Interim Procedures in Handling and Processing of Donor's Tax Return (1800), Estates Tax Return (1801), Documentary Stamps (2000), Capital Gains (1706), Monthly Remittance Return of Income Taxes Withheld (1601) and Quarterly Remittance Return of Final Income Taxes Withheld (1602) While Waiting for CTRP Enhancements

February 12, 1998 REVENUE MEMORANDUM ORDER NO. 21-98 SUBJECT : Interim Procedures in Handling and Processing of Donor's Tax Return (1800), Estates Tax Return (1801), Documentary Stamps (2000), Capital Gains (1706), Monthly Remittance Return of Income Taxes Withheld (1601) and Quarterly Remittance Return of Final Income Taxes Withheld (1602) While Waiting for CTRP Enhancements TO : All RDC Heads and Employees and RDOs concerned I. OBJECTIVE This Order is issued to prescribe guidelines and procedures in processing the following 1998 tax returns pending rollout of the CTRP enhancements: Donor's Tax Return (1800), Estates Tax Return (1801), Documentary Stamps (2000), Capital Gains (1706), Monthly Remittance Return of Income Taxes Withheld (1601) and Quarterly Remittance Return of Final Income Taxes Withheld (1602). dctai II. PROCEDURES A. The Document Processing, RDC shall: a. For Forms 1800, 1801, 2000 and 1706 1) Segregate forms with return period of 1998 from 1997. 2) Preprocess and encode the 1997 tax returns. 3) Defer preprocessing activities and encoding of 1998 tax returns. Set aside these tax returns with proper labelling and resume processing upon rollout of CTRP enhancements. b. For Forms 1601 and 1602 1) Receive and pre-process these tax returns 2) Encode tax returns B. The ASM-S, ISDS shall: 1. Create script to list all encoded and posted tax returns. 2. Create "tag" script to prevent validation of 1601 and 1602 tax returns. 3. Create "untag" script to allow continuation of validation of 1601 and 1602 tax returns upon rollout of CTRP enhancements. C. The CONE, RDC shall: 1. Run a "tag" script daily to prevent processing of Forms 1601 and 1602 prior to batch run until rollout of CTRP enhancements. 2. Run an "untag" script to allow continuation of processing of Forms 1601 and 1602 prior to batch run upon rollout of CTRP enhancements. 3. Run script to list all encoded and posted tax returns. 4. Forward the list of encoded and posted tax returns to the Quality Assurance. D. The Quality Assurance, RDC shall: a. For tax returns that have been encoded and posted before CTRP enhancement rollout: 1) Receive lists of encoded and posted tax returns from CONE. 2) Reverse tax return using "RET" transaction code. 3) Prepare correspondence to affected taxpayers informing the changes in the tax rates using the prescribed format (Annex A). 4) Forward correspondence to the RDC Head for review/signature. 5) Mail correspondence to taxpayers. b) For tax returns that have been encoded but suspended before CTRP enhancement rollout: 1) Resolve the tax returns upon rollout of CTRP enhancements. III. REPEALING CLAUSE All memorandum issuances or parts thereof inconsistent with the provisions of this Order are hereby modified, repealed or amended accordingly IV. EFFECTIVITY This Order takes effect immediately. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue ANNEX A Date: ___________________ ___________________ ___________________ ___________________ Dear Sir/Madam : We wish to inform you that there are changes in the tax rates for _________ tax (tax type) which were introduced by Republic Act No. 8424, otherwise known as the Comprehensive Tax Reform Act of 1997. These changes need to be implemented effective January 1, 1998. In view thereof, please be advised to file another Form ___________________ (______________________) on or before ___________________________. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue By: ____________________________ Head, Revenue Data Center