Revenue Memorandum Order No. 8-99
Issued January 27, 1999 prescribes the preparation and submission of the Annual Procurement Program by all Revenue Officials, Heads of Offices, Chief of Divisions, Project Managers/Directors and Committee Chairman. The Annual Procurement Program will be submitted to the Procurement Division not later than February 8, 1999 and every year thereafter not later than every end of November. Those who failed to submit their Annual Procurement Program before the deadline set will not receive their supplies and equipment needed.
Revenue Memorandum Order No. 10-99
Issued February 18, 1999 prescribes the guidelines and procedures in the implementation of Revenue Regulations No. 2-99 relative to the availment of immunity from audit and investigation of Income Tax, VAT and Percentage Tax returns filed for taxable year 1998 granted under the ERAP Program. The condition for the grant of immunity from audit and investigation, the mechanics for the availment of the Program, among others, are specified in the Order.
Revenue Memorandum Order No. 11-99
Issued February 18, 1999 suspends the conduct of all tax examination and verification of taxpayers' records and other transactions effective March 1, 1999 until April 16, 1999, in order to enable taxpayers to avail of the benefits of the Economic Recovery Assistance Payment (ERAP) Program. Not covered by the suspension are: a) service of assessments, warrants and seizure notices for prescribing cases; b) processing of Capital Gains Tax returns prior to the issuance of Tax Clearance/Certificates Authorizing Registration; c) examination and/or verification of transfer, excise and withholding taxes; d) examination/verification of tax liabilities of taxpayers retiring from business; and e) verification and processing of all claims for credits/refunds.
Revenue Memorandum Order No. 12-99
Issued February 23, 1999 prescribes the policies and procedures for the preparation and submission of the monthly Accomplishment Report relative to the implementation of the 1999 BIR Programs prescribed in RMO No. 87-98. Specifically, all RDOs/Division Chiefs are required to prepare, monthly, an Accomplishment Report per applicable program. Said report will be submitted to the respective Regional Director/RDC Head/Assistant Commissioner, for consolidation.
Revenue Memorandum Order No. 14-99
Issued February 24, 1999 prescribes a revised handbook on Alphanumeric Tax Code (ATCs) of Revenue Sources (NIRC 1997). All internal revenue employees, deputized Collection Agents and other revenue officers concerned, whose functions involve the preparation of Revenue Payment Orders, Revenue Official Receipts and/or acceptance of all other documents where ATCs are required, are directed to use the ATCs to ensure the accuracy of statistical information derived from them, and to facilitate proper accounting and monitoring of internal revenue collections. Said Order is also issued to prescribe the appropriate ATCs to be used in the various application systems of the Integrated Tax System.
Revenue Memorandum Order No. 16-99
Issued March 1, 1999 prescribes the guidelines and procedures on the processing of Summary Lists of Sales and Purchases in magnetic form (or diskettes or through electronic data transmission) submitted by computerized VAT taxpayers. The Revenue District Offices(RDOs)/Large Taxpayers Division (LTD) will transmit the diskettes containing the Summary Lists of Sales and Purchases to the Information Systems Operations Service (ISOS) on the first working day after the close of the week of receipt from the taxpayer. They will also forward, quarterly, to the Assessment Service report on RELIEF (Reconciliation of Listings for Enforcement) data on or before the 25th day of the second month following the end of each calendar quarter.
The ISOS will receive directly from the taxpayers data on sales and purchases which are transmitted electronically and will provide the concerned RDO/LTD with a report on taxpayers' compliance. The Assessment Service, on the other hand, will consolidate RELIEF data received into its Third Party Information (TPI) database; utilize these data in referring cases for investigation to the investigating offices within the Bureau; monitor and evaluate results of audit by the investigating offices and render a monthly report on RELIEF and TPI programs to the Management Committee. Any unauthorized divulgence or retrieval of RELIEF data and/or TPI by any revenue official/employee will be referred to the concerned offices in the Bureau for the imposition of administrative sanctions and filing of appropriate charges.
