Procedures in the Implementation of the DOF-DBM. Joint Circular No. 3-97

May 27, 1997 REVENUE MEMORANDUM ORDER NO. 29-97 SUBJECT : Procedures in the Implementation of the DOF-DBM. Joint Circular No. 3-97 TO : All Accredited Agent Banks; Internal Revenue Officers; All Heads of Departments, Bureaus and Offices, Self-Governing Boards and Commissions, State Universities and Colleges, Schools and Hospitals; Chiefs of Financial and Management Services; Chief Accountants/Heads of Accounting Units; Authorized Government Depository Banks; and all Others Concerned I. OBJECTIVES This Order is issued for the following purposes: 1. To adopt a uniform procedure in the implementation of DOF-DBM Joint circular No. 3-97. on the payment of internal revenue taxes payable to the Bureau of Internal Revenue by National Government Agencies (NGAs). 2. To provide guidelines in the payment of internal revenue taxes through the use of the bank debit system II. DEFINITION OF TERMS 1. Bank Debit System refers to the system whereby a taxpayer/withholding agent, e.g. an NGA, authorizes its servicing bank; to debit from its accounts payments of his tax liabilities. 2. Accredited Agent Bank (AAB) is the Authorized Government Servicing Bank of the concerned NGA 3. Authority to Debit the Agency Bank; Account (ADA) is a form, which shall serve as notice to the AAB to debit from the NGA's account a specified amount for payment of internal revenue taxes. 4. Bank Debit Advice is a document showing evidence of withdrawal of specific amount from the NGA's account. III. GENERAL GUIDELINES 1. There shall be a prescribed BIR form of the Authority to Debit the Agency Bank Account or ADA in a pre-numbered series to be issued by the Revenue District Offices as shown in Annex A. Such form shall be accomplished in triplicate to be distributed as follows: Original Copy for the AAB Duplicate Copy for the Taxpayer, to be attached to the Tax Return Triplicate Copy for the BIR, to be attached to the original copy of the Tax Return A separate ADA shall be accomplished for each account maintained by the NGA with an AAB to be used in payment of taxes. llcd 2. The ADA partakes the nature of a document of payment and shall be treated as part of disbursements of the NGA. For this purpose, the ADA shall be included in the Advice or Checks Issued and Cancelled (ACIC) as well as the Summary List of Checks Issued and Cancelled to be submitted by the NGAs to the AAB. IV. PROCEDURE 1. The Revenue District Offices shall issue sufficient copies of the ADA to all NGAs within its jurisdiction for their regular use every month/quarter. 2. The NGA shall, at every period or payment (monthly/quarterly): 2.1 accomplish the ADA form in triplicate, covering withheld internal revenue taxes for transactions of the immediately preceding month/quarter. Each ADA shall be signed by the same officials authorized to sign checks of the NGA; and 2.2 submit the duly accomplished ADA, together with the duly accomplished tax return to the AAB. (The ADA shall specifically be included in the Advice of Checks Issued and Cancelled (ACIC) submitted by the NGAs to the bank.) 3. The AAB shall: 3.1. upon receipt of the ADA and the tax return, immediately prepare the bank debit advice in four (4) copies, to be distributed as follows: Original Copy for the NGA, to be attached to its Tax Return Duplicate Copy for the BIR Nat'l. Office, to be attached to the original copy of the Tax Return Triplicate Copy for the BIR-RDO, to be attached to the triplicate copy of the Tax Return Fourth Copy for the AAB 3.2. validate the Tax Return and furnish the NGA with copies of the validated Tax Return and the Bank Debit Advice; 3.3. under the New Payment Control System applicable to non-computerized Revenue District Offices: a. transmit copies of Bank Debit Advices, together with their corresponding Tax Returns, to the BIR Nat'l. Office, upon submission of the Consolidated Report of Daily Collection; b. furnish to the BIR-RDO having jurisdiction over the Taxpayers concerned, on a daily basis, copies of Bank Debit Advices and their corresponding Tax Returns, together with the Batch Control Sheets. 3.4 under the Collection and Banks Reconciliation System (CBRS) applicable to the computerized Revenue District Offices, transmit to the Revenue Data Centers concerned, the Batch Control Sheets, together with the Tax Returns and their corresponding Bank Debit Advices. 4. The NGA shall record the tax-payments covered by the said debit advice in its books of accounts and shall include the same as part of disbursements in the Summary List of Checks Issued and Cancelled. V. REPEALING CLAUSE The provisions of existing Revenue Memorandum Orders and other issuances inconsistent with this Order are hereby amended, modified or repealed accordingly. pred VI. EFFECTIVITY This Order shall take effect immediately. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue ATTACHMENT Authority to Debit Agency Bank Account for BIR Tax Payments