Publishing the Joint BIR-LBP Regulations No. 1-92 relative to the use of the matured/maturing portion of the 10-year Land Bank Bond as payment for internal revenue tax liabilities

March 24, 1992 REVENUE MEMORANDUM CIRCULAR NO. 20-92 SUBJECT : Publishing the Joint BIR-LBP Regulations No. 1-92 Relative to the Use of the Matured/Maturing Portion of the 10-year Land Bank Bond as Payment for Internal Revenue Tax Liabilities TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, quoted hereunder is the Joint BIR-LBP Regulations signed February 12, 1992 governing the use of the matured/maturing portion of the 10-year Land Bank (LB) Bond as payment of internal revenue taxes. JOINT BIR-LBP REGULATIONS NO. 1-29 "Sec. 1. Objective These joint BIR-LBP Regulations are issued pursuant to Section 245 and Section 4, both of the Tax Code, in relation to Section 18(4)(b)(v) of Republic Act 6657 otherwise known as the Comprehensive Agrarian Reform Law (CARL) and in accordance with the Memorandum of Agreement dated December 15, 1988, entered into by the Department of Finance and the Land Bank of the Philippines and other Government agencies, for the strict observance of the officers of the Bureau of Internal Revenue (BIR), the Land Bank of the Philippines (LBP) and the various holders of 10-year LB bonds desiring to utilize the same as payment for internal revenue taxes. "Sec. 2. Scope These Regulations shall govern the use of the matured/maturing portion of the 10-year LB bond held by the taxpayer/bondholder as payment for the following internal revenue tax liabilities, except withholding tax for non-withholding or non-remittance of taxes withheld: aisa dc "a) Income Taxes - Individual and Corporate "b) Final Capital Gains Tax Due from Individual Taxpayers "c) Estate Tax "d) Donor's Tax "e) Value-Added Tax (VAT) "f) Excise Tax "g) Other Percentage Taxes "Sec. 3. Definition of Terms As used in these Regulations the terms and phrases shall be taken to mean as follows: "3.1 Ten-year LB Bond an instrument of indebtedness issued by the Land Bank of the Philippines to landowners whose agricultural landholdings were covered by the Government's agrarian reform programs. "3.2 Matured Portion of the Bond that part of the outstanding principal amount of the bond that has become due and redeemable by the Land Bank and may be equivalent to ten percent (10%) of the principal or more depending upon the number of years that had elapsed from the date of its issue. "3.3 Maturing Portion of the Bond ten percent (10%) of the outstanding principal amount of the bond that shall become due and redeemable by the Land Bank within the same year that the tax is due for payment. acd "3.4 Bondholder a holder in good faith of a "Bearer" 10-year LB bond or a landowner in whose name the 10-year LB bond was issued, as well as his assigns or successors-in-interest. "3.5 Taxpayer Identification Number (TIN) a number supplied by the BIR to the taxpayer under the single taxpayer numbering system for proper identification. This shall be used by the taxpayer in lieu of his tax account number (TAN). "3.6 Increments surcharges, interest and compromise penalty as addition to the basic tax for late filing and/or late payment. "3.7 Deficiency Tax Assessment a deficiency tax liability that is determined after a tax audit and examination. "3.8 Authority to Accept Payment (ATAP) an order addressed to a BIR collection officer for him to accept payment. This order is issued in cases when a taxpayer pays his tax after the due date or when a deficiency tax, which is not covered by a tax return, is to be paid. The order indicates the name and address of the taxpayer, the kind of tax due, the taxpayer identification number (TIN), and the computation of the basic tax due as well as the increments, if any. "3.9 Deed of Assignment a legal instrument executed by the taxpayer/bondholder indicating therein his intention to pay his/her tax/es due with the matured/maturing portion of his 10-year LB bond and assigning to the Government, for the account of BIR, the redemption proceeds thereon. "Sec. 4. Policy Guidelines Unless found to be contrary to existing laws, the following policy guidelines shall be observed: "4.1 Only the principal portion of the 10-year LB bond that has matured or shall be maturing within the same year that the tax is due shall be acceptable as payment for internal revenue taxes. "4.2 The LBP shall have the sole responsibility for determining the matured/maturing portion of the bond that shall be acceptable as payment for taxes. "4.3 Interest accruing on the maturing portion of the bond assigned as payment for taxes shall be paid proportionately as follows: