Treasury Bills (Tax Anticipation Series) in Payment of Income Taxes

March 7, 1967 REVENUE MEMORANDUM CIRCULAR NO. 12-67 SUBJECT : Treasury Bills (Tax Anticipation Series) in Payment of Income Taxes TO : All Revenue Operations Heads, Regional Directors, Revenue District Officers, Chiefs of Collection Branches, Collection Coordinators, Collection Agents and Others Concerned Republic Act No. 245 provides that holders of Treasury Bills (tax anticipation series) may elect to apply the face value of these Bills for the payment of income taxes due and payable during any income tax due date as specified is the face of the bill. For this purpose the Secretary of Finance issued Department Order #57-67 dated February 22, 1967 entitled "Regulations and Procedures covering the Acceptance, Receipt, Handling, Deposit and Accounting for the Treasury Bills (Tax Anticipation Series) in Payment of Income Taxes" to provide guidance and information to all concerned on the role revenue collection agencies play in the payment of income taxes by Treasury Bills (tax anticipation series). The pertinent portion of the said Order defining the procedures for the BIR regarding the acceptance, receipt, handling, deposit and accounting of Treasury Bills (tax anticipation series) for the payment of income taxes is quoted hereunder, for compliance: LexLib "I. Description, Nature and Use of the Bills . Treasury Bills (Tax Anticipation Series) issued pursuant to the provisions of Republic Act No. 245 shall be redeemable in Philippine Currency on their respective maturity dates, or thereafter, at 100% of face value without interest; unless the holder thereof elects to apply the face value of these bills for the payment of income taxes due and payable during any income tax due dates as specified in the face of the bill, in which event, the maturity date of these bills shall be accelerated to become due and payable on the tax due date specified therein. By virtue of the acceleration clause embodied in the face of these bills, any holder may exercise this opinion by accomplishing the check printed at the back of the bill, filling up the space provided for the name of the payee thereof; and endorsing the instrument in favor of the Commissioner of Internal Revenue, by affixing his signature in the block provided for the purpose. The check can then be used to pay income taxes due on any income tax due dates (April 15 and July 15) as may be indicated in the face of the bill, upon filing of the Income Tax Return, with the Commissioner of Internal Revenue, or the Regional Director or Collection Agent or other Collecting Officers duly authorized by the Commissioner of Internal Revenue in the locality where such taxes are payable. "Only Treasury Bills (Tax Anticipation Series) issued for the specific income tax due dates are acceptable in payment of income taxes during the said particular income tax period. No bills shall be accepted or income tax purposes unless such treasury bill series pertains to such specific income tax due dates. II. Role of the Bureau of Internal Revenue . Whenever a taxpayer, upon filing his income tax return with the Commissioner of Internal Revenue, or Regional Director, or Collection Agents, or other Collecting Officers elects to apply the face value of the Treasury Bills (Tax Anticipation Series) for the payment of his income taxes, he shall be required to complete the printed form at the back of the bill by filling the space provided for the payee thereof with his name in full and endorsing the instrument in favor of the Commissioner of Internal Revenue by affixing his signature in the block provided for the purpose. With the exercise of this option, and the accomplishment and endorsement of the check printed at the Back of the Treasury Bill (Tax Anticipation Series) by the taxpayer and accepted for the purpose of income tax payment, the same shall be treated in the same manner as ordinary checks, warrants or drafts, as follows: "a. Appropriate official receipt acknowledging receipt of payment of income taxes paid shall be issued to the taxpayer, the check printed at the back of the treasury bills forms, whole or part of the payment made. "b. Whenever the face value of the treasury bill presented in payment of taxes is smaller than the amount of taxed due, the difference shall be paid by the taxpayer either in cash or certified checks payable to the Commissioner of Internal Revenue. Under no circumstance shall a treasury bill is accepted if the face value thereof is greater than the amount of tax due for payment. Such bill shall first be exchanged with treasury bills of smaller denomination at the Securities Market Department, Central Bank of the Philippines. "c. Income tax returns filed after the deadline for filing income tax returns shall be subject to the usual penalty due for late filing in accordance with the pertinent provisions of the National Internal Revenue Code (CA No. 466, as amended). Treasury bills surrendered in payment of income taxes accompanying such returns filed after the deadline shall, however, be accepted at par value which shall form as a whole or part of such payment of income taxes including the penalty due for late filing. "d. Checks printed at the back of the Treasury Bills accepted in payment of taxes shall be marked on the face thereof by a rubber stamp or other imprinting device with the nomenclature thus: Accepted in Payment of Income Tax under Official Receipt No. ________ dated ______ The imprinting of the above notation may be done by a validating machine, if one is available and in use. "e. Checks printed at the back of the Treasury Bills received in payment of income taxes shall form part of the collector's cash items and shall be accounted for and deposited or remitted to the National Treasury in the same manner as a check, warrant or other cash items forming part of the receipts of the BIR Collection Agents or other Collecting Officers. Deposits or remittances made shall be usual be accompanied by a Remittance Advice together with other collections. Such bills shall be properly endorsed by the depositor at the space provided for the purpose and shall be stamped "FOR DEPOSIT ONLY" followed by the name and place of the office that accepted payment, which may be imprinted by a rubber stamp or other imprinting devise or by handwriting. "f. In the event that a check printed at the back of the treasury bill previously accepted in payment of taxes is finally dishonored by proper authorities and subsequently returned to the BIR, such checks shall be returned to the taxpayer on record and he shall be considered delinquent in the payment of his income tax liability. He shall therefore be subject to the usual penalty in accordance with the existing laws, rules and regulations. "g. Replacement of torn, spoiled or mutilated checks printed at the back of the treasury bills shall be made in accordance with existing laws and regulations of the Central Bank of the Philippines." All revenue personnel concerned are enjoined to comply strictly with the above provision. Attached for your information and guidance is a mimeographed facsimile (front side and reverse side) of a Treasury Bill (tax anticipation series). cdt (SGD.) MISAEL P. VERA Commissioner of Internal Revenue