Revenue Memorandum Order No. 17-99
Issued March 1, 1999 prescribes the policies, guidelines and procedures on the filing of tax returns of purely compensation income earners without cash or check payments (BIR Form No. 1700) and the processing of refundable income tax returns of employees with excess withholding taxes on compensation income. All income tax returns (BIR Form 1700) of taxpayers receiving purely compensation income without cash or check payment classified as exempt, refundable or break-even tax returns, those to be covered fully with a Tax Debit Memo and taxable ITRs of taxpayers electing to pay in two (2) installments where the 1st installment is fully covered by their withholding taxes will be filed directly with the Revenue District Office (RDO) where the taxpayer is registered. BIR Form 1700 tax returns with a tax due and payable will be filed with the Accredited Agent Banks (AABs) under the jurisdiction of the RDO where the taxpayer is registered. All other tax returns, whether exempt, refundable or taxable will be filed and the tax due therein paid with the AAB where the taxpayer has his/her legal residence or place of business. When tax returns without cash or check payment are filed after due date, the RDO having jurisdiction over the taxpayer will receive the tax return, compute the corresponding penalties and request the concerned taxpayer to pay said penalties to an AAB under its jurisdiction using BIR Form 0605 (Payment Form).
Revenue Memorandum Order No. 18-99
Issued March 4, 1999 prescribes the strategies and activities for the conduct of the 1999 Taxpayer Dialogue and Information/Education campaign of the BIR. The Commissioner of Internal Revenue, as well as the officials and employees of the National, Regional and District Offices, will be involved in the year-round taxpayer dialogue and information/education campaign of the Bureau. Several strategies will be adopted, foremost of which is the use of multi-media resources; distribution and display of information materials in BIR offices and other strategic places; conduct of seminars, consultations and dialogues with taxpayers; coordination with media, other government agencies and local government units in featuring information messages and materials for the BIR; and enlisting of participation in the campaign of civic, business and professional organizations.
Revenue Memorandum Order No. 19-99
Issued March 4, 1999 amends RMO No. 11-99 regarding the coverage of exceptions from the suspension of tax examination of the BIR effective March 1, 1999. The following will be added to the exceptions from the suspension order: a) original investigation of all tax cases where the prescription date to assess the deficiency tax and penalties thereon is within six (6) months from April 15, 1999; and b) cases under reinvestigation where the prescription date to collect the deficiency taxes and penalties thereon is within six (6) months from April 15, 1999, except cases with valid waivers of prescription signed by the taxpayers or their duly authorized representatives.
Revenue Memorandum Order No. 20-99
Issued March 5, 1999 amends RMO Nos. 1-99 and 42-98 by prescribing the standard procedures for the submission and processing of payment data and documents from Accredited Agent Banks (AABs) under Revenue District Offices (RDOs) within Metro Manila/Metro Cebu and under ITS-converted and non-ITS RDOs outside Metro Manila/Metro Cebu. Payment data from AABs will be transmitted to the Revenue Data Center (RDC) through Electronic Data Transmission (EDT). AABs, however, will be allowed to transmit payment data through diskettes only on an exception basis. They will be given a grace period of one month from rollout date to resolve their readiness problems and comply with EDT requirements. The RDC will assume custody and safekeeping of the original documents transmitted by AABs under RDOs within Metro Manila/Metro Cebu, as well as its converted sites outside Metro manila/Metro Cebu. For non-ITS RDOs outside Metro Manila/Metro Cebu, custody and safekeeping of the original documents will be the responsibility of the concerned Regional Office. Bank Branch Performance Check will be conducted by the RDC for RDOs within Metro Manila/Metro Cebu, as well as ITS-converted sites outside of Metro Manila/Metro Cebu. For non-ITS RDOs outside Metro Manila/Metro Cebu, bank branch performance check will be conducted by the RDOs. The RDO will be responsible and accountable for taxpayer's request for certification of authenticity.
