Directive to BIR Officials and Employees to Refrain from Acting as "Brokers" or Go-Betweens and Similar Other Roles in the Selling/Buying/Transfers of Tax Credit Certificates

June 18, 2003 REVENUE MEMORANDUM CIRCULAR NO. 36-03 SUBJECT : Directive to BIR Officials and Employees to Refrain from Acting as "Brokers" or Go-Betweens and Similar Other Roles in the Selling/Buying/Transfers of Tax Credit Certificates TO : All Internal Revenue Officers and Others Concerned Ascertaining the authenticity/validity of TCCs being offered for sale or transfer is a complex process and that it is difficult to be 100% certain on the legitimacy of the TCC without conducting extensive verification. BIR officials and employees are thus strongly advised to refrain from responding to request for referrals, or from acting as go-between in TCC transactions. BIR officials performing these roles may not be fair to the referred parties inasmuch as that these parties will naturally be less on-guard in scrutinizing the TCCs legitimacy or may purchase the TCC just to please the referring officials. It is likewise possible that revenue employees tasked to verify the authenticity of the TCC will accept it at face value just to accommodate a referring co-employee. It is thus in view of curbing these dangerous tendencies that this RMC is being issued. This will also spare referring/go-between BIR officials from exposure to Criminal, Civil and Administrative liability, should these TCCs turn out to be illegitimate. All concerned are hereby enjoined to be guided accordingly and give this Circular as wide publicity as possible. ITAaHc (SGD.) GUILLERMO L. PARAYNO, JR. Commissioner of Internal Revenue