Prescribing the Raffle of Sales Invoices and Receipts

May 31, 1990 REVENUE MEMORANDUM ORDER NO. 25-90 SUBJECT : Prescribing the Raffle of Sales Invoices and Receipts TO : All Internal Revenue Officers and Others Concerned I. Objectives This Order is issued: 1. To maximize compliance with regard to the issuance of sales invoices and receipts; 2. To involve the private sector in the government's aim to increase revenue collection; 3. To encourage consumers to demand sales invoices and receipts for purchases; and 4. To enhance the Bureau's data bank and facilitate the development of a system for the effective audit of tax liabilities. II. Policies In order to attain these objectives, a raffle of sales invoices and receipts is hereby prescribed. The raffles of sales invoices and receipts shall be conducted in all Revenue Regions starting July, 1990. acd III. System of the Raffle A. Basic Procedure Sales invoices and receipts shall be exchanged for raffle coupons at BIR offices and other designated exchange and drop box centers. Such raffle coupons shall entitle the holder to join the BIR raffle and win prizes. B. Sales Invoices and Receipts All sales invoices and receipts of all transactions shall be honored, provided, that these are official sales invoices and receipts which show, among others, the name, taxpayer account number and business address of the seller and the printer's authority to print (BIR Permit Number) with the inclusive serial numbers of the booklet; provided, further, that consumers to whom these sales invoices and receipts were issued are willing to surrender these sales invoices and receipts or certified xerox copies of these invoices to the Bureau in exchange for raffle coupons. Receipts or tapes issued in lieu of sales invoices from authorized cash register machines shall be accepted provided the following information are contained: seller's name, taxpayer account number and business address of the entity issuing such cash register machine receipts or tapes. Sales invoices and receipts may be exchanged for raffle coupons only in the Revenue Region where purchases or business transactions have been made. One raffle coupon will be exchanged for every P100 worth of sales invoices and receipts. Sales invoices and receipts with lesser values can be accumulated to reach the required value of P100. Only the original (customer's copy) of such sales invoices and receipts will be accepted and exchanged for raffle coupons. In cases where original copies of invoices and receipts cannot be surrendered (i.e., original invoices and receipts needed to substantiate claims for expenses in the ITR and/or input taxes for VAT), photocopies (certified as true copies) of the same shall still be honored. The following will not be accepted: delivery receipts, duplicate copies, and cash register machine tapes for management or cash control purposes. Sales invoices and receipts found to be tampered or mutilated, i.e., sales invoices and receipts which are torn, crumpled, soiled, with erasures and/or cancellations, will not be honored and accepted. C. Raffle Coupon The Regional Directors shall have the authority to print raffle coupons to be used in raffles to be conducted within their respective jurisdiction; provided that such coupons adhere to the prescribed format. The coupon shall have two parts: (a) the taxpayer's portion, and (b) the raffle stub which is to be dropped in the boxes to be found in the BIR exchange centers. Both parts of the coupon shall include the following information: coupon number; month and year; Revenue Region No.; name, address, telephone number, if any, and signature of taxpayer; invoice number; amount of purchase; name, address and TAN of the business entity issuing the sales invoice or receipt. D. Exchange Centers Consumers can exchange their sales invoices and receipts for raffle coupons at pertinent BIR offices and exchange and drop box centers designated by the Regional Director. Exchange centers may be set-up at such places wherever and whenever deemed necessary by the Regional Director. E. Prizes There shall be created, through an RSO to be issued, a Raffle Prize Committee which shall take charge of the preparation of guidelines and all matters regarding the prizes to be awarded. F. Raffle Draw The Regional Directors shall determine the frequency (e.g., monthly, quarterly, biannual or annually), date and place of the raffle in their respective regions. They shall likewise set a cut-off date upon which the raffle stubs and invoices shall remain valid for entry in the raffle. To illustrate: A Revenue Region may opt for a quarterly draw, i.e., July to September. Consumers can exchange their sales invoices and receipts issued for the period July to September for raffle coupons for inclusion for the current quarter's raffle. Winners shall be drawn by the Regional Director or the Assistant Regional Director or a designated representative of the Director. All draws shall be supervised by a representative of the Department of Trade and Industry (DTI). Stubs entered in the previous draws shall no longer be included in future craws. In case a customer's name is picked out more than once in the draw, he shall be awarded the prize that is of greater value. Only individuals presenting sales invoices and receipts for purchases in their own account can join the raffle. Private and government corporations/entities are not qualified to join the raffle. BIR employees are prohibited to join the raffle. Raffle coupons shall be valid for the draw in the Revenue Region which issued said coupons. "Out-of-region" coupons are automatically disqualified from winning. G. Winners and Claim of Prizes Winners shall be notified by means of telephone or telegram. The list of winners shall also be posted in BIR regional and district offices and municipal or city halls. Within ten (10) working days after such draw, winners can claim their prizes from respective BIR offices where the raffle was held and only after verification of the genuineness of the receipts issued by the corresponding establishments. cdt Winners shall present their portion of the winning raffle coupons and proper identification requirements. Submitted portions of the winning raffle coupons found to be tampered or mutilated will not be honored and accepted. All prizes not claimed within sixty (60) days after the draw shall be forfeited in favor of the BIR. Likewise, claims on the prizes shall be forfeited in the following cases: a) claimant's failure to produce the required identification papers within sixty (60) days after the draw; and b) discrepancies between the information indicated in the winning raffle stub and the taxpayer's portion of the coupon. IV. Source of Fund The funding for the raffle for the first year of implementation shall be determined by the Raffle Prize Committee. Thereafter, the costs to be incurred for the conduct of succeeding raffles shall be taken from the General Appropriations Fund of the Bureau of Internal Revenue. V. Information Campaign For its initial year of implementation, each Regional Director, in coordination with the Chief, Tax Information and Assistance Division, shall undertake information campaigns through the print and broadcast media to create awareness among the citizenry about the sales invoices and receipts raffle. VI. Management of Surrendered Receipts A program shall be formulated by the Planning and Research Division to determine proper management of surrendered sales invoices and receipts. cd Such sales invoices and receipts shall be used to update data banks of RDOs. Discovery of fake or unregistered sales invoices and receipts shall be immediately reported to the Intelligence and Investigation Office for proper action. VII. Effectivity This Order shall take effect July 1, 1990. (SGD.) JOSE U. ONG Commissioner of Internal Revenue