Revenue Memorandum Order No. 21-99
Issued March 5, 1999 prescribes the policies, procedures and functions of the Makati Data Center and the devolved functions on document processing for Revenue District Office (RDO) Nos. 47- East Makati, 48 - West Makati, 49- North Makati and 50 - South Makati. The original copies of returns/documents from Accredited Agent Banks (AABs) will be picked up by the respective RDOs, while the duplicate copies will be submitted by the AABs to the Administrative Division of the Makati Regional Office. The AABs will send payment transactions to the Makati Data Center through Electronic Data Transmission. The Return Encoding Limited Version, on the other hand, will be used in the RDOs in capturing return information into the Integrated Tax System. The Makati Data Center will provide all the technical support to the RDOs, including the generation and printing of the required reports.
Revenue Memorandum Order No. 27-99
Issued March 29, 1999 updates the guidelines and procedures on the disposal of unserviceable property. A Disposal Committee will be established in the National Office, which will be composed of the Head Revenue Executive Assistant of the Financial and Administrative Service, as Chairman, and the Chiefs of the General Services Division (GSD) and Automotive and Equipment Maintenance Section of the GSD, as members. In the Regional Offices, the Disposal Committee will be composed of the Assistant Regional Director, as Chairman, and the Chiefs of the Administrative Division (AD) and Property and Supplies Section of the AD, as members. The members of the Disposal Committee will conduct an inspection of the property to be disposed to obtain a first hand observation of the physical and operational condition of the property, their marketability or ability to attract prospective buyers. The Disposal Committee will compute the appraised value of the property for the purpose of setting the minimum selling price. The Committee will be guided in the appraisal of unserviceable property by pertinent rules promulgated by fiscal authorities.
Revenue Memorandum Order No. 28-99
Issued March 31, 1999 prescribes the procedures in the acceptance of property donations to the BIR. Upon receipt of the communication from the donor signifying its desire to donate properties, the User, through the Assistant Commissioner concerned, will forward the Deed of Donation to the Law Division of the Legal Service for comment and endorsement. Upon favorable endorsement by the Law Division, the Assistant Commissioner will recommend the approval and signing of the Deed of Donation by the Commissioner. If the issuance of tax exemption ruling is requested by the Donor, the User will recommend and/or endorse its approval to the Law Division.
Revenue Memorandum Order No. 29-99
Issued April 8, 1999 defines the Bureau's publication goals and editorial policies and guidelines, as well as prescribes the procedures for the preparation and publication of the BIR Monitor and the Philippine Revenue Journal (PRJ). Specifically, BIR publications will be prepared in order to: a) inform the Bureau's internal (revenue officials and personnel) and external stakeholders about the latest tax laws, revenue issuances and BIR rulings; b) promote awareness of the Bureau's current priorities and thrusts; c) generate interest and support for the Bureau's programs and projects; and d) update revenue officials and personnel about people, events and places (offices) in the Bureau. Articles prepared by the Revenue Data Center (RDC)/National/Regional Office correspondents and those contributed by revenue officials/personnel, for publication in the PRJ and the BIR Monitor, will have to be validated, approved and endorsed by the respective RDC Head/Assistant Commissioner/Regional Director.
Revenue Memorandum Order No. 30-99
Issued April 12, 1999 prescribes the filing of information returns by non-resident citizens and overseas contract workers who are exempt from tax, as provided under Republic Act No. 8424. Information returns will be filed, together with other relevant supporting papers, by accomplishing BIR Form 1701C or the new computerized Form 1703. Said documents will be submitted to the foreign post or to the Revenue District Office (RDO) which has jurisdiction over the place of residence of the taxpayer not later than April 15 following the taxable year. Relative thereto, the concerned RDOs will submit to the Chief, International Tax Affairs Division an Annual Report consisting of statistical information covering the said information returns not later than June 30 every year.
Revenue Memorandum Order No. 32-99
Issued April 20, 1999 prescribes the policies, guidelines and procedures for the conversion of data processing of Accredited Agent Banks (AABs) from New Payment Control System (NPCS) to Limited Bank Data Entry/Electronic Data Transmission (LBDE/EDT). AABs who are unable to shift from NPCS to LBDE/EDT on scheduled rollout date will be temporarily suspended from accepting tax payments in behalf of the BIR. On the other hand, AABs who are able to convert to LBDE but without EDT capability will be allowed to transmit payment data through diskettes as an interim procedure only on an exemption basis. A grace period of one month from rollout date will be given to AAB branches to resolve their readiness problems and comply with the EDT requirements. If an AAB branch is still unable to meet the said requirements, the BIR may opt to disaccredit the concerned AAB branch. AABs which opted to use the clustering concept of LBDE/EDT payment transmission should have to notify the BIR in writing, through their respective Revenue Data Center, at least one week before the rollout date.
