Recognition of Employees Who File Income Tax Return (ITR) as Attachment to Statement of Assets, Liabilities and Net Worth (SALN)

April 7, 2009 DSWD MEMORANDUM CIRCULAR NO. 006-09 SUBJECT : Recognition of Employees Who File Income Tax Return (ITR) as Attachment to Statement of Assets, Liabilities and Net Worth (SALN) I. Rationale Republic Act 6713, otherwise known as the Code of Conduct and Ethical Standards, requires annual submission of Statement of Assets, Liabilities and Net Worth (SALN) by officials and Employees of the Government. Under normal circumstances, Income Tax Return (ITR) is not required as attachment to said SALN. In fact, government employees who are regularly deducted of withholding tax from their salaries and other emoluments and do not have other source/s of income aside from their employment in the Department are no longer required to file ITR. However, those who have other sources of income are mandated to file ITR and attach the same to their SALN. In line with the Department's Integrity Development Action Plan (IDAP), the Human Resource Management and Development Service (HRMDS) is committed to advocate the submission of ITR as attachment to the SALN especially for employees who have other sources of income in connection with the private practice of their profession. DETACa To support the achievement of said commitment, recognition of employees who comply with this requirement is deemed necessary. It also supports the Character Building Program of the Department as it enhances the character quality of honesty among those concerned employees who submit their ITR as supporting document for SALN. Thus, the issuance of this Memorandum Circular to establish the guidelines in giving said recognition. II. Coverage This Memorandum Circular shall apply to officials and employees granted authority to engage in private practice of profession outside office hours where they earn income on top of their regular income in the Department and other sources of income ( e.g. , properties that earn income like building earning rentals, parcel of land yielding farm produce, businesses). III. Criteria 1. The official/employee is duly authorized by the Department Secretary or her authorized representative to engage in private practice of profession; 2. The official/employee earned income from his/her private practice of profession and other/additional sources of income such as but not limited to properties/business, and he/she filed ITR declaring such income; 3. The official/employee submitted his/her SALN on or before the set deadline, with attached ITR; 4. The official/employee did not use any government resources in his/her pursuit of private practice of profession; 5. The official's/employee's engagement in the private practice of his/her profession has not in any way conflicted with the best interest of the service of the Department. IV. Reward Officials and employees who meet the above-mentioned criteria shall be presented with Certificates of Recognition, which may be awarded during the flag raising ceremony on Mondays or other gathering suited for the purpose. V. Institutional Arrangement The HRMDS shall monitor those who have been authorized to practice profession by appropriate authority and remind them about including additional income in their SALN. The HRMDS shall recommend to the Integrity Development Committee (IDC) those who should be recognized for the year. The IDC shall review the recommendation of the HRMDS and identify who shall be given recognition by the Department. V. Effectivity This Memorandum Circular shall take effect within fifteen (15) days upon date of approval. aDSIHc Signed this 7th day of April, 2009 in Quezon City, Philippines. Signed by representative DR. ESPERANZA I. CABRAL Secretary