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(NAR) VOL. IV NO. 1 / JANUARY - APRIL 1993

[ BIR (DOF) REVENUE MEMORANDUM ORDER NO. 1-93, December 15, 1992 ]

EXPANDING THE COVERAGE OF RMO NOS. 29-91 AND 31-91 TO INCLUDE ALL TAXES UNDER THE NEW PAYMENT CONTROL SYSTEM (NPCS).



The following amendments/addenda to RMO Nos. 29-91 and 31-91 relative to the procedures on the receipt, transmittal and processing of tax returns filed thru the banks and with the Collection Officers, respectively under the NPCS are hereby prescribed for the guidance and compliance of all concerned.

A. The PO/CR system of payment is hereby totally discontinued/ abolished.  In addition to income, value-added, withholding and other percentage taxes, all other taxes including capital gains, transfer, excise, documentary stamp and other taxes such as deficiency taxes, miscellaneous taxes, fines and penalties, etc. shall now be paid under the New Payment Control System following the procedures prescribed in RMO No. 29-91 for payments thru the bank system or in RMO No. 31-91 as amended by RMO No. 43-91 for payments to Collection Officers in places where there are no accredited banks.

B. The following forms are hereby prescribed to be used in the payment of its corresponding taxes.  These shall be filed and/or paid directly with the accredited banks in places covered by payment thru the bank system regardless of whether or not there is a tax payment to be made:

1.      Capital Gains Tax - BIR Form No. 1701E - Individual Capital Gains Tax Return (For Real Estate Considered as Capital Assets)

BIR Form No. 1701E-1 - Individual Capital Gains Tax Return on Installment Received (For Real Estate Transactions)

BIR Form No. 1701E-2 - Capital Gains Tax Return on Stock Transactions (Shares of Stocks Not Traded thru the Local Stock Exchange)

BIR Form No. 1701E2-F - Final Consolidated Tax Return on Stock Transactions (Shares of Stocks Not Traded thru the Local Stock Exchange)

BIR Form No. 1701E2-I - Individual Capital Gains Tax Return for Installment Received (Shares of Stocks Not Traded thru the Local Stock Exchange)

2.     Transfer Taxes -

BIR Form No. 1801 - Estate Tax Return

BIR Form No. 1805 - Donor's Tax Return

3.      Other Percentage Taxes

BIR Form No. 2001 - Insurance Premium Tax Return

4.      Excise Taxes

BIR Form No. 2223 - Excise Tax Return of Mineral Removals

BIR Form No. 2319A-E (for payment of excise taxes when no return is required to be filed) - Authority to Accept Payment for Excise Taxes

5.      Other Taxes without tax return such as documentary stamp tax, (except loose documentary stamps), deficiency taxes, fines and penalties, etc. and in payment of taxes on installment basis.

BIR Form No. 2319A - Authority to Accept Payment

These tax returns/ATAPs shall be included/listed in the Batch Control Sheet (BCS) A or B used by accredited bank branches or by Collection Officers in transmitting tax returns/ATAPs to Computer and Information Systems Service (CISS, formerly RISSI) and to the RDO concerned following the procedures prescribed in the abovementioned RMOs.

C. The guidelines below shall be followed in the issuance of Authority to Accept Payment (ATAP) for Excise Taxes (BIR) Form No. 2319A - E) and in the payment of the corresponding excise tax:

1. ATAP for excise taxes shall be prepared and issued in four (4) copies by the Division/Excise Tax Area (EXTA) concerned and by the RDO in places where there are no assigned excise tax personnel to the taxpayer for presentation to accredited bank branch or COs when paying excise taxes not covered by a tax return.

2. TIN label, to be sticked on ATAP for excise taxes may be issued by the Division/EXTA concerned based on TIN cards presented by the taxpayers. Said offices shall requisition blank stick-on labels from CISS for this purpose.

However, in cases where the taxpayer has no TIN yet, the following shall be undertaken:
  1. If the taxpayer has not yet applied for TIN - The Division/EXTA concerned shall require the taxpayer to accomplish the appropriate TIN application form in two (2) copies: the original copy to be forwarded to CISS following the procedures prescribed for the RDOs in RMO No. 23-91 and RMC No. 63-91 and the duplicate copy to be attached to the original copy of the ATAP to be filed. All copies of the ATAP shall bear a notation by the Division Chief/EXTA Team Head concerned or his authorized representative that "TIN IS STILL IN PROCESS".

