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WHEREAS,  Section  17(h)  of  Commonwealth  Act  No.  146  or  the  Public Service Law provides:

“Section 17. Proceedings of Commission without previous hearing. - The Commission  shall  have  power  without  previous  hearing,  subject  to established limitations and exception and saving provisions to the contrary:

x x x

(h)  To require any public service to furnish annual reports of finances  and operations. Such reports shall set forth in detail the capital stock issued, the  amounts  of  said  capital  stock  paid  up  and  the  form  of  payment thereof; the dividends paid, the surplus, if any and the number of stockholders,  the consolidated  and pending obligations  and the interest paid  thereon;  the  cost  and  value  of  the  properly  of  the  operator; concessions or franchises and equipment; the number of employees and salaries paid to each class; the accidents to passengers, employees, and other person, and the causes thereof; the annual expenditures on improvements; the manner of their investment and nature of such improvements; the receipts and profits in each of the branches of the business and of whatever source; the operating and other expenses; the balance of profits and losses; and a complete' statement of the annual financial operations  of the operator, including an annual balance sheet. Such reports shall also contain  any information  which the Commission may require concerning freight and passenger rates, or agreements, compromises or con tracts affecting the same. Said reports shall cover a period of twelve months,  ending  on December  thirty-first  of each year, and shall be sworn to by the officer or functionary of the public service authorized  therefor.  The Commission  shall also have power  to require from time to time special reports constraining such information as above provided   for  or  on  other   matters   as  the  Commission   may   deem necessary or advisable.”

WHEREAS,  on 22 May 1992, the Board issued Memorandum  Circular No. 92-003  (Re:  Penalty  on  Non-Submission   of  Annual  Reports)  increasing  the penalty for non-submission of Annual Reports to ensure compliance on filing of Annual Reports.

WHEREAS,  The  Board  issued  Memorandum  Circular  No.  2004-031  (Re: Filing of Annual Report) to reiterate the requirement of filing of the Annual Report in the prescribed form to the Board or its Regional Offices on or before the first day of March of every year. Failure of the grantees  to file the required Annual Report  shall subject  the grantees  to a penalty  in the amount  of Five Hundred Pesos (P500.00) in consonance to DOTC Department Order 2001-82 (LTFRB’s Revised  Fees  and  Charges),  dated  31  August  2001.  If the  grantee  pays  the penalty  but  does  not  file  the  required  Annual  Report,  his  unit/s  shall  not  be confirmed  for  purposes  of  registration  until  and  unless  he  files  the  required Annual Report.

WHEREAS, The Board issued Memorandum Circular No. 2006-015 (Re: Amendment   on   MC   2004-031)   wherein   the   Board   amended   the   second paragraph of Memorandum  Circular 2004-031 to conform with the date of filing on Income Tax Return as provided in the National Internal Revenue Code and moved  the date  of filing  of Annual  Reports  from  on or before  the first day of March of every year to on or before 15th of April of every year

WHEREAS, The Board issued Memorandum Circular No. 2011-004 (Re: Revised   Terms   and   Conditions   of  Certificate   of  Public   Convenience   and Providing Penalties for Violations Thereof) No. 34 or which provides:

“34.    The PUV operator shall submit to the Board on or Before May 15th  of every year an Annual Report in the form prescribed by the Board. The PUV operator  shall  also  submit  with  the  Annual  report  a  certification  from  the Social Security System that all contributions for employees have been paid.
 
• PUV operators  engaged  in one or more than one class/denomination  of public service shall file a separate Annual Report for each.”

WHEREAS, The Board issued Memorandum Circular No. 2014-005 (Re: Submission  of Audited  Financial  Statement  Pursuant  to Section  17 (h) of the Public  Service  Law)  which  required  grantees  of CPCs  to submit  certified  true copies of their Audited Annual Financial Statements of the preceding year as the form prescribed by the Board for the purpose of filing their Annual Report subject to the guidelines stated in the said Memorandum.

WHEREAS,  After extensive  review  and deliberation  on the requirement  of filing Annual Reports and taking into account the prevailing economic conditions, the  Board  have  determined  that  there  are  other  more  efficient  and  verifiable means to prove the grantees’ financial capability other than requiring the filing of Annual Reports with the Board or its Regional Offices.

NOW THEREFORE, The Board hereby amends Memorandum Circular Nos. 92-003, 2004-031, 2006-015, 2011-004 and 2014-005 and effective 01 January 2018, the Board shall adopt the following regulations:

1. All  individual  operators  who  arc  grantees  of CPCs  whose  total  combined authorized  units  is nine  (9) or less  shall  submit  their  Annual  Income  Tax Return for PUV Operations instead of Annual Report.
   
   
2. All individual operators whose total combined authorized units of at least Ten (10)  units  shall  continue  to  submit  certified  true  copies  of  their  Audited Annual   Financial   Statements   duly   certified   by   the   Bureau   of  Internal Revenue and/or Authorized Agent Banks.
   
   
3. Juridical entities such as Corporation or Cooperatives which are grantees of CPC shall continue to submit certified true copies of their Audited Annual Financial  Statements  duly certified  by the Securities  and Exchange Commission  (SEC)  or  Cooperative  Development  Authority  (CDA),  as  the case may be.
   
   
4. Grantees  of  CPC  who  have  not  filed  their  Annual  Reports  prior  to  the effectivity of this Memorandum Circular shall be imposed with penalties to be computed until 31 August 2017 based on Memorandum Circular 2014-005.
   
   
5. Grantees  of CPC shall submit their Annual Income  Tax Return  or Audited Annual Financial Statements,  as the case may be, on or before July 31 of the succeeding year and on or before 31st of July of every year.

Failure to submit the Certified True Copy of Audited Annual Financial Statements  or Annual Income Tax within the period mentioned  above shall be meted a penalty of Php1000.00 per year of delay.

All  other   issuances   or  parts   thereof   inconsistent   herewith   are  hereby modified, amended or superseded accordingly.

This   Memorandum   Circular   shall   take   effect   immediately   following   its publication in a newspaper of general circulation and the filing of three (3) copies hereof with the UP Law Center pursuant  to Presidential  Memorandum  Circular No. 11, dated 09 October 1992.

SO ORDERED.
Quezon City, Philippines, 09 January 2018.
 

(SGD) ATTY, MARTIN B. DELGRA, III Chairman
(SGD) ENGR. RONALDO F. CORPUS Board Member	(SGD) ATTY. AILEEN LOURDES A. LIZADA Board Member
Attested by:
(SGD) ATTY. CARL SHA JEMIMAH F. MARBELLA Officer-in-Charge Office of the Executive Director