SOO Memo : - do - : - do - :
1. SOO
: dated : : : 2. DCIR
: 3-19-62 : : : Villa
: : : : file
: : : :
Performance of : RMO 9-6655 : - do - : Quarterly :
1. SOO
Fieldmen - highest to : : : : 2.
Division's
lowest : : : : file
: : : :
List of Cases : RMO 74-67 : - do - : - do - : - do -
Received and : : : :
Acted Upon : : : :
: : : :
Quarterly Report on : : - do - : - do - : - do -
Collection Dockets : : : :
: : : :
LA issued & cancelled; : RMC 27-67 : - do - : Monthly
: 1. SOO
LC issued : : : : 2. Account-
: : : : able
: : : : Forms
: : : : Division
: : : : file
: : : :
Assessment & : SOO Verbal : - do - : - do - : 1. SOO
Collections by Region: requirement : : : 2.
DCIR
: : : : Villa
: : : : file
: : : :
Comparative Perfor- : - do - : - do - : - do - : - do -
mance Report : : : :
: : : :
39.64 - Inventory of : RMO 16-7556; : - do - : Quarterly
: - do -Pending Cases : 43-6757; RMO :
: :
: 31-8358 : : :
: : : :
-------------------------------------
REPORT CALENDAR
Legal Office
-------------------------------------
DATE OF :
: : : SUBMISSION :
DISTRIBUTION
-------------------------------------
1249 - Quarterly : RMO 21-77; : Appellate Div. : Quarterly
: 1. Collection
inventory list of : 8-81 : : :
Office/
tax accounts under : : : : Accts.
review : : : : Receivable :
: : : Division
: : : : 2. Legal
: : : : Office
: : : : file
: : : :
Quarterly inventory of : RMC 16-75 : Law Division :
Quarterly : 1. Collection
tax dockets : : : : Office
: : : : 2. Legal
: : : : Office
: : : : 3. DCIR
: : : : Villa's Off.
: : : : file
: : : :
Report of Collection : RMC 60-72 : Litigation Divi- :
Monthly : 1. Statistical
: : sion : : Div.
: : : : 2. Legal
: : : : Office
: : : : file
: : : :
Quarterly inventory of : ACIR Un- : Prosecution :
Quarterly : 1. Collection
pending tax dockets : numbered : Division : :
Office
: Memo dated : : : 2. DCIR
: 3-22-79; : : : Villa's
: CIR Un- : : : Off.
: numbered : : : 3. Legal
: Memo : : : Office
: 6-28-78; : : : 4. Division's
: RMO 25-62; : : : file
: RMC 16-7559 : : :
: : : :
Annual Report on : : Prosecution : Annually :
1. Financial
Cases Handled: : Division : : &
Mngt.
Against Taxpayers & : : : : Service
BIR Personnel : : : : 2. Legal
: : : : Office
: : : : file
: : : :
Annual Report on : : - do - : Annually : 1.
CIR
Cases Filed in Court or : : : : 2.
DCIR
Fiscal's Office : : : : Villa's Off.
against Taxpayer's & : : : : 3. Legal
BIR Personnel : : : : Office
: : : : 4. Mngt.
: : : : Div.
: : : : file
: : : :
-------------------------------------
REPORT CALENDAR
National Assessment Office

-------------------------------------
DATE OF :
: : : SUBMISSION :
DISTRIBUTION
-------------------------------------
40.00 - Monthly : RMO 23-6560; : National Audit:
Monthly : 1. RISSI
Summary of Taxes : 41-7661; 19-7862 : Review Div. :
: 2. Recei-
Assessed and/or : : & Refund : :
vable
Demanded : : Audit Division: :
Division
: : : : 3. National
: : : : Assess-
: : : : ment
: : : : Office
: : : : file
: : : :
Quarterly inventories : RMC 16-75 : National Audit: Quarterly
: 1. Collection
of pending tax dockets : : Review Div. : :
Office
: : : : 2. National
: : : : Assess-
: : : : ment
: : : : Office
: : : : file
: : : :
Monthly List of : RMO 21-77; : Refund Audit : Monthly
: 1. Collection
Accounts Cancelled : 8-81 : Division : :
Office/
by ATCA : : : : Recei-
: : : : vable
: : : : Division
: : : : 2. RISSI
: : : : 3. National
: : : : Assess-
: : : : ment
: : : : Office
: : : : file
: : : :
Memorandum Report : : - do - : - do - : 1. Recei-
to RISSI concerning : : : : vable
all Authorities : : : : Division to
Cancel Assessment : : : : 2. RISSI
: : : : 3. National
: : : : Assess-
: : : : ment
: : : : Office
: : : : file
_______________________________________________________________________
RMO 27-84
RMO 27-84 Procedures Relating to the Imposition of Special Excise Tax on sale of
Foreign Exchange by Central Bank and its Agents under Revenue Regulations No. 7-84
implementing PD 1928.
August 21, 1984 December 31, 1985
SUBJECT : Procedures Relating to the Imposition of Special Excise Tax on

sale of Foreign Exchange by Central Bank and its Agents under Revenue Regulations No.
7-84 implementing PD 1928.
Objectives:
To provide an effective system in the receipt, transmittal and processing of Special

Excise Tax Return (BIR Form No. 33.02) and monthly Return of Special Excise Tax
Collected (BIR Form 33.03).
Procedures:
The following procedures in the filing of returns and payment of the tax are hereby
prescribed:
A. Special Excise Tax Return (BIR Form 33.02) shall be filed by the bank authorized
to sell foreign exchange with the Collection Agent (CA) or Revenue District Officer
(RDO) of the city or municipality where the office of the seller-bank is located on the
next working day after the day the transactions were consummated: The tax assessed and
collected shall be remitted to the BIR upon filing of the return thru the accredited bank
indicated in the payment order.
B. Monthly Return of Special Excise Tax Collected (BIR Form No. 33.03) shall be
filed with the 2nd copies of all BIR Form 33.02 collected during the month not later than
the fifteenth day of the succeeding month by the head office of the Central Bank (CB) or
by the head offices of its authorized agent banks with the Banks, Financing and Insurance
Division (BF & ID).
Duties/Responsibilities:
A. Collection Agent shall:
1. Receive from seller-bank BIR Form 33.02, stamp date of receipt on the proper
space on all the 4 copies of the return;
2. Issue Payment Order (PO) for the amount of special excise tax assessed and
collected as indicated in the return (for this purpose, use tax numeric code no. 7660-
0001); address the payment order to the seller-bank if the same is accredited with the
BIR;
3. Retain original copy of BIR Form 33.02 and release the 2nd, 3rd and 4th copies of
the return to seller-bank;
4. Prepare Transmittal Letter addressed to Banks, Financing & Insurance Division
for the signature of the Revenue District Officer every Friday enclosing therewith the
original copies of the returns filed within the week.
B. Revenue District Officer shall:
1. Check, immediately upon receipt, if all the originals of BIR Form No. 33.02 listed
in the Transmittal Letter are attached;
2. Sign the Transmittal Letter;
3. Forward the Transmittal Letter with the enclosed returns to the Banks, Financing
& Insurance Division on the same day it was received from CA, copy furnished the
Regional Director.
C. Banks, Financing & Insurance Division shall:
1. Review BIR Form No. 33.02 to make certain that these returns conform with
pertinent rules and regulations;
2. Receive from filer-bank BIR Form No. 33.03, with the 2nd copy of all 33.02 filed
during the month, duly noted by the BIR Receiving Officer; stamp date of receipt on the
proper space on all the three (3) copies of the return;
3. Release to filer-bank 3rd copy of BIR Form No. 33.03;
4. Reconcile BIR Form No. 33.02 filed by seller-bank with BIR Form No. 33.03
filed by the head office of CB or its authorized agent banks;
5. Undertake necessary steps to correct discrepancies on the reports. This
undertaking shall be separate and distinct from its regular annual examination of banks.
Repealing Clause:
Any provision of any issuance which is inconsistent with this Order is hereby revoked.
Effectivity:
This Order shall be effective from its date of approval until December 31, 1985.

Acting Commissioner
RMO 26-84
RMO 26-84 Criteria for Assigning Tax Returns for Sectoral Audit by the Audit
Divisions
August 24, 1984
SUBJECT : Criteria for Assigning Tax Returns for Sectoral Audit by the Audit
Divisions
1. Purpose
This Revenue Memorandum Order delineates the primary and functional audit
jurisdiction of the Audit Divisions in the National Office to investigate tax cases by line
of industry.
2. Criteria for assigning sectors of industry to the Audit Divisions.
Sectors of industries are hereby assigned to the different audit divisions by applying the
following primary and, if necessary, alternate criteria.
2.1 The primary criteria allocates the various industry sectors among the audit
divisions by reference to the NEDA Industry Classification Guide.
2.2 The alternate criteria - "pre-dominant line-of-industry factor" and the "final
product factor" - shall be applied in situations where the primary criteria is not adequate
to determine which audit division should have primary audit jurisdiction over a taxpayer.
3. Application of the primary criteria.
The following sectors of industries are assigned to the Audit Divisions on the basis of the
name/designation of specific lines of industries described in the Industry Classification
Guide.
A. AGRICULTURE & NATURAL RESOURCES DIVISION
A.1 Agricultural Crops Production
A. 1.1 Palay production
1.2 Corn production
1.3 Vegetable, roots, and tuber crops production
1.4 Fruits and nuts (except coconut) production
1.5 Coconut production, including copra-making in the farm
1.6 Sugar cane production, including muscovado sugar making in the farm
1.7 Tobacco production
1.8 Fiber crops production
1.9 Other crops (specify)
A.2 Livestock, Poultry and other Animals Production
A. 2.1 Livestock and livestock products production
2.2 Poultry and poultry products production
2.3 Other animals production (specify)
A.3 Agricultural Services
A. 3.1 Agricultural, animal husbandry, and horticultural services
3.2 Agricultural machinery and equipment leasing
3.3 Veterinary services
3.4 Transport of farm products
3.5 Cooperatives
3.6 Others (specify)
A.4 Fishery
A. 4.1 Ocean (offshore) and coastal fishing
4.2 Inland fishing
4.3 Fish farms operation
4.4 Other fishery operations (specify)
A.5 Forestry
A. 5.1 Logging operation
5.2 Other forestry operations (specify)
A.6 Hunting, Trapping and Game Propagation
A. 6.1 Hunting, trapping and game propagation
A.7 Metallic Ore Mining
A. 7.1 Gold ore mining
7.2 Other precious metal ore mining (specify)
7.3 Copper ore mining
7.4 Nickel ore mining
7.5 Chromite ore mining
7.6 Iron ore mining
7.7 Other base metal ore mining (specify)
A.8 Nonmetallic Mining and Quarrying
A. 8.1 Coal mining
8.2 Crude petroleum and natural gas exploration and production
8.3 Stone quarrying, clay and sand pits
8.4 Other nonmetallic mining and quarrying
B. FRANCHISE & MISCELLANEOUS TAXES DIVISION
B.1 Electricity
B. 1.1 Generating and distributing electricity
1.2 Distributing electricity to consumers
B.2 Gas and Steam
B. 2.1 Gas manufacture and distribution through systems
2.2 Steam heat and power plants
B.3 Waterworks and Supply

B. 3.1 Waterworks and supply
B.4 Communications
B. 4.1 Mail and express service
4.2 Telephone service
4.3 Telegraph service
4.4 Communications service
B.5 Wholesale Trade

B. 5.1 Farm, forest and marine products wholesaling
5.2 Processed food, beverage and tobacco products wholesaling
5.3 Dry goods, textiles, and wearing apparel wholesaling
5.4 Construction materials and supplies wholesaling
5.5 Office & household furniture furnishing, appliances & wares wholesaling
5.6 Machinery and equipment including transport equipment dealing
5.7 Minerals, metals and industrial chemicals (except crude petroleum and
petroleum products) dealing
5.8 Petroleum and petroleum products wholesaling
5.9 Wholesale trade not elsewhere classified (specify)
B.6 Retail Trade
B. 6.1 Books, office and school supplies, newspapers and magazines retailing
6.2 Food, beverages and tobacco retailing
6.3 Dry goods, textile and wearing apparel retailing
6.4 Construction materials and supplies retailing
6.5 Office and household furniture, furnishings, fixtures, appliances and
ware retailing
6.6 Transport machinery and equipment, accessories and supplies retailing
6.7 Medical supplies and equipment retailing
6.8 Petroleum and other fuel products retailing
6.9 Retail trade not elsewhere classified (specify)
B.7 Sanitary and Similar Service
B. 7.1 Sanitary and similar services
B.8 Educational Services
B. 8.1 Public education
8.2 Private education
B.9 Medical, Dental, Other Health and Veterinary Services
B. 9.1 Public medical, dental and other health services
9.2 Private medical, dental and other health services
B.10 Other Social and Related Community Services
B. 10.1 Research and scientific institutes
10.2 Social welfare services
10.3 Business, professional, civic, religious, and labor associations
B.11 Recreational and Cultural Services
B. 11.1 Motion picture and other entertainment services
11.2 Amusement and recreational services
B.12 Personal and Household Services
B. 12.1 Repair of motor vehicles and motorcycles
12.2 Other repair services (specify)
12.3 Laundries, laundry services, and cleaning and drying plants
12.4 Domestic services
12.5 Barber shops and beauty shops
12.6 Photographic studios, including commercial photography and related
services
12.7 Personal services not elsewhere classified
C. CONSTRUCTION, TRANSPORTATION & SERVICE INDUSTRY DIVISION
C.1 Construction
C. 1.1 General building construction
1.2 General engineering construction
1.3 Specialized trade construction
C.2 Transport Services
C. 2.1 Railway transport
2.2 Road passenger transport
2.3 Water transport
2.4 Air transport
2.5 Services allied to transport (specify)
C.3 Storage and Warehousing
C. 3.1 Storage and warehousing (specify)
C.4 Business Services
C. 4.1 Professional business services
C. 4.11 Legal services
4.12 Accounting, auditing and bookkeeping services
4.13 Engineering, architectural and technical services
4.14 Land surveying services
4.15 Market research services
4.16 Management consultancy
4.2 Advertising services
4.3 Machinery and equipment renting and leasing
4.4 Hotel, restaurant and catering services
4.5 Other business services (specify)
D. BANKS, FINANCING & INSURANCE DIVISION
D.1 Banking Institutions
D. 1.1 Deposit money banks
1.2 Thrift banks
1.3 Other banking institutions (specify)
D.2 Financial Intermediaries (Non-Banks)
D. 2.1 Financial intermediaries (non-banks except pawnshops)
D. 2.11 Investment company
2.12 Financing company
2.13 Investment house
2.14 Securities dealers/brokers
2.15 Fund managers
2.16 Mutual building and loan association
2.17 Nonstock savings and loan association
D. 2.2 Pawnshops
2.3 Insurance agents and brokers
2.4 Other financial services (specify)
D.3 Insurance
D. 3.1 Life insurance companies
3.2 Non-life insurance companies
3.3 Other insurance activities (specify)
E. MANUFACTURING DIVISION I
E.1 Manufacture of Food and Beverages
E. 1.1 Meat and meat products manufacture
1.2 Fish and fish products manufacture
1.3 Seafoods manufacture
1.4 Dairy products manufacture
1.5 Fruit and vegetable processing
1.6 Manufacture of coconut oil, vegetable oils and fats
1.7 Coconut, rice, and corn milling
1.8 Sugar milling and refinery
1.9 Manufacture of bakery products
1.10 Other food manufacturing (specify)
1.11 Beer, liquor and spirits manufacture
1.12 Soft drinks and other carbonated drinks manufacture
1.13 Other beverages manufacture (specify)
E.2 Manufacture of Chemicals and Chemical Products, Rubber & Plastic Products
E. 2.1 Manufacture of Industrial chemicals
2.2 Manufacture of other chemical products (specify)
2.3 Manufacture or rubber products
2.4 Manufacture of plastic products
E.3 Exclusive wholesale distributors of the above manufacturers.
F. MANUFACTURING DIVISION II
F.1 Textile, Wearing Apparel, and Leather Industries
F. 1.1 Textile manufacture
1.2 Manufacture of wearing apparel (except footwear)
1.3 Manufacture of leather and leather products, leather substitutes
products, and fur products (except footwear and wearing apparel)
1.4 Manufacture of footwear (except rubber, plastic, or wood footwear)
F.2 Basic Metal Industries
F. 2.1 Iron and steel basic industries
2.2 Nonferrous metal basic industries
2.3 Manufacture of machinery (except electrical)
2.4 Manufacture of electrical machinery, apparatus, appliances, and
supplies
2.5 Manufacture of transport equipment
2.6 Manufacture of professions and scientific, measuring, and controlling
equipment not elsewhere classified, and of photographic and
optical
instruments
F.3 Other Manufacturing Industries
F. 3.1 Other manufacturing industries (specify)
F.4 Exclusive wholesale distributors of the above manufacturers.
G. GOVERNMENT AND TAX-EXEMPT CORPORATIONS DIVISION
G.1 Tax-free private organization under Section 27 of the Tax Code and under Special
Laws, such as but not limited to rural banks, cottage industries, and cooperatives.
G.2 Government corporations, including government owned or controlled financial
institutions.
H. REAL ESTATE AND TRANSFER TAXES DIVISION
H.1. Real Estate
H. 1.1 Real estate development companies
1.2 Letting and operating real estate, residential and nonresidential
1.3 Transfer of property by donation or under succession laws.
I. INTERNATIONAL OPERATIONS DIVISION
I.1. International carriers.
2 Local branches or permanent establishments of foreign enterprises.
3 Overseas contractors, subject to the criteria prescribed in the Revenue
Memorandum Order.
4 Multinational corporations to be assigned by the Revenue Service
Chief, Sector Operations Office
5 The International Operations Division shall have primary audit
jurisdiction over International Carriers
6 Under the Coordinated Examination Program prescribed in Revenue
Memorandum Order No. 31-83, the International Operations Division
shall conduct joint and concurrent examination and will undertake
functional audit of cases involving -
I. 6.1 Overseas contracts
6.2 Application of tax treaties
6.3 Determination of transfer pricing
J. INVESTMENT INCENTIVES DIVISION
J.1 Members of the Progressive Car Manufacturing Program and their distributors
2. The Revenue Service Chief, Sector Operations Office, may assign tax returns of
taxpayers not enjoying incentives for primary audit by the Investment Incentives Division
examiners.
3. Functional audit under the Coordinated Examination Program as prescribed in
Revenue Memorandum Order No. 31-83.
4. Application of the alternate criteria.
In situations where the primary criteria will not adequately serve as a means of
determining which audit division shall have primary audit jurisdiction over the taxpayer,
the following alternative criteria shall be used singly or in combination.
4.1 The predominant line-of-industry test.
If a taxpayer is engaged in different lines of business or industry which come under two
or more audit divisions, the predominant line-of-business or industry shall determine
which audit division will have the primary audit jurisdiction. A line of business or
industry which yields the highest percentage of gross sales or receipts from all lines of
industry engaged in by the taxpayer shall be considered predominant for purposes of
assigning a tax return subject to the relevant audit division.
For example, an income tax return of a corporation shows gross sales derived from the
following sources:
Product Line Amount % to Total
Meat and meat products
manufacture P600,000 50%
Livestock & livestock
products production 400,000 33%
Veterinary services 200,000 17%
TOTAL GROSS SALES P1,200,000 100%

