Second Phase of "Operation Linis"

October 8, 1982 REVENUE MEMORANDUM ORDER NO. 33-82 SUBJECT : Second Phase of "Operation Linis" TO : All Revenue Service Chiefs, Revenue Regional Directors, Chiefs of Branches, Revenue District Officers, District Collection Supervisors and Others Concerned In order to accelerate the momentum of enthusiasm in the collection of tax delinquencies generated by the recently-concluded "Operation Linis", afford ample time for collection enforcement actions on remaining receivable accounts, and reduce the said accounts to a more manageable level, the second phase of "Operation Linis" is hereby launched. This Revenue Memorandum Order is suppletory to Revenue Memorandum Order No. 15-81 and Revenue Special Order No. 40-81, both dated May 14, 1981, except those provisions which have been amended or modified by this Order. II. COVERAGE "Operation Linis" shall cover all tax delinquencies assessed/demanded in 1981 involving 1980 and prior years tax returns, including those listed in the physical inventories of receivable accounts submitted by all operating units as of August 31, 1982, except ITR Accounts (Machine-Generated Accounts). These ITR accounts shall no longer be reflected in the monthly General Control Ledger reports. They are at best raw data generated by the Data Processing Center based on tax returns filed, and not on deficiency assessments or letters of demand, which operating units could use to post tax payments made by tax filers. Accounts of not more than P100.00 shall be maintained at district level to be collected by the Revenue District Officers or by Revenue Collectors and Revenue Cash Clerks assigned in each city or municipality. These accounts shall not be accounted for in the General Control Ledger reports, but special monthly collection reports covering the same shall nevertheless be submitted on BIR Form No. 12.48. III. ABATEMENT/COMPROMISE OF DELINQUENT ACCOUNTS Abatement or compromise of delinquent accounts during the campaign may be authorized under any of the following circumstances: (1) Where the taxpayer is found to be insolvent or financially unable to pay as evaluated under prescribed Bureau Criteria; (2) When the assessment or letter of demand was issued apparently to beat the prescriptive period. In cases, however, where the taxpayer deliberately refused to submit to tax investigation, compromise or abatement shall not be entertained; (3) Where the corporate taxpayer was dissolved and the successor-in-interest, if any, cannot be ascertained except where there are unpaid subscribed stocks which could be distrained to satisfy the tax liability of delinquent corporation; (4) The minimum amount that may be accepted as abatement or compromise shall not be less than 50% of the amount assessed or demanded, which shall include all increments incident to delinquency. Any offer of abatement or compromise less than 50% of the tax delinquency shall be referred to the National Task Force for appropriate action. The National Task Force created under Revenue Special Order No. 40-81 dated May 14, 1981 may, from time to time, review the actions taken by Regional and District Task Forces on the tax delinquencies covered by this section. IV. CANCELLATION OF DELINQUENT ACCOUNTS; MAINTENANCE OF SUSPENSE FILES Cancellation of delinquent accounts may be resorted to where the account was overtaken by prescription. However in cases where the whereabouts of the taxpayers are unknown, leaving no properties as certified to by competent authority, the tax dockets shall be kept under "Suspense Accounts" for future reference. V. EFFECTIVITY This Order shall take effect upon promulgation hereof and shall terminate on June 30, 1983. (Sgd.) Ruben B. Ancheta Acting Commissioner