Strict Compliance with Revenue Memorandum Circular No. 1-82 Regarding the Place of Filing of Returns and Payment of Taxes of a Branch

February 10, 1983 REVENUE MEMORANDUM ORDER NO. 03-83 SUBJECT : Strict Compliance with Revenue Memorandum Circular No. 1-82 Regarding the Place of Filing of Returns and Payment of Taxes of a Branch TO : All Internal Revenue Officers and Others Concerned It has been brought to the attention of this Office that some mining entities, whose places of operation are located in the provinces, are still paying their mining taxes in the Metro Manila Regional Offices where their head offices are situated, in violation of the provisions of Revenue Memorandum Circular No. 1-82. And such violation has been abetted by the said Metro Manila Regional Offices by accepting the payments of said taxes. Section 256 of the Tax Code and the abovementioned Revenue Memorandum Circular provide that the filing of the returns and payment of the taxes shall be done in the Regional Offices where the mines are located. The returns must state the quantity and the actual market value of the mineral or mineral products to be removed because these are the bases for the imposition of the tax; and this tax is due and payable upon the removal of the minerals from the locality where mined. The purpose of requiring the filing of the return and payment of the mining taxes in the place of operation is to achieve better tax enforcement and administration. Needless to state, the local office of the BIR can better check the quantity and kind of the products being removed than the Regional Offices in Metro Manila which are so far away from the mine sites. The local jurisdiction scheme was adopted under Revenue Memorandum Circular 1-82 so that the Bureau can pursue its continuing program of increased tax collection, aside from the legal rationale discussed in the Circular. And the local office was also given the authority to examine/investigate the tax liabilities of the mining entities in its territorial jurisdiction so that the avowed purpose could easily be attained. In this regard, therefore, all Regional Directors are hereby instructed not to accept payments of taxes on minerals and mineral products removed from mine sites outside of their jurisdiction even if the head offices of said sites are situated within their territory. Violation of this instruction will subject the erring employees to an administrative liability. On the other hand, the Regional Directors whose jurisdiction include the places where the mining operations are actually being conducted, are hereby instructed to always see to it that said operations are closely watched with the end in view of maximizing the capability of the Bureau to collect all mining tax due. The provisions of this Revenue Memorandum Order are hereby made applicable also to the charges on forest products, as well as to the percentage taxes the returns on which shall be filed and the taxes thereon to be paid with the offices of the Revenue District Officer, Collection Agent or authorized Municipal Treasurer of the place of business operations as provided for in Revenue Memorandum Circular No. 1-82. aisa dc Strict compliance with this Order is enjoined. (SGD.) RUBEN B. ANCHETA Acting Commissioner