======== ====
Under the primary criteria, three divisions might claim primary audit jurisdiction over the
taxpayer: Manufacturing Division II for the meat and meat products line; Agriculture &
Natural Resources Division for the Livestock and livestock product line; and,
Construction, Transportation, Services and Industry Division for the veterinary services.
When conflict of jurisdiction arises as in this example, the alternative criteria - the
predominant line-of-industry test - should be applied to resolve the conflict by assigning
the case to the Manufacturing Division II because the meat and product line yielded the
highest percentage of total gross sales from all lines of industry engaged in by the
taxpayer.
4.2 The final-product test.
If a taxpayer is engaged in a line of industry which involves primary, intermediate and
other auxiliary to the main operation leading to the manufacture of a final product, the
taxpayer shall be assigned to the corresponding audit division according to the
classification of the final product.
For example, if a corporation is engaged in business of meat packing, meat processing
and meat canning and at the same time undertakes livestock production as a source of its
raw materials, by applying the final-product test, the corporation will come under the
jurisdiction of the Manufacturing Division II and not under the agriculture and Natural
Resources Division.
Effectivity.
This Order shall apply to tax returns for taxable years beginning in 1983 and which are
listed under the jurisdiction of the National Office.
RUBEN B. ANCHETA
Acting Commissioner
RMO 25-84
RMO 25-84 Adoption and Implementation of the Computerized Tax Collection
Information System Tax Receipt and Deposit Module (TX-CIS-TAXREDEP) at Certain
Collection Offices in Revenue Regions 4-A and 4-B.
August 27, 1984 August 27, 1984
SUBJECT : Adoption and Implementation of the Computerized Tax Collection

Information System Tax Receipt and Deposit Module (TX-CIS-TAXREDEP) at Certain
Collection Offices in Revenue Regions 4-A and 4-B.
TO : Chief Collection Service, Chief, Financial and Management

Service Chief, Personnel and Administrative Service Regional Directors, Revenue
Regions 4-A and 4-B, Chiefs of Collection Branches, Revenue Regions 4-A and 4-B,
Revenue District Officers, Revenue District Offices under Revenue Regions 4-A and 4-
B, Information Systems Development Staff, Collection Agent of Revenue District Offices
under Revenue Regions 4-A and 4-B, Others Concerned.
I. SCOPE -
Promulgated hereunder are the rules and procedures for the guidance of all concerned in
connection with the implementation of the Tax Collection Information System Tax
Receipt and Deposit Module.
II. RATIONALE -
Having successfully attained the objectives of the Pilot Tests I and II of the TX-CIS-
TAXREDEP pursuant to Revenue Memorandum Order No. 36-83 dated November 8,
1983 and Revenue Memorandum Order No. 7-84 dated February 24, 1984, respectively,
the actual implementation of the system at the collection offices located at Revenue
Region IV-B Building and National Office Building; and South Manila and Binondo
collection offices in Revenue Region 4-A, is in order. Adoption of Pilot Test Phase I in
the remaining collection Stations in Region 4-A and 4-B shall likewise be launched as
tellering branches when available. This will facilitate the preparation and submission of
collection information needed by the Government in its economic development programs
as well as to correct the flaws of the collection system of the Bureau pursuant to
Executive Order No. 937 dated March 1, 1984.
III. MECHANIZED COLLECTION SYSTEM DOCUMENT FLOW

A. Taxpayer shall submit basic documents with Payments to be made to EDP
Revenue Teller who shall accept the same if the information required thereat are
completely filled-up. Otherwise, the basic documents shall be returned to taxpayer for its
proper completion. Basic documents with no payment shall be submitted to the
Collection Agent.
B. If the lacking information in the basic documents calls for the implementation of
tax laws, the EDP Revenue Tellers shall direct/refer the taxpayer to the Tax Assistance
Officer. The Tax Assistance Officer is duty bound to assist the taxpayer in correcting
and/or completing the basic documents.
C. Finding the basic documents fully accomplished, the EDP Revenue Tellers shall
process and validate the basic documents, generate and sign Payment Order (PO).
D. Thereafter, EDP Revenue Teller shall return one (1) copy of basic documents and
issue four (4) copies of the Payment Order to the taxpayer. He shall likewise retain for
file the remaining copies of the basic documents and Payment Order.
E. Taxpayer shall pay the tax due to the bank that is indicated in the Payment Order.
He shall likewise present and submit four (4) copies of the issued Payment Order.
F. Bank shall receive payment, prepare Confirmation Receipt (CR) and issue the
original thereof, and return one (1) copy of the Payment Order to the taxpayer. It shall
likewise retain for file the remaining copies of the PO's and CR's.
G. At-the-end-of-day.
1. EDP Revenue Teller shall print the required daily reports.
2. Bank shall submit report on the Confirmation Receipt issued to the Banking
Computer Center thru Back Office Clerk.
IV. DELINEATED RESPONSIBILITIES
A. Responsibility of EDP Revenue Tellers
1. Start the machine every morning or whenever the need arises such as in the case
of brownouts, machine breakdown or machine turn-offs.
2. Receive basic documents from taxpayer.
3. Ascertain that the original, duplicate, and triplicate copies of the basic documents
are properly accomplished by paying particular attention to the following:
a) That the return is duly signed by the taxpayer;
b) That the name, date of birth and tax account number of filer and spouse including
their complete address, as well as the name(s), complete date(s) of birth and relationship
of dependent(s) to the filer are stated. In addition, the period covered and the type of tax
are likewise stated.
c) That the correct forms are used and required attachments, whenever applicable are
submitted.
d) That the amount to be paid is stated when the taxpayer opted for installment.
4. Refer basic documents with erroneous or missing data to the Tax Assistance
Officer.
5. Process basic documents as follows:
a) Basic documents with payments to be made:
- Encode all required data as prompted on the terminal.
- Assign Authorized Agent Bank based on adopted scheme.
- Insert basic documents in the validation printer for machine validation of the same.
- Insert Payment Order form in the line printer to start printing of the same.
- Sign Payment Order.
- Return one (1) copy of the validated basic documents together with the first four (4)
copies of the Payment Order to the taxpayer.
- Retain remaining copies of the basic documents and Payment Order for file.
b) Basic documents with no payments to be made (i.e. refundable, even and
exempt);
- Receive batched documents from Collection Agents
- Encode all required data as prompted on the terminal
- Insert basic documents in the validation printer for machine validation of the same.
- Retain basic documents for file.
6. Encode data based on the report received from the bank.
7. Encode unprocessed basic documents and Payment Order which are still in the
custody of the Collection Agent of covered Collection Stations.
8. At-end-of-day.
- Print the Report of Collection by Type of Tax and Report of Collection by Bank.
- Turn-off the machine.
B. Responsibility of Tax Assistance Officer
1. Answer any query from taxpayer.
2. Assist taxpayer in properly accomplishing basic documents.
For this purpose, the Tax Assistance Officer shall be chosen from among the competent
BIR personnel who holds the position of a Revenue Examiner or Collection Agent.
C. Responsibility of Back Office Clerk
1. Requisition Payment Order from the Administrative Branch of the Regional
Office. The Requisition Order shall be signed by the General Manager or Deputy General
Manager of RISSI.
2. Consolidate all transaction cassette tapes and print the Daily List of Payment
Orders issued by booklet seven (7) copies.
3. Receive Report on the Confirmation Receipt issued from the banks.
4. Batch one (1) copy of the basic document for transmittal to the Revenue
Computer Center.
5. Transmit all reports together with the remaining copy of the basic documents and
card copy of the Payment Order to the Revenue District Office concerned thru the
Collection Agent.
6. Transmit all transaction cassette tapes, batched documents and control totals to
the Revenue Computer Center.
D. Responsibility of Regional Administrative Branches
1. Provide, upon request of EDP Revenue Tellers, payment order forms and similar
forms.
E. Responsibility of Participating Authorized Agent Banks
1. Receive tax payments from the taxpayer based on the validated payment order.
2. Sign and issue Confirmation Receipt.
3. Transmit on a daily basis to the Back Office Clerk a report on the Confirmation
Receipts Issued containing the following information:
a) CR Number
b) Date Issued
c) PO Number
d) Name & Address of Taxpayer
e) Amount Paid
f) If payment is by check, Check No. and date as well as the drawee bank.
F. Responsibilities of Collection Agent.
1. Batch and transmit all unprocessed basic documents and Payment Order which
are still in the custody of Collection Agents of covered Collection Stations filed/issued
starting January, 1984 to RISSI.
2. Receive Basic Documents with no payments to be made (i.e. refundable, even and
exempt). At the end of the day, batch one copy of these Basic Documents and forward
them to the EDP Revenue Tellers for processing.
3. Perform other current functions and responsibilities such as but not limited, to
selling of documentary stamps, issuance of ROR, tax enforcement, tax information,
except the issuance of payment orders, requisition of payment orders and preparation of
collection report based on payment orders issued.
4. Schedule of training of BIR personnel taking into account the following
qualifications:
a. College graduate, preferably accounting.
b. Must know how to type.
G. Responsibility of RISSI
Conduct training on the operations of the Mechanized collection system for personnel of
collection offices with tellering machines.
V. IMPLEMENTATION OF THE SYSTEM
A. Full implementation of the system is hereby set for collection stations located at
Revenue Region IV-B Building including those at the National Office Building, upon the
signing of this Memorandum Order. Collection Stations of Revenue Regions IV-A shall
likewise implement the system as soon as the place is ready and prepared to use tellering
machines.
B. Adoption of the Phase I or Phase II, as the case may be, of the Pilot Test is
likewise launched in the remaining Collection Stations of Revenue Regions IV-A and IV-
B as tellering machines become available.
C. In offices where there are no tellering machines, the existing manual collection
system shall still be followed:
VI. CREATION OF STEERING COMMITTEE

A. Steering Committee is hereby created to monitor the progress of the system,
analyze problems that are from time to time, encountered in its implementation and
propose and recommend solutions in order to achieve the goal of the system.
* Mr. Aquillino T. Larin - Chairman
Chief, Collection Office
* Mr. Jesus P. Parado - Member
Director, Revenue Region IV-A
* Mr. Jose M. Salindong - Member
Director, Revenue Region IV-B
* Mrs. Paz B. Suarez - Member
Chief, Financial and Management Service
* Mr. Honorio A. Todino - Member
Chief, Personnel and Administrative Service
* Mr. Cecilio T. Marcelo
Chief, Collection Performance Control Division
* Mr. Julian Montano, Jr. - Member
Group Supervisor, Revenue District Office-Mandaluyong
* Mr. Dennis S. Deveza - Member
General Manager - RISSI
VII. ADDITIONAL RESPONSIBILITY OF COLLECTION AGENTS IN

COLLECTION OFFICES WHERE THE PILOT TEST-PHASE I SHALL BE
ADOPTED
- Batch and transmit all unprocessed documents and Payment Orders which are still in the
custody of Collection Agents of covered collection stations filed/issued starting January,
1984 to RISSI.
VIII. TURN-OVER SYSTEM

When the mechanized collection system has been fully implemented and the personnel of
the Collection Agent has been trained or familiarized, RISSI personnel shall be
transferred to other Collection Offices for purposes of implementation.
IX. REPEALING CLAUSE

The provisions of Revenue Memorandum Orders and other issuances inconsistent
herewith are revoked or amended accordingly.
X. EFFECTIVITY
This Revenue Memorandum Order shall take effect upon its approval.

Commissioner
RMO 24-84
RMO 24-84 Amending Certain Provisions of Revenue Memorandum No. 30-83 dated
September 22, 1983, relative to the Refund of Excess Taxes Withheld on Individual
Incomes and Prescribing the Guidelines and Procedures in the Verification of Tax
Refunds.
August 27, 1984 August 27, 1984
SUBJECT : Amending Certain Provisions of Revenue Memorandum No. 30-

831 dated September 22, 1983, relative to the Refund of Excess Taxes Withheld on
Individual Incomes and Prescribing the Guidelines and Procedures in the Verification of
Tax Refunds.
TO : All Internal Revenue Officials, Withholding Agents and Others

Concerned.
I. RATIONALE
In order to ensure uniformity and objectivity in the issuance or release of income tax
refunds to authorized representative and the verification of tax refunds by taxpayers, it is
hereby directed that the following procedures/guidelines shall be followed by all
concerned.
II. AMENDMENTS
A. The second paragraph of sub-item (3) under item (E) of paragraph I on General
Policies of Revenue Memorandum Order No. 30-832, is hereby amended to read as
follows:
"In meritorious cases, and with the approval of the Commissioner of Internal Revenue, or
Chief and Assistant Service Chief, Collection Office, or the Regional Director, or the
Revenue District Officer, refunds may be claimed through an authorized representative of
the refundee. The BIR Office affected shall advance a copy of the issued Authorization to
the PNB Branches concerned which shall serve as the latter's authority to issue the refund
to the authorized representative. Authorizations issued by a Regional Director or Revenue
District Officer shall be valid only within their respective territorial jurisdictions.
Corollary to this, they shall furnish specimens of their signatures to the PNB Branches
within their jurisdictions."
For this purpose, meritorious cases shall include, but not be limited, to the following:
1. Refundee is abroad, sick or physically incapacitated;
2. Refundee is already dead; and,
3. Others.
For approval of such request, the following shall be observed:
1. Refundee is abroad, sick or physically incapacitated.
a. The designated agent/representative must present an authenticated Special Power
of Attorney.
b. In case of Non-residency, adequate proof must be submitted such as xerox copy
of appropriate pages of the passport, or alien registration card; whereas in case of
sickness or physical incapacity, a Medical Certificate. The said requirements shall be in
addition to the Special Power of Attorney.
c. The BIR office affected shall verify the submitted documents and issue the
Authorization for PNB to pay.
d. The PNB Disbursing Office shall pay the Refund only when:
i. Designated agent/representative submits the Special Power of Attorney,
Authorization issued by the BIR Office concerned, and the (unexpired) Refund Notice.
ii. Designated agent/representative presents identification papers, such as, but not
limited to, Tax Account Number Card, Office ID, Driver's license, etc.
2. Refundee is Already Dead
a. Death Certificate must be presented by any heir or judicially designated
administrator.
b. If the heir is the wife, the Marriage Certificate must be presented, or if any of the
children of the deceased taxpayer, his birth certificate. In case of a judicially designated
administrator, a copy of the court order.
c. In addition to the above-requirements, the heir or judicially designated
administrator shall be made to fill-up, in triplicate copies, a Letter of Undertaking (see
Annex A), and submit the same to the BIR Office affected. The letter shall contain,
among others, the name of the deceased refundee, name(s) and address(es) of heir(s) and
a statement that the heir or judicially designated administrator shall include as part of the
deceased's gross estate the total amount of the tax refund.
In case the estate tax has been paid, a certified xerox copy of the proof of payment shall
be submitted in addition to the letter of undertaking which shall contain a statement to the
effect that an amended Estate Tax Return shall be filed reflecting the total amount of the
tax refund.
d. The BIR Office affected shall verify the submitted documents and issue the
Authorization for PNB to pay.
e. The BIR office affected shall transmit copies of the letter as follows:
i. Real Estate and Transfer Taxes Division - one (1) copy
ii. Revenue District Office where the deceased refundee had his legal residence or
principal place of business one (1) copy. However, if filed with the Revenue District
Office, one (1) copy should be transmitted to the Revenue Regional Office.
f. The PNB Disbursing Office shall pay the Refund only when:
i. Heir or judicially designated administrator submits the Authorization issued by
the BIR Office concerned, together with the (unexpired) Refund Notice.
ii. Heir or judicially designated administrator presents identification papers such as,
but not limited to Tax Account Number Card, Office ID, Driver's License, etc.
3. Other Meritorious Cases
a. Determination of meritorious cases shall be vested with the Chief, Collection
Office upon recommendation of the Withholding Tax Division; Regional Director or
Revenue District Officer as the case may be.
b. Direct payment of the refund by the BIR to the refundee under these meritorious
cases shall be allowed only upon written approval of the Revenue Service Chief,
Collection Office.
c. For purpose of direct payment of tax refunds, the procedures on ordinary
disbursement shall be followed.
III. PRESCRIBED VERIFICATION GUIDELINES

All tax refund queries shall be addressed to and serviced by the Withholding Tax
Division-BIR, subject to the following guidelines/procedures:
A. Verification of Tax Refunds:
1. Inquiring refundees shall proceed to the Withholding Tax Division (Rm. 208-BIR,
National Office Bldg.) and fill-up the Verification Slip to be submitted to the Verification
Clerk.
2. Verification Clerk shall check the name of the refundee against the "Alpha List of
Tax Refundees" and "Alpha List of Bad Files."
3. If the refundee's name appears in the "Alpha List of Tax Refundees," the
Verification Clerk shall indicate the Refund Notice Number, Assessment Number and
amount of refund on the Verification Slip and return the same to the taxpayer.
4. If the refundee's name appears in the "Alpha List of Bad Files," the Verification
Clerk shall indicate the Assessment Number and amount of refund on the Verification
Slip with the remarks "Bad Files" and returns the same to the taxpayer.
In such case, the refundee shall be advised that the income tax return filed is erroneous or
imperfect, hence is still being processed.
5. If the name does not appear in any of the alpha listings, refundee shall be advised
to check/verify the status of his income tax return with the Assessment Branch of the
concerned regional office where he filed his returns.
In no case shall the refundee be advised to proceed and verify tax refunds with the
Revenue Computer Center.
B. "In Transit" Refund Notice
For this purpose, "in transit" refund notice shall refer to a refund notice which was
already sent thru the mails but had not yet been received by the refundee.
The following procedures shall be observed:
1. Follow procedures Nos. 1 to 3 of paragraph A hereof.
2. Withholding Tax Division shall require the submission of an Affidavit of non-
receipt and make the necessary recommendation to the Revenue Computer Center.
If the recommendation is for the issuance of a replacement notice, Withholding Tax
Division shall submit the same together with a copy of the Affidavit and Verification Slip
to the Revenue Computer Center.
3. Revenue Computer Center shall verify the details of the Refund Notice per its
records. If the Refund Notice has not yet expired, a replacement Refund Notice with the
same number and with the notation "Replacement" shall be prepared and forwarded to the
Withholding Tax Division for release upon proper identification of the refundee.
In case the Refund Notice has expired, Revenue Computer Center shall reprocess the
same under normal procedures.
C. "Returned" Refund Notice
For this purpose, "returned" refund notice shall refer to a refund notice which was
previously sent by mails to the refundee but was not delivered to the refundee because,
among others, of incomplete address, or addressee cannot be found.
The following procedures shall be followed:
1. Follow procedure Nos. 1 to 4 of paragraph A hereof.
2. If, based from the "Alpha List of Tax Refundee," the Refund Notice had long
been sent to the refundee thru the mails, Verification Clerk shall advice the refundee to
verify from the listing of returned notices if the same was "returned" by the Post Office.
3. If the Refund Notice was returned to the Revenue Computer Center and has not
yet expired, the same shall be forwarded to the Withholding Tax Division for release
upon identification of the refundee.
If the Refund Notice has expired, Revenue Computer Center shall reprocess the same
under normal procedures.
D. Expired Refund Notice/Request for Change of Address or Bank Branch
1. Refundee shall proceed to the Withholding Tax Division and surrender the
original Refund Notice together with a letter request for the re-issuance of the refund
notice or for a change of address or bank branch.
2. After evaluation of the request, Withholding Tax Division shall make the
necessary recommendation and transmit the same to the Revenue Computer Center.
3. Revenue Computer Center shall reprocess the Refund Notice under normal
procedures.
IV. REPEALING CLAUSE

