Publishing Department Order No. 15-76 of the Department of Foreign Affairs "Amending Procedures in the Collection of Internal Revenue Taxes Abroad"

November 17, 1976 REVENUE MEMORANDUM CIRCULAR NO. 40-76 SUBJECT : Publishing Department Order No. 15-76 of the Department of Foreign Affairs "Amending Procedures in the Collection of Internal Revenue Taxes Abroad" TO : All Internal Revenue Officers and others concerned For the information and guidance of all concerned, there is published below Department Order No. 15-76 of the Department of Foreign Affairs dated October 29, 1976, viz.: "SECTION 1. Implementation of Memorandum -Agreement . Pursuant to the provisions of the Memorandum -Agreement entered into by and between the Secretary of Foreign Affairs and the Secretary of Finance on October 1976 and upon the effectivity of this Order, all Foreign Service establishments shall use their internal revenue tax collections paid in foreign currency as part of their working funds and the Department shall remit to the Bureau of Internal Revenue the corresponding equivalent in Philippine currency at the rate of exchange such collections were acquired. SECTION 2. Officials Authorized to Collect Taxes Abroad . The BIR Revenue Attach/Revenue Representative or his Assistant or, in their absence, the Finance Attach or, in his absence, the Finance Officer/Cashier of the post shall undertake the collection of internal revenue taxes abroad. SECTION 3. Custody of Tax Collections . The custody over internal revenue taxes collected abroad shall be assumed by the Finance Officer/Cashier whether or not a BIR Revenue Attach/Revenue Representative is assigned at the post. SECTION 4. BIR Revenue Attaches/Revenue Representatives . In line with the foregoing provisions, the BIR Revenue Attach/Revenue Representative shall continue performing his duties under the administrative supervision of the Chief of Mission/Principal Officer, among others, the following: (a) Undertake the collection of internal revenue taxes and issue BIR Official receipts (BIR Form No. 25.24) to the taxpayers. The distribution of BIR official receipts, in line with the Department of Finance Memorandum Circular No. 11-68, dated 25 July 1968, shall be as follows: (1) Original BIR; (2) Duplicate Taxpayer; (3) Triplicate BIR Resident Auditor; and (4) Quadruplicate BIR Revenue Attach/Revenue Representative (post's file) (b) Turn over his collections intact, at the end of the day, to the Finance Officer/Cashier, who, in turn, shall issue his own official receipt (FA Form No. 89) in favor of the BIR Revenue Attach/Revenue Representative or his Assistant. The Finance Officer/Cashier shall check the BIR official receipts covered by the collections and sign the triplicate copy of the last receipt issued. The BIR Revenue Attach/Revenue Representative shall notify and explain in writing to the Chief of Mission/Principal Officer whenever collections cannot be turned over to the Finance Officer/Cashier at the end of the day. (c) Record in the BIR Cash Book (General Form No. 103) the total internal revenue tax collections made during the day, giving reference to the inclusive numbers of the BIR official receipts issued, and the actual amount turned over to the Finance Officer/Cashier at the close of office hours, making reference to the DFA official receipt issued by the latter. (d) Transcribe at the end of any given month in the Overseas Abstract of Collections (BIR Form No. 12.32B), in quintuplicate, his internal revenue tax collections as reflected in the BIR official receipts. The total collections as recorded in the Overseas Abstract of Collections should tally with the total collections turned over to the Finance Officer/Cashier for the same month. The distribution of the Abstract shall be as follows: (1) Original DFA Resident Auditor; (2) Duplicate BIR; (3) Triplicate BIR Resident Auditor; (4) Quadruplicate DFA; and (5) Quintuplicate BIR Revenue Attach/Revenue Representative (post's file). (e) Accomplish a Monthly Report of Accountability (General Form No. 16-A), in quintuplicate, to reflect the BIR official receipts received and issued, the distribution of which shall be as follows: (1) Original BIR Resident Auditor; (2) Duplicate BIR; (3) Triplicate DFA Resident Auditor; (4) Quadruplicate DFA; and (5) Quintuplicate BIR Revenue Attach/ Revenue Representative (post's file). (f) And such other duties that may be assigned to him from time to time by the Commissioner of Internal Revenue and/or the Chief of Mission/Principal Officer. (g) Submit his BIR reports in two sets to the Chief of Mission/Principal Officer, within five (5) calendar days following the end of the pertinent month, in the following manner: (1) First Set To be marked "For the Commissioner of Internal Revenue" i. Original copies of the BIR official receipts issued (BIR Form No. 25.24); ii. Original copies of the DFA official receipts issued (FA Form No. 89); iii. Duplicate and triplicate copies of the Overseas Abstract of Collections (BIR Form No. 12.32B); iv. Original and duplicate copies of the Monthly Report of Accountability (General Form No. 16-A); and v. Original and duplicate copies of the income tax returns and other supporting documents. (2) Second Set To be marked "For the Secretary of Foreign Affairs" i. Triplicate copies of the BIR official receipts issued (BIR Form No. 25.24); ii. Original and quadruplicate copies of the Overseas Abstract of Collections (BIR Form No. 12.32B); iii. Triplicate and quadruplicate copies of the Monthly Report of Accountability (General Form No. 16-A); and iv. Philippine peso checks, if any, received at the post in payment of internal revenue taxes. (h) Whenever he goes on leave of absence or has to attend to some business outside of his office irrespective of the time element involved, the following procedure shall be adopted: (1) He shall inform in writing the supervising Chief of Mission/Principal Officer only in cases where he has to attend to some business outside of his post of assignment. (2) In the absence of a BIR Revenue Assistant, the Finance Revenue Attach or, in his absence, the Administrative Officer or, in his absence, any other responsible subordinate officer at the post duly designated by the Chief of Mission/Principal Officer, except the Finance Officer/Cashier, shall perform his functions for him and on his behalf during his absence. (3) He shall turn over sufficient sets of the BIR official receipts (BIR Form No. 25.24) to the Finance Revenue Attach or, in his absence, the Finance Officer/Cashier. The Finance Revenue Attach shall turn over his collections intact, at the end of the day, to the Finance Officer/Cashier, who, in turn, shall issue his official receipt (FA Form No. 89) in favor of the former. The Finance Revenue Attach shall also record in his own BIR Cash Book (General Form No. 103), which shall be provided by the Bureau of Internal Revenue, his total daily tax collections and the total amount turned over to the Finance Officer/Cashier. Whenever the Administrative Officer or any other officer of the Foreign Service is deputized, however, the Finance Officer/Cashier shall undertake the collection of taxes, using the BIR official receipts (BIR Form No. 25.24). The Finance Officer/Cashier shall cover his total daily tax collections at the end of the day with a DFA official receipt (FA Form No. 89) issued in favor of the BIR Revenue Attach/Revenue Representative. In all cases, the BIR official receipts and the DFA official receipts issued shall be turned over to the BIR Revenue Attach/Revenue Representative upon his return. SECTION 5. Collection of Taxes in Establishments Where There Are No BIR Revenue Attaches/Revenue Representatives But There Are Finance Revenue Attaches . In Foreign Service posts where there are no BIR Revenue Attaches/Revenue Representatives, the Finance Revenue Attaches shall perform the functions of the BIR Revenue Attach/Revenue Representative. The Finance Revenue Attach shall accept payment of internal revenue taxes upon presentation to him by the taxpayer of the assessment notice or any other BIR document, like an income tax return, which may serve as basis for the collection of internal revenue taxes. He shall observe strictly the following instructions: (a) Issue BIR official receipts (BIR Form No. 25.24) to the taxpayers. He shall be provided with booklets of BIR Form No. 25.24 for which he shall be held accountable. The distribution of the BIR official receipts, in line with the Department of Finance Memorandum Circular No. 11-68, dated 25 July 1968, with modification, shall be as follows: (1) Original BIR; (2) Duplicate Taxpayer; (3) Triplicate BIR Resident Auditor; and (4) Quadruplicate Finance Revenue Attach (Post's file). (b) Write down clearly and legibly on the BIR official receipts (BIR Form No. 25.24) the full name of the payor, his taxpayer account number, and his forwarding address. (c) Always indicate on the BIR official receipts the particulars of the payment being made as well as the corresponding assessment number, if any. (d) Always reflect on the income tax returns and other BIR documents the pertinent data of the corresponding BIR official receipt issued such as the number, amount, and the date of issue. (e) Turn over his collections intact, at the end of the day, to the Finance Officer/Cashier, who shall, in turn, issue his own official receipt (FA Form No. 89) in favor of the Finance Revenue Attach. The Finance Officer/Cashier shall check the BIR official receipts covered by the collections and sign the triplicate copy of the last receipt issued. The Finance Revenue Attach shall notify and explain in writing to the Chief of Mission/Principal Officer whenever collections cannot be turned over to the Finance Officer/Cashier at the end of the day. (f) Record in the BIR Cash Book (General Form No. 103), which shall be provided by the Bureau of Internal Revenue, the total internal revenue tax collections made during the day, giving reference to