Full Implementation of the Automated Verification of Bureau of Internal Revenue's Electronic Certificate Authorizing Registration

June 29, 2016 LRA CIRCULAR NO. 011-16 SUBJECT : Full Implementation of the Automated Verification of Bureau of Internal Revenue's Electronic Certificate Authorizing Registration WHEREAS, the Land Registration Authority (LRA) is a government agency under the Department of Justice mandated by law to preserve the integrity of the land registration process, protect the sanctity of the Torrens System, and act as the central repository of retards relative to original registration of lands titled under the Torrens System, including subdivision and consolidation plans of titled lands and through its Registry of Deeds (RD) offices nationwide, be the repository of records of instruments affecting registered or unregistered lands and chattel mortgages in the province and the city wherein such office is situated; WHEREAS, to support its mandate, the LRA is currently implementing the Land Titling Computerization Project (LTCP) which seeks, among others, to maintain information on titles that is current, complete and accurate; maintain the security and integrity of records by safeguarding these from tampering or destruction and deter substitution or insertion of questionable data; ensure the integrity of the land titling registration system by moving from a largely paper-based to a largely paperless system; protect land titles from loss due to fire, theft, natural disasters, and the normal ravages of time; and implement more reliable and predictable land registration procedures; WHEREAS, the Bureau of Internal Revenue (BIR) is a government agency under the supervision of the Department of Finance (DOF) mandated by law to generate financial resources for the government through the enforcement of internal revenue laws and regulations; WHEREAS, BIR is likewise implementing various computerization projects aimed at further improving tax collection, and one of the systems developed by BIR is the Electronic Certificate Authorizing Registration (eCAR) System for the processing and generation of Certificates Authorizing Registration (CAR) as evidence of proper and complete payment of transfer taxes; CAIHTE WHEREAS, LRA and BIR entered a Memorandum of Agreement on September 25, 2013 to implement and use LRA's Philippine Land Registration and Information System (PHILARIS) for the automated verification of the CAR (the "LRA-BIR eCAR Verification System Project") presented in LRA's RDs. WHEREAS, pursuant to the first BIR-LRA Memorandum Circular dated April 6, 2015, attached herewith as Annex "A", LRA and BIR initially implemented the LRA-BIR eCAR Verification System Project in the first batch of RDs; WHEREAS, BIR, in its letter dated April 20, 2016, herewith attached as Annex "B", advised LRA that the BIR eCAR System is now fully deployed in BIR Revenue District Offices (RDO) and the LRA-BIR eCAR Verification System may now be fully implemented in all RDs nationwide; WHEREAS, BIR issued BIR Revenue Memorandum Order (RMO) No. 22-2016 dated May 12, 2016, which is herewith attached as Annex "C", and provides, among others, that: "3. The eCAR shall be printed on a security paper, an accountable form with security features and bar code. 4. All manually issued CARS that are outstanding and not yet presented to the Registry of Deeds are no longer valid. Instead, the concerned RDO/LT Division Chief shall replace this CAR with an eCAR and cancel the previously issued CAR. 5. Likewise, other manually issued expired CARs that are due for revalidation shall be replaced by eCARs by the concerned RDOs/LT Division Chiefs and thereby cancel the previously issued CAR. 6. eCARs shall have a validity of one (1) year reckoned from the date of issuance for purposes of presenting the same to the Registry of Deeds. Otherwise, the eCAR shall be deemed permanently expired and therefore of no force and effect. The RDOs/LT Division Chiefs shall issue a new eCAR to the taxpayer in case the latter fails to present the eCAR to the Registry of Deeds within the one (1) year validity period. In case of lost eCAR within the validity period, the RDOs/LT Division Chiefs shall not issue a new eCAR but instead reprint the same eCAR and issue to the requesting taxpayer. On both cases, a certification fee prescribed under Executive Order No. 197 in the amount of One Hundred Pesos (P100.00) shall be charged to the taxpayer/authorized representative for each released eCAR issued/reprinted, after affixture of P15.00 Documentary Stamp Tax on Certificates (Sec. 188 of the NIRC of 1997). The requirements for the replacement/reissuance/reprinting of eCAR are enumerated in Section IV D. b of this issuance. 