Amendment to Revenue Audit Memorandum Order No. 1-80

July 15, 1982 REVENUE AUDIT MEMORANDUM ORDER NO. 2-82 SUBJECT : Amendment to Revenue Audit Memorandum Order No. 1-80 TO : All Internal Revenue Officers and Others Concerned Part "C. AUDIT PROCEDURES" of Revenue Memorandum Order No. 1-80, dated June 5, 1980, is hereby amended to read as follows: In the verification of claims against the estate for transfer tax purposes, the following audit procedures must be observed: "1. Documentation . The following documents must be scrutinized and certified true copies thereof, except documents as specified in (e) hereunder submitted with the report. "a) The promissory note or contract of loan signed by the debtor. "b) In the case of advances made by individuals or corporations to the deceased, copies of vouchers, cancelled checks or other documents evidencing the advances. "c) A xerox or authenticated copy of the latest balance sheet of the corporation should be attached to the report. "d) Other documents or evidences relevant to the grant of the loan, i.e., real estate or chattel mortgage, a copy of the Certificate or Title to show annotations thereof, etc. "e) Where the settlement is made thru the Court in a testate or intestate proceeding, pertinent documents filed with the Court evidencing claims against the estate, or the Court order approving the said claims if already issued. casia "f) In case the creditor is a corporation: a) The sworn certification as to the balance of the account should be signed by the President, Vice-President, or other principal officer of the corporation. "g) The creditor must agree in writing (Annex 'A') to allow further verification by the BIR of his pertinent records for the purpose of substantiating the claims against the estate of the deceased, as required under this Revenue Audit Memorandum Order. "h) Certification under oath (Annex 'A') by the creditor as to (i), the exact balance of the liability, including accrued interest at the time of death, except balances of bank loans where a mere certification (not under oath) is sufficient, provided that the investigating examiner confirms that it is actually issued by an authorized officer of the bank; and as to the place where the latest income tax return of the creditor was filed." RUBEN B. ANCHETA Acting Commissioner ANNEX A Certification of Claims Against the Estate by the Creditor This is to certify that the undersigned individual/corporation extended on _____________, 19____ a loan to the late _________________________ in the amount of ____________________(Name of Decedent) ______________________ and that the actual balance of the debt as of the time of death of the deceased, including accrued interest, amounted to P_______________________ and that for purposes of proving this claim, the undersigned agrees to present for verification when required all the pertinent records or documents. ___________________________ Signature of Creditor Address ___________________ __________________________ T.A.N. ____________________ SUBSCRIBED AND SWORN TO before me this _______ day of _____________________, 19_____ in the City of _______________, with Residence Certificate No. _________, issued at ___________________ _________________, dated ____________________. _________________________________ Notary Public/Administering Officer