interest accrued and payable to the landowner shall be computed up to the date that he assigned the bond as payment for taxes; interest accrued and payable to the BIR shall be computed from the day following the date that the landowner assigned his bond as payment for taxes. "4.4 The following tax liabilities pertaining to the taxes referred to under Section 2 of these Regulations may likewise the paid with the 10-year LB bond; deficiency tax assessments arising from tax investigations; surcharges, interests and penalties arising from late filing of returns and/or payment of taxes; tax arrearages and penalties as of June 15, 1988. cdt "4.5 A taxpayer/bondholder intending to use his 10-year LB bond as payment of taxes shall file his tax returns and pay his tax/es only at the Land Bank Head Office or at any of the LBP Branches servicing the area where his/her residence or principal place of business is located. "4.6 Returns filed after the deadline fixed for the payment of taxes shall be submitted to the ATAP Issuing Office (BIR) which shall issue ATAP in three (3) copies for presentation to the Land Bank Cash Department or Branch Office where the delinquent tax is to be paid. The increments, in addition to the tax proper, shall be collected by the Land Bank teller concerned. acd "4.7 For deficiency tax/es, the bondholder shall present the Notice of Tax Deficiency Assessment to the ATAP Issuing Office and shall secure ATAP in three (3) copies for presentation to the Land Bank Cash Department or Branch Office where payment of the deficiency tax is to be made. "4.8 The tax return or the ATAP, in case of late payment, deficiency assessment or delinquent account, along with the Deed of Assignment, shall be the only documents to be accepted and validated by Land Bank teller as taxpayer's evidence of the filing of the tax return and payment of tax. "4.9 Receipt of tax returns/ATAPs and corresponding payments in LB bond either fully or partially, shall be evidenced as follows: Machine validation reflecting date of payment, amount paid and transaction code; or Stamp pad mark showing the word "Received", the bank's name and branch code, teller's code, and initial, and date of receipt. "4.10 In case the matured portion as well as the maturing portion of the bond are not enough to pay off the tax due and its increments, if any, the taxpayer shall pay the balance in cash. "4.11 On the other hand, if the maturing portion is more than the amount of tax/es due, the Land Bank shall issue check representing redemption proceeds payable to the landowner, after remitting to the Central Bank the amount intended for tax payment. "4.12 No penalty charges shall be computed/collected on taxes paid with the 10-year LB bond regardless of the due date of the maturing portion assigned for tax payment. Tax/es due shall be deemed paid upon presentation of the deed of assignment and machine validation of the tax return/ATAP by Land Bank teller. "4.13 The Land Bank Cash Department and Branch Offices concerned shall be authorized to compute and collect 25% surcharges and compromise penalties from the taxpayers for out-of-district tax returns, late filing of the same, or late payment of taxes. "4.14 In places where no revised tax forms (under the New Payment Control System) are available, the Payment Order-Confirmation Receipt System (PO-CR) shall be applied. "4.15 The Payment Order-Confirmation Receipt System shall also be applied in the payment of the following internal revenue taxes: Final Capital Gains Tax Estate/Donor's Tax Excise Tax "4.16 All tax collections made by Land Bank on the first day of every month shall be remitted to the Central Bank, for the account of BIR, on the 26th day of the month; tax collections made on the second day shall be remitted on the 27th; tax collections made on the third day shall be remitted on the 28th, and so on. cdt "Sec. 5. Procedures Except for tax payments indicated in Sections 4.14 and 4.15 of these Joint Regulations, the following procedures shall be observed by all concerned. "A. Filing of Tax Returns and Subsequent Payment of Tax On or Before Deadline "5.1 Taxpayer/Bondholder "5.1.1 If the Tax Identification Number (TIN) has already been secured from the BIR, the taxpayer shall prepare a tax return and execute a Deed of Assignment (DA), both in four copies, assigning the matured/maturing portion of his 10-year LB bond in favor of the Government for the account of BIR. Otherwise, the taxpayer shall first secure his TIN from BIR before preparing his tax return and DA. "5.1.2 Presents the tax return and DA to the BIR District Office for signature by the BIR authorized official on the "Conforme" portion. "5.1.3 