Creation of Seized and Forfeited Properties Section, Property Division and the Functions Thereof

August 22, 1974 REVENUE ADMINISTRATIVE ORDER NO. 02-74 SUBJECT : Creation of Seized and Forfeited Properties Section, Property Division and the Functions Thereof TO : All Internal Revenue Officers and Others Concerned Pursuant to Presidential Decree No. 308 and pending the implementation of the staffing pattern of the Bureau of Internal Revenue as reorganized and cognizant of the problems encountered in the control and disposition of seized and forfeited properties taken over by the Government from taxpayers in satisfaction of their delinquent taxes and/or arising out of their violation of internal revenue laws, there is hereby created a Seized and Forfeited Properties Section in the Property Division of the Bureau of Internal Revenue. cdta 1. Purpose and Scope . The Seized and Forfeited Properties Section shall have jurisdiction, control, and responsibility over all properties acquired by the Bureau for the Government in satisfaction of delinquent taxes, and/or arising out of the illegal use in the production and/or transportation of illicit articles subject to the laws, rules and regulations on this matter. Included in the category of Seized and Forfeited Properties are distrained personal property, properties seized under forfeiture, absolutely forfeited real properties, and properties or articles where no specific taxes, advance sales tax or compensating tax have been paid upon the removal from the bonded warehouses, and/or timber and other forest products illegally cut or removed from the cutting area. 2. Functions . This Section shall exercise staff functions, as follows: a) Recommend procedures, work program and activities related to seized and forfeited properties; b) Recommend guidelines for the control, handling and safekeeping and maintenance and disposition of seized and forfeited properties; c) Recommend necessary steps to effect the transfer in the name of the Republic of the Philippines of titles of real properties declared forfeited; d) Receive under its custody owner's duplicate Transfer Certificates of Title of real properties, stocks, securities, bonds and other documents evidencing ownership; e) Recommend guidelines and instructions for the proper administration of real properties absolutely forfeited in favor of the Government, in accordance with Section 329 of the National Revenue Code, as amended, and of the applicable provisions of Revenue Regulations No. 3-69 dated April 21, 1969, irrespective of whether or not the Certificate of Title thereof has been transferred to the Republic of the Philippines. f) Receive and shall have custody and disposition, in accordance with law, all articles, chattels, vehicles, movable machineries, furniture and fixtures of any sort which have been taken, seized, confiscated, and/or forfeited in favor of the Government on cases in the Greater Manila area, or those in the other regions as may be directed by the Commissioner of Internal Revenue. g) Maintain and update the inventory and records of all seized and forfeited properties and keep a permanent file thereof for ready reference; h) Conduct field inspections of field offices to verify whereabouts, status and inventory of seized properties, as the exigencies of the service may require; and i) Prepare monthly reports of accomplishments to the Commissioner of Internal Revenue, and the reports required by law and existing regulations to the Commissioner on Audit concerning seized and forfeited properties and the revenue derived therefrom. 3. Turnover of Records . Upon approval of this Order and the organization of the Seized and Forfeited Properties Section, all records and documents on seized and forfeited properties shall be turned over to it from the appropriate group, unit or committee handling such records and documents. casia 4. Repealing Clause . All orders, circulars or regulations inconsistent with any of the provisions of this Revenue Administrative Order are repealed or modified accordingly. 5. Effectivity . This Order shall take effect upon its approval. MISAEL P. VERA Commissioner of Internal Revenue TAN: 1601-593-5 APPROVED: PEDRO M. ALMANZOR Acting Secretary of Finance October 2, 1974 ANNEX A June 27, 1972 MEMORANDUM FOR: The Commissioner The National Committee on Forfeited Property created by RSO No. 7-71 dated January 7, 1971 is now in the process of finalizing its work to thresh out the procedural gaps on the matter. In this juncture, we are submitting the proposed Revenue Administrative Order for your consideration and approval by the Secretary of Finance. Attached also are copies of our letters to the Chairman, Regional Committee on Forfeited Property for the final termination of this project. cd RESTITUTO F. BACAREZA Revenue Operations Head (Administrative Services) Chairman, Committee on Forfeited Property ANNEX B September 26, 1974 The Honorable The Secretary of Finance Manila S i r : There is enclosed herewith Revenue Administrative Order No. 2-74 the subject matter of which is the "Creation of Seized and Forfeited Properties Section in the Property Division, for your approval. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 ANNEX C 1st Indorsement October 2, 1974 Respectfully returned to the Commissioner of Internal Revenue, Manila, hereby approving, pursuant to Presidential Decree No. 308, the within Revenue Administrative Order No. 2-74 the subject of which is the "Creation of Seized and Forfeited Properties Section in the Property Division and the Functions thereof." cdti PEDRO M. ALMANZOR Acting Secretary