New Procedures in the Processing of Claims for Tax Credits, Tax Refunds or Replenishments of Tax-Paid Stocks Involving Sales of Petroleum Products to Tax-Exempt Agencies or Entities

May 14, 1979 REVENUE MEMORANDUM ORDER NO. 12-79 SUBJECT : New Procedures in the Processing of Claims for Tax Credits, Tax Refunds or Replenishments of Tax-Paid Stocks Involving Sales of Petroleum Products to Tax-Exempt Agencies or Entities TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, there is quoted hereunder No. 2 of the directive of the President contained in Letter of Instructions No. 810 dated February 12, 1979, as follows: cdt "No. 2 All government officials and employees are hereby enjoined to respond in the most expeditious manner to the requirements of the general public and to extend their full cooperation and assistance in the rendering of services to the people. Furthermore, all government offices are enjoined to cooperate fully with each other in expediting intra-government transactions." In compliance with this requirement, the following changes in the procedure in the processing of applications for tax credits, tax refunds and/or replenishments of tax-paid stock on account of sales of petroleum products made to tax-exempt entities, are hereby adopted. A. ORGANIZATION 1. There shall be organized within the Gasoline and Miscellaneous Tax Division, Specific Tax Service, a Verification Unit that shall take charge, principally, of the investigation or verification and/or processing of the claims for tax refunds, tax credits and/or replenishments of tax-paid stocks involving specific taxes paid on petroleum products sold to tax-exempt agencies or entities. 2. To evaluate and review the report of verification or investigation of the Verification Unit, a Committee is hereby created, the membership of which shall have at least the rank of Assistant Chief of Division, and shall be composed of the following: a. A representative of the Commissioner who shall act as Chairman; b. A representative of the Specific Tax Service, as Member; and c. A representative of the Legal Service, as Member. 3. The Committee shall meet at least once a week or as often as the need arises. 4. The Committee shall have a permanent secretary who shall take charge of the custody of the records of the Committee, keep and maintain a records of the verification reports submitted to and acted upon by the Committee and perform such other administrative duties as are required in connection with the efficient and smooth functioning of the Committee. B. PROCEDURES 1. All claims involving tax credits, tax refunds and/or replenishments involving specific taxes on petroleum products shall be filed with the Gasoline and Miscellaneous Tax Division. 2. The Chief of the said Division shall cause the investigation or verification and/or processing of such claims by the Verification Unit to determine whether the requirements for the grant of a tax credit, tax refund or authority to replenish tax-paid stock, as the case may be, have been satisfactorily complied with. 3. The report of the Verification Unit on the investigation or verification and/or processing of every claim for tax credit, tax refund or replenishment of tax-paid stock shall be passed upon by the Chief of the Gasoline and Miscellaneous Tax Division who shall thereafter forward the said report to the Committee for evaluation and review. 4. In cases of tax refunds, the Committee shall ascertain whether the taxpayer claiming for a refund has any outstanding tax liability and, also, whether the money sought to be refunded had actually been paid to, and received by, the government. C. SAFEGUARDS In addition to the verification to be conducted by the field personnel of the Verification Unit of the Gasoline and Miscellaneous Tax Division and the evaluation and review to be made by the Committee, the following additional safeguards are hereby proposed: 1. The Verification Unit of the Gasoline and Miscellaneous Tax Division shall keep and maintain a control book each for Tax Credits, Tax Refunds and Replenishments, indicating therein the names of the claimant, date of receipt of the claim, kind and quantity of petroleum products involved, date delivered, date reported, date released and date and amount of specific tax paid. 2. Said Unit shall prepare an updated listing of tax-exempt entities and names of countries granting reciprocal exemptions to Philippine International Carriers. 3. Oil companies shall submit within fifteen (15) days after the end of every quarter a consolidated statement covering their requests for tax refunds, tax credits and/or replenishments for the post quarter. The Committee shall review all these consolidated statements of request for tax refunds, tax credits and/or replenishments, for confirmation and/or as basis for adjustments. D. REPEALING CLAUSE The provision or provisions of Revenue Memorandum Order No. 18-78, dated May 23, 1978, or of any order, circular or memorandum which are inconsistent herewith are hereby repeated or amended accordingly. E. EFFECTIVITY This Revenue Memorandum Order shall take effect immediately. cd EFREN I. PLANA Acting Commissioner