Processing of applications for the issuance of Tax Clearance Certificates

May 6, 1965 REVENUE MEMORANDUM ORDER NO. 15-65 SUBJECT : Processing of applications for the issuance of Tax Clearance Certificates TO : All Internal Revenue Officers and Others Concerned In order to facilitate the processing of applications for the issuance of tax clearance certificates, to prevent taxpayers with tax liabilities from leaving the country without settling their tax obligations or making proper arrangements for the settlement thereof and to help clear up the list of tax delinquencies, the following procedure is hereby promulgated for the compliance of all concerned: 1. Applications for tax clearance certificates of any individual who has a pending criminal action for tax evasion should not be accepted and no certificate issued thereon. In case the applicant submits a permit from the court allowing him to leave the Philippines, the corresponding papers together with the permit from the court should be forwarded to the Commissioner of Internal Revenue for his information and approval of the application. 2. In cases of persons with pending criminal action for tax evasion or where there is no pending criminal action but his civil liabilities on account of his tax case is pending in court, the applicant should be required to file a bond to cover his pending civil liabilities irrespective of the amount. 3. All other applicants for the issuance of tax clearance certificate whose tax cases are not in court should be requested to file a bond to cover the tax liabilities if the tax liability is in excess of P50.000. The bond to be filed should be in accordance with the provisions of General Circular No. 269. 4. Applicants for the issuance of tax clearance certificates with tax liabilities in excess of P10,000 but not more than P50,000 need not be required to file a bond. They should however, be required to have two guarantors in their application. 5. Notwithstanding the above requirements, all applications for the issuance of tax clearance certificates of persons with tax liabilities irrespective of amount where a question is raised by the applicant either in assessment or collection involving policy should be forwarded to the Commissioner of Internal Revenue for final decision. 6. The preceding paragraphs should be strictly followed by all offices issuing tax clearance certificates. In the case of application for tax clearance certificates received in the National Office covering Regional Offices Nos. 4, 5 and 6 as defined in Revenue Regulations No. 1-64, the following additional requirements should be observed by the Delinquent Accounts Division in the processing of applications for tax clearance certificates. Applications for tax clearance certificates which have met the conditions in the preceding paragraphs should be issued the corresponding tax clearance certificates, the approval of which should be subject to the following: (a) Commissioner of Internal Revenue applications for tax clearance certificates of persons having tax liabilities in excess of P100,000. (b) Deputy Commissioner of Internal Revenue applications for tax clearance certificates of persons having tax liabilities in excess of P20,000 but not more than P100,000. (c) Revenue Operations Head (Collection ) applications for tax clearance certificates of persons having tax liabilities in excess of P5,000 but not more than P20,000. (d) Thief, Delinquent Accounts Division applications for tax clearance certificates not exceeding P5,000. In the case of tax clearance certificates to be issued in the Regional Office other than Regional District Nos. 4, 5, and 6 the approval thereof shall be exercised by the Regional Director in those cases the authority thereof pertains to the Revenue Operations Head (Collection) or the Chief Delinquent Accounts Division referred to in the preceding paragraph. The provisions of this Memorandum Order shall be effective immediately. (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue