BIR Ruling [DA-226-00]

May 5, 2000 BIR RULING [DA-226-00] CA 186; RA 1616 & 2096; 119-99; DA-226-2000 Ma. Milagros G. Delos Reyes Longos, Cabangan Zambales 2203 M a d a m : This refers to your letter dated April 23, 1999 requesting in behalf of your father, Mr. Luis L. Gonzales, for the payment of his retirement and terminal leave benefits. Documents submitted show that Mr. Luis L. Gonzales, A Revenue Collector I, was assigned as Revenue Collection Agent for the Municipalities of Cabangan and Botolan, Zambales, Revenue Region No. 3-A, San Fernando, Pampanga; that on August 7, 1980, an administrative case was filed against him for Dishonesty and Violation of Reasonable Office Regulations committed in the following manner. LibLex "That as Revenue Collection Agent for the Municipalities of Cabangan and Botolan, Zambales, your cash and accounts were examined on May 27, 1980 by representatives of the Commission on Audit, Regional Office No. III, San Fernando, Pampanga, and in the course thereof, it was ascertained that you have incurred shortages in the amounts of P28,393.84 for Cabangan and P3,472.00 for Botolan respectively, or a total of P31,865.84; that your collections were not deposited regularly in violation of COA General Circular No. 130, dated June 16, 1975, as amended, and Department of Finance Order No. 20-73, dated June 14, 1973, and not intact in violation of Section 69 Presidential Decree No. 1445; that your Collection Reports were not submitted regularly in violation of Section 64 of Presidential Decree No. 1445; and that your transactions were not recorded in the cashbook in violation of Article 4, Section 36 of the National Accounting and Auditing Manual." that the above formal charge was received by Mr. Luis L. Gonzales on September 20, 1980; that in response, Mr. Luis L. Gonzales averred in his answer dated September 30, 1980 that the audit findings are inaccurate explaining that he was handling two (2) Municipalities without any clerical held and it was physically impossible to sort out receipts and documents pertaining to the collection with the proximity of the date of audit to the tax deadline; that he was dependent on the official hours of the Municipal Treasurer of Botolan, Zambales, which prevented him from rendering overtime work; that it took him sometime to straighten his records, but upon review, the alleged shortages in his cash and accounts did not in fact exist as shown in the Remittances Advice Nos. 80-11 and 80-22; that Mr. Luis L. Gonzales further explained that his collections were intact although the remittances were delayed due to lack of personnel and poor transportation service; that all his transactions were recorded and his collection reports were religiously submitted; that the audit examination, which consisted of cash counts, inventory taking of documentary stamps and revenue official receipts, verification of the entries in the cash book against pertinent documents, tie-up of requisitions and issuances of accountable forms, confirmation of remittances to authorized depository banks, covered transactions from November 1, 1979 to May 27, 1980 and from January 11, 1980 to May 17, 1980, for Cabangan and Botolan, respectively; that despite the two (2) letters of demand, both dated May 27, 1980, the shortages remained unrestituted until September 29, 1980, or after a period of 125 days, as shown by the Philippine National Bank machine validation and stamp mark impressed on Remittances Advice Nos. 80-11 and 80-22, both dated September 29, 1980; that the records also show that the collections of Mr. Gonzales were not deposited regularly and intact; that the records finally show that Mr. Gonzales did not submit his collection reports regularly during the period covered by the audit; that his collections, sales of stamps and remittances to the depository bank were not recorded in the prescribed form, Form 106 (cashbook); that instead, these were recorded in an ordinary record book; that due to the irregular remittances of collection made by Mr. Gonzales, the Revenue District Officer of Revenue District No. 16, Olongapo City, instructed his collection supervisor to conduct a spot check on Mr. Gonzales' cash and accounts and initially found him short of his collections; that based on the adverse report, the Regional COA Auditors conducted a formal audit examination on his cash and accounts to determine his actual shortages; that on July 26, 1992, this case was decided by then Acting Commissioner Ruben B. Ancheta in the following manner: "WHEREFORE, Respondent Luis L. Gonzales is found guilty as charged. Considering, however, that the shortages had already been restituted and that we live under a compassionate society, Respondent is hereby considered resigned from the service effective his last day of duty with pay without prejudice to reinstatement in a position involving no money or property responsibility." cdlex In reply, please be informed that in the case of CIR vs. Solidum, where a Court Officer was found guilty of grieve misconduct and ordered dismissed from office by Presiding Judge Alberto P. Paredes, Court of Industrial Relations, the Supreme Court, after considering the mitigating circumstances of length of service, reduced or scaled down the penalty of dismissal imposed to that of forced resignation without forfeiture of such benefits as he may be entitled to under C.A. No. 186, as amended by R.A. Nos. 1616 and 2096. (Administrative Matter No. P-269, January 30, 1975 Vol. 7. O.G. No. 33, p. 5245) Applying the above-cited case in the instant case, Respondent, Luis L. Gonzales, was found guilty of the charge filed against him by the Commission on Audit to which the Commissioner of Internal Revenue rendered a decision of forced resignation without prejudice to reinstatement to a position involving no money and property responsibility after taking into consideration the restitution by the respondent of the shortages found in his cash and accounts. This Office is of the opinion as it hereby holds that Mr. Luis L. Gonzales is entitled to the retirement and terminal leave benefits that may be due him up to his last day of duty with pay on December 31, 1980. (BIR Ruling No. 119-99 dated August 11, 1999) Very truly yours, Commissioner of Internal Revenue By: (SGD.) MILAGROS V. REGALADO Acting Assistant Commissioner (Legal Service)