Receives the tax return together with DA and submits the same together with the 10-year LB bond certificate to: Bond Servicing Department (LBP Head Office); or LBP Branch Office within the jurisdiction of the Revenue District Office where he is required to file his return. "a) Upon submission of the tax return, DA and bond certificate to the Bond Servicing Department (LBP Head Office), the taxpayer shall entrust the bond certificate to that Office but he shall keep the DA (duly stamped "Approved for tax payment" and his tax return. "b) Proceeds to LBP Cash Department and submits DA and tax return. "c) Pays additional tax due, if there is any. cdt "d) If the tax return, DA and bond certificate are submitted to the LBP Branch Office, the taxpayer shall likewise entrust the bond certificate to the Branch Office, but he shall keep his copy each (duplicate) of the DA and tax return duly stamped "Approved for tax payment" and machine validated. He shall pay additional tax, if any. "e) On the due date for interest and redemption payments, the taxpayer shall claim from the Land Bank the portion payable to him, if there is any, and shall retrieve his bond certificate. "5.2 Land Bank "5.2.1 Bond Servicing Department "a) Receives DA, tax return and bond certificate. "b) Verifies bond against "Stop/Pledged" file. "c) Verifies authenticity of signature of taxpayer/bondholder against specimen signature on file. "d) If in order, stamps "Approved for tax payment" on the DA. Otherwise, informs taxpayer/bondholder of defects/deficiencies noted on documents. "e) Releases to taxpayer/bondholder three copies of DA together with the tax return. "f) Keeps original copy of DA along with the bond certificate for processing and redemption. "g) Processes (or pre-processes) redemption of the assigned portion and computes amount due for tax payment and amount due to landowner, if any. "h) Computes interest accrued on the assigned portion that shall be payable proportionately to the taxpayer/bondholder. "i) Prepares checks (or post-dated checks) representing redemption and interest proceeds payable to taxpayer/bondholder, duly notes portion of redemption proceeds earmarked as tax payment in an appropriate logbook. "j) Files original copy of DA along with pertinent documents in bondholder's file. "k) On the due date for payment of redemption proceeds assigned as tax payment, prepares Ticket/Advice to Cash Department indicating the amount of tax due and paid with the redemption proceeds. "l) Releases bond certificate and checks for the redemption and interest proceeds payable to the taxpayer/bondholder on the date payment of the same becomes due. "5.2.2 Cash Department "a) Checks the stick-on label on the original copy of the return to ascertain if the RDO code in the label of the tax return is the same as that of the revenue district where the bank is situated. Refuses returns without the stick-on label or returns not within the RDO's jurisdiction and advises taxpayers/bondholders to file return with appropriate RDO or to secure label from RDO. In case the taxpayer insists, informs him that a 25% surcharge is due on out-of-district tax returns and computes penalties if taxpayer is willing to pay for the same. "b) Verifies if "TIN" is duly indicated on all copies of the tax return. If there is none, advises bondholder/taxpayer to indicate or secure "TIN" from nearest BIR District Office. "c) Verifies whether taxpayer: has fully accomplished and signed all copies of the tax return; is not a late filer "d) If taxpayer is a late filer, advises him to secure ATAP from the BIR. "e) Stamps "Received" on the three (3) copies of the DA and on the appropriate portion of all copies of the tax return indicating therein the date of receipt, bank name, teller's code and initial. "f) Determines if matured/maturing portion assigned for tax payment is equal to amount of tax due. acd "g) If amount assigned is not enough, informs and requests taxpayer/bondholder to pay the balance in cash, check or tax debit memo (TDM). "h) Machine-validates the date of payment, amount paid and the transaction code. Stamps the bank name and teller's code on every copy of the return and the DA. Validates separately the payment thru DA and the payment in cash. There is no corresponding machine validation for the TDM. "i) Releases to the taxpayer the duplicate copy of the tax return the DA and TDM, if any. "j) Segregates original from the triplicate copies of the tax returns and batches them separately in 25s or less. "k) Prepares daily, in six (6) copies of Batch Control Sheet-A1 (BCS-A1), for each batch of tax returns with bond and cash/check or TDM payments for tax