The provisions of Revenue Memorandum Orders and other pertinent issuances
inconsistent herewith are hereby revoked or amended accordingly.
V. EFFECTIVITY

Commissioner
RMO 23-84
RMO 23-84 Revised Merit Promotion Plan, 1984
June 1, 1984 June 1, 1984

SUBJECT : Revised Merit Promotion Plan, 1984
TO : All Revenue Officers and Employees
Pursuant to Section 301 of Presidential Decree No. 8072, and Section 103 of Civil
Service Commission Resolution No. 83-3434, this Revised Merit Promotion Plan (2nd
Revision) for the Bureau of Internal Revenue is hereby established for the guidance of all
concerned.
I. OBJECTIVES
It is hereby declared the policy of the Bureau of Internal Revenue to adhere strictly to the
merit principle in the promotion of employees. In the implementation of this policy, the
following objectives are hereby established:
1. Set up a promotion system characterized by observance of the merit principle.
2. Create equal opportunities for advancement to all qualified and competent

employees of the Bureau.
3. Provide a guide for the speedy and fair adjudication of protests against
promotions.
II. SCOPE
This Merit Promotion Plan shall cover all positions in the Bureau of Internal Revenue
except those positions in the Career Executive Service.
III. DEFINITION OF TERMS
1. Promotion - the advancement from one position to another of higher rank with
more difficult duties and responsibilities as authorized by law, and usually accompanied
by an increase in salary.
2. First Level Position - a position falling under the group of clerical, trades, crafts,
and custodial service positions involving sub-professional work in a non-supervisory or
supervisory capacity requiring less than four years of college studies.
3. Second Level Position - a position involving professional, technical or scientific

work in a non-supervisory or supervisory capacity requiring completion of at least four
years of college work.
4. Next-in-Rank Position - a position which by reason of the hierarchical
arrangement of positions in the Bureau is in the nearest degree of relationship to a higher
position, taking into account the following:
a. organizational structure/s as reflected in the approve organization chart;

b. salary and/or range allocation;
c. classification and/or functional relationships of positions; and
d. geographical location.
5. Open Position - refers to those positions that do not have any positions next-in-
rank or residual positions of each level which may be filled by lateral/vertical entry.
6. Promotional Line-up - a listing of incumbents of positions next-in-rank to a

vacancy as well as those who, though not next-in-rank, are deemed qualified and
competent, together with all necessary information about each employee.
IV. BASIC POLICIES ON PROMOTION
1. Whenever a position in the first or second level becomes vacant, the official or
employees in the Bureau who occupy positions next-in-rank to the vacancy and who are
competent and qualified shall be initially considered for promotion to the vacancy (See
attached System of Ranking Positions).
2. To be considered for promotion, employees must meet the minimum qualification

standards for the position involved.
For reasons of equity and morale, the best qualified next-in-rank employees, all
circumstances being equal, shall have first call upon promotional opportunities.
However, the Commissioner may promote an employee who is not next-in-rank, but who
possesses superior qualifications and competence compared to a next-in-rank employee
who merely meets the minimum requirements for promotion to the position.
3. Reasonable and valid standards and methods of evaluating the qualifications and
competence of all employees competing for promotion to the same position shall be
applied fairly and consistently.
4. Lack of confidence shall not be accepted as a reason for disqualifying an officer

or employee from promotion. The reason must be real and substantial.
5. In seeking qualified employees for promotion, the area of selection shall be as

organizationally broad as practicable. Selection shall be central office-wide for vacancies
in the Central Office, and region-wide for vacancies in the Regional Offices.
If there are no next-in-rank employees in the region where the vacancy is located,
selection may be made from the other regions, or from the Central Office, provided that
the next-in-rank employees there are willing to assume the duties of the position. This
policy shall similarly apply to vacancies in the Central Office.
Employees promoted pursuant to the preceding paragraphs shall agree in writing to

perform the duties of the position at the work unit where the performance of such duties
is required, if promoted. If, after having been appointed, the employee refuses to be
assigned in the work unit where the position is located, or if his supervisor shall make
representation for his retention in his present assignment, his promotion shall be revoked.
6. As a general rule, promotions must be recommended by the head of the work unit
where the employee is assigned. However, this is not absolute. It should allow for
exceptions because it may very well happen that if the chief or head of the unit is
prejudiced against an employee, then the said employee may not be recommended for
promotion although he may have all qualifications therefor.
7. Insiders should be given preference for appointment to hiring level positions

provided they meet the qualification requirements of the positions and are already
occupying positions whose salary ranges are near the range of the hiring level position.
However, in order to professionalize the service, and so as to avoid "inbreeding" and to
inject fresh blood into the corps of personnel, this policy is also not absolute.
In addition to performance, competence and qualifications, integrity in the employee's

discharge of his duties and responsibilities shall be a factor to be evaluated in promotions.
Added to these, in the Assessment Group, the examiner's accomplishments in assessment
and collection of internal revenue taxes and his passing the latest classification
examinations shall likewise be factors to be evaluated.
9. An examiner who meets all the requirements in the preceding paragraphs but
failed in the classification examination and who has shown an unusually remarkable
performance for a period of at least one year may be considered for promotion subject to
the determination by the Commissioner that his deficiency in the examination can be
offset by his outstanding performance.
10. In case an employee feels that he deserves to be promoted but for some reasons he
has not been recommended by the head of his work unit, he may apply to the Promotion
Board for assessment by submitting the necessary documents to prove his competence
and qualifications for the position applied for. His application for evaluation together
with the documents submitted must first be referred by the Chief, Personnel
Division/Chief, Administrative Branch to the head of office or supervisor concerned for
comment before the Promotion Board acts on his application for assessment.
11. Those to be promoted to critical positions as determined by the Commissioner or

those who will have direct dealings with taxpayers such as Cash Clerks, Revenue
Collectors, Revenue Inspectors, Special Investigators, and Revenue Examiners must
undergo neuro-psychiatric test or examination.
12. No recommendation in favor of an employee for promotion, whether oral or
written, shall be considered unless it is made by the officer or officers under whose
supervision he is or has been employed. The presentation of any other recommendation
shall be considered as an unwarranted interference in the public service. Such a
recommendation made at the solicitation or with the knowledge or consent of the officer
or the employee shall be sufficient cause for barring him from the promotion and/or
proceeding against him administratively.
V. PROCEDURES
1. The Chief, Personnel Division shall furnish the Revenue Service Chiefs and
Regional Directors a list of vacancies as determined from the Plantilla at the end of each
quarter. In the Regional Offices, it shall be the duty of the Chief, Administrative Branch,
to notify in writing the Chiefs of Branches and Revenue District Officers about the
vacancies in the Region at the end of each quarter.
2. After the close of each performance rating period, the Revenue Service Chief,
Regional Director, or Head of Office concerned shall submit to the Personnel Division or
to the Chief, Administrative Branch, when the vacancies for filling are within the
jurisdiction of the Regional Director, a list of promotable employees as required under
3. The Chief, Personnel Division/Chief, Administrative Branch, on the basis of the

list of promotable employees as well as the System of Ranking Positions, and the
personnel qualifications index, shall identify the employees within the Bureau/Region
who are deemed qualified and competent for promotion.
4. The Chief, Personnel Division/Chief, Administrative Branch, shall make a

preliminary evaluation of the qualifications of all candidates for promotion taking into
consideration the qualification standards and job requirements of the vacancy.
To determine the comparative competence and qualifications of the candidates for

promotion they shall be compared on the basis of the following factors:
a. Performance - This shall be based on the last two performance ratings of the
employee. For revenue examiners, this shall be based on the performance ratings and
accomplishments in terms of assessment and collection for the past 2 years.
b. Education and Training - These shall include educational background and the
successful completion of training courses, scholarships, training grants and others. Such
education and training must be relevant to the duties of the position to be filled.
c. Experience and Outstanding Accomplishments - These shall include occupational

history, work experience and accomplishments worthy of special commendation.
d. Physical Characteristics and Personality Traits - These must have a bearing on the
position to be filled.
e. Potential - This is an estimate or prediction of an employee's capacity and ability

to perform the duties of the position to be filled and those of higher or more responsible
positions in the line of promotion. The prediction shall be based on factors a to d above
and on all other factors that may help in predicting the employee's ability to efficiently
perform the duties of the position to which he shall be promoted and of other more
responsible positions higher in the line of promotion.
5. The promotional line-up shall then be prepared and shall include a list of
employees deemed qualified and competent for promotion to the vacancy. The list shall
also contain comparative information of the candidates' qualifications, and other available
relevant information, if any.
All members of the Promotion Board shall be furnished copies of the promotional line-up
at least 3 days before a meeting.
6. The promotion board shall then evaluate the qualifications of the candidates in the
promotional line-up. In determining the degree of competence and qualifications of an
employee, the Board shall be guided by Section 56 of CSC Resolution No. 83-343 (Rule
on Promotion).
If necessary, the Promotion Board or the Commissioner himself may prescribe the
conduct of a selection test and/or other selection devices.
7. The Board shall determine an en banc the most qualified and competent
candidates in the promotional line-up.
The Board shall then submit to the Commissioner/Regional Director, a list of

recommended employees from which he may choose the person to be promoted.
The recommendation of the Promotion Board shall carry great weight. But in the exercise
of his best judgment and discretion, the Commissioner/Regional Director as the
appointing authority may choose another official or employee other than those
recommended by the Promotion Board.
8. As soon as the Commissioner/Regional Director has chosen who will be

promoted, the corresponding appointment shall be prepared. After the appointment is
approved by the Commissioner/Regional Director, the Chief, Personnel Division/Chief,
Administrative Branch shall post on the Bulletin Board within their premises a notice
announcing the promotion.
VI. PROTEST
1. Who may file a protest. - Only officers or employees who are qualified next-in-
rank to the vacancy on the basis of the approved System of Ranking Positions may file a
protest against an appointment or promotion.
2. When and where to file a protest. - A next-in-rank employee who feels aggrieved
by the promotion of another may file a protest to the Commissioner within 15 days from
notice of the issuance of an appointment.
3. When and where to file an appeal. - An employee who is not satisfied with the
decision of the Commissioner may file an appeal within 15 days from his receipt of the
decision to the Merit Systems Board of the Civil Service Commission. (Under certain
circumstances, this period may be extended by the Merit Systems Board to another 15
days).
If the employee is still not satisfied with the decision of the Merit Systems Board, he may
appeal to the Commission itself within 15 days from his receipt of the decision.
4. Procedure. -
4.1 The aggrieved party shall file his protest in quadruplicate directly to the
Commissioner or to the Chairman, Committee on Contested Appointments created under
4.2 The protest shall be typewritten on legal size paper. The protestant shall state
clearly, preferably in enumeration form, the grounds for his protest and the reasons why
he believes he should be the one appointed to the contested position.
4.3 Within 15 days from receipt of the protest, the Committee on Contested
Appointments shall evaluate the reasons presented by the protestant and shall submit their
recommendation to the Commissioner who shall finally decide the case within 15 days.
4.4 Copies of the decision shall be furnished for the protestant and protestee within 5
days from the receipt of the Chief, Personnel Division.
VII. RESPONSIBILITY
The Chief, Personnel Division, shall be responsible for the preparation/amendment of the
Bureau's Merit Promotion Plan subject to the review and approval of the Commissioner
of Internal Revenue.
VIII. AMENDMENTS
This Revised Merit Promotion Plan, including the attached System of Ranking Positions
and Qualification Standards may be changed or amended as the need arises.
IX. REPEALING CLAUSE

All provisions of existing orders, instructions, and circulars inconsistent herewith are
hereby superseded or revoked.
X. EFFECTIVITY
This Merit Promotion Plan and the System of Ranking Positions shall take effect upon its
approval thereof by the Civil Service Commission. Any subsequent changes in, or
amendments to this Promotion Plan and the System of Ranking Positions shall be subject
to approval of the Civil Service Commission and shall not take effect until after six
months from the date of the approval.
RUBEN B. ANCHETA
Acting Commissioner
RMO 22-84
RMO 22-84 Prohibiting Revenue Examiner duly authorized to conduct tax audit from
allowing other examiners whose name do not appear in the letter of authority to assist
him in the investigation of the cases.
August 17, 1984
SUBJECT : Prohibiting Revenue Examiner duly authorized to conduct tax

audit from allowing other examiners whose name do not appear in the letter of authority
to assist him in the investigation of the cases.
Certain taxpayers and other informants have reported to this Office that some revenue
examiners who are duly authorized to conduct tax audits under a letter of authority allow
other examiners whose names do not appear in the said letter of authority to assist them
in the investigation. It has also been reported that examiners not authorized to investigate
a tax case are requested by the authorized examiner to assist in the audit, and in fact
allowed to contact taxpayers, perform audit functions and behaved discourteously during
the investigation of the taxpayer's liability. This practice is in violation of existing orders
governing procedures for investigating taxpayers. It reflects the incompetence of some
revenue examiners to whom tax cases were assigned for audit and investigation.
All immediate superiors are therefore hereby directed to instruct their revenue examiners
to stop such undesirable practice. Chiefs of Divisions in the National Office and Revenue
District Officers in the Revenue Regions should exercise utmost prudence in assigning
examiners to investigate taxpayers, the audit circumstances of which, in the judgment of
the immediate superiors, are commensurate with the competence, skill, training and
proficiency of the examiner.
Disciplinary action will be taken against an internal revenue officer who is found
violating this revenue memorandum order. All concerned are hereby directed to comply
with this Order.
RUBEN B. ANCHETA
Acting Commissioner
RMO 21-84
RMO 21-84 Regional Committee on disposal of old accountable forms
August 8, 1984 August 8, 1984
SUBJECT : Regional Committee on disposal of old accountable forms
In connection with the continuing program of the Bureau of dispose all obsolete,
cancelled or spoiled revenue official receipts, letters of authority and confirmation and
other specialized accountable forms in the custody of the accountable officers of
Regional Offices, there is hereby created a Regional Committee to be composed of the
following:
1. Asst. Regional Director Chairman

2. Chief, Legal Branch Member
3. Chief, Administrative Branch Member
The BIR Regional Auditor shall be informed and requested to witness every disposal.
Except in the case of documentary stamps, which shall first undergo analysis by the BIR
Laboratory in the National Office, the Committee shall proceed with the disposal of the
obsolete, cancelled or spoiled accountable forms in accordance with Section 63 of the
National Accounting and Auditing Manual and Section 791 of Presidential Decree No.
14452.
After every destruction by burning of particular items of accountable forms stated in the
authority granted by the Commissioner of Internal Revenue, the said Committee shall
prepare and submit a report and a certificate of destruction thereof to the Commissioner,
Attention: Chief, Accountable Forms Division.
This order shall take effect immediately.
RUBEN B. ANCHETA
Acting Commissioner
TAN-T4338-J2227-A-9
RMO 20-84
RMO 20-84 Duplicity in the issuance of letters of authority.
July 4, 1984
SUBJECT : Duplicity in the issuance of letters of authority.
TO : All Internal revenue officers and others concerned.
It has been observed that, inadvertently or otherwise, letters of authority were issued by
Special Investigation Units or Revenue District Offices in certain Revenue Regions to
investigate 1982 internal revenue tax liabilities of corporations which are listed in Annex
"B" of Revenue Memorandum Order No. 31-831 and are thus under the investigation of
the Audit Divisions of the National Office. In order to attain the purposes and objectives,
of the aforesaid Revenue Memorandum Order, all revenue officers and others concerned
are hereby directed to comply strictly with the following instructions within five (5) days
from receipt hereof:
1. Any investigation that has already been commenced by examiners under Letters
of Authority issued in the regional offices to investigate taxpayers (as indicated in the
attached list) falling under the jurisdiction of the Audit Divisions of the National Office
should be immediately discontinued. The income and other internal revenue tax returns,
together with whatever working papers and documents which have already been prepared
or gathered, should be forwarded to the Revenue Service Chief (Sector Operations
Office) for transmittal to the respective Audit Divisions for appropriate action.
2. If the investigation of the aforesaid taxpayer has already been completed and/or
terminated, the report of investigation should likewise be forwarded to the Revenue
Service Chief (Sector Operations Office) for further review, evaluation or further
investigation, if necessary.
Compliance with this Memorandum Order shall not prejudice appropriate disciplinary
action which the Committee created under Revenue Special Order No. 48-84, dated July
2, 1984, may recommend against an erring personnel.
RUBEN B. ANCHETA
Acting Commissioner
RMO 19-84
RMO 19-84 Uniformity in assignment of audit workload to examiners.
July 20, 1984 July 20, 1984
SUBJECT : Uniformity in assignment of audit workload to examiners.

