Prescribing the guidelines in the verification of receipts submitted as entries in the 2003 BIR Text Raffle Promo entitled "BAYAN, I-TXT ANG RESIBO"

May 24, 2003 REVENUE MEMORANDUM ORDER NO. 19-03 SUBJECT : Prescribing the guidelines in the verification of receipts submitted as entries in the 2003 BIR Text Raffle Promo entitled "BAYAN, I-TXT ANG RESIBO" TO : All Internal Revenue Officials, Employees and Others Concerned I. OBJECTIVE This Order is being issued to provide the guidelines in the verification of the authenticity of invoices and receipts submitted as entries in the 2003 BIR Text Raffle Promo entitled "BAYAN, I-TXT ANG RESIBO", and the course of action in cases of tax fraud or evasion. II. RECEIPT VERIFICATION TEAMS A Receipt Verification Team shall be created and formed in all Revenue District Office/s, and LTDOs. Each team shall be composed of the following: Revenue District Office Head: Assistant Revenue District Officer (ARDO) Members: Taxpayer Assistance Section (TAS) Large Taxpayers District Office Head: Assistant Chief, LTDO Members: LTDOs' Tax Assistance Unit In the National Office, Receipt Verification Teams shall also be created and formed. Each team shall be composed of the following: Team 1 Head: Asst. Chief, Large Taxpayers Assistance Division I (LTAD-I) Members: LTAD-I personnel Team 2 Head: Asst. Chief of the Large Taxpayers Assistance Division II (LTAD-II) Members: LTAD-II personnel Each Receipt Verification Team shall be under the direct supervision of the Receipt Validation Group of the SMS Raffle Promo Task Force created under Revenue Special Order (RSO) No. 98-2003 dated March 18, 2003. In this regard, a list of the members composing each team shall be submitted to the head of the said group on or before May 30, 2003. III. PROCEDURE FOR THE VALIDATION OF ENTRY A. The Information Systems Operations Service shall: 1. Report the results of every draw to the Taxpayer Assistance Service for proper notification and coordination with the concerned offices. 2. Maintain the promo's database. 3. Generate and provide the following reports as described: Report Description User Frequency 1. Discrepancy List of TINs Receipt Weekly with Official Receipts not in Verification Team the series of registered ATP by RDO/LTDO/LTS 2. Discrepancy List of TINs not Receipt Weekly in the TIN database: all invalid Verification Team TINs to include details of entries and details of sender's name and address (threshold of Php1,000 and above) 3. List all entries for non- Receipt Weekly computerized districts by Verification Team RDO (threshold of Php1,000 and above) 4. Complaints database: Receipt Weekly contents of the complaints Verification Team database by RDO/LTDO/LTS 5. List of Winners with registration Taxpayers Monthly information Assistance Service 6. List of consolation prize winners Taxpayers Monthly with the corresponding freebies Assistance won Service 7. Highest amount of entry lodged Management As per request and with details of the merchant 8. Statistics on the number of Management As per request receipts issued by professional (i.e. doctors, lawyers, engineers etc.) 9. Total amount of entries (valid Management As per request and invalid) lodged in the database. 10. Other reports as may be deemed necessary. B. The Receipt Verification Team shall: 1. Validate the receipt presented by the texting winner prior to notification and award of the issuer specifically on the following: a. Official receipt number should be in the approved series of Authority to Print b. Printers information 2. Transmit to the respective Chief, Tax Fraud Division and Special Investigation Division those receipts classified as spurious for determination if an investigation through the issuance of a Letter of Authority (LOA) against the erring individual or entity is warranted. If warranted, LOAs to be issued to the Tax Fraud Division or the concerned Special Investigation Division shall be made in accordance with existing revenue issuances on the matter. C. RDOs/LTDOs/LTS 1. Investigate and validate further the reports submitted by the Receipt Verification Team particularly on the discrepancies of spurious/invalid receipts. D. The Tax Fraud Division shall: I. On Spurious/Invalid Receipts 1. Evaluate and validate the reports/receipts reported as spurious or invalid. 2. Determine if there is a need to apprehend and impose the appropriate administrative penalties and fines on the erring individual and/or business entity. 3. A report requesting for the issuance of Letter of Authority shall be prepared in accordance with existing revenue issuances, if warranted. II. On Complaints for Non-issuance of Receipts thru SMS or telephone call The procedure prescribed in Revenue Memorandum Order No. 12-93 (Guidelines in the filing of Confidential Information for Violations of the NIRC and Investigation By Authorized Revenue Officer) stated February 1, 1993, as amended by the pertinent provisions of Section 282 of the NIRC of 1997, shall be observed therein. In appropriate cases, the Chief, Tax Fraud Division thru the ACIR, Enforcement Service may refer and delegate the investigation thereof to the Special Investigation Division (SID) of the concerned Revenue Region having jurisdiction over the erring individual and/or business entity. IV. EFFECTIVITY This Revenue Memorandum Order takes effect immediately. (SGD.) GUILLERMO L. PARAYNO Commissioner of Internal Revenue