Fixing the Responsibility in Preparing and Signing the Disbursement Voucher on Tax Refunds

June 26, 1986 REVENUE MEMORANDUM ORDER NO. 20-86 SUBJECT : Fixing the Responsibility in Preparing and Signing the Disbursement Voucher on Tax Refunds TO : Revenue Service Chiefs, Division Chiefs and Others Concerned I. PURPOSE Revenue Memorandum Order No. 26-81 dated August 27, 1981 prescribes the adoption of the new Disbursement Voucher (Gen. Form No. 5A) and provides guidelines for its preparation. However, while the Order specifies the units responsible for preparing vouchers for BIR operating expenditures, it is very vague on vouchers involving tax refunds such that this type of payment was considered as part of miscellaneous disbursements falling under the jurisdiction of the General Services Division. The Chief of the Division, therefore, is required to explain or is held liable for the suspensions, disallowances and other deficiencies found by COA in their post audit work which is obviously not within the scope of his accountability considering that he does not participate in the verification, investigation or decision on the legality and accuracy of the refundable amounts. Refund claims are usually investigated and recommended for payment by the operating divisions/offices concerned with the concurrence/approval of the Regional Director or Service Chief concerned, the Deputy Commissioner or the Commissioner. cdt This Order is, therefore, issued to pinpoint the responsibility for preparing and signing tax refund disbursement vouchers to make the officials and employees concerned fully aware and conscious of their accountability. This shall also serve as a supplement to RMO No. 26-81. II. GUIDELINES AND PROCEDURES The following guidelines and procedures are prescribed for compliance by all concerned: A. The divisions listed below are responsible for the preparation of the Disbursement Voucher (Gen. Form No. 5A) for the payment of the particular type of refund indicated opposite its name, after approval of the refund claim by higher authorities - 1. Oil & Misc. Taxes Div. - Tax Refunds representing recovery or Excess Ad Valorem, Taxes on tax paid petroleum products purchased and/or delivered to tax exempt entities. 2. Appellate Division - Tax Refunds arising from erroneous or overpayment of taxes or the conversion of the Tax Credit Memo (TCM) issued to taxpayers into cash refunds 3. National Audit Review Division/Sector Audit Review Division - Tax Refunds from excess income taxes paid on Corporate Quarterly Declarations of Net Income cd 4. Withholding Tax Div. - Tax Refunds arising from excess withholding taxes on individual incomes approved for direct payment or those involving cancelled/stale Treasury Warrants B. The employee who prepares the voucher shall sign the "Prepared by" portion while the Chief of Division/Office who directs its preparation shall affix his signature in the "Upon Request/Direction of" portion of the voucher. C. The Revenue Service Chief having jurisdiction over the originating division shall sign Box 3 of the voucher. D. After the signature of the Service Chief, it shall be forwarded to the Revenue Accounting Division and to all other units which shall process the voucher in the same manner as any disbursement of the Bureau. III. REPEALING CLAUSE This Order amends/modifies RMO No. 32-76 dated June 11, 1976 and RMO No. 26-81 dated August 27, 1981 and all other existing issuances or portions thereof inconsistent with this Order. IV. EFFECTIVITY This Order takes effect immediately. (SGD.) BIENVENIDO A. TAN, JR. Commissioner