This Office has received reports that some Chiefs of Audit Divisions and Revenue
District Officers have been assigning unequal number of tax returns of case to revenue
examiners. In order to achieve equality and uniformity in assigning investigation and
audit workloads among examiners, the following guidelines shall be strictly observed
without exception:
1. An examiners shall not be assigned to investigate the internal revenue tax
liabilities of a taxpayer who has been investigated by him for the immediately preceding
two taxable years.
2. An examiner who has in his possession ten or more pending cases, whether for
original investigation or reinvestigation, shall not be assigned additional letters of
authority to investigate. If the level of his pending cases falls below ten cases, he may be
assigned additional tax returns or cases to replenish those, the investigation of which are
terminated and reported but in no case shall the total number of cases assigned to him at
anytime exceed ten. For purposes of this Revenue Memorandum Order, an audit or
investigation of a tax case shall be considered terminated when the report thereon is
actually received in the Assessment Branch or Sector Audit Review Division, as the case
may be, for audit review.1
3. All revenue examiners having pending cases in excess of ten are hereby required
to terminate the investigation thereof and to submit the corresponding report hereon
within two months from the approval of this Revenue Memorandum Order in order to
reduce the inventory level of their pending cases to a minimum of ten cases each.2
This Revenue Memorandum Order shall not be applicable to assignment of cases to
revenue examiners for functional audit and investigation under Revenue Memorandum
Orders Nos. 31-833 and 32-834.
Sanctions -
1. It shall be the responsibility of the Revenue Service Chief, National Assessment
Office, to direct the Chief of the Performance Audit Division to conduct periodic audit in
the revenue regional and district offices as frequently as it is necessary to determine strict
compliance with this Revenue Memorandum Order. The Chief, Sector Operations Office,
shall also see to it that the revenue examiners under the audit divisions are assigned audit
workloads in accordance with the guidelines prescribed herein.
2. Any violation or departure from this Revenue Memorandum Order shall be
immediately reported to the Revenue Service Chief, Inspection Service, for immediate
disciplinary action of the revenue officer or official responsible for such violation.
Effectivity -
This Revenue Memorandum Order shall take effect immediately.
RUBEN B. ANCHETA
Acting Commissioner
RMO 18-84
RMO 18-84 Verification of taxes paid on raw materials for purposes of claim for tax
credit by manufacturer-exporters
July 9, 1984 July 9, 1984
SUBJECT : Verification of taxes paid on raw materials for purposes of claim

for tax credit by manufacturer-exporters
TO : All internal revenue officers and others concerned.
The pertinent provisions of Section 2021 of the Tax Code read as follows:
"Sec. 202. . . .
"Any percentage or specific tax paid under this Title or Title IV respectively, on
domestically manufactured or on imported raw materials used in the manufacture of
finished products exported shall be allowed to be credited against other tax liabilities of
the manufacturer-exporter: Provided, however, That the amount of the tax on the raw
material, part, accessory or other article shall be indicated as a separate item in the sales
invoice."
Under the foregoing provisions, a manufacturer of finished products exported is entitled

to the credit of the percentage or specific tax on locally manufactured or imported raw
materials used in the said manufacture, provided that the amount of tax is billed as
separate item in the invoice issued by the supplier of the raw materials.
However, in connection with the investigation of the foregoing claims for tax credit,
which are being filed with and acted upon by the Appellate Division, Legal Office, it is
necessary, among other existing requirements, that investigating examiners should verify
the tax payments made by the suppliers of the raw materials. In the case of the percentage
tax, the tax paid may either be the manufacturer's sales tax or the advance sales tax
depending on whether the raw material is locally manufactured or imported.
In cases where suppliers of raw materials are located in a place which is not within the
jurisdiction of the revenue district office investigating the claim for tax credit, said
revenue district office shall prepare the list of suppliers, the kind and value of raw
material supplied, as well as the number and date of the corresponding sales invoices and
shall also indicate the kind of tax and amount thereof passed on to the manufacturer-
exporter, which was separately billed. Thereafter, said revenue district office shall send
these data to the revenue district office having jurisdiction over the supplier for
verification of the payment of the percentage or specific taxes paid on the raw materials.
The report on the result of said verification should be sent to the Appellate Division.
Upon receipt of the report on the investigation of the claim for tax credit, the Appellate
Division shall immediately process the same, even if the reports on the result of the
verification as regards the tax payments on the raw materials have not been received from
the revenue district offices concerned. However, if the report on the said verification
shows that the taxes on the raw materials have not been actually paid, the Legal Office
shall take the necessary action against the suppliers concerned not only for the collection
of the taxes due (Atlas Fertilizer Corp. vs. Commissioner, G. R. No. L-27813, August 15,
1975, 66 SCRA 165) but also for the criminal prosecution of the parties concerned, if the
same is warranted by the evidence.
The provisions of any Revenue Memorandum Order and other pertinent issuance
inconsistent herewith are hereby revoked.
RUBEN B. ANCHETA
Acting Commissioner
RMO 17-84
RMO 17-84 Updating of Tax Statutes Computerized Data Base
June 27, 1984 June 27, 1984
SUBJECT : Updating of Tax Statutes Computerized Data Base
TO : Service Chief, Planning and Policy Service Service Chief, Legal

Office Chief, Law Division Chief, Litigation Division Chief, Appellate Division Chief,
Prosecution Division Chief, Records Division, and Others Concerned.
I. RATIONALE - In view of the urgent need to update Tax Statutes which are
stored in the Computer, and in consonance with the insistent request of the taxpayers to
be informed or provided with new tax laws, promulgated hereunder are the policy and
procedures for the guidance of all concerned.
II. COVERAGE - The Tax Statutes to be covered by this order shall include the
following:
A. Revenue Regulations
B. BIR Rulings, whether numbered or unnumbered.
C. Revenue Memorandum Orders.
D. Revenue Administrative Orders.
E. Legislations such as Batas Pambansa, Presidential Decrees,
Republic Acts and Acts.
F. Executive Issuances such as Executive Orders,
Administrative Orders, Letters of Instruction and
Memoranda issued by the President:
G. Court Decisions issued by the Supreme Court, Court of Tax
Appeals, Intermediate Court of Appeals, and Regional Trial
Court.
III. DELINEATED RESPONSIBILITIES

A. Responsibility of the Planning and Policy Service
1. Update the following computerized data bases:
- Revenue Regulations
- Revenue Memorandum Orders
- Revenue Administrative Orders
- Legislations such as Batas Pambansa, Presidential
Decree
- Executive Issuances such as Executive Orders,
Administrative Orders, Letters of Instructions, and
Memoranda.
2. Assign personnel who will be trained in the loading of data into the computer and
do the actual updating of computerized data bases. Corollary to this, Computer ID shall
be issued by RISSI with the necessary security clearance for updating data bases.
3. Review all proposed Regulations, Revenue Memorandum Orders, and Revenue
Administrative Orders for monitoring and control purposes including numbering, and
thereafter submit the same to the Commissioner either recommending approval or
disapproval.
4. Secure copies of new legislations and executive issuances needed to be included
in the Tax Statutes Computerized Data Bases.
B. Responsibility of the Legal Office
1. Update the following computerized data bases:
- BIR Ruling
- Court Decisions on Tax Cases or similar cases
issued by the Supreme Court, Court of Tax
Appeals, Intermediate Court of Appeals, and
Regional Trial Court.
2. Assign personnel who will be trained in the loading of data into the computer and
do the actual updating of computerized data bases. Corollary to this, Computer ID shall
be issued by RISSI with the necessary security clearance for updating data bases.
3. Require the Law Division to continuously furnish the personnel assigned to

update the Computerized Data Base with newly issued BIR Rulings, numbered or
unnumbered.
4. Require the Prosecution, Litigation, and Appellate Divisions to continuously
furnish the personnel assigned to update the Computerized Data Base with court
decisions on tax cases or similar cases issued by the Supreme Court, Court of Tax
Appeals, Intermediate Court of Appeals, and Regional Trial Court.
C. Responsibility of Offices, Services, Divisions and Units
1. All Offices, Services, Divisions, and Units who initiate or prepare proposed
Revenue Regulations, Revenue Memorandum Orders, and Revenue Administrative
Orders shall forward the same to the Planning and Policy Service for review, prior to
their submission to the Commissioner.
D. Responsibility of the Records Division
1. Furnish copies of approved Revenue Regulations, Revenue Memorandum Orders,
and Revenue Administrative Orders to the Planning and Policy Service.
E. Responsibility of RISSI
1. Assign and issue to the Planning and Policy Service and the Legal Office their
respective computer I.D.'s.
2. Train and supervise personnel assigned by the Planning and Policy Service and
the Legal Office to update computerized data bases.
IV. EFFECTIVITY
This Revenue Memorandum Order shall take effect immediately.
RUBEN B. ANCHETA
Commissioner
RMO 16-84
RMO 16-84 Guidelines on Stocktaking/Investigation of Taxpayers Producing Articles
Subject to Specific Tax and of Wholesale Leaf Tobacco Dealers.
June 1, 1984
SUBJECT : Guidelines on Stocktaking/Investigation of Taxpayers Producing

Articles Subject to Specific Tax and of Wholesale Leaf Tobacco Dealers.
TO : All Internal Revenue Officers Concerned.
BACKGROUND:
It has been noted that existing procedures employed by revenue officers authorized to
conduct stocktaking/investigation involving specific tax and inspection fee are found to
be ineffective resulting in a very poor yield in terms of assessment and/or collection. This
may be attributed mainly to the lack of established guidelines or procedures in
conducting said stocktaking/investigation.
OBJECTIVES:
The following guidelines therefore are hereby prescribed bearing on the conduct of
stocktaking/investigation of taxpayers producing articles subject to specific tax and
wholesale leaf tobacco dealers to attain the following objectives:
1. To provide for a comprehensive, thorough and effective manner of conducting
stocktaking/investigation;
2. To provide for a uniform reporting requirements and formats to ensure that all
available data that may be used as inputs in income and other internal revenue tax
investigations are reflected thereat;
3. To enhance the effectiveness of stocktaking/investigation to produce substantial
results therefrom in terms of assessment and/or collection.
GUIDELINES AND PROCEDURES:
The guidelines and procedures are embodied in the following Annexes:
1. Annex "A" - guidelines in the conduct of stocktaking and investigation on
manufactured tobacco products;
2. Annex "B" - guidelines in the conduct of stocktaking/investigation on alcoholic
products;
3. Annex "C" - guidelines in the conduct of stocktaking/investigation on petroleum
products; and
4. Annex "D" - guidelines in the conduct of stocktaking/investigation on leaf
tobacco.
ANNEX "A"
GUIDELINES ON STOCKTAKING/INVESTIGATION
TOBACCO TAX DIVISION
I. ISSUANCE OF THE LETTER OF AUTHORITY.
II. SERVICE OF THE LETTER OF AUTHORITY TO THE TAXPAYER.
III. THE STOCKTAKING PROPER.
A. The Updating of All Accounts of the Official Register Book.
After service of the authority, request the factory owner, manager or any duly authorized
representative of the factory to present the following:
1) L-71/2 and L-7 official register books and the corresponding official invoice
books for both;
2) Cigarette paper in Bobbins official register book;
3) Revenue Tax Receipt for the payment of annual fixed tax;
4) Official register books for finished tobacco products A-5, A-4 and A-3 and the
corresponding stamps requisition books for each type of tobacco product;
5) Official register book for imported materials used in the manufacture or
preparation of tobacco products as required under Rev. Regs. 6-65 of the Ministry of
Finance;
6) Copy of the List of Inventories (annual) submitted to the BIR as required by the
Bookkeeping Regulations;
7) Sales invoices; and
8) Such other records and documents that may be needed in the verification and
review of the past transaction of the factory during the inclusive period under
investigation.
The official invoice books and sales invoice pads upon being presented shall be closed
immediately before proceeding with the updating of all debit and credit entries in the
official registers.
Close the official invoice book by indicating the time, the date, and the authority at the
back thereof of the stub of the official invoice issued for the last removal or transfer of
tobacco raw materials.
Take note of the serial number, date of transfer, quantity of raw materials transferred, and
to whom or where it was transferred. Check and verify if the correct credit entries had
been made for the same in the corresponding official register book.
a) Determination of the cut-off period.
1) If the inventory taking is begun before the start of the business operations on any
given day, the books shall be updated as of the close of business operations of the
previous day;
2) If the stocktaking group or team arrives in the factory on any given day when
business operations is already in progress, to obtain a fairly accurate inventory taking, it
would be best to wait till after the business operations had stopped for the day, the books
may then be updated as of the close of business on that day; and
3) If the factory is on 24 hours daily operation, it is recommended that suspension of
operations be requested of the factory management to facilitate easy accounting of the
stocks on hand, the books may then be updated as in any of the two preceding methods
mentioned hereinabove.
b) Updating and Closure of the different accounts in the official register books.
1) Check and verify all retained official gains, L-71/2 and L-7 official invoices, and
all other supporting or covering documents to see if these have been recorded in the
different corresponding accounts of the official registers;
2) Allow the factory management to record all covering or supporting documents
that are found still unrecorded up to the pre-determined
cut-off period;
3) Determine whether any violation had been committed with regards to the time
limit accorded for recording business transactions under the Bookkeeping Regulations;
and
4) After updating, close all accounts in the different official register books.
B. The Actual Taking of Stocks or Inventories on Hand.
IMPORTANT: When stocktaking is conducted before the start of the business
operations on any given day, the first items or materials that must be weighed are the nut
tobacco or hebra, in sufficient quantities, to be fed to the cigarette making machines, in
order not to delay unnecessarily the start of the factory's operations for the day. Cigarette
paper in bobbins too, must be issued immediately for this same reason and purpose.
The different accounts in the different official register books, the different forms of
stocks, and the different types or kinds of stocks that are found under each account; and,
the manner and/or how these stocks or materials shall be accounted for are given
hereunder:
a) L-71/2 Tobacco raw materials account (Warehouse).
1) Whole Leaf Tobacco in Bales:
1. Group according to the type of leaf tobacco content and according to standard
weight in kilos per bale; and,
2. Count the number of bales and multiply by the standard weight.
2) Leaf Tobacco in Hogsheads, in Cases, and in Casks:
1. Group according to type of leaf tobacco content; and,
2. Count number of hogsheads, cases and casks. List net weights as indicated on
individual containers.
3) Loose Leaves of Tobacco: - Occasionally loose leaves of tobacco may be found
under this account which tobacco may have been rejected from the L-7 and must be
rebaled before the same could be sold to any tobacco dealer or manufacturer.
1. Weigh all loose leaves to get the total net weight in kilos; and,
2. Check and verify if the total net weight of the loose leaves tally with the credit
entry for the said quantity of leaf tobacco in the official register L-7.
b) L-7 Tobacco raw materials account (Factory proper). All tobacco raw materials
under this account are taken up at net weight in kilos.
1) Bales:
1. Group according to type of tobacco; and,
2. Weigh all bales to get total net weight in kilos.
2) Hogsheads, cases and casks (If still unopened)
1. List the net weights in kilos individually as indicated in each containers. If net
weights are in pounds convert into equivalent kilos. (This is true only of imported leaf
tobacco);
2. Grouping shall be by the type and form of tobacco content and by the kind of
container;
3. If containers are already opened, group according to the preceding method; and,
4. Weigh, discount container weight to get total net weight in kilos.
3) Partially manufactured tobacco products: -
(a) cut tobacco or hebra, scraps, cuttings, cigar clippings, sweepings, stems, fine cut
shorts, tobacco powder or tobacco dust, etc.,:
1. Group according to the form of tobacco and if possible according to the type of
tobacco; and,
2. Weigh to get net weight in kilos.
(b) Loose cigarettes or in packs w/o stamps, loose cigars or in packs w/o stamps,
packed smoking tobacco and packed chewing tobacco, all of which have not yet been
transferred and takes up in the corresponding A-schedule accounts:
Cigarettes:
1. Group according to the brand; and
2. Net weight of hebra content is determined on the basis of the number of cigarettes
per kilo as declared and approved for each brand.
Cigars:
1. The same method as in the preceding for cigarettes may be applied with regards to
cigars.
Smoking Tobacco:
1. Group according to brand and the indicated net weight per package; and,
2. Multiply total number of packages by the indicated net weights per package.
Chewing Tobacco:
1. Group according to brand and the indicated weight per pack; and,
2. Discount the amount of moisture per pack in accordance with the declared and
approved percentage of moisture content for each product brand. Multiply the resultant
net weights by the total number of packs of each brand.
c) Cigarette paper in bobbins - accounted for in total meters.
1) Whole bobbins:
1. Group according to color, brand, width and length; and
2. Count and convert to equivalent meters.
2) Partial bobbins:
1. Group according to color, brand, width and length; and
* 2. Weigh, discount weight of bobbin core and convert to equivalent meters.
3) Loose cigarettes and/or packed cigarettes not yet taken up in the A-5 official
register:
1. Group according to brand of cigarettes, color of cigarette paper used, and the
length of the cigarettes in millimeters; and,
2. Multiply total cigarettes of each group by the length of the cigarettes in
millimeters.
4) Waste cigarette paper (Intact and preserved):
1. Weight and convert into equivalent meters on the basis given herein below:
(*) Black cigarette paper - one (1) kilo equals 1,000 meters.
White cigarette paper - one (1) kilo equals 1,600 meters.
d) Imported materials account. - Imported materials other than leaf tobacco and
cigarette paper. Some of the imported raw materials, most likely, to be found under this
account are the following:
Liquid tobacco flavoring, dry tobacco flavoring, tipping paper, filter tipping or filter rods,
wrapping and cellophane sheets, machinery and machinery spare parts, and such other
imported materials contemplated under Rev. Reg. No. 6-65 of the Ministry of Finance.
All spoilage or wastage must be preserved.
e) A-5 account (Finished products) cigarettes and BIR strip stamps. Accounting for
stock on hand may be done on the basis given below:
Cigarettes packed in 20's:
1) A pack contain 20 cigarettes;
2) A carton contain 10 packs or 200 cigarettes; and,
3) A case contain 50 cartons or 10,000 cigarettes.
Cigarettes packed in 30's:
1) A pack contain 30 cigarettes;
2) A roll contain 25 packs or 750 cigarettes; and,
3) A case contain 20 rolls or 15,000 cigarettes.
Cigarette packed in 20's or 30's are affixed with a strip stamp to a pack each. Unaffixed
BIR strip stamps are under the joint custody of the factory cashier and the internal
revenue officer assigned to the establishment.
f) A-4 account (Finished products) cigars and BIR strip stamps. Accounting for
cigars may be done on the basis given below:
1) A box may contain 10, 20, 25, 50, 100, 250 and 500 cigars to the box of the P2.30
per thousand class; and,
2) A box may contain 10, 20, 25, 50, and 100 cigars to the box of both the P4.60 and
P7.00 per thousand classes of cigars.
Each cigar box is affixed with a strip stamp each. Unaffixed strip stamps are under the
joint custody of the factory cashier and the internal revenue officer assigned to the
establishment.
g) A-3 account (Finished products) smoking tobacco and chewing tobacco, BIR strip
stamps. As in the case of cigars and cigarettes, the standard packages for smoking
tobacco and chewing tobacco are given below:
1) Smoking tobacco are packed in 50, 100, 125, 250, 450 and 500 grams to the
package; and,
2) Chewing tobacco are packed in 50, 100, 250, 500 and 700 grams to the package.
BIR strip stamps for smoking tobacco and chewing tobacco are affixed one each to a
package. Unaffixed strip stamps are under the joint custody of the factory cashier and the
internal revenue officer assigned to the establishment.
Note: Export and tax-free stamps may also be found under the A-5; A-4; and A-3
accounts.
A factory representative must be present in the actual counting, weighing, measuring and
rising, and in the listing of the quantities and the descriptions of the items of stocks
obtained in the inventory taking. He must be duly authorized to sign the inventory or tally
sheets in attestation to the correctness of the stocks as counted and recorded therein.
C. Accomplishment of the Certificate of Stock.
After the physical inventory, prepare a certificate of stock from all the data gathered and
listed in the tally or inventory sheets used during the inventory taking. All stocks properly
classified and summarized shall show the total for each account. The authority to conduct
the stocktaking, the date of the authority, and the period covered by the authority shall be
mentioned in the certificate. All internal revenue officer-members of the stocktaking
group responsible for the preparation of the inventory, as well as, the owner/manager or a
duly authorized representative of the factory shall sign the certificate of stock.
D. Verification of PTR Payments; and,
E. Verification and Review of Past Transactions During the Period Covered by the
Authority.
Simultaneously with the actual inventory taking some members of the stocktaking group,
designated beforehand, shall go over the official register books and other pertinent
records of the factory to verify all debit and credit entries made of the past transactions
within the period covered by the investigation.
IV. PREPARATION OF THE WORKING PAPERS OR WORKSHEETS.
A worksheet shall be prepared for each of the accounts mentioned under section B of this
guidelines. The name of the establishment; the schedule, paragraph and assessment
number; and the authority number, the date of the authority and the period covered by the
authority shall be indicated therein. The main body of the worksheet shall contain all
transactions composing the total debits section on the left hand side and all transactions
composing the total credits section on the right hand side. Included in the main body but
as a separate section thereof is the resume or reconciliation section where the book
inventory (stock book balances) is compared and brought into agreement with the
physical inventory.
The main body of the worksheet is shown below:
Debits: Credit:
Beg. Bal. - Actual stock as of last : All transfers, removals and sales
stocktaking. : beginning with the first day following
ADD: All receipts from the first day : the cut-off date of the last stocktaking
immediately following the cut-off : to the cut-off period or date
date of the last stocktaking to : of the current stocktaking.
the cut-off date of the current :
stocktaking. :
________________________________ : _____________________
TOTAL AVAILABLE (Dr. : TOTAL CREDITS (Cr.)
________________________________ : ____________________
RESUME
Beg. Bal. Actual Stock as of last Stocktaking.

ADD: Total Receipts (Dr.)
Equals - TOTAL AVAILABLE
LESS: TOTAL CREDITS
Book inventory as of current stocktaking.
Physical inventory
DISCREPANCY: Overage (Shortage)

Causes of material differences, overage or shortage, between the physical and the back
inventories may be found through the following:
1) Check and verify footings and extensions in the official registers to make sure that
no errors had been committed;
2) Check and verify entries in the raw materials registers against the receiving report
for each and every shipment;
3) Check and verify rejected raw materials; raw materials returned to suppliers; and,
raw materials sold or transferred to others;
4) Check and verify, particularly, transfers of raw materials between sister
companies and transfers between warehouses (1-71/2) of the same factory; and
5) Check and verify returned merchandise against receiving reports.
When all the documents and records have been verified and all data gathered have been
evaluated a report on the result of the stocktaking and investigation shall be prepared.
V. PREPARATION AND SUBMISSION OF THE REPORT .
The report shall contain a summary of all the facts and findings of the cases together with
the recommendations. The report shall show the resume section taken from the worksheet
and which point out any discrepancy between the physical and book inventory for each
account. The computation for any assessable overage or shortage and any adjustments
made to reflect the correct book balances in the different accounts of the official register
books shall also, be indicated in the report.
VI. PREPARATION AND ISSUANCE OF THE LETTER OF DEMAND.
A letter of demand for the collection of deficiency specific tax on the overage or shortage
discovered in the stocktaking and investigation shall be prepared. The basis of the
assessment and the computation of the amount demanded shall be indicated.
The overage or shortage established during the stocktaking and investigation shall be
considered in the final computation of the income tax liability of the establishment
taxpayer.
Republic of the Philippines

Ministry of Finance
BUREAU OF INTERNAL REVENUE
Quezon City
REPORT OF STOCKTAKING/INVESTIGATION
Name of Taxpayer: ____________________ Business Style: _________________

Address: ___________________________ Date Reported: _________________
Authority No: ___________ Date: ________ Issued By: ____________________
Period Covered: _________________________________________________________
Kind of Business: ________________________________________________________
Total Amount Reported: P __________________________

Consisting of:
a) Specific Tax P ___________
b) Inspection Fee P ___________
c) Advance Sales Tax P ___________
d) Privilege Tax P ___________
e) Surcharge P ___________
f) Compromise P ___________
Total P
==========
Nature of violation or discrepancy:
________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
Is the taxpayer agreeable to the findings? ___________________________
The undersigned Internal Revenue Officers hereby recommend the approval of this
report, together with the recommendations stated herein.
______________________ ______________________
______________________ ______________________
CONCURRED IN:
______________________
Manager/Owner
APPROVED:
______________________

Ministry of Finance
Quezon City
STOCKTAKING REPORT
___________________________
Period Covered
Taxpayer: ____________________ Date: _________________________________
Address: ____________________ Authority No. ______ Issued by: _______
Kind of Business _______________ Date of Authority: _______________________
________________________________________________________
: : : : : : : : :
Total stock as of last : : : : : : : :
:
Stocktaking : : : : : : : : :
ADD: Total purchases and/or : : : : : : :
: :
receipts (OR) : : : : : : : :
:
: : : : : : : : :
TOTAL AVAILABLE : : : : : : :
: :
: : : : : : : : :
LESS: Removals, Transfers : : : : : : : :
:
& Sales : : : : : : : : :
: TOTAL CREDITS : : : : : : :
: :
: : : : : : : : :
Book of Inventory as of : : : : : :
: : :
Physical Inventory : : : : : : : :
:
DISCREPANCY: : : : : : : : :
:
Overage/Shortage. : : : : : : : :
:
REMARKS: ________________________________________________
________________________________________________
We hereby certify to the correctness of the above.
_________________________ _________________________
_________________________ _________________________
ATTESTED & VERIFIED CORRECT:

_______________________
ANNEX "B"
Guidelines on the conduct of stocktaking and investigation
taxpayers producing or handling alcohol and/or
alcoholic products.
I. STOCKTAKING. -
Immediately after serving the letter of authority to subject taxpayer, the following should
be undertaken:
1. Updating of records. -
Before closing the official register books and the gauger's books, the taxpayer or his
bookkeeper and the revenue officer assigned in the establishment must be required to
update the entries in the respective books and other factory records (see attached list) kept
by them to include all transactions up to the last day covered by the stocktaking, or cut-
off period may be determined as follows:
a. If stocktaking is conducted before the start of the day's operations, the books must
be updated as of the close of business of the previous operations day;
b. If stocktaking is conducted after the close of the day's operations, the books must
be updated as the close of business operations on that day; and
c. If stocktaking is conducted at a time when business operations for the day have
started, the books must be updated as of the close of business operations of the previous
day. All movements of articles since the start of operations on that day must be "worked
back" to establish the correct balances of all accounts as of the close of business of the
previous day.
2. Taking of Actual Stock on Hand. -
Take inventory of actual stock on hand of all accounts in the company in the presence of
the taxpayer or his duly authorized representative. Consider necessary adjustments to be
made on raw materials received, used or in process, or manufactured or partially
manufactured goods removed, to establish correct balances of all accounts as of cut-off
period.
Actual stock on hand may be arrived at by using any or a combination of the following
methods available under the circumstances:
a. by physical count;
b. by gauge glass reading;
c. by standard capacities of containers:
1. drums @ 200 gauge liter each;
2. dexijohns @ 15 gauge liter each;
3. kerosene can @ 19.5 g.1. each; and
4. barrels at approved contents permanently marked thereon, etc.
d. by "sounding"
e. by grading the spirits or by taking representative samples for laboratory analysis.
3. Stock Certificate. -
After the actual stocks on hand of all accounts have been taken, prepare a stock
certificate, signed by the stocktakers, the revenue officer assigned in the establishment
and by the owner, manager or his duly authorized representative to acknowledge
correctness of the data contained therein.
II. VERIFICATION -
1. Verify privilege tax payments for current and prior years covered by the authority.
Verify also sufficiency of bonds and other requirements.
2. Verify past transactions -
a. Verify entries in the official register books for past transactions covered by the
period under investigation. Review or examine the basic documents which support such
entries, such as official tax receipts, composition slips, daily reports of operations,
monthly reports, special permits and other source documents. Verify also footings to
ascertain that no clerical error may have been committed that may have altered the ending
book balances found.
b. Cross-check entries in the ORB's against OTR's, purchase invoices, sales invoices
and other records to ascertain that all transactions bearing on the manufacture, sale or
transfer of article subject to specific tax are correctly reflected in the official register
books.
c. Make reference to the inventory of raw materials and finished goods submitted by
the taxpayer together with the income tax return as required by bookkeeping regulations.
III. PREPARATION OF THE WORKSHEET
After verifying entries in the ORB's and other factory records for past transactions
covered by the authority, all data ascertained may now be collated and the worksheets
prepared. The worksheets must show the following:
1. Heading -
The name of the establishment
The schedule, paragraph and Assessment number
The date of the current stocktaking and on the right hand top corner, the date of the
previous stocktaking.
2. The Body - The body of the worksheet contains the following:
a. Book balance section, which shows:
Balance beginning - of the current
month
Add: Receipts (DR) - From 1st day of
current month to
cut-off date.
Equals: Total Handled- Beg. Bal. +
Receipts
Less: Removals (CR) - From 1st day of
current month to
cut-off date
Equals: O.B.B. - Official Book
Balance
b. Stock handled section
Bal. Beg. - S.O.H. per previous
S/T
Add: Receipts (DR) - 1. from day after
the date of last
stocktaking to
end of month.
2. All the full
months covered
y S/T
3. from 1st day of
current month
to cut-off date.
Equals: Total Stock Handled
Less: Removals (CR) - 1. from day after
the date of the
last S/T to the
end of the
month.
2. All the full
months of the
/T coverage
3. From 1st day of
current month
to cut-off
period.
Equals: Official
Bank Balance. - This should tally
with the OBB of the
book Balance
section and the
dauger's book
balance
6. Actual Stock Section showing:
Gauger's Book Balances Actual Stock Loss & Gain
Gauger's book balances for Stock on hand found Actual loss or gain
each storage tank or on each storage tank found per stocktaking
tank container showing or container showing shown in
g.l. grade and p.l. g.l., grade & p.l. p.l. and p.l.
The gauger's book balance, and the stock on hand, taking into account the loss and gain
per stocktaking should reconcile or tally with the official book balances established in the
Book Balance Section and the Stock Handled Section.
d) Breakdown of Sales - This section shows in detail the credit portion of the Stock
Handled Section of the worksheet. Monthly removals are reflected by indicating the
number and kind of containers and their capacities, the number of cases, number of
bottles per case, content of each bottle, the quantity in gauge liter per case, and the total
quantity of the articles removed. These are reconciled with the number of units of
auxiliary and regular labels using during the period, together with their inclusive serial
numbers.
e) Percentage of loss. - The loss or gain is the difference between the gauger's book
balances of each individual storage tank and the actual stock found therein per physical
inventory. The percentage of loss is extracted to determine whether the shortage is within
the reglementary allowable loss, or it is or portion thereof is subject to specific tax.
3. The Signatures - The names of the revenue officers conducting the stocktaking
and investigation should be printed or typed on the worksheet and their respective
signatures affixed.
IV. INDEX AND DELINQUENCY RECORD
Upon completion of the worksheets, the Index and Delinquency Record must be
accomplished. It is a record of delinquency cases and instructions or warnings given the
taxpayer. It shows the name of the establishment, schedule, paragraph and assessment
number. Entries therein shall be made by the stocktakers. Every entry shall be dated and
signed by the stocktakers and by the owner or manager of the establishment. Each such
entry shall contain the following information. If a delinquency case, a brief statement of
the offense committed; and in the case of instructions or warnings, a brief statement of
the subject and substance thereof. A brief statement of the results of stocktaking or a
summary of all the accounts shall also be entered in this record.
V. SUBMISSION OF THE REPORT -
After all documents have been evaluated, data collated worksheets and index and
delinquency record completed, a report on the result of stocktaking and investigation
must be submitted. The report contains a summary of facts and findings. It shows among
other things the different account titles, the stock handled for each account, the loss or
gain, if any, and the percentage thereof, together with the recommendation.
VI. PREPARATION AND ISSUANCE OF DEMAND LETTERS . -
When necessary, a letter of demand for the collection of deficiency specific tax, plus
surcharge should be prepared and issued. It should state among others, the basis of the
assessment and the computation of the amount demanded.
NOTE:Whenever there are two or more members of the stocktaking team it is suggested
that the actual taking of inventory and the preparation of the worksheets be done
simultaneously.

Ministry of Finance
Quezon City
REPORT OF INVESTIGATION
Name of Taxpayer : ___________________________ Business Style:

_________
Address : ___________________________ Date Reported:
_________
Authority No. : _______ Date: _______________ Issued By:
_____________
Period Covered :
______________________________________________________
Kind of Business :
______________________________________________________
Total Amount Reported : .....................................................
_______________________
Consisting Of:
(a) Specific Tax __________________
(b) Privilege Tax __________________
(c) Surcharge Tax __________________
(d) Compromise __________________
Total ================
Nature of violation or discrepancy: ___________________________
___________________________
___________________________
___________________________
___________________________
Is the taxpayer agreeable to the findings? ________________________
I/WE hereby recommend the approval of this report, together with the recommendations
stated herein.
________________________ ___________________________
________________________ ___________________________
RECOMMENDING APPROVAL:
___________________________
CONCURRED IN:
___________________________
APPROVED:
___________________________
List of BIR Forms and records for use of the respective Establishments manufacturing or
dealing in Alcohol and
other alcohol products
1. Alcohol Plants -
BIR Form No. 2.01 Raw Material Account (By kind of
material)
" " " 2.02 Raw Material Account (By distillery)
" " " 2.03 Raw Material Account (By month)
" " " 2.05 Summary of Daily Operations
Fermentation Accounts
" " " 2.11 Official Register Book-Crude Spirits
" " " 2.12 Transcript Sheet Crude Spirits
" " " 2.14 Official Register Book-Rectified Spirits
" " " 2.15 Transcript Sheet Rectified Spirits
" " " 2.07 Official Tax Receipt
" " " 2.20 Official Register Book Sales Account
" " " 2.21 Transcript Sheet Sales Account
" " " 2.27 Report of Shipment Under Bond
" " " 2.34 Gauger's Monthly Record of Official
Labels
" " " 2.51 Comparative Statement of Specific
Taxes Index and Delinquence Record
Gauger's Auxiliary Records
Monthly Inventory
Official Register Books for Bonded
Distillery Warehouse
2. Small Distilleries -
material)
" " " 2.02 Raw Material Account (By distillery)
" " " 2.03 Raw Material Account (By month)
" " " 2.29 Daily Statement of Tuba Received in the
Distillery
" " " 2.08 Official Register Book-Distilled Spirits
Single Account
Transcript Sheet
Labels
" " " 2.51 Gauger's Auxiliary Records
Index and Delinquence Record
Comparative Statement of Specific Taxes
Monthly Inventory
3. Rectifier -
BIR Form No. 2.05 Summary of Daily Operations
" " " 2.11 Official Register Book-Crude Spirits
" " " 2.12 Transcript Sheet Crude Spirits
" " " 2.14 Official Register Book-Rectified Spirits
" " " 2.15 Transcript Sheet Rectified Spirits
" " " 2.20 Official Register Book Sales Account
" " " 2.21 Transcript Sheet Sales Account
Labels
" " " 2.51 Comparative Statement of Specific Taxes
Index and Delinquency Record
Monthly Inventory
4. Denaturer -
" " " 2.41 Official Register Book for Denatured Alc.
Transcript Sheet for Denatured Alcohol
Labels
Monthly Inventory
Official Register Books for Bonded
Denaturing Warehouse
5. Compounder -
" " " 2.17 Official Register Book Compound Liquor
" " " 2.18 Transcript Sheet Compound Liquor
" " " 2.20 Official Register Book Compound Sales
Account (plus supplement of sales
account)
" " " 2.21 Transcript Sheet Compound Liquor Sales
Account
Labels
Monthly Inventory
6. Repacker (Distilled Spirits and Wines)
" " " 2.07 Official Tax Receipts
" " " 2.35 Official Register Book-Repacker of
Distilled Spirits and Wines
" " " 2.37 Transcript Sheet Repacker of Distilled
Spirits and Wines
Labels
Monthly Inventory
7. Repacker (Denatured Alcohol)
" " " 2.35 Official Register Book Repacker
Denatured Alcohol
" " " Transcript Sheet Repacker Denatured
Alcohol
Labels
Gauger's Records
Monthly Inventory
8. Breweries -
material)
" " " 2.03 Raw Material Account (by month)
Official Register Book Fermented Liquor
Transcript Sheet Fermented Liquor
" " " 2.51 Comparative Statement of Specific Taxes
Index and Delinquence Record
Gauger's Records
Ministry of Finance
Quezon City
___________________________
(Date)
The Commissioner of Internal Revenue
Diliman, Quezon City
Thru Channels
Sir:
I/WE have the honor to submit the following stock-taking report of
__________________________________, known as ______________ covering the
period from ___________________________ to _____________ taken on
___________________________ .
: Stock Handled: : :
ACCOUNT : Since Last Report : Shortage : Overage
:
------------------------- : Percent
: G.L. : P.L. : G.L. : P.L. : G.L. :
P.L. :
--------------------------------
: : : : : : :
--------------------------------
: : : : : : :
--------------------------------
: : : : : : :
--------------------------------
: : : : : : :
--------------------------------
: : : : : : :
--------------------------------
: : : : : : :
--------------------------------
: : : : : : :
--------------------------------
: : : : : : :
--------------------------------
Date of last stock-taking: _______________________

RECOMMENDATIONS:
_______________________ _________________________
ANNEX "C"
For : THE REVENUE SERVICE CHIEF (SPECIFIC TAX
OFFICE)
Subject : STOCKTAKING & INVESTIGATION TECHNIQUE

(Petroleum Products)
Procedure :
I. Secure a Letter of Authority (LA)
II. Service of the Letter of Authority
III. Stocktaking Proper -
Step 1. Closure of the Official Register Books (ORB) reckoned on the cut-off date
prescribed in the LA; ORBs are provided for finished articles (refined), intermediate or
in-process products, base stocks and raw materials. Require the company to furnish a
copy of the annual stock inventory report submitted to the BIR as required under the
bookkeeping regulations. (Stocktaking should be conducted only on products required
and specified in the LA; generally it is conducted on bonded petroleum products.)
Step 2. Stock Inventory Per Record.
Determine the beginning stocks as of the start of the operations of the company as shown
in the beginning entry on the date the ORBs were installed; if it is already a going
concern, the inventory of stock as shown in the certificate of inventory of the last
stocktaking conducted. From the beginning entry or the last stocktaking up to the cut-off
date add all entries in the debit side (productions/ receipts) and add all the entries in the
credit side withdrawals/removals/transfers and losses) and then strike a balance of the
sum or totals of the debits and credits, the result will reflect the inventory of stock per
records.
Step 3. Stock Inventory Per Physical Count.
A physical count on the inventory of stocks on petroleum products can be deducted either
by the meter reading system or the sounding method. The sounding method is universally
used in the oil industry, as it is found to be more accurate. A calibrated dip tape is
lowered to the hatch at the top-most of the storage tanks and it will show a mark
indicating the level of the product.
The level of the product is then checked with the corresponding calibration table for
conversion table to show the quantity of the products in liters or other official unit of
quantity. In cases where there are water levels in the tank, the same should be deducted.
A similar procedure is then conducted to all the other storage tanks to be ascertained.
If the actual day of the inventory taking is conducted on a day other than the official cut-
off date, then a work forward or a work back has to be done as the case may be. All the
recorded transactions (receipts/productions and removals) within the period has to be
added or deducted to the actual physical count. In most cases a work back has always
been done as the actual stocktaking takes place several days after the official cut-off date.
Seldom is a stocktaking done before the cut-off date. In working back all withdrawals
within the period are added back to the physical count and all productions/receipts are
subtracted. The reverse is done in case of working forward.
Illustration -
On July 1, 1983 Executive Order No. 900 was promulgated increasing the price and the
specific tax rates on the following petroleum products:
Kind Old Rate New Rate
Premium Gas P1.10/liter P1.38/liter
Regular Gas 1.06/ " 1.34/ "
The Commissioner of Internal Revenue several days later issued an LA to conduct a
stocktaking on the effective date of the Executive Order as a matter of procedure. The
actual day of physical inventory took place on July 5, 1983 the results were as follows:
Beginning Stock Inventory * - July 5, 1983 (in liters)
Kind Quantity
Premium Gasoline 2,000,000 liters

Regular Gasoline 1,200,000 liters
Transactions (Per ORB):
Receipts/ Transfer/
Productions Removals
July 4, 1983 - Premium gasoline 400,000 ltrs. 200,000 ltrs.

