Supplementing Revenue Regulations No. 3-69 Disposition of Seized and/or Absolutely Forfeited Properties thru Summary Remedies

June 22, 1972 REVENUE ADMINISTRATIVE ORDER NO. 08-72 SUBJECT : Supplementing Revenue Regulations No. 3-69 Disposition of Seized and/or Absolutely Forfeited Properties thru Summary Remedies TO : All Revenue Operations Head, Revenue Directors, Chiefs, Collection Branches, Revenue District Officers, Collection Agents and Others Concerned This Revenue Administrative Order is promulgated to supplement and clarify the instructions contained in Revenue Regulations No. 3-69 dated April 21, 1969, otherwise known as the "Regulations on Summary Remedies". Further, this order aims to delineate the responsibilities of the revenue personnel concerned in the proper implementation of the procedural steps in the forfeiture, administration and final disposition of all properties that are seized and/or absolutely forfeited in favor of the government of the Republic of the Philippines thru Summary remedies: cdti A. Personal Property distrained, sold and/or seized in satisfaction of tax indebtedness to the Republic of the Philippines, is absolute and shall not be subject to redemption by the taxpayer or by anybody else. B. Real property levied sold and/or forfeited in satisfaction of tax indebtedness to the Republic of the Philippines is subject to redemption within one year period from the date of forfeiture. However, the declaration of forfeiture of real Property (BIR Form No. 13-06) must be accomplished and duly registered with the Registered of Deeds of the place where the property is located. But if the property be not thus redeemed, the forfeiture shall become absolute. (Sec. 328 of the Internal Revenue Code). And the Declaration of Absolute Forfeiture should be prepared and registered with the register of deeds and simultaneously a request be made to transfer the title of the property from the name of the taxpayer to the Republic of the Philippines. Administration and Management : After the registration of the deeds of declaration of absolute forfeiture of real property with the Office of the Register of Deeds, the Revenue Regional Director and/or Revenue District Officer as the case may be shall take possession of the property, administer and manage the same, gather its civil fruits and account the proceeds thereof and he shall see to it that the title and/or the declaration of the property is transferred from the name of the taxpayer to the Republic of the Philippines. Further disposition of property After the registration of the deeds of declaration of absolute forfeiture of real property or even after the securing of title over the same in favor of the Republic of the Philippines the same property may still be disposed of either at public or at private sale as provided for by Sec. 329 of the tax code. In the case where the prospective buyer of the forfeited property is either the taxpayer himself or any of his legal heir or a third party, the reasonable price which may be accepted shall be the Fair Market Value at the time of the sale. Final Disposition of Seized Personal Properties : a) The Commissioner may order the Revenue Director or the Revenue District Officer to sell the personal properties seized and/or purchased in behalf of the Republic of the Philippines for any reasonable amount that can be realized through the sale. b) Personal properties that cannot be sold at private sale but which could be used by the Bureau of Internal Revenue, such as office equipment and furniture, shall, with due notice to the Auditor General, be availed of the Bureau for its own use. c) Personal properties that are not capable of being directly utilized by the Bureau of Internal Revenue shall be turned over to the proper government agency for disposition or utilization. Final Disposition of Absolutely Forfeited Real Properties : a) Upon giving not less than twenty days' notice, the Revenue Regional Director may sell and dispose any real estate absolutely forfeited under his custody at public auction or with the prior approval of the Secretary of Finance, may dispose of the same at private sale. The proceeds of sale shall be deposited with the National Treasury and an accounting of the same shall be rendered to the Commissioner of Internal Revenue and Auditor General. b) Real properties which cannot be sold at public auction or at private sale as stated above due to the absence of any interested buyer shall, with the approval of the Secretary of Finance, be turned over to the Bureau of Buildings and Real Property Management of the Department of General Services for final disposition and administration. The various reports which Revenue District Officers and Revenue Regional Directors are required to submit to the Commissioner of Internal Revenue under Revenue Regulations No. 3-69 dated April 21, 1969, re properties forfeited, sold or redeemed, shall be submitted not later than the 10th day following the close of every month thru the Revenue Operations Head (Collection). The Revenue Operations Head (Collection) shall consolidate and maintain control records of such properties and shall cause the preparation, for the Commissioner of Internal Revenue, of monthly reports to the Auditor General containing a summary of the data or information received. A copy of this report to the Auditor General shall be furnished the Chief, Accounting Division of the Bureau of Internal Revenue for accounting purposes so that the forfeiture, sales and redemption of the properties shall be duly reflected in the Bureau's books of accounts and financial statements. Expenses for registration fees with the Register of Deeds, expenses for advertisement and/or publication of notice of sale, and costs of sale shall be advanced by the Collection Agent from his collections pursuant to Republic Act No. 5203, as implemented by Memorandum Order No. 21-69 dated April 24, 1969. casia This Revenue Administrative Order shall take effect upon approval thereof. MISAEL P. VERA Commissioner of Internal Revenue APPROVED: CESAR VIRATA Secretary of Finance