Prescribing Policies, Guidelines and Procedures Relative to the Frequency of Deposits of Internal Revenue Tax Collections

June 2, 2014 REVENUE MEMORANDUM ORDER NO. 021-14 SUBJECT : Prescribing Policies, Guidelines and Procedures Relative to the Frequency of Deposits of Internal Revenue Tax Collections by Revenue Collection Officers (RCOs)/Special Collecting Officers (SCOs)/Other Collecting Officers (COs) to Authorized Government Depository Banks and the Imposition of Applicable Sanctions/Penalties for Violations Thereof TO : All Internal Revenue Officials, Employees and Others Concerned I. Background Ministry of Finance Order No. 20-73 dated June 14, 1973, as amended by the Joint Circular No. 1-81 by the Commission on Audit (COA) and then Ministry of Finance, and further amended by the Department of Finance Order No. 56-92 dated May 22, 1996 and Section 69 of PD 1445 as well as Section 21 of COA Circular No. 2002-002, prescribed the frequency of deposits of national collections direct to the Bureau of the Treasury and/or through any of the Authorized Government Depository Banks (AGDBs). In the latest COA Memorandum No. 2013-004 dated July 9, 2013, it prescribed that "Collection Officers shall deposit all their collections as well as collections turned over to them by sub-collectors with Authorized Government Depository Bank (AGDB) daily or not later than the next banking day. Where collections are minimal and daily deposit thereof becomes costly and impractical, the COs shall deposit their collections at least once a week, or as soon as the collections reached P10,000.00 . . . ." . Likewise, Section III. Policies and Guidelines, Item No. 7 of Revenue Memorandum Order (RMO) No. 7-2007, as amended by RMO No. 8-2008 and further amended by RMO No. 8-2009, prescribed the strict compliance of the above-stated issuances relative to the deposit of collections to the AGDB. However, there are instances when the set collection threshold and frequency of deposits required to be made by the RCOs/SCOs/other COs are considered impractical due to the following circumstances: 1. The internal revenue tax collections of RCOs are usually substantial in amount only during deadlines. During ordinary days, the collections are minimal; CEaDAc 2. The tax collection from the taxpayers by RCOs assigned in lower class municipalities are relatively small in amount; 3. Due to the distance between the work stations of some RCOs/SCOs/COs and the concerned AGDBs, the daily/weekly travel from the municipality assignment to/from the nearest AGDB will consume most of the RCOs'/SCOs'/other COs' time; thus, lesser time are allotted for the acceptance of tax returns payments and the performance of their other functions; and 4. The travel expenses that the RCOS/SCOs/other COs may incur for a month for purposes of depositing the tax collections, if the existing policy on set threshold and frequency of deposits is strictly enforced, will sometimes be more than their monthly allowance especially for those in the island municipalities and those that require special means of transportation ( e.g. , bancas, hired tricycles, etc.). II. Objectives This Order is being issued to: 1. Prescribe the policies and guidelines relative to timeliness in depositing collections to AGDBs by RCOs/SCOs/COs; 2. Prescribe the policies and guidelines relative to the imposition of the appropriate sanctions to all concerned Bureau personnel, in case of non-compliance with the existing policies and guidelines on timely and intact remittance/deposit of collections; and 3. Define the duties and responsibilities of all concerned revenue officials for a more effective implementation hereof. cDTHIE III. Policies and Guidelines The following policies and guidelines shall be strictly observed: 1. The following schedule relative to the amount of collection and frequency of deposits shall be strictly followed by all concerned RCOs/SCOs/COs: Distance Travel Time Means of Amount of Frequency (Office/ (To and Transportation Collections of Work from Deposits Station to Office/ AGDB) Work Station to AGDB) a. Office/ Not Applicable Not Applicable Total daily Not later than Station is collections next banking co-located regardless of day with the amount AGDB b. Office/ Less than 1 hour Ordinary Total daily Not later than Station is (one way) transportation/ collections next banking located (e.g., Jeep, bus or regardless of day within 30- tricycle) amount kilometer radius More than 1 hour Ordinary As soon as the Not later