Regular gasoline 100,000 " 200,000 "

Regular gasoline 300,000 ltrs.
200,000 ltrs.

Regular gasoline 300,000 ltrs. 200,000 ltrs.

Regular gasoline 300,000 ltrs. 200,000 ltrs.
WORKBACK METHOD
Prem. Gasoline Reg. Gasoline
Stock on Hand * July 5, 1983 2,000,000 ltrs. 1,200,000 ltrs.

July 4, 1983 (400,000 ltrs.) (100,000 ltrs.)
200,000 ltrs. 200,000 ltrs.
July 3, 1983 (200,000 ltrs.) (300,000 ltrs.)
100,000 ltrs. 200,000 ltrs.
July 2, 1983 (100,000 ltrs.) (300,000 ltrs.)
100,000 ltrs. 200,000 ltrs.
July 1, 1983 (200,000 ltrs.) (300,000 ltrs.)
100,000 ltrs. 200,000 ltrs.
2,500,000 ltrs. 2,000,000 ltrs.
(900,000 ltrs.) (1,000,000 ltrs.)
Inventory Stock as of 7/1/83 - 1,600,000 ltrs. 1,000,000 ltrs.

Inventory taking on Petroleum Products is mostly opening balances for
the day.
Step 4. Preparation of Certificate of Inventory.
After conducting the physical inventory, a certificate of stocktaking is then prepared. The
Certificate should show the date of the inventory taking, kind of products and the
corresponding quantities and must be signed by the investigating revenue officers and
attested to by the representative of the oil company.
IV. EVALUATION:
Compare the stock inventory per record (Step 2) with the stock inventory per physical
count (Step 3). If the physical count is more than the stocks per record, then there is an
overage. Overages may show an unrecorded productions or receipts. It should be carried
on the ORBs as part of the productions or receipts and noted as an entry on the debit side.
If the physical count is less than the stock per record, it shows there is a shortage.
Shortages may mean an unrecorded removals or due to losses (evaporations, storage,
handling or in-transit losses). Any shortages is subject to an assessment for specific tax.
All losses on finished or refined petroleum products are likewise subject to specific tax.
Counter-check the figures obtaining in the stocktaking with the following records for any
discrepancies:
a. Annual stock inventory. - submitted per bookkeeping regulations;
b. Withdrawal Certificate. - showing removals both bonded and taxpaid
accompanying every shipment from the refineries or bonded terminals; and
c. Revenue Tax Receipt (RTR) and Confirmation Receipt (CR). - official receipts on
the specific tax payments made.
V. REPORT MAKING:
The final phase is the making of report; memorandum address to the Commissioner of
Internal Revenue showing an assessment if any, or any violations of any laws or
regulations detected in the course of the investigation. Recommendations may also be
made to improve procedures and methods in the operations of the company. Attached to
the report is the Certificate of Stocktaking and other working papers.

Ministry of Finance
Quezon City
_________
_________
Authority Number : _______ Date: ______________ Issued By:
_____________
Period Covered :
_______________________________________________________
Kind of Business :
_______________________________________________________
Total Amount Reported :
....................................................P________________________
Consisting Of:
(a) Specific Tax __________________
(b) Privilege Tax __________________
(c) Surcharge __________
(d) Compromise __________
Total =========
___________________________
___________________________
___________________________
___________________________
Is the taxpayer agreeable to the findings? ___________
I/WE hereby recommend the approval of this report, together with the recommendations
stated herein.
___________________________ ___________________________
___________________________ ___________________________
RECOMMENDING APPROVAL:
___________________________
CONCURRED IN:
___________________________
APPROVED:
___________________________
ANNEX "D"
STOCKTAKING PROCEDURE
After serving the letter of authority to conduct stocktaking, require the owner, manager or
his duly authorized representative to present the following:
1. Permit to engage in business as wholesale leaf tobacco dealer issued by the BIR
which is renewable every year;
2. Revenue Tax Receipt for the payment of annual fixed tax;
3. Official Register Book (BIR Form No. 31.46);
4. Official Guia Book (BIR Form No. 31.48), including unlifted guias
accompanying shipments of tobacco received;
5. Purchase Invoice & Vouchers (PIVs);
6. Revenue Tax Receipts for the payment of tobacco inspection fees;
7. Sales Invoices; and
8. Copy of the Annual Inventory of Stocks submitted to the BIR as required by the
bookkeeping regulations.
UPDATING OF ACCOUNTS & CLOSURE OF OFFICIAL REGISTER & GUIA
BOOKS:
Before closing the official register book, the same must be updated by recording in the
proper column on the "debit" page all purchases of tobacco that remain unentered as well
as the recording of all removals or transfers of tobacco that are still unentered on the
"credit" page.
Closing of the Official Register Book is done by drawing a horizontal line, in red ink,
after the last debit and credit entries which should be initialed by a member of the
stocktaking team.
The closing of the Official Guia Book is done by noting the last official guia stub (serial
numbers) used in the official guia book.
COUNTING OR TAKING OF INVENTORY ON HAND:
The closing of the books and physical counting of tobacco stock on hand shall be done
simultaneously. Counting must be done in the presence of the owner, manager or his duly
authorized representative.
Loose tobacco (still unpacked) must be weighed on a licensed platform scale or steel yard
available in the warehouse. In the case of packed tobacco, the net weight in kilos and
classification are marked permanently and legibly with stencil on every bale, case or
hogshead. The inventory team may open up a sufficient number of bales, cases or
hogsheads selected at random (5% to 10% will suffice) to determine the accuracy of the
classification and net weight as marked on the packages. Stock on hand per physical
count should tally with the official book balance.
THE STOCKTAKING WORKSHEET :
While other members of the stocktaking team are conducting the inventory of tobacco
stocks on hand, a member or two should proceed with the preparation of the worksheet
showing the following data:
1. Heading. - The name of the tobacco establishment, the schedule, paragraph and
assessment number; the title "worksheet"; the period covered by the stocktaking; and the
authority number and date.
2. The worksheet proper shall invariably contain the following:
(a) Book Balance Section - which shows:
Beginning Balance - refers to the beginning balance of the current month as per official
register book.
ADD: Receipts (DR) - refers to purchases made from the first day of the current month to
date of stocktaking.
Total Stock Available - beginning balance plus receipts.
LESS: Removals (CR) - removals or transfers from the first day of the current month to
date of stocktaking.
Official Book Balance - total stock available less total removals.
(b) Stock Handles Section - which shows:
Beginning Balance - refers to official book balance per previous stocktaking.
ADD: Receipts (DR) - from the official register book take a total of all entries on the
debit page, to wit:
(1) from the day after the date of the previous stocktaking to end of the month.
(2) all full months covered by the current stocktaking period to be taken monthly.
(3) from the first day of the current month to the cut-off date of current stocktaking.
Total Stock Handled - the sum of the beginning balance and total receipts.
LESS: Removals (CR) - from the official register book, total all entries on the credit page
to wit:
(1) from day after the date of the previous stocktaking to end of the month.
(2) all full months covered by the current stocktaking period, to be taken monthly.
(3) from first day of the current month to the cut-off date of current stocktaking.
Official Book Balance - total stock handled less total removals to tally with the Book
Balance Section and physical inventory.
After arriving at the official book balance, reconcile the same with the actual stock per
physical count. In case of OVERAGE (actual stock is more than the book balance) the
same shall be debited in the official register book duly initialed by a member of the
stocktaking team. On the other hand, if there is any SHORTAGE (actual stock is less that
the book balance) found, the same shall be thoroughly investigated and the assessment of
all inspection fees, taxes and penalties due shall be made. Moreover, the shortage shall be
taken into consideration in the computation of his income tax liability.
PREPARATION OF STOCKTAKING CERTIFICATE AND REPORT :
Immediately upon completion of the physical counting of tobacco stock and the
stocktaking worksheet, a stocktaking certificate shall be prepared and signed by the
members of the stocktaking team duly attended by the owner or his duly authorized
representative.
The stocktaking team shall submit a report of their findings with the attached stocktaking
certificate to the Commissioner of Internal Revenue thru proper channels without
unnecessary delay.

Ministry of Finance
Quezon City

_________
_________
Authority No. : _______ Date: _______________ Issued By:
_____________
Period Covered :
______________________________________________________
Kind of Business :
______________________________________________________
Total Amount Reported : .....................................................
_______________________
Consisting Of:
(a) Tobacco Inspection Fee _________________
(b) Privilege Tax _________________
(c) Surcharge _________________
(d) Compromise _________________
Total =================
___________________________ ___________________________
___________________________ ___________________________
___________________________ ___________________________
___________________________ ___________________________
Is the taxpayer agreeable to the findings? ________________________
The undersigned Internal Revenue Officers hereby recommend the approval of this
report, together with the recommendations stated herein.
___________________________ ___________________________
___________________________ ___________________________
CONCURRED IN:
___________________________
Manager/Owner
APPROVED:
___________________________
REPUBLIKA NG PILIPINAS
Kagawaran Ng Pananalapi
KAWANIHAN NG RENTAS INTERNAS
TOBACCO INSPECTION DIVISION
Quezon City, Metro Manila
NAME : ______________________ DATE:______________________

ADDRESS : ______________________ ______________________
L-3- ______________________ ______________________
STOCKTAKING REPORT
______________
(Period Covered)
_______________
(Type of Tobacco)
_____________________________________________________________________
: Bales : Bales : Total : Loose Leaf : Scrap &
Others
: 50's : 's : Std. Wt. : (kilos) : (kilos)
: : : : :
Beginning Inventory : : : : :
ADD: Total Purchases (DR) : : : : :
Total Stock Handled : : : : :
Baled Tobacco : : : : :
Transferred for rebaling : : : : :
Rebaled tobacco : : : : :
Total Stock Available : : : : :
LESS: Total Removals : : : : :
BOOK BALANCE : : : : :
PHYSICAL INVENTORY : : : : :
Shortage or Overage : : : : :
================================================
REMARKS: -------------------------
-------------------------
-------------------------
-------------------------
We hereby certify to the correctness of the above.
ATTESTED & VERIFIED CORRECT: INTERNAL REVENUE OFFICER:
________________________
Manager/Owner (L-3- ______ )
RMO 15-84
RMO 15-84 Further Amending the "Daily Operations Report" and "Quarterly Report
on Average Raw Material Yield and Wastage"
June 15, 1984 June 15, 1984
SUBJECT : Further Amending the "Daily Operations Report" and "Quarterly

Report on Average Raw Material Yield and Wastage"
TO : The Service Chief, Specific Tax Office The Chief, Tobacco Tax
Division Revenue Personnel Performing On-Premises Duties at Cigarette Factories
In response to suggestions of revenue personnel performing on-premises duties at

cigarette factories and of cigarette manufacturers, the present "Daily Operations Report"
(BIR Form No. 31.79) and "Quarterly Report on Average Raw Material Yield and
Wastage" (BIR Form No. 31.800) are hereby revised as shown in the attached Annexes.
Aside from the changes in report content and format, the Daily Operations Report shall
be prepared in three copies instead of in four copies. (See "Guidelines and Instructions"
attached to the report form.)
Revenue Memorandum Order No. 5-841 dated 14 February 1984 and all other orders,
circulars and issuances which are inconsistent with the provisions of this Order are
hereby revoked or amended accordingly.
RUBEN B. ANCHETA
Acting Commissioner
RMO 14-84
RMO 14-84 Transfer of Internal Control Unit to the Office of Financial and
Management Service.
May 25, 1984 May 25, 1984
SUBJECT : Transfer of Internal Control Unit to the Office of Financial and

Management Service.
TO : All Revenue Officers and Other Concerned
In conformity with the recommendation of the Commission on Audit in its year end
Audit Report for the calendar year 1982 to strengthen internal control on cash
management in the BIR, the Internal Control Unit in the Central Office now placed under
the direct supervision of the Chief, Accounting Division per Revenue Memorandum
Order No. 28-811 dated September 1, 1981, is hereby transferred to the Office of the
Revenue Service Chief, Financial and Management Service.
The Assistant Service Chief shall be the Head of the Internal Control Unit in concurrent
capacity and shall be responsible for pre-auditing and reviewing all vouchers processed
by the Disbursement Accounting and Revenue Accounting Divisions created under RAO
3-832 dated March 3, 1983.
This Order takes effect upon approval.
RUBEN B. ANCHETA
Acting Commissioner
RMO 13-84
RMO 13-84 Procedures and mechanics in the cancellation, turnover, replacement and
reissuance of outstanding unclaimed/undelivered Treasury Warrants.
May 31, 1984 June 15, 1984
SUBJECT : Procedures and mechanics in the cancellation, turnover,

replacement and reissuance of outstanding unclaimed/undelivered Treasury Warrants.
TO : The Revenue Service Chiefs (Collection, Financial &

Management), the Chiefs, Withholding Tax Division and Accounting Division, The
Manager, Revenue Information Systems Services, Inc. and others concerned.
I. OBJECTIVE -
a. To implement the policy of the Bureau to facilitate and simplify the processing
and release of tax refunds to taxpayers.
b. To ensure the safekeeping and proper accounting of refund checks that have
remained unclaimed/undelivered to the payee.
II. COVERAGE -
This Revenue Memorandum Order applies to unclaimed/undelivered Treasury Warrants
representing individual income tax refunds of taxpayers for calendar year 1981 and prior
years which are still outstanding and in the possession and custody of the Withholding
Tax Division as of June 15, 1984, as well as those that will be returned by mail thereafter,
except Treasury Warrants which will become stale on or before June 30, 1984.
III. DUTIES AND RESPONSIBILITIES -
A. WITHHOLDING TAX DIVISION -
1. Prepare an inventory of unclaimed/undelivered Treasury Warrants with the
following details:
a. Box Number
b. Individual Serial Number and Amount
c. Date when the Treasury Warrants was
originally mailed.
d. Total number of Treasury Warrants
e. Total Amounts of Treasury Warrants
IV. EFFECTIVITY -
This order shall take effect on June 15, 1984.
RUBEN B. ANCHETA
Commissioner of Internal Revenue
TAN: A5239-V1139-A-O
RMO 12-84
RMO 12-84 Printing of Revenue Accountable Forms
May 4, 1984
In connection with the printing of Revenue Accountable Forms by the NEDA-APO

Production Unit, Inc., there is hereby created a committee to supervise the printing
thereof composed of the following:
1. Authorized Representative of the
Chief, Fiscal Control Division - Chairman
Chief, Accounting Division - Member
Chief, Accountable Forms Division - Member
Chief, Fiscal Control Division - Alternate Chairman
Chief, Accounting Division - Alternate Member
Chief, Accountable Forms Division - Alternate Member
The members of said committee from the BIR will be joined by one representative from
NEDA-APO Production Unit to be designated by said printer and the Auditor of the
Specialized Accountable Forms Auditing Unit or her representative/s as witness.
The said committee shall discharge the following functions:
1. Account for all proofs, trial sheets, spoilages, trimmings, films and plates, upon
completion of work orders; and destroy the same upon prior authority from the
Commissioner of Internal Revenue, by burning or in such appropriate manner as may be
determined by the Committee to be witnessed by the Auditor or her representative;
prepare and submit a certificate of destruction thereof;
2. Submit weekly reports on the progress of the printing and a final report to the
Commissioner of Internal Revenue upon completion of the work order, accounting for
the serial numbers of the printed accountable forms;
3. Control the printing machine, either by placing the necessary seal or lock
whenever the plate is not removed from the machine or when it is not in actual operation;
and
4. Observe the procedures in the printing of accountable forms as set forth under
COA Circular No. 76-351 dated July 6, 1976.
The members of the Committee and the COA representative/s shall be entitled to the
same compensation enjoyed and received by the members of the Committee on
Specialized Accountable Forms assigned at the Government Printing Office such as
overtime by the hour at the rate allowed by the COA regulations, and a special monthly
allowance of Two Hundred (P200.00) Pesos each chargeable against the Intelligence
Fund.
RUBEN B. ANCHETA
Acting Commissioner
TAN-A5239-J1139-A-O
RMO 11-84
RMO 11-84 Amendment of Code Symbols of Major Units of Organization in the
National and Regional Offices.
April 25, 1984
SUBJECT : Amendment of Code Symbols of Major Units of Organization in

the National and Regional Offices.
TO : All Revenue Service Chiefs, Regional Directors, Division Chiefs,
Branch Chiefs and Others Concerned.
In connection with the implementation of some changes in the organization of several

