Procedure in the Processing of Reports of Investigation on Payments of Residence Taxes

January 11, 1980 REVENUE MEMORANDUM ORDER NO. 01-A-80 SUBJECT : Procedure in the Processing of Reports of Investigation on Payments of Residence Taxes TO : The Revenue Service Chief (Assessment), Regional Directors, Chiefs of Investigating Divisions in the National Office, all Chiefs of Assessment Branches, and All Revenue District Officers As part of the continuing effort of the government to raise revenues by collecting all taxes due from every taxpayer and in order to help local governments in the verification of collection from residence taxes, this Order is hereby promulgated for compliance by all concerned. A. OBJECTIVES: 1. To determine the taxpayers who paid their residence tax liabilities and those who did not. 2. To cross-check the amount of income from profession, business and/or from salaries and wages as declared in the residence tax certificates against the amount reported in the income tax returns of the taxpayers concerned. B. SCOPE: The procedure prescribed hereunder shall be applicable to the investigation of the income tax liabilities of taxpayers conducted by examiners of the Investigating Divisions in the National Office and by examiners in all Revenue District Offices and in the Office Audit Sections in Revenue Regions having such units. cdt C. PROCEDURE: In the course of the investigation of income tax returns of individual and corporate taxpayers by the examiners in the various divisions in the National Office and in the Revenue District Offices and Office Audit Sections, verification shall also be made of their residence tax liabilities. A report on the results of such verification shall be submitted on BIR Form No. 1717-G (attached as Annex A), whether or not any deficiency residence tax was found due. The report shall be submitted with all the other required reports in accordance with existing standard operating procedures. The Chiefs of the Investigating Divisions in the National Office, the Revenue District Officers, and the Chiefs of the Office Audit Sections shall cause the segregation of BIR Form No. 1717-G from the tax docket and the immediate transmittal of the same to the Revenue Service Chief (Assessment) or the Chief, Assessment Branch, as the case may be. The Revenue Service Chief (Assessment) and the Chiefs of the Assessment Branches of Revenue Regions No. 3-B, 4-A and 4-B shall transmit the reports involving taxpayers with residence or principal place of business in any of the cities and municipalities comprising Metro Manila to the Metro Manila Commission, Attention: Director of Finance, within five (5) days after the end of each month. With respect to areas outside of Metro Manila, the reports shall be transmitted to the City or Municipal Treasurer where the taxpayer involved resides or has his principal place of business. aisa dc D. SANCTIONS: Within the limits of BIR jurisdiction, in case of a finding of discrepancy, criminal/civil/administrative sanctions shall be initiated by the Regional Directors concerned and a report thereof submitted to the Commissioner of Internal Revenue. Where the discrepancy is prejudicial to the local governments in whose favor residence taxes accrue, it is expected that similar action shall be taken by the local governments concerned. E. EFFECTIVITY: These procedures shall apply to all cases still in the possession of field and office audit examiners as of January 4, 1980 and henceforth shall be followed strictly in all cases. This Order supersedes Revenue Memorandum Order No. 1-80 dated January 4, 1980. (SGD.) EFREN I. PLANA Acting Commissioner