Department Order No. 2-02 dated March 5, 2002 of the Department of Finance

April 9, 2002 BLGF MEMORANDUM CIRCULAR NO. 009-02 TO : All Bureau Officials and Personnel; Regional Directors for Local Government Finance; District Treasurers of Metropolitan Manila; Provincial, City and Municipal Treasurers; and Others Concerned. SUBJECT : Acknowledgement of the Unreleased Three-fourths (3/4) of One (1) Month Delayed Internal Revenue Allotment (IRA) Corollary to BLGF Memorandum Circular No. 13-99 dated July 12, 1999 of this Bureau disseminating Executive Order No. 98 dated April 28, 1999 of the President which directs all government agencies and instrumentalities to incorporate the Taxpayer's Identification Number (TIN) in all form, permits, licenses, clearances, official papers and documents which they issue to persons transacting business with them; be they natural or juridical, attached, for the information and guidance of all concerned, is Department Order No. 2-02 dated March 5, 2002 of the Department of Finance reiterating the above directives to incorporate the TIN in all official documents transacted in government offices. This TIN will enhance tax monitoring and shall serve as the common secondary reference index in all official transactions. AcDHCS Strict observance and compliance with the abovestated directives are hereby enjoined, attention being invited to the penulminate paragraph of subject Department Order that non-compliance thereto shall subject the responsible officials and employees to appropriate sanctions as provided for in Revenue Regulations No. 11-99 of the Bureau of Internal Revenue, implementing Executive Order No. 98 aforestated. The District Treasurers and Assessors of Metropolitan Manila and all Provincial Treasurers and Assessors are hereby instructed to disseminate the contents of this Circular, including the attachments, to all City/Municipal Treasurers and Assessors within their respective jurisdictions, likewise enjoining them to observe and comply strictly with the provisions of the directives aforementioned in order to help realize the objectives thereof. (SGD.) JUANITA D. AMATONG Undersecretary and Officer-in-Charge, BLGF March 5, 2002 DOF ORDER NO. 2-02 TO : The Governors, City and Municipal: Mayors, Barangay Chairpersons, Members of the Local Sanggunian, Other Local Officials, Members of Local Finance Committee, Local Budget Officers, Accountants and Treasurers, Officials of the Commission on Audit and All Others Concerned SUBJECT : Acknowledgement of the Unreleased Three-Fourths () of One (1) Month Delayed Internal Revenue Allotment (IRA) 1.0. PURPOSE This Order is issued to direct all government agencies, instrumentalities, bureaus, government owned or controlled corporations, (GOCCs), local government units (LGUs), the Securities and Exchange Commission (SEC), the Bangko Sentral ng Pilipinas (BSP), the Bureau of Internal Revenue (BIR); the Bureau of Customs (BOC), all Registers of Deeds to comply with Executive Order (EO) No. 98 as implemented by Revenue Regulations No. 1199. 2.0. POLICIES 2.1. EO No. 98 mandates that all government agencies and instrumentalities, including all GOCCs and LGUs, shall incorporate the TIN in all forms., permits, licenses, clearances, official papers and documents which they issue to persons transacting business with them to enhance tax monitoring. 2.2 Pursuant to this mandate, Revenue Regulations No. 11-99 was issued directing government agencies and instrumentalities, GOCCs and LGUs to provide a space for the TIN in all government forms for permits, licenses, clearances and other official papers or documents. In the said Regulations government offices are given a period of six months counted from the effectivity date of the Regulations within which to put in place the system requirement for TIN. 2.3. To ensure compliance with the Regulations, violations of the provisions thereof are subjected to fines and penalties. 2.4. As part of this Department's efforts to strengthen the fiscal position of the government and to enhance tax monitoring as envisioned under EO No. 98, all government agencies, instrumentalities, bureaus, GOCCs, LGUs, registers of deeds, the BIR, the BOC, the BSP and the SEC shall provide a space for the TIN in all registration and transaction forms or documents and shall require all applicants for government permits, licenses and official papers to indicate their duly issued TIN thereon. 