due and/or penalties, to be distributed as follows. Original RISSI, BIR (with original copies of tax returns) Duplicate Processing Section, RAD (BIR) Triplicate COA Resident Auditor Quadruplicate RDO, BIR (with triplicate copies of tax returns) Quintuplicate Proof and Transit Department, Land Bank Sextuplicate Land Bank Cash Department or Branch file copy "l) Prepares daily, in four (4) copies Batch Control Sheet-B1 (BCS-B1), for each batch of tax returns with tax due fully paid in Land Bank bonds for distribution as follows: Original RISSI (with original copies of tax returns) Duplicate RDO (with triplicate copies of tax returns) Triplicate Proof and Transit Department Quadruplicate Land Bank Cash Department or Branch file copy "m) Numbers separately but consecutively, BCS-A1 and BCS-B1, each starting from 001 for the first batch of tax returns received during the year, 002 for the second batch and so on, regardless of whether there are less than 25 tax returns received per banking day. Each BCS number shall be preceded by the year of receipt of tax return. Note: If during the first day of filing of tax returns, less than 25 tax returns filed pursuant to these Regulations were received, the BCS-A1 or BCS-B1 of the batch of tax returns will be numbered 001. On the other hand, if during the first day of filing there were 35 tax returns filed, there will be two batches, the first BCS-A1 or BCS-B1 containing 25 tax returns will be numbered 001 and the second BCS-A1 or BCS-B1 containing 10 tax returns will be numbered 002. "n) Forwards to Proof and Transit Department, within three (3) days from receipt of tax returns, the following copies of BCS (with adding machine tapes) in separate bundles together with tickets/advices contra PTD duly signed by Bank's Authorized Signatory (for cash/checks paid by the bondholder in addition to his bond) and copies of tax returns: For BCS-A1 Copy Distribution Original RISSI, with original copies of tax returns Duplicate Processing Section, RAD Triplicate COA Resident Auditor Quintuplicate Proof and Transit Dept. For BCS-B1 Copy Distribution Original RISSI, with original copies of tax returns. Triplicate Proof and Transit Dept. "o) Retains sextuplicate copies of BCS-A1 and quadruplicate copies of BCS-B1 for file. "p) Upon receipt of ticket/advice from Bond Servicing Department, prepares ticket (contra PTD) for the amount of redemption proceeds used as payment for taxes. "5.2.3 Land Bank Branch "a) Performs activities (a) to (i) of Item 5.2.2. (Cash Department). "b) Keeps bond certificate for processing and redemption, along with remaining copies and the tax return, DA and TDM, if any. "c) Reports, at the end of each collection day or not later than 10:00 A.M. of the following banking day, to the Proof and Transit Department by fax, telephone, telex, radiogram or any means of fast communication the total amount of taxes collected at the end of each banking day, indicating how much in cash and how much is in LB Bonds or TDM, if any. "d) Performs activities (j) to (m) of Item 5.2.2 (Cash Department). "e) Forwards to Proof and Transit Department within three (3) days from receipt of tax returns, the following copies of BCS (with adding machine tapes) in separate bundles, together with inter-office memo (IOM) duly signed by Bank's Authorized Signatory (for cash/checks paid by the bondholder in addition to his bond) copies of tax returns. For BCS-A1 Copy Distribution Original Rissi, with original copies of tax returns Duplicate Processing Section, RAD Triplicate COA Resident Auditor Quintuplicate Proof and Transit Dept. For BCS-B1 Copy Distribution Original Rissi, with original copies of tax returns Triplicate Proof and Transit Dept. "f) Retains sextuplicate copies of BCS-A1 and quadruplicate copies of BCS-B1 for file. "g) Processes (or pre-processes) redemption of the assigned portion and computes amount due for tax payment and amount due to landowner, if any. "h) Computes accrued interest on the assigned portion that shall be payable proportionately to the taxpayer/bondholder. "i) Prepares checks (or post-dated checks) representing redemption and interest proceeds payable to taxpayer/bondholder. Duly notes portion of redemption proceeds earmarked as tax payment in an appropriate logbook. "j) Files original copy of DA along with pertinent documents in bondholder's file. "k) On the due date of redemption payment, prepares and submits to the Proof and Transit Department inter-office memo (IMO) duly signed by the Bank's Authorized Signatory, indicating therein the amount of redemption proceeds previously assigned as tax payment. "l) Releases checks for interest and redemption proceeds