  2. If the taxpayer has previously applied for TIN but no TIN card has been issued yet - The Division/EXTA concerned shall require the taxpayer to present a copy of the TIN application and shall indicate on all copies of the ATAP the date of application and a notation that "TIN IS STILL IN PROCESS".  In case the copy of the application cannot be presented by the taxpayer, he shall be required to re-apply for TIN issuance following C.2.a. above.
3. ATAP for excise taxes shall be paid by the taxpayer concerned in the following accredited bank branches only:

 
Place of Payment
 
3.1
ATAPs issued by Excise Tax Division Concerned, NO
-
Banks located in the National Office
 
3.2
ATAPs issued by EXTA
-
Banks housed in the Regional Office itself or if none, the nearest accredited bank branches.
 
3.3    ATAPs issued by the RDO - Nearest accredited bank branches.  (Note: If there is no accredited bank branch in the station town of the RDO, ATAP shall be paid to the Collection Officer (CO).

The taxpayers concerned shall choose a bank from among the accredited bank branches specified above where they shall pay permanently the ATAPs for excise taxes.  Their choice shall be put in writing and submitted to the Division/EXTA/RDO concerned.  In case the taxpayers shall decide to change the bank where they shall make their payments, they shall also notify in writing the ATAP Issuing Office concerned.

4.      The validated/paid ATAP for excise taxes shall be distributed as follows:
Original - CISS
Duplicate - Taxpayer
Triplicate - RDO (then to be forwarded to Division/ EXTA concerned)
Quadruplicate - ATAP Issuing Office
The validated original and triplicate copies of the ATAP shall be transmitted to the offices concerned by the accredited bank branches and the COs following the procedures in RMO Nos. 29-91 and 31-91 as amended by RMO No. 43-91.  The quadruplicate copy shall be picked-up from the accredited bank branches immediately or within the day of payment by the designated excise tax personnel or by the RDO representative in places where there are no assigned excise tax personnel. Said copy of the ATAP shall be the basis of the division/EXTA/RDO concerned to confirm payment of excise taxes prior to giving authority/permit to the taxpayers concerned to withdraw/remove the excisable products.

D. For control purposes, all ATAP Issuing Offices shall maintain a logbook of ATAPs issued to the taxpayers reflecting therein pertinent information such as ATAP serial number, name of the taxpayer, amount payable, date issued, date of receipt of the triplicate copies from the accredited bank branches or from the RDO (for those issued by the National and Regional Offices/EXTA), the amount paid and name of the bank concerned.

E. The use of BIR Form Nos. 1255, 1256, 1257, and 1257A by accredited banks shall be discontinued. The Advance Report of Daily Collections (ARDC) and the Consolidated Report Daily of Collections (CRDC) as prescribed in RMO No. 29-91 shall be used by the accredited agent banks head offices in reporting and remitting collections.

F. The RDO concerned shall transmit the triplicate copies of the following tax returns/ATAPs not falling within their jurisdiction for processing/assessment to the offices concerned within five (5) days from receipt of said returns/ATAPs:
  1. Excise Tax Return/ATAP (BIR Form Nos. 2223 and 2319A-E, respectively) - Division Concerned of the Excise Tax Service, National Office (NO) (for those received by Metro Manila falling within the EXTA's area of responsibility)

  2. Transfer Taxes Returns (BIR Form Nos. 1801 and 1805 covering properties located in more than one region and whose gross estate/donation per return is over P300,000) - Banks, Financing, Insurance and Transfer Tax Division (BFITD), National Office.

  3. Insurance Premium Tax Return (BIR Form No. 2001) - do -

  4. Income and Other Percentage Tax Returns (BIR Form Nos. 1702, 1702Q and 2529A-Q) of:

    1.       Banks and Finance Companies - do -

    2.       Airlines and International Shipping Companies - International Tax Affairs Division, NO

  5. ATAP for all Taxes Except Excise Tax (BIR Form No. 2319A) - ATAP Issuing Office Concerned
The transmittal list accompanying these tax returns/ATAPs shall indicate the bank branch code, the BCS number and the line number of the taxpayer as appearing in the BCS where the tax returns/ATAPs were taken.

