BIR Motorcycle Plan Guidelines and Procedure

August 26, 1983 REVENUE MEMORANDUM ORDER NO. 27-83 SUBJECT : BIR Motorcycle Plan Guidelines and Procedure TO : Service Chiefs, Regional Directors, Division Chiefs, Branch Chiefs, Revenue District Officers, Collection and Enforcement Personnel and Others Concerned In view of the urgent need to improve the mobility of collection and enforcement personnel to enable them to contact taxpayers more frequently and effectively in their efforts to improve tax collection, and in consonance with the insistent requests of Regional Directors and District Officers, the Bureau of Internal Revenue, with the assistance of the Philippine National Bank, hereby adopts a BIR Motorcycle Plan whereby qualified personnel shall be entitled to apply for a PNB loan for the purpose of acquiring one brand-new-Honda 4-stroke, 125 cc motorcycle, said loan to be paid under a 5-year payroll deduction plan. All concerned are hereby enjoined to observe the following guidelines for the successful implementation of the Plan: cd i GUIDELINES Qualified Personnel Qualified to apply for the purchase of one unit each are collection agents, seizure agents and/or other personnel duly appointed to regular items in the collection and assessment groups who are assigned to collection or enforcement work, and who are not facing any administrative case or investigation involving malversation or infidelity in the custody of revenue collections. I. Applicant The applicant shall accomplish and file with his Chief of Unit, such as the district officer, branch chief or division chief, as the case may be, the following documents, after retaining the sixth copy of the Application form for his file: a) Application form in 5 copies b) PNB Chattel Mortgage form in 7 copies c) PNB Promissory Note in 4 copies II. Chief of Unit 1. Immediately upon receipt of the application, the Chief of Unit shall evaluate the application, and indicate his favorable endorsement of the applicant by signing the application form in the space provided for; 2. Simultaneously, sees to it that the PNB Chattel Mortgage form and Promissory Note are also properly accomplished and signed by both the applicant and his spouse, if he is married; 3. Prepares in six (6) copies a covering report/list of all the applicants endorsed favorably, indicating therein their name, TAN, position, station and annual income; 4. Forwards the report/list and loan documents in batches (i.e. the application forms together with all other PNB documents mentioned above) to the Regional Director or Service Chief concerned, indicating whether all those who were canvassed and willing to avail of the plan have qualified/submitted the required papers; and 5. Keeps for his file the following copies: a) 5th copy of Application form b) 6th copy of the list of the report/list of the applicants endorsed The District Officer/Branch, Chief/Division Chief, should not retain any copy of the Chattel Mortgage and Promissory Note; such copies will be retained and kept by the Regional Director/Service Chief. III. Regional Director/Service Chief 1. Immediately after his receipt of the batches of report/list of applications and loan documents, the Regional Director or Service Chief - a) Processes further the documents for accuracy, their completeness and eligibility of the applicant considering his record of service, his annual income and historical behaviour and performance in the service; b) Signs as recommending officer the application form, and signs as witness the Promissory Note and the Chattel Mortgage and causes the Chattel Mortgage to be notarized by a BIR notary public; c) Keeps the following documents for the official files of his office: 1. 4th copy of Application Form 2. 6th copy of Chattel Mortgage (7th copy retained by Notary Public) 3. 5th copy of the report/list for his file He shall also retain the 4th and 5th copies of the Chattel Mortgage for filing and registration with the Register of Deeds and the Bureau of Land Transportation after delivery of the motorcycles has been made by the supplier. d) Forwards the remaining copies of the covering report/list deleting therein the name/s of applicants he disapproved together with the batches of the loan documents to the Revenue Service Chief, Personnel and Administrative. IV. Revenue Service Chief, Personnel & Administrative 1. Further processes and screens the applicants recommended as to their eligibility to avail of the privilege and capability to pay the monthly amortizations consulting in the process the chiefs of units in charge of pertinent records that may be deemed necessary; cdt 2. Keeps for his office files, the following copies: a) 3rd copy of Application form b) 3rd copy of Chattel Mortgage c) 4th copy of the report/list of endorsed applicants 3. Prepares/processes and transmits remaining copies of loan documents to the PNB as follows: 3.1 To the PNB a) Original of Application Form b) Original and 2nd copy of Chattel Mortgage c) Original to 4th copy of Promissory Note d) Original of report/list of approved applicants 3.2 To the Supplier a) 2nd copy (duplicate) of Application Form b) 3rd copy of the report/list of endorsed applicants 4. Prepares the Delivery Order in five copies and transmits the same to the Supplier to its Metro Manila address for it to effect the delivery of the motorcycles; 5. Prepares the BIR Motorcycle Loan Release Form in three copies and transmits the same as follows: a) The original to the Philippine National Bank, Cubao Branch; b) The duplicate to the Supplier; and c) The triplicate for his office file V. Delivery and Acceptance of Motorcycle 1. Upon receipt of the Delivery Order from the Personnel and Administrative Service, the supplier delivers to the Regional Directors concerned the requisitioned motorcycle units in batches corresponding in number to the number indicated in the Delivery Orders. 2. The Regional Director shall receive the units and upon necessary inspection to his satisfaction, accepts the units delivered on behalf of the applicants he has recommended under his jurisdiction, and signs the five copies of the Delivery Order as well as the attached List of Delivered Motorcycles; 3. Thereupon, the Director shall notify the applicants concerned to take actual possession, custody and ownership of their respective motorcycle units, and signs the List of Delivered Motorcycles as a witness to the actual delivery of motorcycles to the applicants; acd 4. The supplier then forwards the duly acknowledged and signed 2nd and 3rd copies of the Delivery Order with the attached list of Delivered Motorcycles Form together with his Official Invoice to the BIR Personnel and Administrative Service in Quezon City for payment; gives the Revenue Director the 4th copy for his file and keeps the 1st copy for his own file; 5. The Personnel & Administrative Service then forwards the 3rd copy of the Delivery Order with its attached Delivered Motorcycles Form to the Accounting Division and the 2nd copy to the Philippine National Bank, Cubao Branch. VI. Payment to Supplier 1. The Philippine National Bank, Cubao, Branch, shall pay the supplier for delivered and accepted units upon receipt of the original of the duly accomplished BIR Motorcycle Loan Release Form, together with the 3rd copy of the Delivery Order from the Revenue Service Chief, Personnel & Administrative Service and its attached supporting list of delivered motorcycles which also indicates the names of applicants to whom the deliveries were actually made and for whom payments are demanded by the supplier. VII. Repayment of Loan/Payroll Deduction 1. Upon receipt of the original of the BIR Motorcycle Loan Release Form, from the Revenue Service Chief, Personnel & Administrative together with the list of approved applicants to whom the units were delivered by the Revenue Director, the Accounting Division shall immediately take the necessary steps to initiate and implement the payroll deduction of the necessary amounts from the applicants' monthly salaries the amount of which is indicated in the Application Form of each applicant for 60 months until the unit is fully paid. The Accounting Division shall effect the first deduction not later than 30 days after its receipt of the 2nd copy of the acknowledged Delivery Order form from the Personnel & Administrative Service. 2. The Accounting Division shall remit to the PNB, Cubao Branch, monies collected during the month, 10 days after the end of each month, together with a report/list prepared by Revenue Information Systems Services, Inc. (RISSI) of the individuals who paid their monthly amortizations indicating therein the amount of payment made during the month and balances until due. RUBEN B. ANCHETA Acting Commissioner