than (one way) transportation cash collections next banking reached day P10,000.00 If the total amount Not later than of cash collections Friday of each for the week is less week than P10,000.00 More than 1 hour Special As soon as the Not later than (one way) transportation daily cash Friday of the (e.g., hired collections week tricycle, banca, reached etc.) P10,000.00 c. Office/ Less than 1 day Ordinary Total collections Not later than Station is (one way) transportation regardless of Friday of each more than amount week 30- kilometer Less than 1 day Special As soon as the Not later than radius (one way) Transportation daily cash Friday of the collections week reached P10,000.00 1 day or more Any As soon as the Not later than (one way) transportation daily cash Friday of the collections following week reached but not later P10,000.00 than the end of the month of collection* d. Work More than one Special Total collections Once a month station is day transportation regardless of but not later located in (one way) and amount than the end of the Island transportation the month of and other cost is expensive collection* far-flung municipalities * Cash Collections must be deposited before end of banking hours and Check Payments before the clearing cut-off time in order to ensure that the collections are credited by the Bureau of Treasury on the month of collection pursuant to RMC No. 17-2012 dated April 4, 2012 However, the abovementioned schedules should not prevent the RCOs, SCOs, and other COs from depositing earlier the tax/non-tax collections, if deemed necessary, in order to safeguard these collections and protect the interest of the government. ScAHTI In relation to Item 1.d above, all concerned RDOs must submit the list of RCOs/SCOs/other COs who are assigned to these municipalities including justifications why they should be allowed to deposit their collections not on a daily basis, for monitoring purposes. The list should be submitted to the Assistant Commissioner, Collection Service, Attention: The Chief, Collection Programs Division copy furnished The Chief, Collection Performance Monitoring Division at Room 507, 5th Floor, BIR National Office Bldg., Agham Road, Diliman, Quezon City for approval. 2. All collections must be deposited intact to the nearest AGDB on or before the herein specified deadline/scheduled date of deposit/remittance. In order to account all monthly collections in time for the preparation of the monthly collection reports and for the immediate reconciliation thereof, all collections for the month must be deposited by the end of the month and before the AGDB's cut-off or clearing time for check payments pursuant to the provisions of Revenue Memorandum Circular No. 17-2012 dated April 4, 2012. 3. If the prescribed day for depositing of collections of the RCOs/SCOs/COs falls on a tax deadline and there is a need for these officers to be at their respective work stations/offices to accept tax payments/returns, the RCOs/SCOs/COs may be allowed to deposit their collections on the next banking day after the said tax filing/payment deadline. However, this policy shall not apply to RCOs/SCOs/COs falling under Section III, 1.a. hereof. EITcaH 4. It shall be the responsibility of all Revenue District Officers/Heads of Offices, Finance and Collection Division Chiefs and Collection Section Chiefs/Supervisors to strictly monitor the activities of all the RCOs/SCOs/COs under their jurisdiction by conducting regular spot checking and/or audit, to ensure that all their activities are in accordance with existing rules and regulations, and that the tax collections received are fully reported, accounted for, and deposited intact and on time to the AGDB, pursuant to the applicable provisions of this Order. 5. Non-compliance with the provisions of this Order and other existing rules and regulations on the collection, reporting and remittance of all collections by RCOs/SCOs/COs are subject to penalties and sanctions prescribed under existing issuances and civil service laws, rules and regulations, as enumerated in Revenue Memorandum Circular No. 74-2012. IV. Repealing Clause All issuances and/or portions thereof inconsistent with the provisions of this Order are hereby repealed and/or amended accordingly. V. Effectivity This Order shall take effect immediately. DHIETc (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue <ftp://ftp.bir.gov.ph/webadmin1/pdf/87714RMO%20No%20%2021-2014%20Full%20Text.pdf> last visited June 20, 2014.