the inclusive numbers of the BIR official receipts issued, and the actual amount turned over to the Finance Officer/Cashier at the close of office hours making reference to the DFA official receipt issued by the latter. (g) Transcribe at the end of any given month in the Overseas Abstract of Collections (BIR Form No. 12.32B), in quintuplicate, his internal revenue tax collections as reflected in the BIR official receipts (BIR Form No. 25.24). The total collections as recorded in the Abstract should tally with the total collections turned over to the Finance Officer/Cashier for the same month. Distribution shall be as follows: (1) Original DFA Resident Auditor; (2) Duplicate BIR; (3) Triplicate BIR Resident Auditor; (4) Quadruplicate DFA; and (5) Quintuplicate Finance Revenue Attach (post's file). (h) Accomplish a Monthly Report of Accountability (General Form No. 16-A), in quintuplicate, to reflect the BIR official receipts received and issued, the distribution of which shall be as follows: (1) Original BIR Resident Auditor; (2) Duplicate BIR; (3) Triplicate DFA Resident Auditor; (4) Quadruplicate DFA; and (5) Quintuplicate Finance Revenue Attach (post's file). (i) Submit his BIR reports in two sets to the Chief of Mission/Principal Officer, within five (5) calendar days following the end of the pertinent month, in the manner prescribed under Section 4(g) of this Order. (j) Whenever he goes on leave of absence or has to attend to some business outside of his office irrespective of the time element involved, the applicable procedure set forth under Section 4(h) of this Order shall be invariably observed. SECTION 6. Collection of Taxes in Establishments Where There Are No BIR Revenue Attaches/Revenue Representatives or Finance Revenue Attaches . In Foreign Service posts where there are no BIR Revenue Attaches/Revenue Representatives or Finance Revenue Attaches, the Administrative Officer of the post shall perform the functions of the BIR Revenue Attach/Revenue Representative. The Finance Officer/Cashier, however, shall accept payment of internal revenue taxes upon presentation to him by the taxpayer of the assessment notice or any other BIR document, like an income tax return, which may serve as basis for the collection of internal revenue taxes. The Finance Officer/Cashier shall observe strictly the following instructions: (a) Issue BIR official receipts (BIR Form No. 25.24) to the taxpayers. He shall be provided with booklets of BIR Form No. 25.24 for which he shall be held accountable. The distribution of the BIR official receipts, in line with the Department of Finance Memorandum Circular No. 11-68, dated 25 July 1968, with modification, shall be as follows: (1) Original BIR; (2) Duplicate Taxpayer; (3) Triplicate BIR Resident Auditor; and (4) Quadruplicate Finance Officer/Cashier (post's file). (b) Write down clearly and legibly on the BIR official receipts (BIR Form No. 25.24) the full name of the payor, his taxpayer account number, and his forwarding address. (c) Always indicate on the BIR official receipts the particulars of the payment being made as well as the corresponding assessment number, if any. (d) Always reflect on the income tax returns and other BIR documents the pertinent data of the corresponding BIR official receipt issued such as the number, amount, and the date of issue. (e) Record in the DFA Official Cash Book (FA Form No. 93) the total internal revenue tax collections made during the day, giving reference to the inclusive numbers of the BIR official receipts issued. (f) Transcribe at the end of any given month in the Overseas Abstract of Collections (BIR Form No. 12.32B), in seven (7) legible copies, his internal revenue tax collections as reflected in the BIR official receipts (BIR Form No. 25.24). Distribution of the Abstract shall be as follows: (1) Original DFA Resident Auditor; (2) Duplicate BIR; (3) Triplicate BIR Resident Auditor; (4) Quadruplicate Finance Officer/Cashier (fiscal reports); (5) Quintuplicate Finance Officer/Cashier (fiscal reports); (6) Sextuplicate DFA; and (7) Septuplicate Finance Officer/Cashier (post's file). (g) Accomplish a Monthly Report of Accountability (General Form No. 16-A), in seven (7) legible copies, to reflect the BIR official receipts received and issued, the distribution of which shall be as follows: (1) Original BIR Resident Auditor; (2) Duplicate BIR; (3) Triplicate DFA Resident Auditor; (4) Quadruplicate Finance Officer/Cashier (fiscal reports); (5) Quintuplicate Finance Officer/Cashier (fiscal reports); (6) Sextuplicate DFA; and (7) Septuplicate Finance Officer/Cashier (post's file). (h) Submit his BIR reports in two sets to the Chief of Mission/Principal Officer within five (5) calendar days following the end of the pertinent month, in the following manner: (1) First Set To be marked "For the Commissioner of Internal Revenue" i. Original copies of the BIR official receipts issued (BIR Form No. 25.24); ii. Duplicate and triplicate copies of the Overseas Abstract