Superseding the Provisions of RMC No. 142-2019 Circularizing the eDST System's Balance Adjustment Facility as an Option for Recovery of Erroneously Deducted DST

December 15, 2022 REVENUE MEMORANDUM CIRCULAR NO. 154-2022 SUBJECT : Superseding the Provisions of RMC No. 142-2019 Circularizing the Electronic Documentary Stamp Tax (eDST) System's Balance Adjustment Facility as an Option for Recovery of Erroneously Deducted DST TO : All Revenue Officials, Employees and Others Concerned This Circular is hereby issued to supersede the provisions of Revenue Memorandum Circular (RMC) No. 142-2019 which prescribed the requirements for availing the Balance Adjustment facility of the Electronic Documentary Stamp Tax (eDST) System as an option for recovery of erroneously deducted amount of DST from the taxpayer's ledger, in lieu of the tax credit/refund remedy. POLICY For the recovery of erroneously deducted DST from the taxpayer's ledger balance in the eDST System, the balance adjustment facility of the system shall be available only for reasons arising from technical/system errors while the tax credit/refund remedy provided for under Sections 204 (C) and 229 of the 1997 Tax Code, as amended, shall apply for reasons other than purely technical/system errors ( i.e. , erroneously encoded information details, double/multiple affixtures of DST by the taxpayer on the same documents, etc.). PROCEDURES The following procedures in availing the balance adjustment facility shall be observed: 1. A written request for adjustment in the taxpayer's ledger balance shall be filed by the taxpayer-user with the Chief, Miscellaneous Operations Monitoring Division (MOMD), Collection Service located at the National Office of this Bureau with all the necessary documentary proofs on the incident(s) that gave rise to the erroneous deduction of DST from the taxpayer's ledger balance. 2. Within twenty-four (24) hours from receipt of the written request, the MOMD shall check the completeness of the documentary proofs submitted by the taxpayer-user and, if determined complete, shall endorse the taxpayer's request to the Chief, Administrative Systems Division (ASD) using the data request form (Balance Adjustment Recovery Data Request Form Annex "A"). 3. The ASD shall validate/verify the request of the taxpayer and the results of such validation/verification shall be indicated in the space provided for under the same data request form. The accomplished data request form shall be returned by the ASD to the MOMD within five (5) days from receipt of the same. 4. The MOMD shall then forward the data request form to the Assistant Commissioner, Collection Service (ACIR, CS) for review and approval or denial thereof. 5. Upon receipt of the data request form from the ACIR, CS, the MOMD shall perform the following: a. The MOMD shall notify the taxpayer-user, in writing or through email, the results of the request for balance adjustment within one (1) working day from receipt of the duly accomplished request form from the ACIR, CS. b. In case of approval, the Chief, MOMD shall approve the taxpayer-user's request in the "Balance Adjustment Details" facility of the eDST System indicating briefly the reasons for adjustment in the box provided for. c. In case of denial, the reason(s) for the denial of the taxpayer's request shall be clearly stated in the notice to the taxpayer. d. Should it be determined that the reason for the erroneous deduction of DST from the taxpayer's ledger did not arise from purely technical/system error, the MOMD shall notify the taxpayer-user of the denial of its request and inform the latter that the tax credit/refund remedy provided for under Sections 204 (C) and 229 of the 1997 Tax Code, as amended, shall apply on the case. All internal revenue officials, employees and others concerned are hereby enjoined to give this Circular as wide publicity as possible. This Circular shall take effect immediately. (SGD.) ROMEO D. LUMAGUI, JR. Commissioner of Internal Revenue ANNEX A Balance Adjustment Recovery Data Request Form