LOI No. 1416, Suspending Payment of Taxes, Duties, Fees, Imposts and Other Charges Due and Payable by Copper Mining Companies

May 12, 1986 REVENUE MEMORANDUM ORDER NO. 09-86 SUBJECT : LOI No. 1416, Suspending Payment of Taxes, Duties, Fees, Imposts and Other Charges Due and Payable by Copper Mining Companies TO : All Revenue Officials and Others Concerned Letter of Instruction No. 1416, issued on July 17, 1984, allows suspension of payment of all taxes, duties, fees, imposts and other charges, whether direct or indirect, due and payable by Copper Mining Companies, subject to conditions, pertinent portions of which provide: cd "1. Only copper mining companies as determined by the Minister of Trade and Industry who can demonstrate that their continued operations under the present operating conditions and market situation can not be viably sustained, may avail of the suspension of payment privilege. 2. The suspension of payment privilege shall be lifted once the world market price of copper reaches a level adequate to sustain the operation of copper mines as determined by the Minister of Trade and Industry and subject to the approval of the President. 3. The repayment of taxes, duties, fees and imposts the collection of which have been suspended shall be scheduled according to the individual paying capacity of each mining company, the repayment of which shall commence after the world market price has stabilized at an economically viable level as determined by the Minister of Trade and Industry and subject to the approval of the President." In order that all internal revenue taxes, payment of which have been temporarily suspended by virtue of LOI No. 1416, shall be fully accounted for and collected by the Bureau of Internal Revenue once payment suspension is lifted, the following revenue monitoring procedures are hereby adopted: 1. AGRICULTURE & NATURAL RESOURCES DIVISION 1.1. - All requests from Copper Mining Companies for suspension of payment of national internal revenue taxes, pursuant to LOI No. 1416, shall be processed through this Audit Division. The corresponding advise to applicant Copper Mining Company shall always state that the tax, payment of which is being temporarily suspended, shall be repaid upon lifting of the suspension, pursuant to paragraph 3 of LOI No. 1416. aisa dc The said advise shall be prepared for the signature and approval of the Deputy Commissioner of Internal Revenue. 1.2 - This Audit Division is hereby tasked (i) to verify from the Ministry of Trade and Industry the identities of all Copper Mining Companies sofar granted with "Certificate of Eligibility to suspend payments" for the period from July 17, 1984 to the present; and (ii) to collate all records and establish all internal revenue taxes that shall be collected from the said entities once the suspension is lifted. 2. RECEIVABLE ACCOUNTS DIVISION 2.1 - This Division is tasked to monitor all future tax collectibles from Copper Mining Companies and hereby instructed to devise and maintain a BIR book on these collectible taxes showing (i) the name of the mining company; (ii) its address; (iii) tax account number; (iv) kind of internal revenue tax; (v) taxable period; and (vi) amount of the tax. 2.2 - The foregoing information shall likewise be posted in BIR Form 40:00. 2.3 - All records pertaining to duly approved suspension of payments shall first be forwarded to this Division of the National Office for recording purposes. Thereafter, the tax record shall be forwarded to the Records Division of the National Office which shall maintain a separate suspense file for all these cases. This Order shall take effect immediately. (SGD.) BIENVENIDO A. TAN, JR. Commissioner