offices of the Bureau and the abolition of the Data Processing Center (DPC) through the
issuance of several Revenue Administrative Orders and Executive Orders for the years
1983 and 1984, the code symbols prescribed under RMO 38-751 dated July 9, 1975 and
RMO 24-812 dated July 28, 1981 are hereby amended as shown in the attachment.
All official papers shall bear the organization code symbol of the office initiating the
document placed at the lower left hand after the signature of any document. Any paper
sent for action without the organization code symbol shall not be processed or filed. It
shall be returned to the office of origin for affixture of the code symbol.
This Order revokes the provisions of RMO 38-75 and RMO 24-81.
RUBEN B. ANCHETA
Acting Commissioner
ATTACHMENT
I. NATIONAL OFFICES CODES
A- Office of the Commissioner
A-1 Revenue Attache Unit
A-2 Intelligence Division
A-3 Tax Fraud Division
B- Office of the Deputy Commissioner
B-1 Office of the Deputy Commissioner (T. Toledo)
B-2 Office of the Deputy Commissioner (R. Villa)
C- Sector Operations Office
C-1 Sector Audit Review Division
C-2 Manufacturing Division I
C-3 Manufacturing Division II
C-4 International Operations Division
C-5 Investment Incentives Division
C-6 Agriculture & Natural Resources Division
C-7 Banks, Financing and Insurance Division
C-8 Real Estate and Transfer Taxes Division
C-9 Government and Tax Exempt Corporation Division
C-10 Construction and Service Industry Division
C-11 Franchise and Miscellaneous Taxes Division
D - National Assessment Office
D-1 National Audit Review Division
D-2 Assessment Performance Control Division
D-3 Refund Audit Division
E - Specific Tax Office
E-1 Tobacco Tax Division
E-2 Alcohol Tax Division
E-3 Oil and Miscellaneous Tax Division
E-4 Field Operations Division
E-5 BIR Laboratory
F - Collection Office
F-1 Receivable Accounts Division
F-2 Collection Enforcement Division
F-3 Collection Performance Control Division
F-4 Withholding Tax Division
F-5 PO/CR Monitoring Center
G - Legal Office
G-1 Law Division
G-2 Litigation Division
G-3 Prosecution Division
G-4 Appellate Division
G-5 International Taxation Division
H - Inspection Service
H-1 Internal Security Division
H-2 Fiscal Control Division
H-3 Personnel Inquiry Division
J - Financial & Management Service
J-1 Budget Division
J-2 Management Division
J-3 Revenue Accounting Division
J-4 Disbursement Accounting Division
J-5 Statistical Analysis Division
J-6 Tax Information & Education Division
K - Personnel and Administrative Service
K-1 Personnel Division
K-2 General Services Division
K-3 Accountable Forms Division
K-4 Property Division
K-5 Records Division
K-6 Career Development Division
L - Planning and Policy Service
L-1 Planning Division
L-2 Policy Division
II. REVENUE REGIONAL OFFICE CODES
RR 1 - Office of the Regional Director Baguio City
1-a Special Investigation Unit
1-b Fiscal Operations Unit
1-c Tax Assistance Unit
1-1 Assessment Branch
1-2 Collection Branch
1-3 Legal Branch
1-4 Administrative Branch
RDO 1 Laoag City
2 Vigan, Ilocos Sur
3 Bangued, Abra
4 San Fernando, La Union
5 Baguio City, Benguet
6 Bontoc, Mountain Province
7 Dagupan City, Western Pangasinan
8 Urdaneta, Eastern Pangasinan
RR 2 - Office of the Regional Director Tuguegarao, Cagayan
2-3 Legal Branch
RDO 9 Aparri, Cagayan
10 Tabuk, Kalinga, Apayao
11 Bayombong, Nueva Viscaya
12 Lagawe, Ifugao
13 Ilagan, Isabela
14 Cabarroguis, Quirino
RR 3A - Office of the Regional Director San Fernando, Pampanga
3A-a Special Investigation Unit
3A-b Fiscal Operations Unit
3A-c Tax Assistance Unit
3A-1 Assessment Branch
3A-2 Collection Branch
3A-3 Legal Branch
3A-4 Administrative Branch Branch
RDO 15 Tarlac, Tarlac
16 Olongapo City, Zambales
17 Balanga, Bataan
18 San Fernando, Pampanga
RR 3B - Office of the Regional Director Valenzuela, Metro Manila
3B-a Special Investigation Unit
3B-b Fiscal Operations Unit
3B-c Tax Assistance Unit
3B-1 Assessment Branch
3B-2 Collection Branch
3B-3 Legal Branch
3B-4 Administrative Branch
RDO 19 Baler, Quezon
20 Cabanatuan City, Nueva Ecija
21 Valenzuela, Bulacan
RR 4A - Office of the Regional Director Manila
4A-3 Legal Branch
4A-4 Administrative Branch
RDO 22 San Nicolas, Tondo
23 Sta. Cruz, Binondo
24 Quiapo, Sampaloc, San Miguel
25 South Manila
26 Romblon, Romblon
27 Puerto Princesa, Palawan
RR 4B - Office of the Regional Director Quezon City
4B-3 Legal Branch
RDO 28 Malabon
29 Caloocan City
30 North Quezon City
30 South Quezon City
31 Mandaluyong
32 East Makati
32 West Makati
33 Pasay City
34 Parañaque
35 Pasig
35A Marikina
36 Cavite City
RR 4C - Office of the Regional Director San Pablo City
4C-a Special Investigation Unit
4C-b Fiscal Operations Unit
4C-c Tax Assistance Unit
4C-1 Assessment Branch
4C-2 Collection Branch
4C-3 Legal Branch
4C-4 Administrative Branch
RDO 37 San Pablo City
38 Batangas City
39 Lucena City, Northern Quezon
40 Gumaca, Southern Quezon
41 Boac, Marinduque
42 Calapan, Oriental Mindoro
43 San Jose, Occidental Mindoro
RR 5 - Office of the Regional Director Legaspi City
5-3 Legal Branch
RDO 44 Daet, Camarines Sur
45 Naga City, Northern Camarines Sur
46 Goa, Southern Camarines Sur
47 Legaspi City, Albay
48 Sorsogon, Sorsogon
49 Virac, Catanduanes
50 Masbate, Masbate
RR 6A - Office of the Regional Director Iloilo City
6A-3 Legal Branch
RDO 51 Kalibo, Aklan
52 Roxas City, Capiz
53 San Jose, Antique
54 Iloilo City, Iloilo
RR 6B - Office of the Regional Director Bacolod City
6B-3 Legal Branch
RDO 55 Victorias, Northern Negros Occidental
56 Bacolod City, Central Negros Occidental
57 Binalbagan, Southern Negros Occidental
58 Dumaguete City, Negros Oriental
RR 7 - Office of the Regional Director Cebu City
7-3 Legal Branch
RDO 59 Mandaue, Northern Cebu
60 Cebu City
60A Talisay, Southern Cebu
61 Tagbilaran City, Bohol
RR 8 - Office of the Regional Director Tacloban City
8-3 Legal Branch
RDO 62 Catarman, Northern Samar
63 Borongan, Eastern Samar
64 Catbalogan City, Western Samar
65 Tacloban City, Eastern Leyte
66 Ormoc City Western Leyte
67 Maasin, Southern Leyte
RR 9 - Office of the Regional Director Zamboanga City
9-3 Legal Branch
RDO 68 Dipolog City Zamboanga del Norte
69 Pagadian City, Northern Zamboanga del Sur
70 Zamboanga City, Southern Zamboanga del Sur
71 Isabela, Basilan Province
72 Jolo, Sulu
73 Bongao, Tawi-Tawi
RR 10A - Office of the Regional Director Cagayan de Oro City
10A-3 Legal Branch
RDO 74 Gingoog City, Eastern Oriental Misamis
75 Cagayan de Oro City Western Oriental
Misamis
76 Malaybalay, Bukidnon
77 Ozamis City, Misamis Occidental
78 Iligan City, Lanao del Norte
RR 10B - Office of the Regional Director Butuan City
10B-3 Legal Branch
RDO 80 Butuan City, Agusan del Sur
81 Bayugan, Agusan del Sur
82 Surigao City, Surigao del Norte
83 Tandag, Surigao del Sur
RR 11A - Office of the Regional Director Cotabato City
11A-3 Legal Branch
RDO 84 Cotabato City, Maguindanao Province
85 Kidapawan, North Cotabato
86 Tacurong, Sultan Kudarat
87 Gen. Santos City, Southern Cotabato
RR 11B - Office of the Regional Director Davao City
11B-3 Legal Branch
RDO 88 Tagum, Davao del Norte
89 Davao City
90 Mati, Davao Oriental
91 Digos, Davao del Sur
RMO 10-84
RMO 10-84 Amendment to Revenue Memorandum Order No. 12-79 dated May 14,
1979.
April 6, 1984
SUBJECT : Amendment to Revenue Memorandum Order No. 12-79 dated

May 14, 1979.
TO : All Internal Revenue Officers and Others Concerned.
For the information and guidance of all concerned, Revenue Memorandum Order No. 12-
79, dated May 14, 1979, which embodies "New Procedures in the Processing of Claims
for Tax Credits, Tax Refunds or Replenishments of Tax-Paid Stocks Involving sales of
Petroleum Products to Tax-Exempt Agencies or Entities" shall only be limited to
purchases of the following entities:
1. United States Military Bases under the U.S.P.I. Military Bases Agreement;
2. Armed Forces of the Philippines Commissary and Exchange Service (AFPCES),
pursuant to Revenue Regulations No. 2-801;
3. International Carriers with respect to petroleum products to be used or consumed
outside of the Philippines, provided that the country of said carrier exempts from tax
petroleum products sold to Philippine carriers;
4. Foreign embassies and legations provided that the countries of said foreign
service establishments grant similar exemption in favor of Philippine embassies and
legations abroad; and,
5. Persons or entities who imported finished petroleum products under P.D. No.
16102 and paid the specific tax thereon from its effectivity on February 28, 1979 up to
July 1, 1981.
The processing of tax credits and/or refunds of specific tax on petroleum products sold to
other entities claiming tax exemption shall not be processed under Revenue
Memorandum Order No. 12-79 but shall be referred for appropriate action to the Legal
Office.

Acting Commissioner
RMO 9-84
RMO 9-84 Applications for prolonged leave of absence
April 3, 1984 April 3, 1984
SUBJECT : Applications for prolonged leave of absence
TO : All Revenue Service Chiefs and Assistant Service Chiefs, Division

Chiefs and Assistant Division Chiefs, Regional Directors and Assistant Regional
Directors, Branch Chiefs and Assistant Branch Chiefs, Revenue District Officers, and
Assistant Revenue District Officers, Chiefs and Assistant Chiefs of Unit, and all others
concerned.
Pursuant to Memorandum Circular No. 304 of the Office of the President requiring
permission from that Office to go abroad, and Section 461 of Presidential Decree No.
8072 prohibiting additional or double compensation from any foreign state, without the
consent of the President, the following action should be taken by recommending officials
on applications for leave of absence of their employees:
1. Applications for leave of absence beyond 10 days, whether for sick or vacation
leave, if purportedly to be spent in the Philippines, should be recommended by Chiefs or
Assistant Chiefs of Office with the notation, "Provided that no part of this leave is spent
abroad."
2. Applications for leave to be spent abroad, after authority to go abroad has been
granted by the Office of the President, should bear the notation, "Provided that M
_______________________ (leave applicant) shall not seek employment abroad."
Any violation of the foregoing shall be ground for disciplinary action.
This order takes effect immediately.
(Sgd.) TOMAS C. TOLEDO

Acting Commissioner
RMO 8-84
RMO 8-84 Official Guias as Accountable Forms
March 1, 1984 March 1, 1984
SUBJECT : Official Guias as Accountable Forms
TO : The Chief, Tobacco Tax Division The Chief, Accountable Forms

Division The Chief, Property Division The Chief, Specific Tax Area Teams All
Personnel Concerned
In order to regulate the issuance and/or use of official invoices (guias) which is required
to accompany all transfers or shipments of leaf tobacco from L-3, L-3TC, L-3R and L-6
permittees to consignees, to monitor the quantity of leaf tobacco received by said
consignees, and to ensure that the correct amount of inspection fee is collected, the
official invoice (guia) is now classified as an accountable form and its custody is hereby
transferred from the Property Division to the Accountable Forms Division, National
Office, BIR, Diliman, Quezon City. The Chief, Tobacco Tax Division and the Chiefs,
Specific Tax Area Teams shall take inventory of all official guias in the possession of
leaf tobacco dealers in their respective jurisdictions and turn over said inventory of
official guias to the Accountable Forms Division, National Office, thru the Revenue
Service Chief, Specific Tax. The Chief, Tobacco Tax Division and the Chiefs, Specific
Tax Area Teams thru the Chief, Field Operations Division, may then requisition these
forms from the Accountable Forms Division, in quantities dependent on the actual need
of leaf tobacco dealers (L-3, L-3TC, L-3R and L-6) in their respective jurisdiction.
Sufficient quantities of these accountable forms should be made available in the Offices
of the Chiefs, Specific Tax Area Teams who will issue the same to leaf tobacco dealers in
their areas of jurisdiction upon proper representation made to them.
Please be guided accordingly.

Acting Commissioner
RMO 7-84
RMO 7-84 Implementation of Phase II of the Pilot Test of the Computerized Tax
Collection Information System-Tax Receipt and Deposit Module (TX-CIS-TAXREDEP)
and Adoption of Phase I Thereof at Certain Collection Offices.
February 24, 1984 February 15, 1984
SUBJECT : Implementation of Phase II of the Pilot Test of the Computerized

Tax Collection Information System-Tax Receipt and Deposit Module (TX-CIS-
TAXREDEP) and Adoption of Phase I Thereof at Certain Collection Offices.
TO : Chief, Collection Service Chief, Financial and Management

Service Chief, Personnel and Administrative Service Regional Director, Revenue Region
VI-B Chief, Collection Branch, Revenue Region IV-B Revenue District Officers, RDO
30, North and South Information Systems Development Staff, and Collection Agents of
Revenue District 30, North and South, and Others Concerned.
A. RATIONALE
In order to accelerate the implementation of the Pilot Test of the Computerized Tax
Collection Information System-Tax Receipt and Deposit Module (TX-CIS-TAXREDEP),
the adoption of Phase I of the Pilot Test at certain collection units of RDO 30 North,
Quezon City, Region IV-B and Phase II of the Pilot Test at the National Office Collection
Station is hereby launched. This Memorandum Order is suppletory to Revenue
Memorandum Order No. 36-83 dated November 8, 1983.
B. PHASE II OF PILOT TEST
I. COVERAGE
Having successfully complied with the procedures as enunciated in Phase I of the Pilot
Test and were found to be fully operational, the National Office Collection Station in
RDO 30 North, Quezon City, Region IV-B is prepared to adopt or move to Phase II.
II. 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, the existing Steering Committee created under RMO 36-83 is hereby
reorganized with the addition of new members, to wit:
* Mr. Aquilino T. Larin - Chairman Chief, Collection Office
* Mr. Jose M. Salindong - Co-Chairman Regional Director
* Mrs. Paz B. Suarez - Member Chief, Financial & Management Service
* Mr. Honorio A. Todino - Member Chief, Personnel & Administrative
Service
* Mr. Quintin Abat RDO 30 North, Quezon City
* Mr. Francis Guzman RDO 30 South, Quezon City
* Mr. Dennis S. Deveza - Member ISDS-OCIR
* Mr. Vicente F. Ruaro - Member RISSI
The Steering Committee shall monitor the progress of both Phase I and Phase II of the
Pilot Test, and shall approve whatever changes may be deemed necessary, in the
mechanics of the implementation as well as in the procedures.
III. PHASE II PLAN
Phase II shall commence on March 1, 1984 and terminate on April 15, 1984, unless
otherwise extended or shortened by the Commissioner of Internal Revenue upon
recommendation by the Steering Committee. During this phase, the computerized tax
collection system will replace the manual system in RDO 30 North, Quezon City. Six (6)
machines shall be installed at the National Office Collection Station and those machines
shall be used to process tax returns/payments filed.
1. Additional Output
In addition to the enumerated printed daily reports as mentioned in sub-paragraph (d),
paragraph III of RMO 36-83, the following shall likewise be prepared and submitted.
a) Consolidated Daily Report of Collection by Bank; and,
b) Consolidated Daily Report of Collection by Type of Tax
2. Responsibility of Collection Agents
A. Supply EDP Revenue Tellers with Payment Orders Forms.
B. Tax Returns
i) Receive tax returns from taxpayer.
ii) Check each tax return to make sure that all essential data are
present.
iii) Segregate/separate tax returns with erroneous or missing data
for correction and/or completion of data.
iv) Code required information such as: TNC, AAB codes, due
dates, period covered, cash and check payments.
v) Forward tax returns to EDP Revenue Teller for processing.
vi) Receive generated payment order from EDP Revenue Teller
together with the validated tax returns.
vii) Sign payment order.
viii) Return taxpayer's copy of tax return together with the signed
payment order.
ix) Transmit one copy of batched tax returns and payment orders
to Revenue District Office.
x) Receive daily List of Payment Orders issued, Report of
Collection by Bank, Report of Collection by Type of Tax from
EDP Revenue Tellers.
xi) File and transmit all reports and documents as provided by
existing Memorandum Orders.
xii) Analyze computerized system and come up with
recommendation regarding implementation of the system.
xiii) Report any error encountered by the system to ISDS-OCIR.
C. Loose Documentary Stamps System
i) Require persons purchasing documentary stamps to fill-up
Documentary Stamp Sale Form (Annex E).
ii) Receive filled-up form and check the same to make sure that all
essential data are present.
iii) Forward sale forms to EDP Revenue Tellers for processing.
iv) Receive validated sale forms from EDP Revenue Tellers.
D. Certification of Fees
i) Prepare ROR based on the approved application form of the applicant.
ii) Forward ROR to EDP Revenue Teller for machine validation.
iii) Receive validated ROR from EDP Revenue Teller and give the same to
Certification applicant.
3. Responsibility of RISSI
i) Designate personnel who shall act as EDP Revenue
Tellers. The EDP Revenue Tellers shall operate the
Electronic Cash Register Machines.
ii) Monitor performance of EDP Revenue Tellers.
iii) Provide coordination, monitoring, reporting, planning,
and technical assistance during the Pilot Test whenever
or wherever necessary.
iv) Receive transaction casette tapes and reports from
EDP Revenue Tellers.
4. Responsibility of EDP Revenue Tellers
i) Start the machine every morning or whenever the need arises as in case of abends,
brownouts, machine breakdown or machine turn-offs.
ii) Process Tax Returns as follows:
a) Receive tax returns from Collection Agents.
b) For Tax Returns with no payments to be made:
- Encode all required data as prompted on the
terminal.
- Insert tax return in the validation printer for
machine validation of documents.
- return validated tax returns to Collection Agent.
c) For tax returns with payments to be made:
- Encode all required data as prompted on the
terminal.
- Insert PO form on the line printer to start
printing of PO.
- Insert tax return in the validation printer for
machine validation of tax returns.
- Revenue validated tax returns and Payment
Order to Collection Agent.
iii) Process Loose Documentary Stamps as follows:
a) Receive verified Documentary Stamps Sales form from
Collection Agent.
b) Encode required data as prompted on the terminal.
c) Insert sale form in validation printer for machine
validation of sale forms.
d) Return processed sale form to Collection Agent.
iv) Process Certification Fees as follows:
a) Receive ROR from Collection Agent.
b) Encode required data as prompted on the terminal.
c) Insert ROR in validation printer for machine validation
of receipt.
v) At End-of-Day,
a) Print the following reports:
- Daily List of Payment Orders issued
- Report of Collection by Bank based on Payment Order
issued
- Report of Collection by Type of Tax based on Payment
Order issued
- For those Collection Stations with more than one
machine
- Report of Collection by Bank-Consolidated
- Report of Collection Type of Tax-Consolidated
b) Submit above-mentioned printed reports to Collection Agent.
c) Turn-off the machine.
d) Forward to RISSI all transaction cassette tapes together with one copy of the
above mentioned reports and control totals.
vi) Requisition Payment Order Forms from Collection Agents.
5. Responsibility of ISDS
i) Analyze the computerized system and come up with recommendations regarding
implementation of the system.
ii) Provide all necessary control, coordination and monitoring of all pilot test
activities.
6. Responsibilities of Financial and Management Service/Collection
Service/Personnel and Administrative Service/Revenue Region IV-B Revenue District
Office 30
i) Provide the necessary control, support, supervision, coordination and monitoring
of all pilot test activities.
ii) Analyze the computerized system and come up with recommendations regarding
implementation of the system.
C. PHASE I OF PILOT TEST
I. COVERAGE
Three (3) Collection Stations in RDO 30, Region IV-B namely: District Office Collection
Station; Quezon City Hall Collection Station; and Novaliches Collection Station shall
adopt Phase I of the Pilot Test. Phase I shall likewise commence on February 15, 1984 up
to March 19, 1984, unless otherwise extended or shortened by the Commissioner of
Internal Revenue upon recommendation by the Steering Committee.
II. PHASE I PLAN
The rules and procedures promulgated under RMO 36-83 shall be followed, and shall not
replace the existing procedures until implementation is ordered accordingly.
D. EFFECTIVITY - This Memorandum Order shall take effect on February 15,
1984.