Revenue Memorandum Order No. 34-99
Issued April 27, 1999 prescribes the policies and guidelines in the acceptance and payment of deliverables under the Communication Support to Manage Change (CSMC) Project. The Policy and Planning Service (PPS) will be the principal point of contact for the CSMC Project, thus, all documentations, deliverables and invoices pertaining to the Project will be received for the BIR by the PPS, for referral/transmittal to concerned BIR offices. Review and acceptance of CSMC deliverables will be done by the following Revenue Services, through the respective Project Manager: a) Taxpayer Assistance Service; b) Policy and Planning Service; and c) Information Planning and Quality Service.
Revenue Memorandum Order No. 35-99
Issued April 27, 1999 institutionalizes the raffle of sales invoices and receipts now dubbed as "Humingi ng Resibo, Milyun-Milyong Panalo". Prizes will be given not only to the consumers, but also to the establishments which issued the winning receipts and invoices. At the Regional and National Levels, there will be two (2) draws each: the Anniversary Draw and the Millennium Draw. Sales invoices and receipts issued starting April 15, 1999 to July 25, 1999 will qualify for the Anniversary Draw. Receipts and invoices issued from August 1, 1999 to December 31, 1999 will qualify for the Millennium Draw.
Revenue Memorandum Order No. 36-99
Issued May 3, 1999 amends the guidelines and procedures in the issuance of Letters of Authority (LAs), approval of audit reports and issuance of Assessment Notices. The Revenue Regional Director will approve and sign LAs for all audit cases within his regional jurisdiction, except cases involving civil or criminal tax fraud which fall under the jurisdiction of the Tax Fraud Division and policy cases under audit by the Special Teams in the National Office. The Regional Director will also issue the corresponding LA if indications of fraud have been established and the same have been confirmed by the Regional Tax Fraud Committee. Approval of Assessment Notices and demand letters, including reports of investigation, and issuance of termination letters will also be done by the Regional Directors.
Revenue Memorandum Order No. 38-99
Issued May 4, 1999 prescribes the policies, guidelines and procedures in the use of electronic/computer-generated forms in the filing of tax/information returns, payment forms, declaration forms, certificates and attachments to BIR forms. Computer-generated BIR forms can be used in lieu of the officially printed BIR forms, provided the forms are originally filled-up; of laser quality; printed in a white 8 ¼ x 11 class A (56 GSM) paper stock using black ink and the machine validation portion is ¼ inch away from the lower edge of the paper. All Authorized Agent Banks, other collection agents and BIR offices designated to receive returns will accept duly filed computer-generated forms. Taxpayers may request for soft copies (diskette-copy) of the BIR forms by submitting to the Bureau's Taxpayer Assistance Service a written request for the same, together with a 3.5 blank diskette.
Revenue Memorandum Order No. 41-99
Issued May 24, 1999 circularizes the text of Memorandum Circular No. 6 of the Civil Service Commission which expands the coverage of special leave privileges to include the following: a) personal milestones such as birthdays, wedding, wedding anniversary celebrations and other similar milestones, including death anniversaries; b) parental obligations such as attendance in school programs, PTA meetings, graduations, first communion, medical needs, among others, where a child of the government employee is involved; c) filial obligations to cover the employees moral obligation toward his parents and siblings for their medical and social needs; d) domestic emergencies such as urgent repairs needed at home, sudden absence of a yaya or maid, and the like; e) personal transactions to cover the entire range of transactions an individual does with government and private offices such as paying of taxes, court appearance, arranging a house loan, etc.; and f) calamity, accident, hospitalization leave which pertains to force majeure events that affect the life, limb and property of the employee or his immediate family. The three-day limit of special leave privileges for a given year will be strictly observed.
