Procedure to be Followed in Ascertaining the Unexpended Balances of Science Stamps Loaded on Metering Machines and Disposition Thereof

August 16, 1979 REVENUE MEMORANDUM CIRCULAR NO. 52-79 SUBJECT : Procedure to be Followed in Ascertaining the Unexpended Balances of Science Stamps Loaded on Metering Machines and Disposition Thereof TO : Revenue Regional Directors, Revenue District Officers and others concerned In view of the repeal of Section 4 of Republic Act 5448 by Presidential Decree No. 1457, thereby discontinuing the use of science stamps, the following procedure for ascertaining the unexpended balances of science stamps loaded on metering machines is hereby promulgated for the guidance of all concerned: 1. SCOPE All metering machines for science stamp purposes in the possession of taxpayers and those installed and operated by personnel of the Bureau of Internal Revenue in its offices and in the offices of the Register of Deeds and other government agencies. II. PROCEDURE A. SCIENCE STAMP METERING MACHINES OWNED AND OPERATED BY TAXPAYERS 1. In a radiogram/telegram to Regional Directors, they were instructed that metering machines for science stamps should no longer be used and the balance shown in the machine as of August 5, 1978 should be verified and reported immediately by Revenue District Officers to the Regional Director and by the latter to the National Office. 2. The report submitted by the Revenue District Officer of the ascending and descending balances of the metering machine for science stamp as of August 5, 1978 shall be the starting basis for verification. 3. A Committee shall be created in the District Office with the Revenue District Officer as Chairman and the District Collection Supervisor and an examiner in the district as members. The Committee shall be charged with the verification of the balances shown in the machines and the papers to support the claim for refund that will be required from the taxpayer. 4. The Committee shall require the taxpayers concerned to bring the metering machine to the Office of the Revenue District Officer for verification of the unexpended amount of science stamps. The unexpended amount shown in the machine shall be checked against the records of the previous reading made by the Revenue District Officer as required in the telegram. 5. Any discrepancy should be thoroughly investigated and reported to the National Office. For purpose of the refund of the unexpended balance, the amount shown upon verification shall be the one recommended which should be equal or less than the reading made on August 5, 1978 but not more. 6. In all verifications, the members of the Committee shall be present together with a representative of the Commission on Audit. The Regional Auditor of the BIR or his representative should be requested to witness the verification to be made in the station town of the Regional Office or in the station town of the District Office, if the Regional Auditor or his representative is available. In station towns of district offices where the services of the Regional Auditor and his staff are not available, a representative of the Provincial or City Auditor should be requested to be present in the verification. 7. After verifying the balance shown in the machine, a certification shall be accomplished by the Committee containing the following information: a. Name of permittee b. Address c Type of Machine d. Permit number e. Serial number of the machine f. Date of initial permit g. Date of last loading h. Information on last loading (1) BIR office where loading was effected (2) Amount of load (3) ROR/RTR No. (4) Date of issue i. Xerox copy of the voucher or other evidence of the payment for the last loading j. Balances after the last loading (1) Ascending balance (2) Descending balance k. Meter Reading as of August 5, 1978 (1) Ascending balance aisa dc (2) Descending balance 8. The certification shall be signed by all the members of the Committee and attested to by the representative of the Commission on Audit. 9. The payment for the last loading by RTR or ROR shall be verified from the records on file (collection report) in the District Office to determine whether the payment was duly received and reported by the receiving officer. A certification to this effect shall be prepared and attached to the report. 10. After the certification is completed, the Committee shall break the seal of the machine and set at zero all readings of the ascending and descending balance. Thereafter, the said machine shall be sealed in order to preclude unauthorized operation of the same. The science stamp die shall be turned over to the Regional Director 11. Each Revenue District Officer shall prepare a summary of the reports of the Committee and together with the certification and all other supporting papers, forward them to the Regional Director who shall consolidate all such reports coming from all Revenue District Officers under his jurisdiction and forward them to the National Office, Attention: Chief, Indirect Taxes Division. B. REFUND 1. The papers forwarded to the Chief, Indirect Taxes Division shall be processed to determine whether a refund is due to the taxpayer and the amount thereof. 2. If the findings after processing do not merit a refund, such information shall be communicated to the taxpayer. 3. After determination of the amount to be refunded, a memorandum to the Deputy Commissioner shall be prepared recommending the refund. 4. Upon approval of the recommendation, the papers shall be forwarded to the Accounting Division for preparation of the voucher and the treasury warrant. C. REUSE OF METERING MACHINE 1. Considering that the machines are owned by the permittees, they may request the conversion of the science stamp metering machine to a documentary stamp machine. 2. In such cases, the permit shall be issued upon proper application filed with the Regional Director. 3. The permittee shall be required to surrender the die for science stamps and a new die for documentary stamp shall be installed in the metering machine. D. SCIENCE STAMP MACHINES OPERATED BY THE BIR 1. All machines operated by the BIR in its offices, Offices of Register of Deeds, NBI and other government agencies shall be returned to the Regional Director. 2. Upon receipt in the region of the machine, a verification shall be made to determine whether the expended amount had been duly accounted for. 3. The Regional Director shall determine where the machine can be used in the Regional Office, District Office, or the Register of Deeds. 4. After determining the place where the machine will be installed, a request to the Commissioner, Attention: Chief, Property Division, shall be submitted indicating the place where it will be installed after the conversion. 5. The request together with the machines shall then be forwarded to the Property Division. 6. If there is no place in the region where the machines can be installed, this should nevertheless be returned to the Property Division so that they can be installed in other Regional Offices. 7. After the documentary stamp die has been installed, the Chief, Property Division shall return the machine to the Regional Director concerned. III. EFFECTIVITY The provisions of this Revenue Memorandum Circular shall be effective immediately and shall be given as wide a publicity as possible. aisa dc EFREN I. PLANA Acting Commissioner