Rules and Regulations Implementing Executive Order No. 1043 Entitled "Establishing an Internal Revenue Labels Trust Fund and for Other Purposes"

November 4, 1985 REVENUE MEMORANDUM ORDER NO. 31-85 SUBJECT : Rules and Regulations Implementing Executive Order No. 1043 Entitled "Establishing an Internal Revenue Labels Trust Fund and for Other Purposes" TO : The Chief, Accountable Forms Division; Chief, General Services Division; Chief, Budget Division; Chief, Disbursement Accounting Division and All Others Concerned 1.0 Purpose This Revenue Memorandum Order is issued to prescribe the rules and regulations in connection with the establishment of an Internal Revenue Labels Trust Fund pursuant to Executive Order No. 1043. 2.0 General Policies 2.1 The Bureau of Internal Revenue shall be responsible for the printing and storage of internal revenue labels as well as the distribution thereof to authorized users. 2.2 The Bureau shall sell the internal revenue labels to users thereof at prices to be fixed by the Commissioner of Internal Revenue, taking into account the cost of printing and distribution, including incidental expenses. 3.0 Income 3.1 All amounts collected by the Bureau from the sale of internal revenue labels, including those already collected as of December 31, 1984 and thereafter, as well as interests earned from deposits maintained with authorized depository banks, shall accrue to the Internal Revenue Labels Trust Fund, hereinafter referred to as the Fund. 3.2 Collections accruing to the Fund shall be properly receipted by the General Services Division and promptly deposited in any authorized government depository bank. Withdrawals from this deposit account shall be made on the basis of the joint signatures of the representatives of the Bureau and the Commission on Audit. 3.3 All amounts collected and accruing to the Fund shall be considered as automatically appropriated for purposes authorized in Executive Order No. 1043. 4.0 Expenditures 4.1 All amounts collected and accruing to the Fund shall be made available for expenditures enumerated in Section 1 of Executive Order No. 1043, as follows: 4.1.1 Costs and other incidental expenses incurred in the printing and distribution of internal revenue labels affixed on alcoholic products. casia 4.1.2 Purchase of apparatus and equipment. 4.1.3 Expenses incurred for the improvement and adoption of modern methods for the effective enforcement and collection of internal revenue taxes. 4.2 Disbursements from the Fund shall be made thru commercial checks signed jointly by the authorized representatives of the Bureau and the Commission on Audit, supported by duly-approved vouchers. 4.3 To utilize the Fund, a special budget covering one whole year and containing such information as the nature and purposes of the expenditures for which the Fund shall be utilized shall be prepared by the Budget Division on the basis of the estimates of the Accountable Forms Division in coordination with other offices and shall be submitted to the Office of Budget and Management (OBM) for approval. The approved special budget shall serve as basis for disbursements. Supplemental budgets may also be submitted to the OBM during the year as the needs arise. 4.4 Unexpended balances of the Fund shall be retained for utilization in the subsequent year(s). 5.0 Accounting and Reporting Requirements 5.1 Collections accruing to the Fund shall be accounted for as trust liability. Charges against the trust liability account shall be covered by Request for Obligation of Allotment (ROA) and recorded in a separate Journal and Analysis of Obligations (JAO). casia 5.2 A separate set of trial balance and other accountability reports for the Fund shall be prepared by the Disbursement Accounting Division and submitted to the OBM in accordance with accounting and auditing rules and regulations. 6.0 Effectivity This Revenue Memorandum Order shall take effect on July 30, 1985. cd i RUBEN B. ANCHETA Acting Commissioner