Amendments to Revenue Memorandum Order No. 30-78 to Adopt the "Debit System" as a Mode of Tax Payment Through Banks

January 25, 1980 REVENUE MEMORANDUM ORDER NO. 10-80 SUBJECT : Amendments to Revenue Memorandum Order No. 30-78 to Adopt the "Debit System" as a Mode of Tax Payment Through Banks TO : Internal Revenue Officers & Others Concerned In order to prevent the misappropriation of tax payments made by checks, the Central Bank of the Philippines in its Circular No. 707, Series of 1979, has adopted the debit system as an additional mode of payment of internal revenue taxes through authorized agent banks for tax payments involving P20,000.00 or more. cd i In view thereof, the following sections and paragraphs of Revenue Memorandum Order No. 30-78, as amended (Order), are hereby further amended to read as follows: II. Procedures in the procurement and issuance of Revenue Tax Receipts (RTRs) A. The offices involved . . . 3. The Collection Unit/other offices authorized to issue RTRs The head of the Collection Unit or of other offices authorized to issue RTRs shall be responsible for the efficient implementation of the procedures on the custody, issuance and control of RTRs. He shall see to it that all RTRs in a booklet and all booklets issued to his office are properly accounted for. Likewise, he shall insure the accurate preparation and prompt submission of required reports by the personnel under his supervision who are involved in the issuance of the RTRs. Conversely, all designated RTR Issuing Officers shall be responsible to their respective heads of units for all RTRs issued to them and for adherence to the procedures prescribed in this Order. The Collection Agent or any designated Receipt Issuing Officer under his supervision and control shall: a. brief the taxpayer on the following points before preparing the RTR: (1) . . . (2) . . . (3) . . . (4) . . . (5) . . . (6) payment may be made through advice by the taxpayer to its bank to debit its account for the amount of the tax payment provided the same involves P20,000.00 or more; (7) if the taxpayer avails of the debit system as a mode of tax payment, the authorized agent bank shall issue the corresponding Confirmation Receipt upon receipt of the RTR and taxpayer's debit advice and shall indicate in space number 12 of the Receipt the remarks "Account Debited". b. prepare a set of RTR (only upon presentation of the tax return, the demand letter, the assessment notice, or any other basic document for the payment of an internal revenue tax) addressed to the authorized agent bank as specified by the taxpayer, regardless of the bank's location in cases where the taxpayer avails of the "debit system"; c. issue an RTR [if a Tax Credit Memo (TCM) is used for payment and the amount indicated on the TCM is less than the tax liability] only for the balance of the tax due after deducting the tax credit; if the amount indicated on the TCM is equal to or greater than the tax liability, no RTR shall be issued and the TCM with the basic documents must be referred to the Collection Service in the Central Office for processing; d. . . . e. . . . f. . . . g. . . . h. . . . i. . . . j. . . . k. . . . l. accomplish properly the Daily List of RTRs Issued, BIR Form 809, (List) in quintuplicate, using as basis the quintuplicate (card) copy of the RTR; indicate the word "CANCELLED" opposite the number of such RTR under the column "Name of Taxpayer"; casia m. type in capital letters at the left hand side of all copies of the List the phrase "DEBIT SYSTEM-BANK OUTSIDE THIS DISTRICT" if the addressee bank is located beyond the territorial jurisdiction of the issuing office; n. transmit the quintuplicate (card) copies of the RTRs issued during the day, with the corresponding original copy of the List to the Reconciliation Officer the following day, regardless of whether or not the addressee bank is located within the jurisdiction of the RTR issuing office; o. accomplish the Daily List of RTRs Issued To Banks Outside The District Of The Issuing Office, BIR Form 809-A, (List A) in triplicate, copies of which shall be distributed as follows: original - Reconciliation Officer and of the District Office duplicate where the bank is located triplicate - file copy of issuing officer; p. transmit the duplicate and triplicate copies of the List with the basic documents received and the complete set of all cancelled RTRs to the Assessment Branch simultaneously with the transmittal of the quintuplicate (card) copies of the RTR to the Reconciliation Officer; In the case of RTR Issuing Officers in the Receivable Accounts Division, transmit the documents referred to in the preceding paragraph to the Assessment Service; q. forward the quadruplicate copy to the Revenue District Officer; The receipt Issuing Officers in the Central Office, shall forward the same to the Revenue Service Chief (Collection); r. retain the quintuplicate as his file copy; s. render a monthly report to the Regional Director (Attn.: Chief, Administrative Branch) on the RTR booklets received, issued, and still unissued, on BIR Form No. 806 by summarizing the individual reports rendered by all RTR Issuing Officers under him; furnish the Fiscal Control Division with a copy of this report. III. Processing and Control of RTRs . . . A. . . . B. . . . C. . . . D. Revenue District Officer/Collection Service The Revenue District Officers or the Revenue Service Chief (Collection) in the Central Office shall: 1) Designate the Internal Revenue Officer who shall gather daily the Reconciliation Officer's copies (duplicate) of the Summary Report of Collection of National Internal Revenue Taxes, CB-RCO Form No. 003, (Summary Report) with the corresponding quadruplicate copies of the Confirmation Receipt listed therein directly from all authorized agent banks within his jurisdiction. The Reconciliation Officer or any official or employee assigned to the reconciliation process shall not be given this function. cd i 2) Check whether or not all Summary Reports were gathered and transmitted to the Reconciliation Officer. 3) Require the Reconciliation Officers to acknowledge receipt of these documents by signing on the corresponding quadruplicate copy of the List. The Central Bank allows authorized agent banks to submit their Summary Report one week after the date of actual collection but these banks are still required to prepare the form daily. Representatives of the Bureau shall also continue to gather these reports everyday although the same would cover tax collections made one week before. E. Collection Branch/Revenue District Offices/Collection Enforcement Division 1) . . . 2) The designated Reconciliation Officers shall : a) . . . b) Attach the Confirmation Receipt to the corresponding RTR if upon comparison, the name, address, taxpayer account number and amount of tax paid appearing in both documents (RTR card copy on file and Confirmation Receipt) tally. Ascertain the RTR number indicated in a confirmation receipt for which no corresponding RTR card copy is on file from the copies of the List A received. acd Reconcile any discrepancy between any RTR and the corresponding Confirmation Receipt. Report any anomalous practice discovered during the process of reconciliation. The supervisor, upon verification of the correctness of the report, shall render a written report to the Regional Director (or to the Revenue Service Chief (Collection) if the same is discovered in the National Office), who shall in turn indorse the report to the Inspection Service; c) Post the confirmation receipt number opposite the appropriate RTR Number under the column provided therefor in the List and on item 20 of the BIR Card Copy of the RTRs previously received from the Issuing Officers; perform the same process on the original and duplicate copies of List A. d) . . . e) . . . f) . . . g) . . . h) . . . i) transmit, after the reconciliation process the BIR Card Copy of the RTRs issued to taxpayers whose addresses are out of your jurisdiction, as follows: (1) direct to the Revenue District office concerned if within the same Revenue Region; (2) to the appropriate Regional Director, in all other cases. Forward, also after the reconciliation process, the original copy of List A with the Reconciliation Officer's copy of the Confirmation Receipts securely attached thereto to the Reconciliation Officer of the issuing office. File the duplicate copy. cd i Effectivity - This Order takes effect immediately. (SGD.) EFREN I. PLANA Acting Commissioner