Revenue Memorandum Order No. 45-99
Issued June 21, 1999 prescribes the guidelines and procedures to ensure the validity, genuineness, authenticity and integrity of rulings or decisions issued and/or approved by the Office of the Commissioner of Internal Revenue or Deputy Commissioner for Legal and Enforcement Group (DCIR-LEG). The Order specified that all pages of rulings or decisions must bear the dry seal of the issuing office, as well as the initial of the signatory to the ruling in order to prevent unauthorized alterations, intercalations, modifications, replacements, lift up or rip-out of any page thereof.
Revenue Memorandum Order No. 49-99
Issued June 29, 1999 prescribes the policies, guidelines and contest mechanics for the Search for the 1999 BIR Tax Wizards to be conducted on July 30, 1999. Each Regional Office, Revenue Group and the Office of the Commissioner will conduct their own Tax Quiz not later than July 23, 1999 to determine their respective participant. Qualified participants are revenue personnel with Salary Grade of 17 and below. Stage 1 of the Search is the Elimination Stage which will be conducted through a written Tax Quiz to be participated in by 24 contestants. Stage 2 is the Final Stage, which will be participated only by the top twelve (12) contestants who qualified in Stage 1 of the Search. The top five (5) contestants will be declared as the 1999 BIR Tax Wizards. Prizes for the Search are specified in the Order.
Revenue Memorandum Order No. 52-99
Issued July 9, 1999 amends and or clarifies the procedures for the processing of refundable 1700 tax returns (as provided in RMO No. 17-99), including those with claims for allowable deduction of P 2,400 representing premium payments on health and/or hospitalization insurance. The policies and guidelines for the processing of Income Tax returns (ITRs) with second installment and income taxable returns where no payment was made at the time of filing are also specified in the Order.
The Assessment Section of all Revenue District Offices (RDOs-whether computerized or not) will perform the same functions in the processing of refunds. All pre-audited refundable 1700 will be forwarded to the Document Processing Division of the Information Systems Operations Service for processing. There will be no processing of refundable 1700s at the Revenue Data Centers. Claims for allowable deduction of P 2,400 representing premium payments on health and/or hospitalization insurance will be considered as refundable provided that said amount was not reflected in the F2316 (Certificate of Income Tax Withheld on Compensation) issued by employers.
Revenue Memorandum Order No. 57-99
Issued July 14, 1999 amends pertinent provisions of Section III of RMO No. 33-99 regarding the issuance of Tax Verification Notices (TVNs) and approval of corresponding reports of verification. The Order also clarifies certain provisions of said RMO in relation to the coverage of cases to be issued TVNs; approval of reports of investigation from the Special Investigation Division of Regional Offices; issuance of asssessment notices; prescribed report format for case closed, assessed and outstanding covered by TVNs and the effectivity date for the use of TVNs.
Pre-numbered TVNs will be signed by the Regional Director, unless otherwise delegated by him in writing to the Assistant Regional Director. The signing of the TVNs may also be delegated in writing by the Regional Director to the Revenue District Officers. However, the Regional Director may revoke in writing the authority of the Assistant Regional Director or Revenue District Officers to sign TVNs when he deems it necessary.
One TVN will be issued for each taxable year/period under verification. Only TVNs with attached official duplicate copies of tax returns will be signed by the Regional Director or his duly authorized signatory.
The issuance of Return Verification Orders (RVOs) should be stopped immediately. TVNs should have been issued in lieu of RVOs from the date of receipt of the copy of RMO No. 33-99 by the Regional Offices or from May 1, 1999, whichever date was earlier.
Revenue Memorandum Order No. 59-99
Issued July 16, 1999 prescribes the policies, guidelines and procedures on the maintenance of various Integrated Tax System (ITS) Codes Tables to establish control procedures to ensure the integrity of Codes Table values, among others.
Changes in the Codes Table resulting from legislative and management directives or policies will be set forth in an RMO by the Process Owners, in coordination with other offices concerned or involved or affected by said management directives. Changes in the Codes Table that do not need the issuance of an RMO will be effected in the ITS Codes Table following the standard procedures. All requests for Codes Table updates using Form 0039 will be coursed through the Help Desk of the Information Systems Operations Service.
