Forms to be Used in Implementing the Provisions of Section 59 of the Local Tax Code, as Amended — (Examination of Books of Accounts and Pertinent Records of Businessmen by the Provincial or City Treasurer)

April 5, 1978 LOCAL TAX REGULATIONS NO. 002-78 SUBJECT : Forms to be Used in Implementing the Provisions of Section 59 of the Local Tax Code, as Amended (Examination of Books of Accounts and Pertinent Records of Businessmen by the Provincial or City Treasurer) TO : All Provincial and City Treasurers Pursuant to the last paragraph of Section 59 of the Local Tax Code, as amended, authorizing the Secretary of Finance to prescribe the forms to be used in the examination of books of accounts and pertinent records of businessmen in connection with the enforcement of local tax ordinances, and for purposes of uniformity it is hereby directed that, effective immediately, the following forms be used for the purpose: (a) Department of Finance (LGS Local Government Service) Form No. 1. This is the letter of authority signed by the Provincial/City Treasurer in favor of the deputies indicated therein who will examine the books of accounts of the business also indicated in such authority. (b) Department of Finance, LGS Form No. 1-A. This is the letter requesting the preparation and/or presentation of documents to be examined by the deputies on the date indicated in the Letter of Authority. (c) Department of Finance, LGS Form No. 2. This is the Inspection Report to be accomplished in quadruplicate by the authorized deputies. All data called for in the form should be supplied and the computation of the tax due, if any, should be indicated on the reverse side. cEISAD The deputies should accomplish the "Certificate of Examination" indicated on page 2 of the Report after the completion of the inspection. The original copy should be left with the owner/operator of the business, the 2nd copy submitted to the Provincial Treasurer if the examining deputies are from a municipality in the province, the third copy should be retained by the Municipal Treasurer and the fourth copy retained by the deputies as their file. In case of cities, the original should be left with the firm, two copies will be retained by the City Treasurer and the fourth copy kept by the deputies for their file. (d) Department of Finance, LGS Form No. 3. This is the initial assessment notice form to be accomplished by the deputies if the business inspected by them has a tax liability. (e) Department of Finance, LGS Form No. 3-A. If after a reasonable period the initial notice to the firm is ignored, a follow-up notice (Second Demand) should be sent; and (f) Department of Finance, LGS Form No. 3-B. When there is no compliance after the first two demands for payment of the tax liability, a final notice (demand) may be sent to the firm. If the firm still ignores the final demand, the case may be elevated to the Provincial Governor or the City Mayor as the case may be for such action as the latter may deem proper to take pursuant to Sections 62 and 63 of the Code. Upon receipt of the attached sample forms, all Provincial/City Treasurers are hereby directed to print (mimeograph) these forms for distribution to those concerned. In the case of Provincial Treasurers, a copy each of the forms should be furnished all Municipal Treasurers under their jurisdiction with the instructions to reproduce them for use in their respective municipalities. In order that the taxpaying public may be informed accordingly, copies of these Regulations and sample forms should be posted in all offices of Provincial, City and Municipal Treasurers and other conspicuous public places, and furnished all business establishments in the locality by way of a circular letter issued by the local treasurer. aTCADc Strict compliance herewith is enjoined. (SGD.) CESAR VIRATA Secretary ATTACHMENT Dept. of Finance LGS Form No. 1 REPUBLIC OF THE PHILIPPINES OFFICE OF THE PROVINCIAL/CITY TREASURER AUTHORITY NO. _______ ________________, 197___ _____________________________ _____________________________ _____________________________ Sir/Madam/Gentlemen : Pursuant to Section 59 of Presidential Decree No. 231, as amended, otherwise known as the Local Tax Code, which has for its purpose the effective enforcement and collection of taxes, fees, and charges authorized thereunder, please be advised that the bearers hereof, _________________________ and _________________________, both of this Office, and as deputies thereof, are hereby authorized to examine your books of accounts and other pertinent records of your business, to verify, access, and collect the true and correct amount of the tax or taxes, fees and charges due from you during the period from ___________________. 197___, to _______________, 197___. Messrs. ___________________ and ____________________, whose signatures appear below, are provided with identification cards issued by this Office and they are under instruction to properly identify themselves and present their identification cards upon demand. As provided for in Section 59 of the Code cited above, the examination of your books of accounts and other pertinent records shall be made during regular business hours, not oftener than once a year. The examination made pursuant hereto shall be certified to by the above-named deputies and such certificate shall be made of record in your books of accounts. Your cooperation in this regard will be highly appreciated. Very truly yours, ____________________ Provincial/City Treasurer _______________________ Signature _______________________ Signature Dept. of Finance LGS Form No. 1-A ________________________________ ________________________________ ________________________________ Sir/Madam/Gentlemen : By virtue of the Letter of Authority earlier presented to you, please prepare the following business records for examination/inspection of the undersigned deputies on the date indicated in the authority, viz. : 1. 