payable to landowner. "B. Filing of Tax Return and Payment of Tax After Deadline "5.3 Taxpayer/Bondholder "5.3.1 Prepares tax return and executes Deed of Assignment. "5.3.2 Secures Authority to accept Payment (ATAP) in three (3) copies from the ATAP Issuing Office (BIR). "5.3.3 Submits ATAP/return as well as DA and bond certificate to Bond Servicing Department or LB Branch as in item 5.1.3. "5.4 LBP "5.4.1 Cash Department/Branch Office "a) Checks the stick-on label on the original copy of the ATAP to ascertain if RDO code in the label of the ATAP corresponds to the code of the revenue district where the bank belongs. Denies acceptance of ATAP without stick-on label or ATAP not within jurisdiction and advises taxpayer/bondholder to file ATAP with appropriate RDO or secure label from RDO. In case the taxpayer insists, informs him that penalties are imposed on out-of-district tax returns/ATAP; if taxpayer is willing to pay the same, computes accordingly said penalties. "b) Verifies if "TIN" is duly indicated on all copies of the ATAP. If there is none, advises bondholder/taxpayer to indicate or to secure "TIN" from nearest BIR District Office. "c) Stamps "Received" on the three (3) copies of the DA and on the appropriate portion of all copies of the ATAP indicating therein the date of receipt, bank name, teller's code and initial. "d) Computes the corresponding penalties if the taxpayer is willing to pay for the same; Otherwise, stamps "Increments Not Paid" on every copy of the ATAP filed. "e) Determines if matured/maturing portion assigned for tax payment is equal to amount of tax due and increments, if any. "f) If amount assigned is not enough, informs and requests taxpayer/bondholder to pay the balance. "g) Accepts additional payment from taxpayer/bondholder either in cash, check or TDM and machine-validates the date of payment, amount paid and the transaction code. Stamps the bank name and teller's code, on every copy of the return and the DA. Validates separately the payment thru DA and the payment in cash. There is no corresponding machine validation for the TDM. "h) Releases to taxpayer the duplicate copy of the ATAP and TDM, if any. "i) Segregates original from the triplicate copies of the ATAP's and batches them separately in 25s or less. "j) For Cash Department, performs activities in 5.2.2 items (k) to (p), incorporating tax returns and ATAP's in the same BCS-A1 or BCS-B1 Batch, as the case may be. "k) For LBP Branch, keeps bond certificate for processing and redemption along with remaining copies of DA, Tax return and TDM, if any, "l) Performs activities in item 5.2.3 items (c) to (j), and incorporates tax returns and ATAPs in the same BCS-A1 or BCS-B1 batch, as the case may be. "C. Transmittal of Reports/Returns/ATAPs and Remittance of Collection "5.5 Proof and Transit Department (PTD), Land Bank "a) Books all collections and credits the same to the Special Account "Due to Central Bank - Bureau of Internal Revenue" "b) Summarizes in the Advance Report of Daily Collections (ARDC) the collections reported daily by the different branches. Indicates in the ARDC the amount of tax payment in LB bond/s and particular date/s when no collections were received. "c) Sends the ARDC to the following offices, thru Fax/telex, within three (3) days from date of collection: Processing Section, RAD, BIR Bureau of Treasury "d) Receives, in batches, original copies of tax returns/ATAPs with their corresponding BCS-A1 and BCS-B1 from Cash Department and Branches. "e) Prepares four (4) copies of Consolidated Report of Daily Collections (CRDC), based on sequentially arranged BCS-As, A1s or BCS-B1s per batch for distribution to the following: Original Accounting Department, CB Duplicate Accounting Division, BIR Triplicate Bureau of Treasury Quadruplicate PTD File "f) Indicates in the CRDC, in a separate column, the amount of tax payments in LB bond/s and the dates when there were no tax payments. "g) Bundles separately each type of documents according to their office destination and forwards to BIR receiving Unit, CB Complex the segregated documents intended for BIR: Office Destination Contents RISSI Batches of original copies of tax returns or ATAPs attached to and corresponding to BCS-As, A1s or BCS-Bs, B1s Processing Section, duplicate copies of BCS-A duplicate copy of CRDC with attached acknowledged original copy of BIR Form No. 1258, if any. COA Resident Auditor-triplicate copies of BCS-A, A1 and BCS-B1 "h) Prepares and submits report on the returned/dishonored checks using BIR Form No. 1258, in accordance with Revenue Regulations No. 5-84. cd "i) Prepares and submits to offices concerned an adjusted CRDC to notify