Assistance of PC Personnel to Collection Enforcement Officers, Authority for

July 10, 1974 REVENUE MEMORANDUM CIRCULAR NO. 42-74 SUBJECT : Assistance of PC Personnel to Collection Enforcement Officers, Authority for TO : All Internal Revenue Officers and others concerned For your information and guidance, there is quoted hereunder the letter dated June 25, 1974 of General Gregorio B. Fider, Acting Chief of Constabulary, informing this Office that all PC Zones and Provincial Commanders, to include the Commanding General, PC METROCOM for Greater Manila Area, were directed to provide the necessary assistance to Bureau personnel while in the performance of official duties, to wit: "Republic of the Philippines "HEADQUARTERS PHILIPPINE CONSTABULARY "Camp Crame, Quezon City "June 25, 1974 "Commissioner Misael P. Vera "Bureau of Internal Revenue "Manila "Dear Commissioner Vera: "This pertains to your letter of May 27, 1974 requesting the assistance of PC personnel to collection enforcement officers of that Commission in enforcing the administrative summary remedies in the collection of delinquent internal revenue taxes. "Please be informed that all the PC Zones and Provincial Commanders, to include the Commanding General, PC METROCOM for Greater Manila Area, were directed to provide the necessary assistance on the need basis upon request by your duly authorized representatives. However, the participation of these personnel will be strictly limited to security matters or the maintenance of peace and order. In no way will they participate in the investigation and prosecution of cases incident to the enforcement of the administrative summary remedies. "Very truly yours, "(SGD.) GREGORIO B FIDER Brigadier General, AFP Acting Chief of Constabulary" For the purpose of a uniform procedure in making requests for such assistance, and in order that the same may not be abused, the request must conform to the following requirements: 1.When a delinquent taxpayer is hostile and belligerently refuses to allow duly authorized agents and officials of the Bureau to gain access to the premises of his establishment or residence for the purpose of a)serving warrants/notices for the administrative summary remedies to collect delinquent taxes prescribed in Chapter II of Title IX of the Tax Code; b)seizure of chattels, goods and other personal properties pursuant to Section 318 of the Tax Code. 2.It shall be in writing to be signed by the Regional Director or the Revenue District Officer concerned, as the case may be, after ascertaining that the assistance desired is necessary; 3.That the purpose of the request shall be strictly limited to security matters or the maintenance of peace and order; 4.It shall be addressed to the proper Provincial Commander or to the detachment commander, if the latter is available; and 5.A copy of such request shall forthwith be furnished the Chief, Collection Branch and the Chief, Tax Accounts Division, Manila, who shall make a chronological compilation thereof for record and reference purposes. Please be guided accordingly. MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 ANNEX PRO-FORMA STATEMENT OF ASSETS, LIABILITIES & NET WORTH PARTICULARS Dec. 31, 1973 Dec. 31, 1974 ASSETS (Net of Depreciation) 1 Cash on Hand (**) P. . . P. . . 2 Cash in Banks P. . . P. . . 3 Accounts, Notes and Loans Receivable P. . . P. . . 4 Mortgage Receivable P. . . P. . . 5 Investments P. . . P. . . 6 Real Property Land P. . . P. . . 7 Real Property Improvements P. . . P. . . 8 Motor Vehicles P. . . P. . . 9 Inventory at the End P. . . P. . . 10 Furniture/Fixtures P. . . P. . . 11 Personal Property P. . . P. . . 12 Other Assets P. . . P. . . Total Assets P. . . P. . . LIABILITIES 1 Accounts, Notes and Loans Payable P. . . P. . . 2 Mortgage Payable P. . . P. . . 3 Other Liabilities P. . . P. . . Total Liabilities P. . . P. . . Net Worth at the End P. . . P. . . ===== Less: Net Worth at the Beginning P. . . Increase (Decrease) in Net Worth P. . . Add: Non-deductible Items 1 Personal, living & family expenses P. . . 2 Insurance premiums P. . . 3 Income tax payments P. . . 4 Gifts to Others P. . . 5 Non-deductible contributions P. . . 6 Net Capital Loss P. . . 7 Amnesty tax payments P. . . 8 Estate and Donor's taxes P. . . 9 Other non-deductible items P. . . Total non-deductible items P. . . Net Income before further adjustments P. . . Less: Non-taxable items 1 Gifts, donations & inheritance received P. . . 2 Non-taxable capital gains P. . . 3 Backpay/War damage receipts P. . . 4 Proceeds of life insurance policy P. . . 5 Non-taxable stock dividends (provided reflected in Assets) P. . . 6 Pensions received under RA 4917 (private firms) P. . . 7 Retirement pay from GSIS & SSS P. . . 8 Non-recognized gains from exchanges of property under Section 35(2)(c) of the Tax Code P. . . 9 GSIS Cash dividends P. . . 10 Social security benefits received from foreign gov't. and institutions (Per PD 220) P. . . 11 Other non-taxable items P. . . Total non-taxable items P. . . Adjusted Net Income as Per Investigation P. . . Less: Statutory Exemptions: 1 Exemption of a Working Wife P. . . 2 Personal & additional exemption P. . . Total Statutory Exemption P. . . NET INCOME SUBJECT TO TAX P. . . ==== NET WORTH-EXPENDITURES METHOD CASH ANALYSIS ( ** ) 1974 Sources of Funds Cash on hand and in bank at the beginning P. . . Add 1 Cash received from business (sales) P. . . 2 Collection of receivables P. . . 3 Proceeds of loans and mortgages P. . . 4 Proceeds of life insurance policies P. . . 5 Proceeds from sale of property, real or personal P. . . 6 Cash gifts, bequests and inheritance received P. . . 7 Non-fund deductions (depreciation and provision for bad debts) P. . . 8 Backpay, pensions, benefits gratuities received P. . . 9 Cash dividends & interest income P. . . 10 Wagering gains P. . . 11 Receipt of cash from any other source P. . . Total of Sources P. . . Total Available Funds for the Year P. . . Less Application of Funds 1 Cash purchases and business expenses P. . . 2 Cash paid for assets/property, real or personal (full payment or installment) P. . . 3 Payment of loans, notes and mortgages payable P. . . 4 Section 30 (c)(1) (A to D) (non-deductible items) P. . . 5 Section 31(a) cash disbursements: a. Personal, living or family expenses P. . . b. Capital expenditures P. . . c. Premiums paid on life insurance P. . . 6 Cash disbursements of any kind P. . . 7 Cash on hand and bank at the end P. . . Total Applied Funds P. . . CASH ON HAND AT THE END AS RECONSTRUCTED P. . . ===== Footnotes ** Supported by accompanying Cash Analysis Schedule.