Bureau of Local Government Finance Opinion

January 16, 2001 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 2nd Indorsement Respectfully returned to the City Assessor, Pasig City, the herein preceding indorsement dated November 22, 2000 relative to a Memorandum of even date, of Hon. Vicente P. Eusebio, City Mayor, that city, requesting clarification regarding the procedures in the Examination of Books of Accounts and Pertinent Records as provided for under Section 171 of the Local Government Code (LGC) of 1991 in relation with the duties of the treasurer under Section 470 (b) thereof. Section 171 of R.A. 7160 otherwise known as the Local Government Code (LGC) of 1991 as implemented under Article 259 of the Implementing Rules and Regulations (IRR) states: "ART. 259. Examination of Books of Accounts and Pertinent Records of Businesses by Local Treasurer. (a) For purposes of implementing this Article, only the treasurer, or his duly authorized representative, of LGU imposing the tax, fee or charge, may examine the books of accounts and pertinent records of business in order to ascertain, assess and collect the correct amount of the tax, fee and charge." (underscoring supplied) It is very clear from the abovequoted provision of law, that the authority to conduct the examination of the books of accounts and other pertinent records of business establishments is vested exclusively upon the treasurers and their authorized representatives. Such examination is an inherent power of the treasurer. cHAaCE On the other hand, Section 470 (b) of the same Code provides as follows: "SEC. 470. Appointment, Qualifications, Powers, and Duties. . . . . "(b) The treasurer shall be under the administrative supervision of the governor or mayor, as the case may be, to whom he shall report regularly on the tax collection efforts in the local government unit;" Under the aforequoted Section 470 (b) of the Code, it is clear that the fact that treasurer is under the administrative supervision of Local Chief Executive, therefore, it is their duty (treasurer) to report regularly the tax collection efforts in the locality. In pursuance thereto, the treasurer may report to the local chief executive the result of the examination of books of accounts and other pertinent records of business establishment. Be guided accordingly. (SGD.) BENJAMIN A. GERONIMO Executive Director <www.blgf.gov.ph/downloads/opinion/localtax/2001/a2000-1214.pdf> last visited January 16, 2014.