Issuance of Tax Clearance Certificate for Common Carriers

March 11, 1976 REVENUE MEMORANDUM CIRCULAR NO. 10-76 SUBJECT : Issuance of Tax Clearance Certificate for Common Carriers TO : All Regional Directors, Revenue District Officers, Collection Agents and others concerned In accordance with the provisions of Section 12 of Republic Act No. 1603 requiring the issuance of a tax clearance certificate before common carriers are issued certificates of registration, there is quoted hereunder Memorandum Circular No. 13, dated February 26, 1976 of the Land Transportation Commission: "Republic of the Philippines Department of Public Works and Communications LAND TRANSPORTATION COMMISSION East Avenue, Quezon City February 26, 1976 MEMORANDUM CIRCULAR NO. 13 "TO : All Regional Directors, Registrars and personnel concerned "SUBJECT : Payment of fixed and percentage taxes by common carriers (for hire) motor vehicles "They are hereby reminded of the provisions of Circular No. 11 dated February 27, 1968, requiring the application of Section 12, Republic Act No. 1603, in the registration of for hire motor vehicles. Hereunder is the pertinent portion thereof: 'In order to clarify the matter, effective immediately, all concerned shall implement Section 12 of R.A. 1603. The above mentioned Section contemplates the fact that 'no certificate of registration shall be issued' to common carriers subject to fixed and percentage taxes under Sections 182 and 192 of the National Internal Revenue Code, unless the operators or owners of such common carriers can show evidence of payment of the required taxes covering the period up to and including the calendar quarter immediately preceding the date of their application for renewal of registration of their motor vehicles. Under the same section, the evidence of such payments consists of the following: '(a) Tax clearance certificate issued by the Commissioner of the BIR, if in Manila, or his deputies, if in the provinces; '(b) Official receipts under which said taxes were paid. 'The said evidence of payment of fixed and percentage taxes must be noted on the certificate of registration. 'In view hereof, this requirement shall be enforced strictly on all common carriers subject to payments of fixed and percentage taxes as contemplated under Section 12 of R.A. 1603. Consequently, if a tax receipt or receipts presented by the operators or owners corresponding to the period up to and including the calendar quarter immediately preceding the date of their application for renewal of registration of their motor vehicles, then the tax receipts presented to the LTC Agency shall be construed as a substantial compliance with the requirements of the law.' "Henceforth, no for hire motor vehicles or common carriers subject to fixed and percentage taxes contemplated under Section 12 of Republic Act No. 1603 shall be accepted for registration until the requirements mentioned herein are complied with by the registrants. "Strict compliance hereof is hereby enjoined. (SGD.) ROMEO F. EDU Commissioner" In accordance with the foregoing, all revenue district officers are hereby instructed to issue the tax clearance certificate upon proper application of the owner of the common carrier and presentation of the following: 1. Taxpayer Account Number; 2. Privilege tax receipt for the year 1976; 3. Receipts for percentage tax payments of the common carriers tax for the whole year 1975; and 4. Evidence to show that the income tax return for 1974 had been filed and the tax due thereon paid. The papers should be processed and if found in order, the tax clearance certificate should be issued in accordance with the sample form attached. The certificate should be chronologically numbered starting from 001 with the Revenue District Office number written before and the year (1976) written after the chronological number. Thus, the Revenue District Officer of Revenue District No. 42, Oriental Mindoro will start with the following number: 42-001-76. All other districts must start with 001 the variation being only in the district number. The tax clearance certificate shall be prepared in triplicate; two copies of which should be given to the owner of the common carrier applying for the tax clearance who in turn will present the original to the Motor Vehicles Registration Office and retain the duplicate as his file copy. The triplicate should be retained in the files of the district office. All those concerned are hereby enjoined to comply strictly with the provisions of this Revenue Memorandum Circular. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 ANNEX Republic of the Philippines Department of Finance BUREAU OF INTERNAL REVENUE OFFICE OF THE REVENUE DISTRICT OFFICER Revenue District No. _____ ______________, 1976 TAX CLEARANCE CERTIFICATE NO._____ (Motor Vehicles) TO WHOM IT MAY CONCERN: This is to certify that _________________________________ of _________________________, the registered owner of motor vehicle/s described as follows: Kind of motor vehicle _______________ That he is provided with Taxpayer Account No. (TAN) ____________ and holder of PTR No. ________ issued at _________________________ on ____________________ in the amount of P_______ under Sec. 182 (A)(1), and has fully paid the percentage tax established under Sec. 192 in relation to Sec. 183 (a) of the National Internal Revenue Code from ___________ to _______________: That he has filed his income tax return for the year ______________ and paid the corresponding tax due thereon under O.R. No. ____________ dated _______________. That he will register __________ units under this Tax Clearance Certificate bearing the following plate numbers (Please state in the space below the plate number(s) and year(s): ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ Issued pursuant to the provisions of R.A. No. 1603 dated August 23, 1956, in compliance with Executive Order No. 213 dated March 5, 1958 and in accordance with R.A. No. 1538 dated June 16, 1956 in relation to R.A. 1610 dated August 4, 1969. ______________________ Revenue District Officer TAN _______________ Received original and duplicate: ___________________________ Owner or Authorized Representative Note: Please register only the number(s) and motor vehicle(s) with plate number(s) stated above. Circular addressed to all Regional Directors and Revenue District Officers asking them to coordinate with all agencies of the LTC to ensure the proper enforcement of RA 1603, as implemented in LTC Memorandum Circular No. 13, copy enclosed. February 27, 1976 Hon. Efren I. Plana Commissioner, Bureau of Internal Revenue Manila Sir: This refers to your letter inviting attention of this Commission to the provisions of Section 12 of Republic Act No. 1603 in connection with Sections 182 and 192 of the National Internal Revenue Code on the payment by common carriers of fixed and percentage taxes. In this connection, please be informed that as early as February 27, 1968, this Commission, under Circular No. 11, had enjoined the field agencies to require the operators/owners of for hire vehicles to present either a tax clearance from the Bureau of Internal Revenue or the official receipt showing the payment of fixed and percentage taxes before their vehicles are accepted for registration. May we assure you that this Commission will always cooperate in the strict enforcement of our laws. Very truly yours, ROMEO F. EDU Commissioner P.S. We enclose our Memo-Circular reminder regards.