Verification of the Tax Payments of Big Taxpayers in Remote Localities

July 18, 1978 REVENUE MEMORANDUM ORDER NO. 23-78 TO : All Revenue Regional Directors and Revenue District Officers SUBJECT : Verification of the Tax Payments of Big Taxpayers in Remote Localities It was discovered recently in two instances that the tax payments of big taxpayers, such as logging companies, operating in remote localities not yet reached by the RTR system of collecting revenue were malversed by the BIR collecting officers concerned by the tampering of the revenue official receipts or by making it appear that the receipts issued to them were cancelled or, by not altogether reporting their collections. cdt It is possible that other collecting officers similarly situated are committing similar malfeasance. It, therefore, becomes necessary that the operations of those collecting officers be checked, particularly along the accounting of the revenue official receipts charged to their accountability and the proper use thereof as well as their timely compliance to the submission of collection reports. In order to detect the commission of these anomalies, you are hereby directed to see to it that the collection reports of these collecting officers are submitted on time, and that, upon submission, the reports must immediately be meticulously scrutinized. Invariably, the revenue official receipts issued to big taxpayers, such as loggers, miners, agricultural producers, manufacturers and other producers should be cross-checked against the Report of Collection (BIR Form No. 12.31) of the collecting officer concerned. The genuineness of the official receipts should also be determined by cross-checking their numbers against the numbers of the official receipts charged to their accountabilities. Upon receipt of a copy of this Order, the Director is required to prepare a list of big taxpayers in localities not yet reached by the RTR system of collecting revenue and submit the original of such list to this Office, Attention: Revenue Service Chief (Inspection) , within thirty (30) days from receipt of a copy of this Order. The verification herein provided should be commenced immediately and should be undertaken from hereon as a regular operating procedure. Any finding of malfeasance or other anomalies should immediately be reported to this Office, Attention: Revenue Service Chief (Inspection). Compliance herewith is enjoined. cd EFREN I. PLANA Acting Commissioner of Internal Revenue TAN P4519-F2828-A-8