them of the errors discovered in the report; indicates the word "adjustment" opposite the affected collection date; "j) Authorizes the Central Bank of the Philippines, Manila, thru Accounting Department, to debit its demand deposit accounts maintained thereat for the total daily collection which shall be due for remittance in accordance with Section 4.16 of these Joint Regulations. Such amount shall be credited to the "Special Account - BIR Collections" of the Treasurer of the Philippines. "D. Receipt of Reports, Returns/ATAPs and Monitoring "5.6 Bureau of Internal Revenue (BIR) "5.6.1 BIR Receiving Unit, CB Complex "a) Stamps "Received" on each bundle (per office destination) of the BCS-As, A1s, Bs, B1s, BIR Forms 1258 and CRDC to acknowledge the documents from PTD, Land Bank for pick-up by the PO/CR Monitoring Division. "5.6.2 PO/CR Monitoring Division "a) Receives documents from the BIR Receiving Unit, CB Complex and distributes said documents within the day of receipt to the following offices: RISSI batches of original copies of tax returns/ATAPs attached to corresponding BCS-A, A1 or BCS-B, B1 Processing Sections, RAD duplicate copies of BCS-A, A1 BCS-B1 - duplicate copy of CRDC - BIR Form 1258, if any COA Resident Auditor triplicate copies of BCS-A, A1, BCS-B1 "b) Receives exception reports from RISSI, Revenue Accounting Division, and RDOs. "c) Communicates to the Land Bank any exception report received and bills the bank with corresponding penalties, if necessary. "5.6.3 RISSI "a) Receives bundles/batches of original copies of tax returns/ATAPs, with their corresponding copies of BCS-As, A1s and BCS-Bs, B1s, from the PO/CR Monitoring Division. aisa dc "b) Checks the number of tax returns/ATAPs against the attached BCS-As, A1s and BCS-Bs, B1s; notes down any discrepancy or inconsistency. "c) Encodes data from the tax returns/ATAPs. "d) Generates computer totals of the different batches and matches them with their respective BCS-As, A1s, BCS-Bs, B1s, totals; notes any discrepancy discovered. "e) Generates in four (4) copies exception reports based on the discrepancies or inconsistencies noted in the documents. "f) Forwards exception reports within ten (10) days from the receipt of the returns to the following offices: Original Processing Section, RAD Duplicate PO/CR, Monitoring Div. Triplicate RISSI, file copy Quadruplicate PTD, Land Bank (thru PO/CR, Monitoring Div.) "g) Generates Payment in Bond Control Ledger, in addition to the usual Bank Collection Control Ledger, in the prescribed format and forwards the same to the PO/CR Monitoring Division for monitoring purposes. "h) Segregates the ATAPs from the batches of original copies of the tax returns and transmits the same, together with a terminal list, to the ATAP Issuing Officer concerned, for attachment of ATAP to the docket. "i) Generates the following and forward to the offices concerned, copy furnished the Collection Service and/or Collection Branch" Monthly Alpha List of Tax Filers by Type of Tax (containing the name of drawee bank, check number and the amount paid by the taxpayer) by revenue regions Regional Offices concerned by city/municipality Revenue District Office concerned listing of non-resident citizens of foreign countries RDO concerned Statistical data required by the Statistical Analysis Division. Monthly Alpha List of Tax Filers Who Paid in LB Bond (indicating the amount of tax due, the due date of redemption payment, amount paid in cash or check if there is any, check number and drawee bank) "j) Generates a copy of Monthly Alphabetical List of Stop/Non-Filers and Late-Filers by RDO using the previous filers' records. "k) Generates in three (3) copies reminder letters to stop/non-filers within ten (10) days from receipt of tax return for distribution to the following: Original taxpayer Duplicate RDO Triplicate taxpayer (as follow-up letter) cd "l) Forwards the Monthly Alphabetical List of Stop/Non-Filers and Late Filers to RDO concerned together with the three (3) copies of reminder letters. "m) Transmits original copies of processed tax returns to Administrative Branch not later than twenty (20) days from receipt of said documents, for safekeeping. "5.6.4 Revenue District Office "a) Picks-up daily, triplicate copies of tax returns/ATAPs attached with duplicate copies of BCS from bank branch. "b) Checks the tax returns/ATAPs against BCS to determine the correctness of entries therein, particularly the amounts indicated. "c) Checks with the bank concerned on discrepancies noted. "d) Segregates out-of-district tax returns. "e) Prepares transmittal list for out-of-district tax returns/ATAPs received during the week indicating therein