Process Owner, whose system interfaces with other application systems, will ensure that any changes in his system that have an effect on other systems are addressed properly and simultaneously. Updates for Codes Table values for legal and special national holidays will be handled by NO-Database Administrator; while local holidays will be the responsibility of the Revenue Data Center Systems Administrator through the Online Maintenance Facility.
Revenue Memorandum Order No. 62-99
Issued July 28, 1999 prescribes the policies and procedures in the review and reporting of cases; preparation, approval and release of pre-assessment notices, assessment notices and demand letters; and the preparation of BIR Form No. 40, for all cases under the Enforcement Service, including Special Teams.
Revenue Memorandum Order No. 64-99
Issued August 13, 1999 prescribes the policies, guidelines and standards for the implementation of the 1999 Audit Program on Large Taxpayers and Policy Cases. The Audit Program will cover taxable year 1998 on Income, Value-Added Tax, Percentage, Withholding and other tax returns and liabilities of the following taxpayers/industries: 1) for regular audit of large taxpayers - a) top 500 large taxpayers; and b) banks, insurance and stock brokers classified as "Specially Monitored Industries"; and 2) for policy cases - a) chemical and chemical products; b) food and beverage; and c) follow-up audit on selected conglomerates. Taxpayers covered by the Order who availed of the ERAP Program under Revenue Regulations No. 2-99 and Revenue Memorandum Order No. 10-98 will not be audited, except with respect to the tax liabilities not covered by the ERAP return, such as Withholding Taxes and Documentary Stamp Taxes. Taxable year 1998 will include all those corporations with fiscal years ending on or before June 30, 1999. Audits undertaken to develop industry procedures, guidelines and standards will be treated/audited as an industry rather than as individual taxpayers. Hence, a joint and coordinated audit will be undertaken in order to ensure uniformity of action.
Revenue Memorandum Order No. 65-99
Issued August 18, 1999 amends the slogan and raffle mechanics of the Bureau's raffle promo. The new slogan of the raffle promo will be: "Humingi ng Resibo, Milyun-Milyon ang Panalo: Millenium Draw". Sales invoices and receipts issued by taxpayers within the jurisdictional cities and municipalities starting August 1, 1999 to draw dates for the District, Regional, Area and National draws will qualify for the raffle draws. The revised schedule of the raffle draws, with the corresponding prizes to be awarded, are specified in the Order.
Revenue Memorandum Order No. 66-99
Issued August 23, 1999 revises the guidelines and procedures on the issuance of Certificates Authorizing Registration (CARs) and reporting of real and personal property transactions. The revised uniform Certificate Authorizing Registration (CAR) will be issued by both computerized and non-computerized Revenue District Offices (RDOs) for transactions involving the transfer of real and personal properties. For computerized RDOs, the Tax Clearance Certificate (TCC) will continue to be computer-generated and the information therein will be manually typewritten on the CAR. The CAR will be issued to the taxpayer for presentation to the Register of Deeds or any concerned office while the system-generated TCC will remain on file with the docket. Only the Revenue Regional Directors are authorized to requisition CARs from the Accountable Forms Division. The Revenue District Officers will in turn requisition forms from the Regional Directors.
CARs on the sale/transfer of property subject to Capital Gains/Creditable Withholding Tax will be issued to the taxpayer immediately after approval of the verification report at the RDO level. The verification report on Capital Gains Tax will be subsequently reviewed by the Assessment Division for approval of the Regional Director after the issuance of the CAR by the RDO. CARs on transfers of property(ies) subject to Estate/Donor's Tax, on the other hand, will be issued to the executor, administrator or heir/donor after approval of the audit/verification report and issuance of Confirmation Letter (CL) by the Regional Director. For transfers exempt from Capital Gains, Estate or Donor's Tax, the CAR will be issued only after the approval of the audit/verification by the Regional Director and the issuance of CLs to the RDO(s) having jurisdiction over the location(s) of the real property(ies) being transferred and/or over the registered address of the seller/transferor of shares of stocks and other personal properties, as the case may be.