G.      To ensure that all payments of excise, capital gains, transfer and documentary stamp taxes and other taxes whose payments are covered with ATAPs are remitted/reported by accredited bank branches, the following shall be done by the RDO/division/offices concerned:

1.     Capital Gains Tax - The RDO shall match the Certificates Authorizing Registration (CARs) issued to the taxpayers against the capital gains tax returns reported in the BCS by the accredited bank branches.  The RDO shall conduct an inquiry with the accredited bank branch concerned in case of any CAR whose corresponding triplicate copy of capital gains tax return has not been reported/received from the bank branch concerned ten (10) days after issuance of such.

3.     Excise, Documentary Stamp and Other Taxes paid thru ATAP - The division/offices concerned shall conduct an inquiry with the RDO concerned and the RDO with the accredited bank branch in case of any ATAP whose triplicate copy has not been received by them thirty (30) days after issuance of such as indicated in the ATAP Logbook.

The offices/offices concerned shall report to PO/CR Monitoring Division in its NPCS Exception Report the non-transmittal/ non-reporting of tax return/ATAP filed as substantiated by the inquiry with the accredited bank branch involved.

H.      All copies/booklets of unused POs shall be returned to the Administrative Branch or to the Accountable Forms Division (AFD), by the Collection Officers/PO Issuing Officers concerned while the unissued CRs shall be returned by the accredited bank branches thru their bank head offices of AFD following the guidelines below:

1.      On Return of POs

1.1    By the PO Issuing officers in the RDO
a.         All PO Issuing Officers/Collection Officers (COs) concerned shall prepare an inventory list of unused POs indicating therein the corresponding serial number and transmit the same together with the copies/booklets of POs to their respective Administrative Unit, RDO not later than February 15, 1993.  Said inventory list must be duly acknowledged by the Chief, Administrative Unit upon receipt of unissued POs from the COs.

b.         The Administrative Unit, RDO shall conduct a physical inventory of all POs in their possession including those surrendered by the COs.  Said POs shall be returned to their respective Administrative Branch which shall cause the disposal of the POs under the existing rules and regulations.
  Turn-over of POs must be properly documented/acknowledged by both issuing and receiving parties.

1.2    By the PO Issuing Officers in the National Office.
a.         All PO Issuing Officers in the National Office shall prepare an inventory list of unused POs indicating therein the corresponding serial number and transmit the same to the Accountable Forms Division not later than February 8, 1993.  Said inventory list must be duly received by the Chief, Accountable Forms Division upon receipt of the unissued POs from the PO Issuing Officers.

b.         The Accountable Forms Division shall conduct a physical inventory of all unused POs and shall submit an inventory list to the Fiscal Control Division.  The Accountable Forms Division shall cause the disposal of the POs in their possession under the existing rules and regulations.
1.3    An audit of all PO Issuing Officers/COs concerned and the Administrative Units and Branches shall be conducted by the Fiscal Control Division to properly account all POs issued to them for clearance purposes.  Those found without discrepancies after audit shall be issued a clearance with regard to their accountabilities.

2.      On Return of CRs

2.1  All accredited bank branches shall return the unissued CRs to their respective Bank Head Offices (BHOs) which shall turn-over the same together with the other CRs on stock to the Accountable Forms Division (AFD) not later than March 15, 1993.

2.2  Return of said CRs to BIR shall be documented/evidenced with an inventory list indicating therein the corresponding serial number of unissued CRs which shall be duly acknowledged by the AFD.  Said listing shall be prepared by the BHO in three (3) copies which shall be distributed as follows:
Original
-
Accountable Forms Division (AFD)
Duplicate
-
Bank Head Office
Triplicate
-
PO/CR Monitoring Division
2.3  The Accountable Forms Division shall conduct a physical inventory of all CRs returned by the accredited banks and on stock and shall submit an inventory list to the Fiscal Control Division.

2.4    The PO/CR Monitoring Division shall account for all CRs issued to the accredited banks. Any discrepancies found during the reconciliation shall be reported to the Committee on Administration and Implementation of Collection System for proper action.

G.      Sanctions for Non-Compliance of this Order - Failure of the Bureau's personnel to comply with the provisions of this Order shall subject them to disciplinary actions in accordance with the existing guidelines in the application of penalties in administrative cases.

H. Repealing Clause - This Order hereby repeals or amends accordingly all issuances or portions thereof inconsistent herewith.

I. Effectivity - This Order shall take effect on February 1, 1993.

Adopted: 15 Dec. 1992

(Sgd.) JOSE U. ONG
Commissioner of Internal Revenue
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