the bank branch and the BCS number of the batch where the tax returns were taken; attaches therein the copies of out-of-district tax returns/ATAPs and forwards the same to the respective RDO/ATAP Issuing Office not later than three (3) days upon receipt of the tax returns/ATAPs. "f) Segregates ATAPs from the tax returns and attaches ATAP to the corresponding tax docket. "g) Classifies tax returns and number in accordance with RMO Nos. 9-91 and 10-91 in case of Income Tax Returns; numbers other tax returns in the following manner; Bank Branch - BCS Number TIN (Assign additional code for tax paid with LB bond) "h) Segregates according to type of tax return (BIR Form Nos. 1701, 1701A, 1701C, 1704, 1702, 1702Q, 1702A-1, 2550, 1743-W, 1745, 750A and 2529A-1) and prepares in three copies "Monthly Summary of Tax Returns Filed" in the prescribed format (duly indicating payment in LB bond) and distributes to the following offices not later than twenty (20) days from the receipt of the tax returns: Original Statistical Analysis Div. Duplicate RISSI Triplicate Assessment Branch "i) Forwards tax returns stamped with "Increments Not Paid" to Collections Unit for the issuance of the necessary collection letter/s to the taxpayer/s. "j) Receives from RISSI the Monthly Alpha List of Stop/Non-Filers and Late Filers together with the reminder letter/s and the Monthly Alpha List of Tax Filers by Type of Tax. "k) Delivers personally to stop/non-filer(s) the original copy of the reminder letter(s); Mails the triplicate copy fifteen (15) days after the taxpayer fails to respond to the original copy of the letter. casia "l) Conducts inquiry with the bank branch concerned in case taxpayer shows proof/evidence of tax return filed; Reports to PO/CR Monitoring Division the non-transmittal/reporting of tax return filed in case the tax return presented by the taxpayer is authentic, otherwise, conduct investigation of the taxpayer. "m) Conducts verification of stop/non-filers who did not respond to the reminder-letters sent. "n) Prepares report addressed to RISSI on taxpayers who stopped filing due to closure of business as discovered during verification. "o) Prepares report to Tax Fraud Evaluation Committee on tax evaders discovered during the verification of stop/non-filers. "p) Submits to the Revenue Regional director a list of stop/non-filers who failed to respond to the two (2) reminder-letters fifteen (15) days after mailing the second reminder letter. "5.6.5 Revenue Accounting Division (RAD) "a) Summarizes advance collection reports received thru fax/telex from the different Bank Head Offices and generates Daily Report of Collection per ARDC, duly indicating amount of tax paid in LB bond/s: Original RAD Accountabilities Sec. Duplicate Statistical Analysis Div. "b) Processes daily the BCS and CRDC reports received thru PO/CR Monitoring Division or RISSI as regards mathematical accuracy and completeness of data. cdt "c) Encodes data on collections from BCS and CRDC reports; Matches computer totals of BCS against CRDC. "d) Generates Daily Collection Reports per BCS and CRDC. "e) Reconciles exception reports on inaccurate BCS-A, A1s received from RISSI against its copies of BCS and the corresponding CRDC and makes the necessary adjustments. "f) Receives Central Bank Credit Advice (CBCA) on remittances or collection per RR No. 5-84. "g) Reconciles CBCA against corresponding CRDC. "h) Generates the Monthly Report of Collection per CRDC and BCS with adjustment, if any, and the Monthly Report of Remittances per CBCA and forwards to RAD-Bookkeeping and Reconciliation Section and RAD-Accountabilities Section respectively, for recording in the books of accounts. "i) Prepares exception reports on inaccurate/late reporting and remittances of collections using the Schedule of Delayed Reporting/Remittances of Internal Revenue Tax Collections thru Banks and submit to PO/CR Monitoring Division. cd "Sec. 6. Repealing Clause This Joint BIR-LBP Regulations supersede other issuances, insofar as the Land Bank of the Philippines is concerned, prescribing the procedures on the receipt, transmittal and processing of tax returns filed thru the banks under the new payment control system (NPCS). "Sec. 7. Effectivity This Joint BIR-LBP Regulations shall take effect upon approval. "RECOMMENDING APPROVAL: "(Sgd.) JESUS F. DIAZ Executive Vice President, LBP "(Sgd.) JOSE U. ONG Commissioner of Internal Revenue "APPROVED: "(Sgd.) Deogracias N. Vistan President, LBP (Sgd.) Jesus Estanislao Secretary of Finance" All revenue officials and employees are enjoined to give this circular as wide a publicity as possible. (SGD.) JOSE U. ONG Commissioner of Internal Revenue