Requirement to Indicate Taxpayer Account Number on Certain Documents in Connection with Stock Transactions

February 9, 1976 REVENUE MEMORANDUM CIRCULAR NO. 05-76 SUBJECT : Requirement to Indicate Taxpayer Account Number on Certain Documents in Connection with Stock Transactions TO : All Internal Revenue Officers and others concerned Section 7(d) of Revenue Regulations No. 2-70 dated November 11, 1970 which implement Republic Act No. 6141, as amended by Presidential Decree No. 10, dated October 2, 1972, and further amended by Presidential Decree No. 779, dated August 25, 1975, provides: " (d) RECEIPT OF TAX PAYMENT . Payment shall be covered by an official receipt to be issued by the stockbroker, transfer agent or secretary of the corporation, as the case may be. The receipts shall indicate the name, address and Taxpayer Account Number (TAN) of the Seller or Transferor, kind and number of shares (common or preferred), selling price or market value and amount of tax. The official receipt must, prior to use, be first registered with the Bureau of Internal Revenue. Stockbrokers may use their current confirmation of sales as official receipts provided that said confirmation of sales contain the information provided for in the preceding paragraph hereof and are first registered with the Bureau of Internal Revenue prior to use." It will be noted from the above-quoted provisions of Revenue Regulations No. 2-70 that stockbrokers may use their current confirmation of sales as official receipts. The said confirmation of sales may therefore be issued in lieu of official receipts only if they are first registered with the Bureau of Internal Revenue prior to use and the requirement to indicate the taxpayer account number thereon as well as the other pertinent requirements of existing revenue regulations applicable to issuance of sales invoices and receipts, are complied with. Attention is also invited to the fact that each of the various forms of reports prescribed as Annexes "A" (Brokers returns or remittances), "B" (Brokers weekly information return), "C" (Stock Exchange semi-monthly consolidated returns) and "D" (Transfer Agent/corporate secretary weekly information return) of the aforesaid regulations provides a space on which the taxpayer account number should be indicated, pursuant to Section 337-A of the National Internal Revenue Code. All internal revenue officers and others concerned are hereby enjoined to comply strictly with the requirements of the aforementioned revenue regulations, as well as Section 337-A of the Tax Code, and to give this Circular as wide a publicity as possible. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3