New Procedures in the Custody, Safekeeping, Issuance and Proper Accounting of Internal Revenue Strip Stamps

June 1, 1970 REVENUE MEMORANDUM ORDER NO. 38-70 SUBJECT : New Procedures in the Custody, Safekeeping, Issuance and Proper Accounting of Internal Revenue Strip Stamps TO : Revenue Operations Heads (Administrative Services) and (Specific Tax), Chiefs of the Cash and Disbursement Division and Accountable Forms Division, all Internal Revenue Officers and others concerned In order to establish a clear-cut delineation of the functions and responsibilities of the Cash and Disbursement Division and Accountable Forms Division as regards to the processing, safekeeping, issuance and proper accounting of internal revenue strip stamps, and in keeping with the principles of check and balance applicable thereto, the following procedure is hereby promulgated for the compliance of all concerned: 1. Requisitions for the purchase of strip stamps shall be prepared on the prescribed forms BIR Form 31.30 for cigarettes; BIR Form 31.21 for cigars; and BIR Form 31.12 for tobacco products. The requisition to purchase shall be prepared, checked and recorded in the Tobacco and Miscellaneous Tax Division and approved by the Chief thereof or his authorized representative. 2. Upon approval of the requisition to purchase, it shall be presented to the Accountable Forms Division which shall prepare an order of payment (Annex A) in three copies, a copy of which shall be retained by the issuing division. The order of payment together with the requisition shall be presented to the Cash and Disbursement Division where the purchaser shall pay the amount in accordance with the order of payment. The Cash and Disbursement Division shall issue a receipt for the amount received on BIR Form 25.24. The duplicate of the receipt together with a copy of the requisition should be handed to the purchaser. A copy of the requisition and order of payment shall be retained in the Cash and Disbursement Division for its record and file. 3. The requisitioner or purchaser presents the copy of the official receipt (BIR Form 25.24) together with a copy of the requisition to the Accountable Forms Division which shall verify the authenticity of the receipt and requisition. After verification he should issue the quantity of stamps requisitioned and paid for. The division shall keep a record of the serial number of the official receipt, its date of issue, the amount paid, and the quantity of strip stamps issued showing the inclusive serial numbers. It shall also retain a copy of the requisition for its file. 4. The Accountable Forms Division shall prepare a report showing its sale of strip stamps which report should be forwarded to the Accounting Division. A copy of the report shall be furnished to the Bureau Auditor and the Fiscal Audit Division. 5. The Cash and Disbursement Division shall also submit his monthly report of collection of strip stamps which should be submitted likewise to the Accounting Division with a copy furnished to the Accountable Forms Division. 6. The Accounting Division shall prepare a report showing the accountability of the two divisions. A copy of the report is to be given to the Commissioner of Internal Revenue. 7. The Tobacco and Miscellaneous Tax Division shall prepare a report of the total number of requisition of strip stamps during the month showing the quantities requisitioned which report should be forwarded to the Revenue Operations Head (Specific Tax) with a copy furnished the Accountable Forms Division. 8. Under this set-up, there will be a clear-cut delineation of the functions of the two divisions concerned and the principle of check and balance would be strictly adhered to; that is, one division receives the payment while the other handles the custody, issuance, and proper accounting of the strip stamps. 9. Notwithstanding the approved delineation of functions, the chiefs of the two divisions concerned should have a complete rapport between each other so that the bureau could be saved from unwarranted embarrassments arising from the acceptance of payments for strip stamps which are not available for issuance to the purchaser concerned. cd 10. In the case of revenue strip stamps for affixture to imported cigarettes in the country of origin, it shall be the primary responsibility of the Accountable Forms Division to fill all requisitions or requests for shipment of necessary cigarette strip stamps to the stamp agents authorized to keep cigarette strip stamps abroad to insure a steady stock thereof in those foreign countries. This Order takes effect immediately upon approval and strict compliance of all those concerned is hereby enjoined. MISAEL P. VERA Commissioner of Internal Revenue ANNEX A BIR Form No. AUTHORITY TO ACCEPT PAYMENT Stamps Request No. _______ Date ___________________ MEMORANDUM FOR: The Chief Cash & Disbursement Division BIR, Manila Please accept the payment of __________________________________ (P_______) from ______________________________________________________ (Name and Address of Taxpayer Assessment No. _______, for the purchase of strip stamps for affixture to packs or containers of ______________________________________________________ (State Article, Ex. Cigarettes, Cigars, etc.) Quantity Kind/Class of Stamps Unit TOTAL Value VALUE ____________________________ Chief, Accountable Forms Division ACKNOWLEDGMENT OF PAYMENT Payment corresponding to the total value of strip stamps abovelisted has been duly received by this Office. PAYMENT [ ] Cash [ ] Check No. __________ Date ___________ Amount P______________________ Chief, Cash & Disb. Division NOTE: This form should be accomplished in triplicate.