Signing of Auxiliary Invoices (BIR Form No. 14.04) by Collection Agents

December 6, 1966 REVENUE MEMORANDUM CIRCULAR NO. 17-67 SUBJECT : Signing of Auxiliary Invoices (BIR Form No. 14.04) by Collection Agents TO : All Internal Revenue Officers and Others Concerned It has been observed by this Office that Collection Agents at the place of origin of logs do not sign the "jurat" at the back of auxiliary invoices pursuant to Section 11 of Regulations No. 85 of Department of Finance. Likewise, Collection Agents at the point of destination do not sign the statement regarding the measurement thereof, which show that they do not bother remeasuring although it is so provided in Sections 17(a) and 17(b) of Revenue Regulations No. 85 as quoted hereunder: cdta "SECTION 17. (a) Presentations of invoices to the Collector of Internal Revenue or to the deputy provincial treasurer AT DESTINATION : permits to discharge . If the charges have been paid before the removal of the forest products from the cutting area, the licensee or his agent shall, upon the arrival of the products at destination, present the official and auxiliary invoices to the corresponding deputy provincial treasurer, if in the province, or to the Collector of Internal Revenue, if in the City of Manila, and apply for a discharge permit by filling in the proper blank space at the bottom of the official invoice. The deputy provincial treasurer shall then grant a permit to discharge the forest products by accomplishing the form printed at the bottom of the official invoice, and return the official invoice to the consignee for his protection and as authority to discharge the forest products. When the shipment consists of timber, one copy of the auxiliary invoice with the date of discharge permit noted thereon in the proper place will be returned to the consignee, together with the official invoice. The deputy provincial treasurer will then proceed to remeasure the products and shall enter in ink the result of this remeasurement in the spaces provided for that purpose on the copy of the auxiliary invoice still in his possession and forward said copy of auxiliary invoice to the collector of Internal Revenue with his report of stamps sold. If upon remeasurement he finds an excess, he shall collect the charges due on such excess by issuing another official invoice and affixing the corresponding stamps thereto. On the face of such invoices and on its coupon and stub, a note shall be made as follows: "Collected on excess forest products shipped on invoice no. ______ "Assessment No. ________". The official invoice shall be delivered to the payor and the coupon shall be forwarded with the report of stamps sold to the Collector of Internal Revenue, together with the auxiliary invoice showing the result of remeasurement. "In case forest products are sold at the point of origin before shipment, the licensee or his agent shall notify the local deputy provincial treasurer who shall effect remeasurement of the products and note the result of such measurement on the copies of auxiliary invoices to be attached to the forestry coupon, if the same is still in his possession; otherwise, said copies of auxiliary invoices shall be forwarded immediately to the Collector of Internal Revenue, showing a notation to the effect that the products mentioned therein have been sold at the point of origin before the proposed shipment has been made. "If for some reason or another the forest products mentioned in a forestry official invoice could not be sent to the point of destination mentioned therein within the period of fifteen days from the date of issuance of the official invoice, the licensee or his agent shall so notify the local deputy provincial treasurer who shall make a notation in the official invoice stating "What up to that date" the forest products mentioned therein have not been shipped. As soon as the said products are ready for shipment, the local deputy provincial treasurer shall be notified by the licensee or his agent in order that the said official may issue a certificate in duplicate as to the date of shipment of said products, stating the name of the boat, and the invoice and assessment numbers. The original of the certificate shall be delivered to the licensee, and the duplicate forwarded immediately by mail to the Collector of Internal Revenue. "When for certain reasons and circumstances, the products are sent to a municipality other than that shown on the official invoice as destination, the licensee or his agent should follow the requirements outlined in the first paragraph hereof with regard to the presentation of the official invoice and the securing of discharge permit. The deputy provincial treasurer should in this case send immediately to the Collector of Internal Revenue the auxiliary invoices showing the issuance of the discharge permit and the measurement of the shipment instead of sending it with report of stamps sold. cdti "In case the shipment is to be unloaded in the City of Manila, a special discharge permit (B.I.R. Form No. 14.26) will be issued by the Collector of Internal Revenue. The procedure outlined above in the collection of short forest charges shall be followed in Manila under the direction of the Collector of Internal Revenue. "(b) Arrival at destination of shipments under bond . In the event that forest products have been shipped under bond, the auxiliary invoice in quadruplicate shall, upon the arrival of the products at destination, be presented to the Collector of Internal Revenue if such destination is in the City of Manila, or to the deputy provincial treasurer, if in the province, by the consignee, licensee, or agent of either of them and a discharge permit applied for by filling in the blank spaces on the auxiliary invoice. In the City of Manila, a special discharge permit will be issued as prescribed in paragraph (a) of this Section. In the provinces, the deputy provincial treasurer shall grant a permit to discharge forest products by filling in ink the spaces provided for that purpose in the auxiliary invoice. He shall give one copy of the auxiliary invoice with the discharge permit duly executed to the consignee, licensee, or the agent of either, to serve as authority discharge the forest products, and then he shall proceed to remeasure the forest products listed in the auxiliary invoice and note in ink the result of his remeasurement on the space provided for that purpose on the remaining copies of the auxiliary invoice. The proper charges shall be paid by the licensee or his agent within thirty days from their arrival, and stamps affixed to an official invoice and cancelled as prescribed in Section 11 hereof. The assessment and serial numbers of the official invoice shall be entered on the copies of the auxiliary invoices in the possession of the deputy provincial treasurer. The data on which the forest products were discharged shall be entered in ink on the corresponding space in the official invoice in order to prevent the reuse of the invoice for future shipments. The official invoice shall be kept by the payor for his protection. The coupon and two copies of the auxiliary invoice containing the result of remeasurement shall be forwarded, with the report of stamps sold, to the Collector of Internal Revenue. The remaining one copy of the auxiliary invoice shall be sent by the deputy provincial treasurer to the nearest forest station." In view thereof and to forestall or at least minimize and/or discourage illegal logging, fraudulent shipment of logs and evasion of forest charges, it is hereby directed that henceforth, all Collection Agents at the place of origin must sign the "jurat" at the back of all invoices (BIR Form 14.04) covering logs being transported even if the licensee is bonded, notwithstanding the statement enclosed in parenthesis (when the products are shipped under bond, the above certificate should be signed before shipment, but need not be sworn to as appearing in the said "jurat"). Collection Agents at the point of destination are likewise directed to remeasure the logs upon presentation to them of the covering auxiliary invoices and then sign the statement appearing at the back thereof relative to remeasurement. In case of inability on the part of the Collection Agent at the point of destination to measure the logs, the services of the employees of the Bureau of Forestry nearest to his station town should be availed of in accordance with the provisions of Section 262 of the National Internal Revenue Code, as amended. The provisions of this circular should be followed strictly by the Collection Agents concerned and any violation thereof by any taxpayer should be immediately reported to the Commissioner of Internal Revenue by the Collection Agent either at the point of origin or destination as the case may be. This revenue memorandum circular shall become effective upon approval thereof. LibLex (SGD.) MISAEL P. VERA Commissioner of Internal Revenue APPROVED: (SGD.) EDUARDO Z. ROMUALDEZ Secretary of Finance