Guidelines in the Implementation of Section 51(a)(1) par. 3 of the NIRC of 1977

August 14, 1978 REVENUE MEMORANDUM ORDER NO. 21-78 SUBJECT : Guidelines in the Implementation of Section 51(a)(1) par. 3 of the National Internal Revenue Co de of 19 77 Regarding Pre-payment of Internal Revenue Taxes by Tramp Vessels before Departure or Filing of a Sufficient Bond to Answer for the Taxes due TO : All Internal Revenue Officers and Others Concerned In order to ensure the faithful compliance of the requirements of Section 51(a)(1) par. 3 of the Tax Code of 1977 and the efficient collection of taxes due on their operations in the Philippines by owners of tramp vessels, captains, shipping agents and/or their representatives, the following guidelines are hereby promulgated: 1. Tramp vessels shall be allowed to depart for their destinations abroad, only after proof of payment of internal revenue taxes shall have been presented or a voyage bond filed in accordance with the requirements of Revenue Memorandum Order No. 65-75 dated November 28, 1975. The voyage bond should be (a) equal or equivalent to 150% of the taxes due; (b) filed with the International Carriers Committee; and (c) forwarded for acceptance and approval of the Assistant Commissioners of Internal Revenue. cdt 2. A sixty-day (60) period from date of departure of the tramp vessel within which to pay the 2-% income and 2% carriers taxes covered by the voyage bond shall be allowed. The income tax shall bear interest at the rate of fourteen per centum (14%) per annum from date of departure until date of payment. 3. Upon payment of the internal revenue taxes due from a voyage undertaken by a tramp vessels, the voyage bond filed to cover the taxes due shall be cancelled and the principal and surety notified accordingly of its cancellation. This memorandum order takes effect immediately. cd EFREN I. PLANA Acting Commissioner of Internal Revenue TAN P4519-F2828-A-8