Acting Commissioner
RMO 6-84
RMO 6-84 The Cinematographic Film Withdrawal Certificate and the Specific Tax
Payment Certificate.
SUBJECT : The Cinematographic Film Withdrawal Certificate and the Specific

Tax Payment Certificate.
TO : All internal revenue officers, producers and/or importers, theater

owners and others concerned.
Under Sections 135 and 136 of the Tax Code, the specific tax on cinematographic films is
required to be paid immediately before removal from the place of production or before
the release of such films from customs' custody. The proof of payment is the
Cinematographic film Withdrawal Certificate or the Specific Tax Payment Certificate.
It is therefore indispensable that cinematographic films shall at all times be accompanied
by a withdrawal certificate. On locally produced films, the withdrawal certificate shall be
attached securely to the containers before removal from the place of production; while on
imported films, the same shall be pasted firmly thereto immediately after the release from
customs' custody and before the removal from the storage facilities or warehouse of the
importer. The revenue inspectors assigned shall be responsible for the attachment or
affixture of the withdrawal certificates.
The withdrawal certificate shall state the title of the film the number of prints/copies, the
date and amount of specific tax paid and the serial number of the official receipt. The said
certificate, which shall be signed by the Chief, Gasoline & Miscellaneous Tax Division,
or his duly authorized representative, shall be attached on the inside cover of the first, the
middle and the last reels of the films under the supervision of an authorized internal
revenue officer.
Each trailer, teaser or shorts shall be accompanied by a Specific Tax Payment Certificate
bearing the original signature of the Chief, Gasoline and Miscellaneous Tax Division, or
his duly authorized representative. Such certificate shall contain the same information as
the Cinematographic Film Withdrawal Certificate.
The absence of a withdrawal certificate hereinabove required is a prima facie evidence
that the film was illegally removed. If upon verification, it was found and ascertained that
a film being exhibited has no attached withdrawal certificate, the revenue officer should
immediately take action thereof and place the said film under summary detention in
accordance with the provision of Section 179 of the Tax Code, but the exhibition of the
film during its scheduled playdates in the particular theater should be continued.
All administrative orders, general circulars and memoranda inconsistent herewith are
hereby repealed and/or amended accordingly.
This order shall take effect immediately.

Acting Commissioner
RMO 5-84
RMO 5-84 Revised Reports of Zones-in-Charge and Revenue Inspectors Performing
On-Premises Duties at Cigarette Factories.
SUBJECT : Revised Reports of Zones-in-Charge and Revenue Inspectors

Performing On-Premises Duties at Cigarette Factories.
TO : The Chief, Specific Office The Chief, Tobacco Tax Division and
Others Concerned.
All Zones-in-Charge and Revenue Inspectors of the Bureau assigned to supervise the
operations of cigarette factories are hereby directed to accomplish and submit the
following reports in lieu of the existing reports required of them:
Report Title Submission Date To Whom Submitted
1. Daily Operations On or before the Original - Office of the CIR

Report close of business Duplicate - Specific Tax Office
of the following Triplicate - TTD
working day Quadruplicate - Cigarette Factory
2. Daily Strip Stamp On or before the Original - Office of the CIR
Inventory Report close of business Duplicate - Specific Tax Office
of the following Triplicate - TTD
working day Quadruplicate - Accountable
Form Division
Quintuplicate - Cigarette Factory
3. Report of Cigarette Every Monday of Same as (1)
Returned to the following
Manufacturer week
4. Quarterly Report Every eight day Same as (1)
On Average Raw of the month
Materials Yield & following the
Wastage end of the quarter
The preceding reports are designed to achieve the following objectives: (1) Enhance the
effectiveness of revenue inspectors assigned to monitor factory operations of cigarette
manufacturers; (2) Streamline reporting requirements of revenue inspectors; and (3) make
report formats suitable for computer processing.
Revenue Memorandum Order No. 12-81 dated May 21, 1981 and all other orders,
circulars and issuances which are inconsistent with the provisions of this Order are
hereby revoked or amended accordingly.

Acting Commissioner
RMO 4-84
RMO 4-84 Prescribing the procedures in the return of taxpaid tobacco products to the
factory either for the purpose of destruction, remanufacture or repacking.
SUBJECT : Prescribing the procedures in the return of taxpaid tobacco

products to the factory either for the purpose of destruction, remanufacture or repacking.
TO : All Internal Revenue Officers Concerned

The return to the factory of spoiled or damaged taxpaid tobacco products either for the
purpose of destruction, remanufacture or repacking is allowed under Revenue
Regulations V-39 and Revenue Regulations V-72. To provide for more effective
safeguards and to achieve a more efficient monitoring of the data that may be used as
inputs in tax investigations, the following procedures are hereby prescribed:
A. Return of tobacco products for destruction. - Spoiled or damaged taxpaid tobacco
products which are no longer fit for human consumption may be allowed to be returned
to the factory for the purposes of destruction in accordance with the following procedure.
1. Before the return of the taxpaid tobacco products to the factory, a prior notice to
return the same together with the request for destruction shall be filed with the
Commissioner, Attn.: Revenue Service Chief (Specific Tax), copy furnished the Zone-in-
Charge, stating among others, the brands and quantity of cigarettes or tobacco products to
be returned and the names and addresses of dealers and/or agents returning said tobacco
products.
2. Upon receipt of the tobacco products, the revenue officer assigned at the factory
shall submit a report to the Manufactured Tobacco Tax Division thru the Revenue
Service Chief (Specific Tax) within 24 hours from receipt thereof, stating among others,
the date of receipt, the brands, quantity and condition of the returned cigarettes or tobacco
products.
3. Upon issuance of the corresponding permit by the Commissioner, the destruction
by burning shall be effected immediately under the supervision of a revenue inspector
assigned by the Chief, Manufactured Tobacco Tax Division and witnessed by the
representative of the Specific Tax Office; provided, however, that before destruction, the
stamps affixed to the packs of cigarettes or tobacco products shall be detached for proper
accounting.
4. The report on the destruction shall be submitted to the Revenue Service Chief
(Specific Tax) within two (2) days after destruction stating among others, the brands and
quantity of cigarettes or tobacco products actually destroyed and enclosed with the report
are the stamps detached from said products.
B. On taxpaid tobacco products returned to the factory for remanufacture or
repacking, the following procedure shall be followed:
1. Before the return of the taxpaid tobacco products, a prior notice to the
Commissioner, Attn.: Revenue Service Chief (Specific Tax), copy furnished the Zone-in-
Charge, shall be given by the manufacturer stating among others, the purpose, the brands
and quantity of cigarettes or tobacco products and the names and addresses of the
dealers/agents returning the said products;
2. Upon receipt of the tobacco products, the revenue officer assigned at the factory
shall submit a report to the Manufactured Tobacco Tax Division thru the Revenue
Service Chief (Specific Tax) within 24 hours from receipt thereof, stating among others,
the date of receipt, the brands, quantity and condition of the returned cigarettes or tobacco
products.
3. Upon issuance of the corresponding permit by the Commissioner, the detaching of
strip stamps, the ripping of the cigarettes in case of remanufacture and the breaking up of
labels in case of repacking, shall be effected immediately under the supervision of a
revenue inspector assigned by the Chief, Manufactured Tobacco Tax Division and
witnessed by a representative of the Revenue Service Chief (Specific Tax).
4. In case of remanufacture of the tobacco products, the actual net weight of the cut
leaf tobacco (hebra) shall be entered in the L-7 official register book and cigarette paper
waste be credited in the cigarette paper account after same is destroyed by burning. If the
purpose is to repack the tobacco products, the same shall be taken up in the proper
official register, Schedule A.
5. A report on the remanufacture and repacking shall be submitted to the Revenue
Service Chief (Specific Tax) within two (2) days after completion thereof and enclosed
with the report are the strip stamps detached from cigarettes or tobacco products for
proper accounting.
C. All returned tobacco products shall be deposited at a warehouse separate from the
place of production and shall be placed under special custody of the revenue inspector
assigned thereat. In all cases of destruction, remanufacture or repacking of cigarettes, a
certificate thereof shall be issued by the revenue inspector assigned to supervise and
attested to by the witness designated by the Revenue Service Chief (Specific Tax).
No refund or rebate of the value of the strip stamps detached from the cigarettes or
tobacco products shall be allowed.
Strict compliance with the provisions of this Revenue Memorandum Order is hereby
enjoined.

Acting Commissioner
RMO 3-84
RMO 3-84 Prescribing the standards and manner of printing the specific tax per pack
on locally manufactured cigarettes.
SUBJECT : Prescribing the standards and manner of printing the specific tax
per pack on locally manufactured cigarettes.
TO : All Internal Revenue Officers Concerned.
The penultimate paragraph of Section 149(b) of the National Internal Revenue Code, as
amended by Executive Order No. 924 is quoted as follows:
"Except those used as samples, all packs of locally manufactured cigarettes shall, upon
the effectivity of the new rates of tax herein prescribed, bear thereon in print the
maximum retail prices at which said cigarettes are sold and the specific tax per pack. No
cigarettes shall be allowed to be removed from any factory unless this requirement has
been complied with."
The amendatory provision embodied in said Executive Order requiring the printing of the
amount of specific tax paid on each pack of locally manufactured cigarettes was
formulated to insure the affixture thereto of the correct denomination of strip stamps and
avoid under payment of specific taxes. In order that said requirement may be effectively
implemented, the following guidelines and standards are hereby prescribed:
1. The size of the letters composing the words "tax per pack" should be at least eight
(8) points.
2. The figures comprising the amount of tax "P . . ." should be at least twelve (12)
points.
3. The words and figures should be clearly visible, distinct, conspicuous and printed
horizontally on every pack.
4. All cigarette manufacturers are required to submit samples of their labels to the
Revenue Service Chief (Specific Tax) for approval after ascertaining that the printing of
the specific tax per pack are in conformity with the standards set forth therein.
5. Under Section 2 of said Executive Order which took effect November 16, 1983,
manufacturers are given 120 days or up to March 15, 1984 to use their existing stocks of
cigarette labels after which they shall not be allowed to remove cigarettes from their
factory unless the requirements on the printing of maximum retail price and specific tax
per pack are complied with.
Strict compliance with the provisions of this Revenue Memorandum Order is hereby
enjoined.

Acting Commissioner
RMO 2-84
RMO 2-84 Amendments to Revenue Memorandum Order No. 4-82, dated January 5,
1982, regarding the guidelines and procedures in reporting Regional Accomplishment,
BIR Form 40.21, particularly Gross Collection on by Kind of Tax (Part I A-2) and Fiscal
Operations (Part VI)
January 9, 1984
SUBJECT : Amendments to Revenue Memorandum Order No. 4-821, dated

January 5, 1982, regarding the guidelines and procedures in reporting Regional
Accomplishment, BIR Form 40.21, particularly Gross Collection on by Kind of Tax (Part
I A-2) and Fiscal Operations (Part VI)
TO : All Regional and Assistant Regional Directors, Chiefs of Branches,

Revenue District Officers, Unit Heads and Others Concerned.
The BIR Form 40.21, Regional Accomplishment Report which has been implemented by
RMO 4-82 is hereby amended and revised insofar as Part I A-2, Gross Collection by
Kind of Tax and Part VI, Fiscal Operations of said report are concerned.
Revised formats for these portions have been prepared to reflect uniformity, accuracy and
timely reporting of gross collection by kind of tax as well as the significant
accomplishments of the Fiscal Operation Unit. Necessary changes in the specific
guidelines and instructions were made for facility of reporting (See Attachments A and
B).
These revised formats for the particular portions of the 40.21 Report shall be adopted
starting January, 1984.

Acting Commissioner
AMENDED SPECIFIC INSTRUCTIONS

& GUIDELINES FOR PART I - COLLECTIONS
A. Gross Collections (To be prepared by the Revenue District Offices and
consolidated by the Collection Branch)
This portion of the report presents the regional actual monthly and quarterly collections
for the current and previous years.
Gross collections shall be classified by source and by kind of tax. The total of these two
classifications must tally.
A-1 Collection by Source is classified as:
1.1 Voluntary compliance - collections from taxpayers based on their returns filed as
provided under the various sections of the NIRC.
1.2 Investigation - deficiency taxes collected.
1.3 Cash Collections from delinquent accounts - collections on past due accounts
which may have been either assessed or demanded or those voluntarily declared by
taxpayers per returns filed but were not paid within the time prescribed by law.
A-2 Collections by Kind of Tax is classified as follows:
1. Income Tax - further broken down into:
1.1 Corporate - includes corporate; Withholding Tax at Source both Final and
Creditable; and Capital Gains on stock transactions.
1.2 Individual - includes individual; Withholding Tax on Salaries, Wages and Source,
both Final and Creditable; and Capital Gains on Real Estate and Stock Transactions.
1.3 Tax Amnesty
2. Business Tax - further broken down into:
2.1 Fixed Taxes
2.2 Sales Taxes
2.3 Compensating Taxes
2.4 Other Percentage Taxes
3. Other Taxes as enumerated
4. Fines and Penalties
Add total collection by kind of tax to collection from Specific Taxes, if any, in order to
arrive at the total gross collection.
RMO 1-84
RMO 1-84 Processing of Annual Inventory Lists
January 12, 1984 January 12, 1984
SUBJECT : Processing of Annual Inventory Lists
1. Background
It has been observed that inventories filed annually by taxpayers under Section 131 of
Revenue Regulations No. V-12 otherwise known as the Bookkeeping Regulations are not
systematically compiled for reference in the audit and investigation of tax returns. In
order that the inventory lists can be effectively utilized for tax audit and investigation
purposes, the following guidelines are hereby promulgated.
2. Revenue District Offices

2.1 Upon receipt of the inventories filed by taxpayers, the revenue district officer or
other duly authorized revenue officer shall compile and classify the same in accordance
with the format shown in Annex A and Annex B hereto showing among others the
following information:
2.1/1 Type of business and/or industry according to the following broad categories -
* Retail
* Wholesale
* Manufacturing
2.1/2 Amount of inventory
2.1/3 Method of inventory valuation and costing
2.2 All inventory lists should be systematically filed in the revenue district office and
made readily accessible to examiners for reference and, if feasible, the duplicate thereof
should be attached to the income tax returns for which a letter of authority has been
issued. If the inventory was filed by the taxpayer whose internal revenue tax liability is
subject to investigation by any of the National Office Audit Division, the duplicate
thereof should be immediately transmitted to the Revenue Service Chief, Sector
Operations Office.
2.3 Duly accomplished Annexes A and B shall be transmitted immediately to the
Revenue Service, Sector Operations Office, for further evaluation and processing for
purposes of computerization.
3. Audit and Verification
The inventory costing and valuation method used should be thoroughly and adequately
test-checked simultaneously with the audit and investigation of the corresponding income
tax returns of the taxpayers. The objective of test-checking is to see to it that the
inventory costing and valuation method used is accurately and consistently applied. The
revenue examiner should also perform adequate audit procedures to insure that the
inventories are not utilized by taxpayers for the purpose of understating their gross
income and should specifically state in his memorandum report what specific audit
procedures were actually undertaken by him with respect to the inventories.
4. Effectivity
This Revenue Memorandum Order shall be effective immediately.

Acting Commissioner

Rmo 1984

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 1984

Uploaded by

Copyright:

Available Formats

December 17, 1984 December 17, 1984

REVENUE MEMORANDUM ORDER NO. 44-84*

SUBJECT : Prescribed Formats of the Quarterly Accomplishment Reports for

TO : Revenue Service/Division Chief, Specific Tax Office, Revenue

SPECIFIC INSTRUCTIONS AND GUIDELINES

QUARTERLY STATUS REPORT

TO WHOM IT MAY CONCERN:

Total Tobacco Products : P : P : P : P

TO WHOM IT MAY CONCERN:

SPECIFIC INSTRUCTIONS AND GUIDELINES

November 14, 1984 January, 1985

REVENUE MEMORANDUM ORDER NO. 43-84*

TO : Revenue Service Chief (Collection Office), Regional Directors,

(Sgd.) ROMULO M. VILLA

October 29, 1984 October 1, 1984

REVENUE MEMORANDUM ORDER NO. 42-84*

SUBJECT : Reimbursement of Travelling Expenses of Personnel Performing

TO : All Revenue Officials and Employees and Others Concerned.

(Sgd.) RUBEN B. ANCHETA

October 31, 1984 November 1, 1984

REVENUE MEMORANDUM ORDER NO. 41-84*

SUBJECT : Reimbursable Transportation Allowance and Gasoline Expenses of

TO : All Revenue Officials and Employees Concerned

This Revenue Memorandum Order shall take effect November 1, 1984.

(Sgd.) RUBEN B. ANCHETA

November 15, 1984

REVENUE MEMORANDUM ORDER NO. 40-84 *

SUBJECT : Amendment to Revenue Memorandum Order No. 35-841 on the

TO : All internal revenue officers and others concerned

(Sgd.) RUBEN B. ANCHETA

October 31, 1984 October 31, 1984

REVENUE MEMORANDUM ORDER NO. 39-84*

SUBJECT : Transmittal of Income Tax Returns of BIR Employees

TO : All Revenue Regional Directors and Others Concerned.

(Sgd.) RUBEN B. ANCHETA

November 8, 1984 November 8, 1984

REVENUE MEMORANDUM ORDER NO. 38-84*

SUBJECT : Monitoring of Investigation of Business Tax Returns

4. Report of Collections Covered by Letters of Demand, STF Form No. 05-84 - To

(Sgd.) RUBEN B. ANCHETA

REVENUE MEMORANDUM ORDER NO. 37-84*

SUBJECT : Incremental Revenue from Business and Miscellaneous Taxes to

TO : All Revenue Regional Directors, Revenue District Officers and

Specifically, the said measures consist of the following:

1. Lifting of tax exemptions and preferential tax treatment of government-owned or

All concerned are urged to be guided accordingly.

(Sgd.) RUBEN B. ANCHETA

October 26, 1984 October 26, 1984

REVENUE MEMORANDUM ORDER NO. 36-84*

SUBJECT : Verification of Gross Compensation Income of Employees of

TO : All Sector Operations Divisions, Regional Directors and Revenue

1. Look into all documents to ascertain if the true compensation income of

2. For advances/reimbursements of transportation and representation expenses

This Memorandum Order takes effect immediately.

(Sgd.) RUBEN B. ANCHETA

October 31, 1984 October 31, 1984

REVENUE MEMORANDUM ORDER NO. 35-84*

TO : All Internal Revenue Officers and Others Concerned.

In this connection, every investigating office shall render accomplishment reports on

Strict adherence to these instructions is hereby enjoined.

This Revenue Memorandum Order shall be effective immediately.

(Sgd.) RUBEN B. ANCHETA

REVENUE MEMORANDUM ORDER NO. 34-84*