ISO 9001:2015 Certified

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE
Collection Division
Revenue Region No. 9B- LaQueMar
San Pablo CityCert. No: 120546/A/0001/UK/En

March 20, 2023

GUIDELINES ON THE PUBLIC AUCTION

OF SEIZED PROPERTIES

For the information and guidance of all prospective bidders and all others concerned, the following
provisions are the policies and procedures on the public auction of the seized properties of delinquent taxpayers
arising from non-payment of internal revenue taxes. The public auction is scheduled on April 28, 2023, starting
9 a.m at the Revenue Region No. 9B-LaQueMar, Multi-Purpose Hall.

I. POLICIES
A prospective bidder shall be considered a qualified bidder in the scheduled public auction for purposes
of these Guidelines if the following requirements are complied with:

a. Any person, natural or juridical, including the delinquent taxpayer-previous owner of the subject
property, except foreign nationals and foreign corporations who are prohibited by the Philippine
Constitution and our existing laws to own real estate properties in the Philippines and those
disqualified under existing laws, rules and regulations, including employees of the Bureau of Internal
Revenue (BIR) and their relatives up to the fourth (4th) degree of consanguinity or affinity; and

b. Posting of a bid bond with the BIR, either in cash or manager’s check, in the amount equivalent to ten
percent (10%) of the floor price/ minimum bid price of the particular seized property being auctioned
by the BIR. Only the bid bond of the winning bidder shall be issued the corresponding Official Receipt
by the Special Collecting Officer from the Administrative and Human Resource Management Division
(AHRMD) Posting of bid bond in an amount less than 10% of the floor minimum bid price
automatically disqualifies the prospective bidder from participating in the scheduled public auction.

The minimum bid price that shall be offered by the prospective bidder shall be equal to or higher than
the floor price.

In case the bid bond is a manager’s check, the same shall be payable and duly issued in the name of the
“Bureau of Internal Revenue”.

The amount of the bid bond shall form part of the payment of the winning bidder. With respect to the
bid bonds posted by the losing bidders, however, the same shall be returned immediately after the public
auction of the particular property.

The bid forms shall be furnished, upon request by the prospective bidder, by the Secretariat of the Bids
and Awards Committee – Seized Properties (BAC-SP), Revenue Region No. 9B-LaQueMar, 2 nd Floor,
Collection Division, Brgy. San Nicolas, San Pablo City, Laguna, during working days from 8:00 a.m. to 5:00
p.m.

For purposes of the issuance of the bid forms, the following documents shall be required from the
prospective bidders;

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 ISO 9001:2015 Certified
REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE
Collection Division
Revenue Region No. 9B- LaQueMar
San Pablo CityCert. No: 120546/A/0001/UK/En

a. Duly signed and notarized Bidders Acknowledgement and Undertakings containing the bidders
personal information and his/her intention, and assurance to fulfil the obligations prescribed under
this Guidelines; and

b. Photocopies of least two (2) validly issued government Identification Cards (IDs) and presentation of
the original copies thereof for validation purposes

Each bid form shall contain, among others, the following basic information:

a. Complete name and address of the prospective bidder;

b. Detailed description of the subject property to be auctioned;
c. Brief description of the improvements to the subject property, if any;
d. Amount of the bid price offered by the prospective bidder; and
e. Signature of the prospective bidder

The duly accomplished bid form shall be contained in a sealed envelope and the same shall be submitted
by the prospective bidder, as required by the facilitator, at the start of the public auction of the subject
property intended to be participated.

An authorized representative may participate in the bidding process on behalf of the qualified bidders
provided a Special Power of Attorney (SPA) for individual bidder or Board Resolution/Secretary’s
Certificate for corporate bidder was issued.

The bid forms of the bidder(s) shall be kept by the BAC-SP for record and reference purposes.

A Bid Registry shall be maintained where all the prospective bidders actually attending the proceedings
of the public auction shall be required to fill up all the required information therein, including their
signatures.

1. A person shall be duly designated as a facilitator who shall be authorized to conduct the entire
proceedings of the public auction of all the subject properties pursuant to the provisions of this
Guidelines. The facilitator shall be appointed by the Chairman of BAC-SP.

