Seminar for Revenue Examiners

November 24, 1978 REVENUE MEMORANDUM ORDER NO. 31-78 SUBJECT : Seminar for Revenue Examiners TO : All Internal Revenue Officials Concerned and All Revenue Examiners A seminar for all revenue examiners assigned in Revenue Regions 4-A & 4-B and the Central Office will be conducted from December 11, 1978 to January 5, 1979 and for those in all other Revenue Regions from December 12 to 21, 1978. I. PURPOSES cdt (A) To implement the policy of this Bureau for a continuing personnel development program; (B) To insure a uniform interpretation and application of the new tax laws; (C) To improve further the standards of investigation and the quality of reports; and (D) To help the revenue examiners prepare for the forthcoming classification examination. II. PLACES WHERE THE SEMINAR SHALL BE CONDUCTED All sessions shall be held in the station town of the Regional Office, except for Revenue Region 4B and the investigating divisions in the Central Office. Regional Directors should, therefore, instruct all examiners in the different revenue districts under their jurisdiction to come to the Regional Office in time for the start of the seminar. III. PERSONNEL REQUIRED TO ATTEND THE SEMINAR All revenue examiners and group supervisors, Assistant Revenue District Officers, Chiefs and Assistant Chiefs of Sections (if any) in the Central Office and the Assessment Branches, are required to attend the seminars: Attendance of Revenue District Officers is optional. IV. SUBJECT MATTER (A) Amendments to: (1) Title II of the NIRC Income Tax (2) Title III Estate & Donor's Taxes (3) Title IV Specific Taxes (4) Title V Taxes on Business (5) Title VI Documentary Stamp Taxes (6) Title VIII Miscellaneous Taxes (7) Title IX Administrative Provisions (B) Lectures shall include investigation techniques, particularly on how to detect mistakes or deceit that are most often committed. V. SEMINAR MATERIALS (A) Presidential Decrees, Batasang Pambansa Laws and their implementing regulations; and (B) Issuances pertinent to each of the subjects. VI. CLASSES TO BE ORGANIZED No. Units Place 1 Region 1 Baguio City 2 2 Tuguegarao, Cagayan 3 3A San Fernando, Pampanga 4 3B Valenzuela, Bulacan 5 4C San Pablo City 6 5 Legaspi City 7 6-A Iloilo City 8 6-B Bacolod City 9 7 Cebu City 10 8 Tacloban City 11 9 Zamboanga City 12 10-A Cagayan de Oro City 13 10-B, 11-A, & 11-B Davao City 14-19 4-A BIR Bldg., Manila (6) 20-27 4-B DBP Social Hall, Makati (2) Chronicle Bldg., Pasig (2) Rm. 101 & 104 BIR Bldg., Quezon City (4) 28-33 Central Office BIR Bldg., Quezon City (6) The schedule of classes are attached hereto. VII. LECTURERS Regional Directors are hereby instructed to communicate to this office their recommendation for lecturers in the region on the different subjects of the seminar. VIII. EXAMINATION For the purpose of measuring the knowledge gained from the seminars conducted on December 1977, June 1978 and this seminar, an examination shall be given sometime in 1979, aside from the examinations to be given during the seminar. The results of the examination shall be one of the bases for the classification of examiners. IX. OTHER INSTRUCTIONS (A) Circulars, Orders, rulings, digests, and other materials which may be used as reference materials by examiners for the lectures and for their study which are now available in the regional offices shall be mimeographed and distributed to all participants. (B) All queries regarding the seminar, request for clarification, answer to problems or questions shall be communicated immediately to the Office of Assistant Commissioner Lauro D. Abrahan. (C) A report on the attendance of participants during the whole period of the seminar shall be submitted directly to the Office of the Commissioner. Strict compliance with the requirements of this Revenue Memorandum Order is hereby enjoined. EFREN I. PLANA Acting Commissioner of Internal Revenue APPROVED SEMINAR SCHEDULE Manila, Q.C. & N.O. Other Regions No. of No. of Sections of the Date & Time Sessions Date & Time Session SUBJECT MATTER Code, PDs, RR Dec. 11 Mon Dec. 12 Tues. a) Non-resident citizens PD's 1354, 1355, 8:00 10:00 b) Taxability of capital gains and 1457 Secs. of non-resident 1, 2, 3 1:00 3:00 8:00 10:00 c) Development tax RR's 10-77 & 11-77 2 2 d) Rentals of vessels, NIRC Secs. 20, airplanes & other & 22, 24, 84 equipment 10:15 12:00 10:15 12:00 e) "Gross Philippine Billings" 3:15 