Classification of Revenue Sources Under the General Fund to be Indicated in the Remittance Advice

June 22, 1973 REVENUE MEMORANDUM CIRCULAR NO. 32-73 SUBJECT : Classification of Revenue Sources Under the General Fund to be Indicated in the Remittance Advice TO : All Revenue Collection Agents, City/Municipal Treasurers Acting as Revenue Collection Agents, and Others Concerned There is transcribed hereunder Department Memorandum Circular No. 13-73 dated June 15, 1973 of the Secretary of Finance for your guidance and compliance, as follows: "DEPARTMENT MEMORANDUM CIRCULAR No. 13-73 TO : The Commissioner of Internal Revenue, the Commissioner of Customs, the Treasurer of the Philippines, the Governor of the Central Bank of the Philippines, and all Others Concerned SUBJECT : Classification of internal revenue and customs collections into major sources of income In order to facilitate the classification of internal revenue and customs collections into major sources of income in the financial reports of the Bureau of the Treasury, the following procedures shall be observed, in relation to Treasury General Circular No. 3-65 as amended, by collecting officers and others concerned in remitting their collections to the Bureau of the Treasury: (1) Internal Revenue Taxes Collecting officers of the Bureau of Internal Revenue and those deputized to collect internal revenue taxes shall remit to the Treasury Field Cashiers, authorized depository banks, or at the Teller's window in the National Treasury, as the case may be, their general fund collections classified in the remittance advice under broad categories as follows: a) Excise taxes b) License and business taxes c) Income taxes d) Others The Bureau of Internal Revenue shall provide the same classification in its Tax Payment Acceptance Order (TPAO) for guidance in the proper classification of internal revenue taxes collected through authorized agent banks, which eventually flow into the National Treasury through the Central Bank of the Philippines. (2) Customs Collections Collecting officers of the Bureau of Customs shall remit their general fund collections, including internal revenue taxes, to the Treasury Field Cashiers, authorized depository banks, or at the Teller's window in the National Treasury, as the case may be, classified in the remittance advice as follows: a) Import duties b) Excise tax c) License and business taxes d) Others The Bureau of Customs shall provide the same classification in its Order of Payment (OP) in order to facilitate the proper classification of customs collections, including internal revenue taxes, made through authorized agent banks, which eventually flow into the National Treasury through the Central Bank of the Philippines. (3) Collections Through the Central Bank and Authorized Agent Banks The general fund collections of the Bureau of Internal Revenue and the Bureau of Customs made through authorized agent banks shall be reported by the Central Bank of the Philippines to the Bureau of the Treasury classified in the manner described herein above. In order to ensure the proper classification of receipts at the various points of collections, the Commissioner of Internal Revenue and the Commissioner of Customs shall disseminate the contents of this circular to their respective collecting officers and shall furnish them with lists of taxes falling under each category, for their information and guidance in classifying their collections in the remittance advice; and also in classifying internal revenue taxes in the Tax Payment Acceptance Order (TPAO) and Customs Collections in the Order of Payment (OP) in accordance with this circular. In case of payment by check, money order, or treasury warrant, the amount paid for each kind of tax shall be noted at the back thereof so that in case it is subsequently dishonored, the income affected could be adjusted accordingly. The Bureau of the Treasury shall disaggregate the Internal Revenue and Customs collections in its financial reports in the manner described herein above. Repealing Clause All existing rules and regulations in conflict with this circular are hereby revoked or modified accordingly. Effectivity This circular shall take effect on July 1, 1973. (Sgd. ) CESAR VIRATA Secretary of Finance June 15, 1973 Noted: GREGORIO LICAROS Governor Central Bank of the Philippines" For the purpose of properly implementing the Department Memorandum Circular quoted above, the following guidelines are hereby prescribed. 1. All Collection Agents, City/Municipal and Municipal District Treasurers Acting as Collection Agents of the Bureau of Internal Revenue shall henceforth prepare the Remittance Advice (General Form No. 14-B) clearly indicating four (4) major classification of the General Fund collections namely: (a) Excise taxes Division Code 01(01-0000 to 01-6008) (b) License and business taxes Division Code 03(03-0000 to 03-4003) (c) Income taxes Division Code 04(04-0000 to 04-0425) (d) Others Division Code 05 to Division Code 10 (05-0000 to 10-0908) 2. There shall be separate remittance advices for Highway Special Fund, Science Fund, Forestry Information Fund, FOREPRIDE, Tobacco Inspection Fees. etc.; 3. In order to insure the proper classification of receipts at various points where the payment of taxes is through authorized agent banks with the use of the Tax Payment Acceptance Order (TPAO), the classification in accordance with the above quoted circular shall be clearly indicated on the TPAO. In case of payment accruing to a Special Fund, such Special Fund must also be clearly indicated on all copies of the TPAO; and 4. In case of payment by check, money order, or treasury warrant, the amount paid for each kind of tax shall be noted in the back of such check so that in case such cheek is dishonored, for whatever reason, there shall be a corresponding reduction of the proper fund until such time that the dishonored check has been redeemed. In view of the proximity of the effectivity and enforcement of the above quoted Department Memorandum Circular, which is July 1, 1973, all Regional Directors and Revenue District Officers are instructed to take immediate steps for the expeditious dissemination of the contents of the above quoted Circular to all Collection Agents in their respective jurisdictions. Strict compliance with the requirements of this Circular is hereby enjoined. aisa dc MISAEL P. VERA Commissioner of Internal Revenue