2. A Commission on Audit (COA) representative shall be invited to attend and witness the public
auction.

3. The public auction of all the subject properties shall be conducted on a title by title basis, However,
each subject property shall be auctioned on a “AS IS WHERE IS BASIS”.

4. There shall be atleast one (1) qualified bidder for each and every seized property for purposes of
validity of the public auction thereof. In cases where there are two (2) or more participating qualifies
bidders and the highest bid price has been determined, the winning bidder shall be announced by
the BAC-SP in the presence of all attending persons inside the auction room. In case of tie bids, a new
sealed bidding shall be immediately conducted until such time that the same is broken.

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 ISO 9001:2015 Certified
REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE
Collection Division
Revenue Region No. 9B- LaQueMar
San Pablo CityCert. No: 120546/A/0001/UK/En

5. For purposes of breaking the tie bids, the winning bid price shall not be lower than the original bid
tendered by the tied bidders.

6. All bids from prospective bidders for a particular property may be accepted provided the Chairman
or the Facilitator has not yet declared, thru the tapping of the gavel, the commencement of the
auction proceedings for the subject property. Under no circumstances shall bidding for a particular
property be re-opened during the auction proceedings after the bidding for the same has been
declares a “failure”.

7. The previous owner or current occupant of the property or his/her duly authorizes representative
through a valid SPA may increase his/her bid in an amount more than the offer of the declared
highest bidder before the BAC-SP Chairman bangs the gavel for the declaration of the winning
bidder, provided that:

a. He/she participated in the actual bidding; and

b. Inserted in his/her bid envelope any of the following proofs of occupancy indicating the address of
the subject property:

i. Barangay Certificate of Residency;

ii. Valid government issued ID; and
iii. Latest billing statement under the bidder’s name from two (2) service providers.

In cases where both the previous owner and the current occupant participated in the auction sale, the
previous owner shall be given priority over the current occupant. If the previous owner is deceased, the
same privilege shall be given to the heirs.

8. A bidding on a subject property shall be declared a failure under the following circumstances:

i. If there are no bidders;

ii. If there are bidders but none are qualified; and
iii. If the highest bid is lower than the minimum bid/floor price.

9. The winning bidder thereof shall pay the full amount of his bid either in cash (Philippine Currency) or
in manager’s check payable to the “Bureau of Internal Revenue”. Through the Special Collecting
Officer from the Administrative and Human Resource Management Division (AHRMD), BIR Revenue
Region 9B - LaQueMar, within two (2) days after receipt of the Notice of Award duly issued by BAC-
SP.

10. Any of the following instances shall constitute sufficient ground for the cancellation of the awards
and/or contracts:

a. Fraudulent acquisition of the property;

b. Violation of the terms and condition of the award;
c. Violation of the terms and conditions in the Deed of Absolute Sale;
d. Violation of the existing laws, rules, regulations, and ordinances;
e. Failure to pay the bid amount in full within two (2) days from receipt of Notice of Award; and
f. Other instances analogous to the above-mentioned grounds.
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 ISO 9001:2015 Certified
REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE
Collection Division
Revenue Region No. 9B- LaQueMar
San Pablo CityCert. No: 120546/A/0001/UK/En

Accordingly, the BAC-SP shall notify, in writing, the defaulting bidder on the cancellation of its bid and
forfeiture of the posted bid bond. In case of two or more bidders, a written notice shall be issued by the
BAC-SP to the second and third highest bidders requesting them to increase their respective bid in an
amount higher than that of the defaulting bidder. Whoever tenders the higher bid shall be awarded the
auctioned property. The defaulting highest bidder shall be disqualified to further bid on the seized
properties in the future public auction thereof.

All the applicable taxes and expenses relative to the transfer of ownership and issuance of the necessary
certificate of title and/or declaration shall be borne by the winning bidder. It shall also be the
responsibility of the winning bidder to file the return on capital gain tax (CGT), documentary stamp (DST),
and/or value-added tax (VAT) if the circumstances warrant the imposition of VAT, and pay the said taxes
to the Bureau, which shall be based on whichever is higher of the consideration (bid price) or the market
fair value or the zonal value as determined in accordance with Section 6(E) of the National Internal
Revenue Code of 1997, as amended.