7. For transfers of titled real properties, the Revenue District Officer shall issue one (1) eCAR per property covered by OCT/TCT/CCT and for transfers of untitled real properties one (1) eCAR shall be issued for each Tax Declaration, including the improvements thereon. However, for transfers of personal properties, a separate (single) eCAR shall be issued for all personal properties per transfer document ( e.g. , Deed of Sale, Deed of Donation, etc.). 8. For transfer of personal properties e.g. , Cash in Bank, wherein the taxpayer requests for issuance of separate eCAR for each bank account, the RDO shall issue instead a certified true copy of the eCAR for presentation to the concerned bank. A certification fee and documentary stamp tax as mentioned in No. 6 hereof shall be required from the requesting taxpayer for each certified eCAR. DETACa 9. The eCARs issued by the RDO other than the district office where the property is located shall no longer be authenticated/countersigned by the RED/Head, ONETT Team having physical jurisdiction over the property/ies. The Register of Deeds shall validate the eCAR details on the LRA-BIR CAR Verification System (LRA-BIR CVS) to authenticate the eCAR copy of the taxpayer." WHEREFORE, in view of the foregoing, the General Transacting Public, and all concerned LRA personnel are hereby informed of the following operational procedures and guidelines in eCAR validation through the LRA-BIR eCAR Verification System: 1. RDs shall only accept eCARs as supporting documents in the registration of transfers and similar transactions. Registrants shall coordinate with the concerned RDOs for the replacement of manually-issued CARs, as provided in BIR RMO No. 22-2016; 2. LRA shall process and validate all eCARS presented or entered in the LRA Registries of Deeds using the LRA-BIR eCAR Verification System, and; 3. The signatures of BIR RDOs shall no longer be required by LRA RDs for eCARs issued for Estate and Donor's Taxes where the domicile/residence of the decedent/donor is registered, as provided in BIR RMO No. 22-2016. 4. If any provision of this Circular, or any application thereof, is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting. All orders, guidelines, circulars, rules and regulations inconsistent herewith are hereby repeated or amended accordingly. This Circular shall take effect after fifteen (15) days from its publication in a newspaper of general circulation, and the filing of three (3) copies hereof with the University of the Philippines Law Center. (SGD.) EULALIO C. DIAZ III Administrator ATTACHMENT Revenue Memorandum Order No. 022-16 dated May 12, 2016 Republic of the Philippines Department of Finance Bureau of Internal Revenue Quezon City April 20, 2016 Eulalio C. Diaz III Administrator Land Registration Authority (LRA) LRA Bldg. LRA Compound East Avenue, Quezon City Re: Implementation of Electronic Certificate Authorizing Registration (eCAR) System in the Revenue Region (RR) Nos. 14 Tacloban City, 15 Zamboanga City, 16 Cagayan de Oro City, 17 Butuan City, 18 Cotabato City and 19 Davao City Dear Administrator Diaz: Pursuant to Section III No. 2 of the Joint BIR-LRA Memorandum Circular (JBLMC) as circularized in Revenue Memorandum Circular No. 28-2015 dated April 17, 2015, we are informing you of the last leg of the implementation of Electronic Certificate Authorizing Registration (eCAR) System on June 1, 2016 which comprises of the following RDOs, to wit: RR No. 14 Tacloban City RDO No. 85 Catarman, Northern Samar RDO No. 86 Borongan, Eastern Samar RDO No. 87 Catbalogan, Samar RDO No. 88 Tacloban City RDO No. 89 Ormoc City RDO No. 90 Maasin, Southern Leyte RR No. 15 Zamboanga City RDO No. 91 Dipolog City RDO No. 92 Pagadian City RDO No. 93A Zamboanga City RDO No. 93B Zamboanga Sibugay RDO No. 94 Isabela, Basilan RDO No. 95 Jolo, Sulu RDO No. 96 Bongao, Tawi-Tawi RR No. 16 Cagayan de Oro City RDO No. 97 Gingoog City RDO No. 98 Cagayan De Oro City RDO No. 99 Malaybalay, Bukidnon RDO No. 100 Ozamis City RDO No. 101 Iligan City RDO No. 102 Marawi City RR No. 17 Butuan City RDO No. 103 Butuan City RDO No. 104 Bayugan, Agusan Del Sur RDO No. 105 Surigao City RDO No. 106 Tandag City RR No. 18 Cotabato City RDO No. 107 Cotabato City RDO No. 108 Kidapawan City RDO No. 109 Tacurong City RDO No. 110 General Santos City RDO No. 111 Koronadal City RR No. 19 Davao City RDO No. 112 Tagum City RDO No. 113A West Davao City RDO No. 113B East Davao City RDO No. 114 Mati, Davao Oriental RDO No. 115 Digos City, Davao Del Sur Hence, effective June 1, 2016, no manually prepared Certificate Authorizing Registration (CAR) will be issued by the Bureau. In view of the full implementation of the eCAR System nationwide, please ensure that all electronic CARs which will be issued by the Bureau will be processed and validated using the eCAR Verification System, thereby removing the option to input manual CARs in the Registry of Deeds. ATICcS Thank you. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue Joint BIR-LRA Memorandum Circular