2. 3. 4. 5. 6. 7. etc. Very respectfully, ________________________ ________________________ Dept. of Finance LGS Form No. 2 Republic of the Philippines Province/City/Municipality of ________ OFFICE OF THE PROVINCIAL/CITY/MUNICIPAL TREASURER I.S. NO. ________ _____________________, 197____ Name of Owner/Operator : ______________________ Nationality ________________ Business Name : ________________________________________________ Address : ________________________________________________ Kind of Business MAYORS PERMIT MUNICIPAL TAX Sales Number Year Amount Penalty OR No. Qtr. Amount Penalty FINDINGS/VIOLATIONS: ________________________________________________ _______________________________________________________________________ (See computation of tax due, if any at reverse side) _______________________________________________________________________ RECOMMENDATIONS: __________________________________________________ _______________________________________________________________________ _______________________________________________________________________ Certificate of Examination This is to certify that on ___________, 197__, the books, accounts and other pertinent records covering the period from ___________, 197__, to _______________, 197__, of the business/businesses indicated above have been examined by the undersigned whose findings and recommendation are stated herein. A similar certification has been made in the books of the same business. __________________, 197__. ____________________________ ____________________________ Examining Deputy Examining Deputy I.D. No. ______ I.D. No. ______ VERIFIED AND CONCURRED IN: ___________________________ Supervisory/In Charge NOTE: This is not a collection notice. This is simply an evidence that the business indicated above has been inspected pursuant to Section 59 of the Local Tax Code, as amended. Should there be any tax due as a consequence hereof, the owner/operator of the business will be advised in writing accordingly. ORIGINAL RECEIVED: ___________________________ Proprietor/Manager Republic of the Philippines Province/City/Municipality of ________ OFFICE OF THE PROVINCIAL/CITY/MUNICIPAL TREASURER ASSESSMENT NOTICE (INITIAL) I.S. No. _______________________ ____________________________ ____________________________ ____________________________ Deputies of this Office who inspected your establishment reported the following about your business: Based on their findings, the amount due from and payable by you is computed as follows: Kind of Business Mayors Permit Municipal Tax Total and Fee Comp. Fee Comp. Period Covered Total amount due P We, therefore, request you to call at this Office, within three (3) days from your receipt of this letter to pay the aforesaid amount so that this case may be settled and closed. Very truly yours, ________________________________ (Provincial/City/Municipal Treasurer) Dept. of Finance LGS Form No. 3-B Republic of the Philippines Province/City/Municipality of ________ OFFICE OF THE PROVINCIAL/CITY/MUNICIPAL TREASURER FINAL DEMAND Lic. Case. No. ____ ____________________________ ____________________________ ____________________________ A review of our records showed that you have neither replied to, nor paid the amount indicated in our assessment notice to your dated ________________. We give you again below the itemized statement of the amount due from you to the City of Manila as assessed by our deputies who inspected your business establishment. Kind of Business Mayors Permit Municipal Tax Total and Fee Comp. Fee Comp. Period Covered Total amount due P Please give this matter your preferential attention because if we do not hear from you within three (3) days from your receipt of this letter, we shall have to elevate your case to the Office of the Mayor with our recommendation for the institution of such legal action as may lie against you. Very truly yours, ________________________________ (Provincial/City/Municipal Treasurer) Republic of the Philippines Province of Camarines Sur Municipality of Calabanga Office of the Municipal Treasurer November 4, 2004 Mr. Fidel C. Ibaez Chief Local Tax Bureau of Local Government Finance Manila Dear Mr. Ibaez, This has reference to the power of Local Treasurers to examine the books of accounts and other pertinent records of businessmen in order to ascertain, assess, and collect the correct amount of taxes, fees, and charges due to local government unit concern. ScTaEA Accordingly, Article 259 (f) of the rules and regulations implementing Section 171 of RA 7160, otherwise known as the local government code of 1991, viz. : "The Secretary of Finance shall prescribe the necessary forms to be used and such guidelines which may be deemed necessary for the proper and effective implementation of this Article" In view of the foregoing, as provided for under the above-quoted provision of law, may I be furnished a copy of the prescribed forms and guidelines as stated above, in order that we may be guided properly in the implementation of same. Thank you. Very Truly Yours, (SGD.) T.R. F. EMPERIAL, JR. Municipal Treasurer