The authorized Revenue District Officers must ensure that all copies of the signed CARs bear the official dry seal of the Bureau before their release to taxpayers to avoid invalidation of the same upon presentation to the Register of Deeds and other concerned offices. CARs will be issued within five (5) days from the issuance of the Tax Verification Notice. For cases covered by Letters of Authority, CARs will be issued within two (2) days from receipt of the original copies of CLs duly issued by the Regional Directors.
The revised CAR form will be used starting September 1, 1999. Accordingly, the old CARs (BIR Form Nos. 1954, 1954 A and 1954 B) will be used until the end of the working hours of August 31, 1999.
Revenue Memorandum Order No. 67-99
Issued August 23, 1999 prescribes the policies, guidelines and procedures in the audit of tax cases by Revenue District Offices. The Audit Program covers investigation of 1998 internal revenue tax returns by Revenue District Offices, including income tax returns of fiscal-period taxpayers whose taxable years ended any day from June 1, 1998 to July 31, 1999. The audit of tax returns for 1997 and prior years will not be initiated after August 17, 1999, except for cases involving claims for tax credit/refund, Estate/Donors' Tax within the audit threshold, and requests for tax clearance of taxpayers due to retirement of business.
Included for mandatory audit are the following cases: a) Estate/Donor's Tax returns with a gross estate/gift above P 5 Million; b) claims for tax credit/refund of individual taxpayers arising from business income or practice of profession where the amount of claim exceeds P 20,000 and the gross sales/receipts exceed P 5 Million; c) taxpayers retiring from business regardless of amount of gross assets, sales or receipts; d) claims for tax credit/refund of corporate taxpayers, except taxpayers under investigation by the Tax Fraud Division and other investigating division(s)/teams in the National Office, in which case, the audit of the claims will be consolidated with the package audit of the taxpayers' books of accounts; e) claims for tax credit/refund arising from withholding tax on purchases made by the top 5,000 taxpayers pursuant to RR No. 2-98 where the amount of claim exceeds P 100,000, subject to the exception stated in Section II.A.4 of the Order; f) other claims for tax credit/refund including claims for VAT credit/refund exceeding P 100,000 for the period(s) claimed, subject to the same exception under Section II.A.4 of the Order; g) transfer of property in exchange for shares of stocks and other sale, transfer or exchange of stocks not listed in the stock market where the zonal value of the property or the book value of the stocks exceeds P 10 Million; h) taxpayers selected for tax audit based on third party information; and i) taxpayers selected for tax audit based on the results of the tax mapping program.
Revenue Memorandum Order No. 68-99
Issued August 27, 1999 amends pertinent provisions of RMO No. 65-99 relative to the raffle promo "Humingi ng Resibo, Milyun-Milyon ang Panalo: Millennium Draw". There will be ten (10) winners of P 5,000 each for each District Draw on November 26, 1999. In the National Draw on December 20, 1999, there will be five (5) winners of P 50,000 each, as part of the consolation prizes.
Revenue Memorandum Order No. 71-99
Issued September 15, 1999 prescribes an Office Audit Program in the Assessment Division of Revenue Regional Offices primarily to enhance voluntary compliance of taxpayers engaged in small-scale business and in the practice of profession. The Office Audit Program will cover the audit of tax returns of individual and corporate taxpayers, estates and trusts within the Region covering taxable year 1998, in accordance with the order of priority specified in the Order.
Office Audit will be conducted without field investigation and only by Revenue Officers (Assessment) of the Office Audit Section (OAS) in the Assessment Division of Regional Offices. However, the Regional Director may request the conduct of office audit in Revenue District Offices which are located very far from the Regional Office. The request will be subject to approval by the Assistant Commissioner, Assessment Service. The policy on the simultaneous investigation of all tax liabilities of a taxpayer for the same taxable year will be followed. One Letter of Authority will be issued for each taxable year to include all internal revenue tax liabilities of the taxpayer. The same taxpayer will not be allowed to be audited for the immediately succeeding taxable year, unless there is a valid written justification for the conduct thereof and subject to prior approval by the Assistant Commissioner, Assessment Service.
