Procedure in the Issuance of Permits to Use Loose Leaf Books of Accounts, Records, Invoices and Receipts

May 28, 1982 REVENUE MEMORANDUM CIRCULAR NO. 13-82 SUBJECT : Procedure in the Issuance of Permits to Use Loose Leaf Books of Accounts, Records, Invoices and Receipts TO : All Regional Directors, Revenue District Officers, Collection Agents and Others Concerned In order to insure effective control and supervision in the issuance of permits to use loose leaf books of accounts, records, invoices and receipts, the following procedure is hereby promulgated for the guidance of all concerned: 1. All requests for permit to use loose leaf books of accounts, records, invoices and receipts should be filed either in the office of the Revenue District Officer or the Regional Director. The said request should be referred to the fieldmen of the revenue district who has jurisdiction over the taxpayer, for appropriate investigation. The investigation should be conducted in accordance with the following: a) The necessity of the use of the loose leaf forms requested should be determined and the reason or reasons for recommending the approval or disapproval of the request should be clearly stated in the report; b) The report should, likewise, include a statement of the privilege or fixed taxes paid by the taxpayer by citing the official receipt/confirmation number, date of payment, amount paid and the corresponding paragraph and schedule, including a statement whether the business of the taxpayer has been duly registered with the Bureau of Internal Revenue. The examiner should investigate whether all the privilege and fixed taxes due on the activities engaged in by the taxpayer have been duly paid; c) The taxpayer should be informed by the investigating examiner that a condition precedent to the issuance of a permit to use loose leaf invoices and receipts is that the taxpayer upon receipt of the permit should immediately register with the Collection Agent or the Revenue District Officer, a register which should be a bound book. The bound book should show in detail and in column the serial numbers of the invoices or receipts printed for use by the business on the left side of the book. Every additional printing should be recorded on the same side of the bound book. On the right hand side, the serial number of the invoices and receipts used during the week, together with the total amount involved should be entered weekly. 2. Upon receipt by the Revenue District Officer of the report of the investigating examiner, he must check with his IBM list of delinquent accounts to determine whether the taxpayer owes anything to the Bureau. If the taxpayer is delinquent in the payment of his tax liabilities, such fact should be communicated to the taxpayer with the request that the delinquent taxes should be paid, otherwise his request to use loose leaf forms will not be given due course. If there is no delinquency, on the part of the taxpayer, the report should be forwarded to the Regional Office . casia 3. Upon receipt by the Regional Office, the reports should be processed to determine further through the Collection Branch whether the taxpayer has no delinquent tax liabilities, through the Tax Fraud Unit to determine whether the taxpayer has derogatory information regarding tax evasion, and through the Assessment Branch to determine whether the taxpayer has any pending report for processing which will involve a big amount of deficiency tax. In case of positive information on any of the above-mentioned branches, the Regional Director should inform the taxpayer of such fact, informing him that his request cannot be given due course. 4. In the preparation of the permit to use loose leaf invoices which should be prepared for the signature of the Regional Director, the taxpayer should be required to bind the loose leaf forms within fifteen (15) days after the end of his taxable year and the condition to register a bound book for recording of the serial numbers of invoices printed and serial numbers of invoices used within the week and the amount involved. The letter should likewise contain a statement that if the taxpayer is discovered to have violated any of the provisions of the bookkeeping regulations, his permit to use loose leaf forms will be immediately cancelled. 5. The permit should be duly numbered and a permit register should be kept in the Assessment Branch showing the number of the permit, name of the taxpayer, address, nature of loose leaf to be used and such other information as may be necessary for the keeping of the register. 6. All permits to be issued under this Circular are to be considered on a permanent basis unless otherwise revoked. This Revenue Memorandum Circular revokes all Circulars or Orders previously issued which are inconsistent herewith. This Circular shall become effective upon approval. (SGD.) RUBEN B. ANCHETA Acting Commissioner