Surrender of Documentary and Science Stamps in the Possession of Private Persons and Entities Pursuant to Sec. 2 of Presidential Decree No. 1045

November 25, 1976 REVENUE MEMORANDUM CIRCULAR NO. 38-76 SUBJECT : Surrender of Documentary and Science Stamps in the Possession of Private Persons and Entities Pursuant to Sec. 2 of Presidential Decree No. 1045 TO : All Internal Revenue Officers and others concerned In accordance with the provisions of Section 2 of Presidential Decree No. 1045, dated November 5, 1976, requiring all persons in possession of documentary and science stamps in denominations of P10 and above to surrender them within three (3) months to the Bureau of Internal Revenue, the following procedure is hereby promulgated for the guidance of those concerned. I. Scope All documentary and science stamps in the possession of private persons in denominations of P10 or above shall be surrendered to the Bureau of Internal Revenue for the refund of the face value thereof, not later than February 5, 1977 . II. Where to Surrender Documentary and Science Stamps A.All persons whose places of business are outside Metro Manila shall surrender the stamps to the Revenue District Officer of the district where his or its place of business is located. B.Those whose residences or places of business are within Metro Manila shall surrender the stamps to the Chief, Accountable Forms Division, BIR Central Office. III. Procedure A.The person in possession of the stamps for surrender shall prepare a listing of the quantity of stamps by denominations. He shall also prepare xerox copies of the vouchers or other evidence used in the purchase of the documentary and science stamps to be surrendered. Said xerox copies or other evidence shall be subject to verification by internal revenue officers. B.A statement to accompany the stamps surrendered shall be prepared containing the following information: 1.Name and address of purchaser of stamps; 2.Revenue office where the stamps were purchased as well as the date of purchase; and 3.Quantity and face value of the surrendered stamps according to denominations. C.The stamps, statement and vouchers shall be surrendered to the Revenue District Officer or the Chief, Accountable Forms Division, as the case may be, who shall in turn issue a receipt for the quantity and face value of the surrendered stamps. D.The original of the receipt shall be given to the person who surrendered the stamps. A copy of the receipt shall be attached to the surrendered stamps and another copy shall be kept by the Chief, Accountable Forms Division or Revenue District Officer for their file. E.The surrendered stamps shall be placed in an envelope or other container to accommodate the stamps and sealed. The Revenue District Officer or Chief, Accountable Forms Division, as the case may be and the taxpayer or his duly authorized representative shall place their respective signatures across the flap of the envelope certifying to the correctness of the contents. F.The Revenue District Officer shall personally bring the stamps surrendered to him to the Regional Director who shall issue a receipt for the stamps delivered by the Revenue District Officer. The latter shall in turn deliver personally the surrendered stamps to the Chief, Accountable Forms Division. G.The stamps brought by the Regional Director shall be checked in the presence of the Regional Director, Chief, Accountable Forms Division, and a representative each of the Fiscal Control Division and Accounting Division. H.After the stamps have been verified as to the correctness of the quantity, a receipt shall be issued by the Chief, Accountable Forms Division to the Regional Director. I.The stamps surrendered by the Regional Director, together with stamps directly surrendered to the Chief, Accountable Forms Division, shall be stored separately from all other accountable forms. It should not be mixed with the surrendered stamps of BIR personnel. J.As the stamps are received by the Chief, Accountable Forms Division from taxpayers or from Regional Directors, he shall inform the Chief of the Laboratory Section that there are stamps surrendered ready for laboratory testing. The following procedure shall be followed in the laboratory testing of the stamps: 1.Only samples by denomination and not all the stamps shall be given to the Chief, Laboratory Section for testing. In cases where additional samples are needed upon request of the Chief, Laboratory Section, the additional stamps requested shall be made available by the Chief, Accountable Forms Division. 2.Selection of the stamps to be tested shall be made by opening the containers of the surrendered stamps in the presence of the Chief, Fiscal Control Division; Chief, Accounting Division; and the Chief, Laboratory Section. The samples to be tested shall be selected by the Chief of the Laboratory Section which shall be separated from the main batch and given to him duly receipted for. Under no circumstances shall the whole batch be given to the Chief, Laboratory Section for testing unless the latter requests it, in which case authority should be secured from the Deputy Commissioner of Internal Revenue. 3.After the Chief of the Laboratory Section has taken the stamps to be tested, the remainder of the batch identified by taxpayer shall be kept separately from the other surrendered stamps which are not yet being tested. 4.The testing shall be made on a taxpayer-to-taxpayer basis. While the Chief of the Laboratory Section may be conducting simultaneous testing of stamps of various taxpayers, he shall see to it that they are properly identified and not mixed up. K.The Chief, Laboratory Section shall prepare a separate report on the results of the testing for each person who surrendered stamps. The report shall be forwarded to the Chief, Accountable Forms Division stating therein his findings and recommendations. L.The Chief, Accountable Forms Division upon receipt of the report of testing shall consolidate each report with the remainder of the stamps and shall file them separately from all the other stamps properly labeled that the testing has been finished. M.From the bunch of the stamps wherein the testing had been finished, he shall classify them further by separating those to be refunded from those which will not be refunded. IV. Verification of Purchase A.The Revenue District Officer to whom the stamps have been surrendered shall assign the xerox copies of the vouchers presented by the taxpayer to the examiners in the district for verification from the records of the taxpayer. B.The Chief, Accountable Forms Division who received the surrendered stamps from taxpayers in the Metro Manila Area shall forward the vouchers or xerox copies thereof to the Tax Fraud Division for verification by the latter from the records of the taxpayer. C.After verification, the report of the Revenue District Officer and the Chief, Tax Fraud Division regarding the verification of the vouchers for purchase of the stamps shall be forwarded to the Chief, Accountable Forms Division for consolidation with the laboratory report. D.When the laboratory report and the report of the verification of the vouchers have been received by the Chief, Accountable Forms Division, he shall forward the papers of each case to the Indirect Taxes Division. V. Refund A.The papers forwarded to the Indirect Taxes Division shall be processed to determine whether a refund is due the taxpayer and the amount to be refunded. B.If the findings after processing does not merit a refund, such information shall be communicated to the taxpayer. C.Upon determination of the amount to be refunded, a memorandum to the Deputy Commissioner of Internal Revenue shall be prepared recommending the refund. D.Upon approval of the recommendation, the papers shall be forwarded to the Accounting Division for preparation of the vouchers and treasury warrant. VI. Disposition of Surrendered Stamps A.After the refund has been effected the stamps shall be destroyed by burning or recycling under the supervision of a BIR Committee and in the presence of the representative of the Commission on Audit. B.The BIR Committee shall be composed of the following: VII. Effectivity 1. Revenue Service Chief Chairman (Inspection) 2. Chief, Accountable Forms Division Member 3. Representative of the Commissioner of Internal Revenue Member The provisions of this Revenue Memorandum Circular are effective immediately and should be given as wide a publicity as possible. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3