Use of the Administrative Summary Remedies for Collection Enforcement

March 19, 1973 REVENUE MEMORANDUM ORDER NO. 14-73 SUBJECT : Use of the administrative summary remedies for collection enforcement. TO : All internal revenue officers and others concerned. As a part of the continuing effort of the Bureau to generate more collections and to reduce the inventory of collectible accounts, the provisions of the National Internal Revenue Code contained in Chapter II, Title IX, as amended by Presidential Decree No. 69, shall be implemented to the fullest extent possible. This measure has become necessary on those who failed to avail of the tax amnesty under PD No. 68 and still continue to disregard the payment of their tax obligations despite the magnanimous concessions of the government to lighten the payment of their tax burden. Positive and coercive action must now be taken to collect these long overdue accounts. However, before taking the necessary action to enforce collection by administrative summary remedies, precautionary steps shall be taken to ensure accounts paid pursuant to PD No. 68 have been deleted from the list of receivables. To make doubly sure past errors are not repeated, before issuing warrants of distraint, levy or garnishment, personnel assigned to collect these accounts shall first verify, either direct from the taxpayers concerned or through other means that such accounts are indeed still unpaid. aisa dc The warrants of distraint and of levy that were issued before November 24, 1972, the service and execution of which have been temporarily suspended on account of PD No. 68, shall be carefully screened in order to cancel those paid pursuant to said decree. Priority action should be given to these cases. On delinquent accounts, except those in the deferred category and those involving amounts P100.00 or below, with due dates passed the three (3) months period shall be issued the corresponding warrants of distraint and levy in accordance with the provisions of Sections 318, 324 of the Tax Code as amended by Republic Act No. 5203. The personnel in the assessment group shall be availed of to assist the collection personnel in the collection of delinquent accounts and in the service and execution of warrants of distraint or of levy. The assistance of the examiners in the collection effort shall continue until such time that field investigation and assessment of tax cases shall be resumed. For this purpose, the warrant enforcement reports on WER-1, WER-2 and WER-3 which are heretofore prescribed shall be prepared and submitted regularly not later than the tenth day of the following month. The attention of all concerned is invited to the changes introduced under Presidential Decree No. 69 in Sections 315, 316, 328 and 333 of the National Internal Revenue Code which are germane to the administrative summary remedies in the collection of taxes. It is reminded that this Office shall not hesitate to enforce the penal provisions contained in Section 324-A of the Tax Code in appropriate cases. This Order shall take effect immediately. MISAEL P. VERA Commissioner of Internal Revenue