Revenue Memorandum Order No. 75-99
Issued September 27, 1999 delegates to the Regional Directors the authority to issue certain rulings with established precedents, namely: a) tax exemption of cooperatives; b) tax exemption of senior citizens; c) tax exemption of separation benefits; d) requests to use pre-numbered loose leaf forms, receipts and invoices; e) requests of government-owned and controlled corporations, as well as private sector participating in Socialized Housing Program and Community Mortgage Program for tax incentives; f) requests for exemption from the withholding tax on wages for the monetized ten ( 10 ) day vacation leave credits; and g) requests for change of accounting period. If request for ruling is filed or already on file with the National Office, the Office of the Commissioner or the Office of the Deputy Commissioner for Legal and Enforcement Group retains concurrent authority to sign and issue the said correspondence. Provided, further, that no such cases already filed before the Regional Offices will be referred to the National Office for action.
Revenue Memorandum Order No. 80-99
Issued October 19, 1999 prescribes the guidelines and procedures in the administration of the qualifying examination for revenue personnel who will be assigned to perform the audit/investigation function of the Tax Fraud Division (TFD). The qualifying examination will be composed of written and oral exams. The examinations will be mandatory for all qualified revenue personnel presently assigned at the TFD and Special Investigation Divisions in Metro Manila regions, including San Pablo City and Pampanga. Supervisors with Revenue Officer IV or Intelligence Officer III items, regardless of place of assignment, are not required to take the written examination but are required to undergo an oral examination on managerial/supervisory skills and others, as may be required. The scope of the written examination will include the following: 1997 Tax Code and all pertinent revenue regulations and rulings; audit procedures and techniques; report making and case analysis.
Revenue Memorandum Order No. 81-99
Issued November 5, 1999 prescribes the guidelines on the issuance of VAT Exemption Certificate (VEC) to all qualified embassies and their personnel on their purchases of goods and services in the Philippines. The International Tax Affairs Division (ITAD) will issue a VEC based on an issued BIR Ruling and under the principle of reciprocity, as confirmed by the Office of Protocol of the DFA. In the absence of a previous ruling exempting an embassy, a request for certification will be treated as a request for a ruling. The ruling exempting a particular embassy and its personnel from VAT on their purchases of goods and services in the Philippines will be valid and effective for as long as the embassy concerned is included in the updated listing of Diplomatic missions entitled to VAT exemptions. The VEC issued will be valid and effective within the year of its issuance, and renewable upon the application of the embassy concerned, on a yearly basis.
Revenue Memorandum Order No. 89-99
Issued December 10, 1999 prescribes the use of revised Letter of Authority (LA) Register (BIR Form No. 1968) and sets guidelines on its proper maintenance. Only one LA Register will be maintained since it will cover the investigation of income, business, withholding and other taxes. LAs issued, including those cancelled, will be recorded sequentially in the LA Register to facilitate monitoring. All offices authorized to issue LAs will maintain the LA Register. Finally, all offices concerned will fully utilize the pages of the LA Register before a new one is used.
Revenue Memorandum Order No. 90-99
Issued December 10, 1999 revises the regional allocation of the BIR collection goal for CY 1999. The revised revenue target of the Bureau for CY 1999 is P 353,631 Million broken down into: P 341,749 Million for existing measures, P 10,882 Million for Comprehensive Tax Reform Program and P 1,000 Million for Other Measures, which covers the Redefinition of Automobiles.
Revenue Memorandum Order No. 91-99
Issued December 16, 1999 suspends all field operations of the BIR effective December 16, 1999 until January 10, 2000. However, the following are not covered by the suspension: a) no contact surveillance of all establishments; b) service of Assessments, Warrants and Seizure Notices of prescribing cases; c) processing of Capital Gains Tax returns prior to the issuance of Tax Clearance/Certificates Authorizing Registration; d) examination and/or verification of transfer taxes; and e) apprehension of untaxed imported liquors and cigarettes pursuant to Mission Order No. 7-673-99.