3.0. RESPONSIBILITY AND SANCTIONS It has come to our attention that some government agencies and instrumentalities have yet to comply with the provisions of the Regulations. Now, therefore, all heads of government agencies, instrumentalities, bureaus, GOCCs, LGUs, registers of deeds, the BIR, the BOC, the BSP and the SEC are hereby directed to strictly comply with Revenue Regulations No. 11-99. Failure to comply with the said Regulations shall subject the responsible officials and/or employees to appropriate sanctions as provided therein. 4.0. EFFECTIVITY This Order shall take effect immediately. (SGD.) JOSE ISIDRO N. CAMACHO Secretary EXECUTIVE ORDER NO. 98 Directing All Government Agencies, Instrumentalities, Local Government Units, and Government Owned and/or Controlled Corporations (Goccs) to Include the Taxpayer Identification Number (Tin) as Part of the Essential Requirements in All Applications for a Government Permits, License, Clearance, Official Paper or Document WHEREAS, for tax purposes, a Taxpayer Identification Number (TIN) is prescribed under Section 236 (J) of the National Internal Revenue Code for all taxpayers and it is required to be indicated in certain documents; WHEREAS, the TIN is a vital information for tracing a person's taxable transactions under a computerized system or administration; WHEREAS, revenue collection needs to be enhanced to finance the country's growing infrastructure requirements and support the poverty alleviation projects of the government; WHEREAS, tax monitoring, leading to increased compliance with tax laws, will be greatly improved if such Taxpayer's Identification Number will be made a mandatory requirement in all applications for any government permit, license, clearance, official paper or document by the transacting public; WHEREAS, the uniform observance by all government agencies of this requirement is necessary to effectively carry out the purposes of this Order. NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic of the Philippines, do hereby order that: SECTION 1. All government agencies and instrumentalities, including Government-Owned and/or Controlled corporations, and all Local Government Units, are hereby directed to incorporate the Taxpayer Identification Number (TIN) in all forms, permits, licenses, clearances, officials papers and documents which they issue to persons transacting business with them, be they natural or juridical. SECTION 2. The said agencies, GOCCs, and LGUs shall develop procedures such that permits, licenses and clearances, whenever possible and where applicable, shall not be issued to persons or entities without a duly issued TIN. Likewise, procedures shall be developed such that persons or entities with TIN or valid TIN cards shall enjoy priority or preferential action in his transactions with government offices. aEcSIH SECTION 3. The Bureau of Internal Revenue (BIR) shall assign a permanent TIN and within two (2) years from the issuance of this ORDER, supply permanent TIN cards to all taxpayers. A valid TIN card produced by a person shall be sufficient for identification purposes in all this official dealings with the government. Provided, however, that for purposes of this Order, it shall be sufficient for a person still without TIN or TIN card to present his application for registration thereof (BIR Form 1901/1902/1903) duly stamped by the BIR. SECTION 4. In all official transactions with the public, the TIN shall serve as the common secondary reference index of all government agencies. For computerized agencies, the TIN shall be part of the data to be encoded in their official records, which shall be transmitted electronically to the revenue authorities as may be required by law or regulations. SECTION 5. Any person who falls to comply with the requirements of this Executive Order, including, the parties involved in transactions where a TIN is prescribed, and the government functionary involved in the monitoring or regulating of these transactions, shall be subject to all the appropriate sanctions provided for to the National Internal Revenue Code and other pertinent laws and regulations. SECTION 6. Where necessary or desirable, the Secretary of Finance, upon the recommendation of the Commissioner of Internal Revenue, shall promulgate rules and regulations for the effective implementation of this Executive Order. Provided, however, that the absence of such regulations shall not exempt any government agency from complying with this Order. SECTION 7. The Secretary of the Department of Budget and Management shall give preferential budgetary support to the Bureau of Internal Revenue to enable it to accomplish its objective of supplying permanent TIN cards to at taxpayers. SECTION 8. This Executive Order shall take effect immediately. Done in the City of Manila, this 28th day of April 1999, in the year of our Lord nineteen hundred and ninety nine.