The winning bidder shall be responsible, at his own expense, for ejection of the squatters and/or
occupants, if any, on the auctioned real property.

The BAC-SP shall ensure that the entire proceedings of the public auction of all seized properties are
conducted in an orderly and systematic manner with the strict observance to the provisions of this
Guidelines. For this purpose, the single tap of the gavel by the Chairman shall signal the start and ending
of the entire proceeding of the public auction as well the respective bidding of each subject property
under auction. The single strike of the gavel shall likewise confirm the decision or order of the BAC-SP,
through its Chairman. For purposes of restoring order in any or entire proceedings of the auction. A
series of taps of the gavel shall be performed by the Chairman. Accordingly, any person who does not
observe order after the series of taps, the Chairman shall be authorized to send out the said person from
the auction room with the assistance of the security of this Bureau, if the circumstances so require.

PROCEDURES IN THE CONDUCT OF PUBLIC AUCTION PROPER

1. The Secretariat of the BAC-SP shall require the participating prospective bidders to register in the Bid
Registry and other attendees in the Attendance Sheet;

2. The facilitator shall read the Notice of Sale and the Guidelines for Public Auction aloud for everyone
present to hear in the auction room, as well as discuss the mechanics and respond to their queries before
the auction proceedings. Any query shall no longer be entertained once the auction started.

3. The auction proceedings shall be formally opened after the single tap of the gavel by the Chairman.

4. For each of the seized properties to be auctioned, the facilitator shall initiate and supervise following
steps and procedures:

Call the roll of qualified bidders registered at the Bid Registry for the subject property and require the
presentation of the bid bond;

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 ISO 9001:2015 Certified
REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE
Collection Division
Revenue Region No. 9B- LaQueMar
San Pablo CityCert. No: 120546/A/0001/UK/En

Announce the minimum bid for the particular title being auctioned and call all bidders to personally drop
their sealed bids in the box provided for such purpose;

Require the Secretariat to gather the sealed envelope/s from the box and hand them to the facilitator;

For each sealed envelope, the following steps shall be performed:

i. Open the sealed envelope in the presence of all bidders and all those present in the auction room;

ii. Read and announce the name of the prospective bidder and the amount of the bid price; and

iii. Require the Secretariat to post the quoted bid price in the Abstract of Canvass.

Announce the name of prospective bidder with the highest bid price, in case of two (2) or more bidders, as
posted in the Abstract of Canvass and declare him/her as the winning bidder. However, if there are two or
more highest bid prices that are exactly the same, a new sealed bidding shall immediately be conducted
among the tie-bidders until such time is broken.

The Chairman shall tap the gavel formally closing the auction proceedings after all the subject properties have
been auctioned.

If any issue arise during the conduct of the public auction proper in any of the subject___ , the BAC-SP, in the
interest of the government, reserves the right to modify, supplement the provisions of these Guidelines.

Approved:
LILY M. DIAZ
Chief, Collection
Division
Member

ATTY. SHERYLL P. CACAYURAN REINIEL JOHN G. AQUINO

Chief, Legal Division Chief, Regional Finance Division
Member Member

FE DENCIDITA L. JOSUE CARLOS S. SALAZAR

Chief, Administrative & Human Resource
Revenue District Officer, RDO 61
Management Division
Member Member
As Administration/Custodian of Auctioned
Properties

EMILY D. SINGSON MARCO A. YARA

Revenue District Officer, RDO 55 Revenue District Officer, RDO 56
Member Member
As Administration/Custodian of Auctioned As Administration/Custodian of Auctioned
Properties Properties

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 ISO 9001:2015 Certified
REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE
Collection Division
Revenue Region No. 9B- LaQueMar
San Pablo CityCert. No: 120546/A/0001/UK/En

NARCISO T. LAGUERTA
Assistant Regional Director
Chairman, BAC-SP

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