of Collections (BIR Form No. 12.32B); iii. Original and duplicate copies of the Monthly Report of Accountability (General Form No. 16-A); and iv. Original and duplicate copies of the income tax returns and other supporting documents. (2) Second Set To be marked "For the Secretary of Foreign Affairs" i. Triplicate copies of the BIR official receipts issued (BIR Form No. 25.24); ii. Original and sextuplicate copies of the Overseas Abstract of Collections (BIR Form No. 12.32B); iii. Triplicate and sextuplicate copies of the Monthly Report of Accountability (General Form No. 16-A); and iv. Philippine peso checks, if any, received at the post in payment of internal revenue taxes. SECTION 7. Payment by Check . Payment tendered shall be either in U.S. dollars or local currency. If payment by check is preferred to cash, the check shall be invariably drawn in favor of the receiving Foreign Service establishment. However, if the payor insists on paying by check in Philippine currency, the check shall be drawn in favor of the Commissioner of Internal Revenue. In both cases, the payment shall be covered by a BIR official receipt (BIR Form No. 25.24), the number and date of which to be indicated on the reverse side of the check. For purposes of this Order, only bank drafts, manager's checks, cashier's checks, and certified personal checks may be drawn in Philippine currency. Such payment shall be included in the Overseas Abstract of Collections (BIR Form No. 12.32B) with the corresponding footnote notation that it is covered by check in Philippine currency. Pertinent information such as the check number, name of bank, and date of issue shall likewise be reflected in the Abstract. In transmitting the peso check, together with the BIR reports of the post, the Finance Officer/Cashier shall draw in favor of the Commissioner of Internal Revenue a cash voucher in pesos corresponding to the amount of the check, which shall be recorded in the Abstract of Disbursements (FA Form No. 96), also in pesos. SECTION 8. Expenses Chargeable Against BIR . Pouch freight charges for transmitting to the Commissioner of Internal Revenue the required tax collection reports and other BIR documents shall be chargeable against the Bureau of Internal Revenue. The Bureau shall also be billed for other disbursements properly chargeable against its account. SECTION 9. Rates and Computations . In the performance of their collection function, the collecting officials shall be guided accordingly by the latest revenue regulations issued by the Commissioner of Internal Revenue. SECTION 10. Submission of Collection Reports . In line with Foreign Service Circular No. 31-67, dated 3 April 1967, the Chief of Mission/Principal Officer shall transmit to the Department two (2) sets of the BIR tax collection reports under a numbered despatch within the first ten (10) calendar days following the end of the pertinent month. SECTION 11. Accounting Instructions . The internal revenue tax collections shall be accounted for in the Department in the following manner: (a) Based on the various Overseas Abstracts of Collections submitted by the Foreign Service posts during a particular month, the Department shall prepare in favor of the Commissioner of Internal Revenue a general voucher and the corresponding DFA peso check to cover the gross internal revenue tax collections to be remitted to the Bureau of Internal Revenue. Peso checks paid abroad shall be deducted from the amount due for remittance. (b) Together with the general voucher and the DFA peso check, pertinent copies of the second set of the collection reports consisting of the triplicate copies of the BIR official receipts issued (BIR Form No. 25.24), original copies of the Overseas Abstract of Collections (BIR Form No. 12.32B), and the triplicate copies of the Monthly Report of Accountability (General Form No. 16-A) shall be submitted to the DFA Resident Auditor for audit of remittances to the Bureau of Internal Revenue. (c) Thereafter, the Department shall transmit to the Bureau of Internal Revenue, within ten (10) working days from the date of receipt of the collection reports from the posts concerned, the DFA peso check, peso checks paid abroad, triplicate copies of the BIR official receipts issued, and the first set of the BIR collection reports. SECTION 12. Repealing Clause . This Department Order amends Department Order No. 3-71, dated 20 January 1971, and modifies any prior instructions, regulations and orders contrary to the provisions hereof. SECTION 13. Effectivity . This Order shall take effect on 1 November 1976. (SGD.) JOSE D. INGLES Acting Secretary of Foreign Affairs (SGD.) CESAR VIRATA Secretary of Finance (SGD.) FRANCISCO O. TANTUICO, JR. Acting Chairman, Commission on Audit All internal revenue officers and others concerned with the enforcement of internal revenue laws and the collection of internal revenue taxes in particular are enjoined to be guided accordingly. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3