Publishing the amendment effected by Presidential Decree No. 1119 to Section 124 of the National Internal Revenue Code and Prescribing the Guidelines and Procedure to be Followed by all Concerned Before the Date of Effectivity of Said Decree and Before the Promulgation of the Implementing Revenue Regulations Thereon

May 11, 1977 REVENUE MEMORANDUM CIRCULAR NO. 11-77 SUBJECT : Publishing the amendment effected by Presidential Decree No. 1119 to Section 124 of the National Internal Revenue Code and Prescribing the Guidelines and Procedure to be Followed by all Concerned Before the Date of Effectivity of Said Decree and Before the Promulgation of the Implementing Revenue Regulations Thereon TO : All Internal Revenue Officers concerned For the information and proper guidance of all concerned, there is quoted hereunder Presidential Decree No. 1119: "PRESIDENTIAL DECREE NO. 1119" "AMENDING SECTION 124 OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED," "WHEREAS, manufacturers of oil products are allowed at present to remove and transfer oil products from the refinery to bonded warehouses without the prepayment of specific tax, and the tax due thereon becomes payable only upon removal of the products from the bonded warehouse;" "WHEREAS, the present procedure requires too much manpower and too much paper work; and" "WHEREAS, for purposes of economy and administrative efficiency, a simplified procedure should be instituted by allowing oil companies to pay specific taxes on locally manufactured oil products within a prescribed period from the date of removal from the place of production;" "NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree the following:" "SECTION 1. Section 124 of Commonwealth Act No. 466, as amended, otherwise known as the National Internal Revenue Code, is hereby further amended to read as follows: "Sec. 124. Payment of specific tax on domestic products. Specific tax on domestic products shall be paid by the manufacturer, producer, owner, or person having possession of the same; and, except as otherwise especially allowed, such taxes shall be paid immediately before removal from the place of production; PROVIDED, HOWEVER, THAT SPECIFIC TAXES ON LOCALLY MANUFACTURED PETROLEUM PRODUCTS LEVIED UNDER SECTIONS 142, 144 AND 145 OF THIS TITLE, EXCEPT LUBRICATING OIL AND GREASE, SHALL BE PAID WITHIN FIFTEEN (15) DAYS FROM THE DATE OF REMOVAL THEREOF FROM THE PLACE OF PRODUCTION. "IF THE SPECIFIC TAX ON PETROLEUM PRODUCTS IS NOT PAID WITHIN THE TIME SPECIFIED ABOVE, THE AMOUNT OF TAX SHALL BE INCREASED BY TWENTY-FIVE PER CENTUM THE INCREMENT TO BE A PART OF THE TAX AND THE ENTIRE AMOUNT SHALL BE SUBJECT TO INTEREST AT THE RATE OF FOURTEEN PER CENT PER ANNUM. "LOCALLY MANUFACTURED PETROLEUM PRODUCTS PRODUCED AND STOCKED BY THE PHILIPPINE NATIONAL OIL COMPANY PURSUANT TO THE NATIONAL POLICY OF MAINTAINING ADEQUATE STRATEGIC FUEL RESERVES SHALL BE EXCLUDED FROM THESE PROVISIONS AND MAY CONTINUE TO REMAIN BONDED." "SECTION 2. This Decree shall take effect thirty (30) days from promulgation hereof." "Done in the City of Manila, this 15th day of April in the year of Our Lord, nineteen hundred and seventy-seven. (SGD.) FERDINAND E. MARCOS President Republic of the Philippines By the President: (SGD.) JUAN C. TUVERA Presidential Assistant To insure the smooth transition in the operation of existing bonded terminals and the implementation of said Decree before the effective date, and before the promulgation of the Revenue Regulations related thereon, the following guidelines should be observed by all concerned: aisa dc 1) The date of effectivity of Presidential Decree No. 1119 shall be on May 15, 1977, and all existing bonded terminals, except those terminals that may be designated by the PNOC to continue and remain bonded, shall be unbonded effective as of the close of business hours on May 14, 1977. 2) Revenue inspectors assigned as storekeepers at the bonded terminals shall continue performing their duties as such up to the closing of business hours on May 14, 1977. An inventory taking shall be conducted on the existing stocks stored thereat as of the close of business hours on May 14, 1977 and a certification of outstanding inventory should be prepared and jointly attested to by the bonded terminal manager and the revenue officers concerned to be made a part of the final report, and shall assess the corresponding deficiencies on specific tax payments, if any, immediately upon termination of their inventory-taking. All official register books should be closed and should be surrendered. All storekeepers assigned at the refineries should continue discharging their duties. 3) Upon the date of effectivity of this Decree all removals/withdrawals from the refineries and processing plants of all petroleum products, with the exception of lubricating oils and greases, shall be payable within FIFTEEN (15) days from the date of such removal/withdrawal. 4) The due dates of payment of specific tax on petroleum products shall be clearly indicated in the Withdrawal Certificate covering individual deliveries. 5) In addition to the monthly report on deliveries (withdrawals/removals) and payment of specific taxes, a weekly report should be rendered wherein all daily removals/withdrawals beginning the effective date should be noted and summarized and submitted to the Revenue Service Chief (Specific Tax), Attn: The Chief, Gasoline & Miscellaneous Tax Division. Strict compliance of all concerned is hereby enjoined. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-S2828-A-8