5:00 f) Intercorporate dividends received by private educational institutions g) Broadened concept of royalties h) Final income tax on sub-contractors and alien employees of service contractors and sub- contractors engaged in petroleum operations i) Quarterly corporate income tax payments Dec. 12 Tues. a) Offshore banking units PD's 1034, 1035 & 8:00 10:00 1156 b) Foreign currency deposit RR's 10-76, 8-77 units 1:00 3:00 1 1:00 3:00 1 c) Interest on bank deposits 10:15 12:00 a) Taxation of income on PD's 1353, 1457 3:00 5:00 3:15 5:00 properties and activities Secs. 4, 5, 6, 7, conducted for profit of 8, & 31 Tax Exempt Organizations Dec. 13 Wed. 2 Dec. 13 Wed. 2 b) Authority of the BIR to NIRC Secs. 27 8:00 10:00 examine books of accounts and 30 and other pertinent records of tax-exempt organizations or entities c) Entertainment expenses d) Interest expenses e) Losses f) Tax Credits (General Professional Partnerships) g) Accelerated deductions mining exploration Dec. 13 Wed. 10:15 12:00 Dec. 13 Wed. 3:15 5:00 10:15 12:00 a) Capital Gains & Losses PD 1457Sec. 27 Dec. 14 Thurs. 2 2 b) Gain or loss or other NIRC Secs. 34, disposition of property 35 & 210 8:00 10:00 1:00 3:00 1:00 3:00 10:15 12:00) a) Income from sources PD 1457 Sec. 9 within the Philippines & 10 3:15 5:00 1 3:15 5:00 1 b) Income from sources NIRC Sec. 37 partly within and partly without the Phils. Dec. 15 Fri. Dec. 14 Thurs. 8:00 10:00 8:00 10:00 1 Personal Holding Companies PD 1457 Sec. 11 1:00 3:00 1 NIRC Secs. 63-71 10:15 12:00 3:15 5:00 10:15 12:00 Dec. 18 Mon. 2 1:00 3:00 2 Expanded Withholding RD 1351, RR 13-78 8:00 10:00 1:00 3:00 10:15 12:00 3:15 5:00 3:15 5:00 PD 1457, NIRC Secs. 12, 13, 14, Dec. 19 Tue. 2 Dec. 15 Fri. 2 Transfer Taxes 15, 16 & 17 8:00 10:00) 8:00 10:00) Gen. Rev. of 1:00 3:00) Transfer Taxes Dec. 19 Tue. 10:15 12:00 Dec. 15 Fri. PD's 1457 3:15 5:00 10:15 12:00 Secs. 20, 21, and 1359 Dec. 20 Wed. 2 1:00 3:00 2 Specific Taxes BP 3, 4, & 5 8:00 10:00 1:00 3:00 a) Investment Incentives 10:15 12:00 b) Indirect Exports 3:15 5:00 3:15 5:00 c) Overseas Construction PD's 535, 66, 666, Dec. 21. Thurs. 2 Dec. 18 Mon. 2 d) Agri-Business 1469, 1167, &1159 8:00 10:00 8:00 10:00 e) Tourism, EPZA RA's 5186, & 1:00 3:00 f) Export Incentives 6135 g) Shipbuilding & Repairs 10:15 12:00 5% duty and taxes on exempt PD's 1352, & 1395 3:15 5:00 1 10:15 12:00 1 Exemptions from 5% duty and Dept. Order 12-78 5% internal revenue taxes Dec. 27 Wed. 8:00 10:00 1 1:00 3:00 1 Sales Tax System on PD 1357, RR 7-78 1:00 3:00 Automobiles 10:15 12:00 3:15 5:00 a) Restructuring of the Sales PD's 1358, 1457 Tax 23, 32 Dec. 28 Thurs. 3:15 5:00 b) Airconditioning units 8:00 10:00 Dec. 19 Tue. c) Compensating tax RR's 8-78, 9-78 1:00 3:00 8:00 10:00 d) Authority of the Secretary Ex. Orders 507, 10:15 12:00 5 10:15 12:00 5 of Finance to determine NIRC Sec. 204 3:15 5:00 1:00 3:00 articles similar or analogous Dec. 29. Fri. 3:15 5:00 to those subject to a rate of 8:00 10:00 Sales Tax under a certain 1:00 3:00 category enumerated in Secs. 10:15 12:00 194, 196, & 197 3:15 5:00) Jan. 3 Wed. Dec. 20 Wed. a) Tax on Winnings PD's 1157, 8:00 10:00 8:00 10:00 1 Jai-Alai & Horse Racing 1299,1457 1:00 3:00 1 b) Caterer's Tax Secs. 29 & 30 c) Amusement Taxes d) Gross Receipts e) Documentary stamp tax f) Overseas communication 10:15 12:00 a) Issuance of receipts, sales PD's 1254, 1255, & commercial invoices 1356, 1457 3:15 5:00 10:15 12:00 b) Printing of receipts, sales Sec. 28, & 1154 & commercial invoices RR's 2-78, Jan. 4. Thurs. 2 1:00 3:00 2 c) Surveillance 16-78, 17-78, 8:00 10:00 d) Amendments on Book- 19-78, & 12-78 1:00 3:00 keeping Regulations (Market NIRC Sec. 216, vendors, carinderias in the RMC 77-78 market, etc.) 10:15 12:00 a) Real Estate Brokers, Stock 3:15 5:00 3:15 5:00 Brokers, Customs & PD 1154, RR 7-77, Jan. 5 Fri. 2 Dec. 21 Thurs. 2 Immigration Brokers, Cinema- NIRC Secs. 208, tographic film owners, lessors, 209 & 210 or distributors 8:00 10:00 8:00 10:00 b) Dealers in Security & Lending Investors 1:00 3:00 c) Final tax on commercial papers 10:15 12:00 a) Fixed Taxes PD 1457 3:15 5:00 10:15 12:00) 1 b) Taxability of private Secs. 22, 24, & 25, detective or watchman's NIRC Secs. 192, agency 205, & 207, BP #2 c) Definition of Gross Receipts d) Minimum quarterly gross receipts of common carries e) Hotel room occupancy Whenever applicable, investigation techniques shall be integrated in the lectures.