Guidelines on the Processing of Utilization of DOF Issued Tax Credit Certificates (TCCs) and Prescribing Counter-Measures for Detection of Fraud

November 13, 2003 REVENUE MEMORANDUM ORDER NO. 39-03 TO : Assessment Service Collection Service Legal Service Large Taxpayers Service All Regional Directors All Revenue District Officers All Others Concerned SUBJECT : Guidelines on the Processing of Utilization of DOF Issued Tax Credit Certificates (TCCs) and Prescribing Counter-Measures for Detection of Fraud In reference to Former Undersecretary Cornelio C. Gison's Memorandum of 5 May 2000 (attached), I reiterate the following procedures for processing of DOF-issued TCCs: a. No DOF-TCC will be processed for utilization without the Tax Debit Memo (TDM), duly issued by the One Stop-Shop Duty Draw Back Center, accompanying the application for BIR-Tax Debit Memo; b. Restrict TCC usage according to the amounts approved by the Center, as appearing on the TDM issued by said Center; c. Ensure the posting of the last transaction/payment at the back of the copy of TCC of the taxpayer; d. Ensure that the signature of the authorized officer accepting payments is reflected at the back of the TCC; In addition all TDM issuing officer is hereby required to ask presentation of duly issued DOF TDM prior to issuance of BIR TDM on all DOF issued TCC. Also, all collection offices, RDOs/LTDOs/LTAs are require to check that all taxpayers utilizing TCC for payment should have the corresponding TDMs prior to presentation of such payment. HEASaC FOR STRICT COMPLIANCE. (SGD.) GUILLERMO L. PRAYNO, JR. Commissioner of Internal Revenue 05 May 2000 MEMORANDUM TO : Commissioner DAKILA B. FONACIER Bureau of Internal Revenue FROM : Undersecretary CORNELIO C. GISON Revenue Operations Group SUBJECT : TCC UTILIZATION WITHOUT TDMs This is in reference to the Tax Debit Memos (TDMs) issued by the CENTER authorizing qualified claimants to the actual usage of the Tax Credit Certificates (TCCs) granted by the same. In line with our common endeavor to lawfully enforce set guidelines in safekeeping government revenue, we would like to reiterate our previous request to your good office to: c. Prohibit the utilization of TCCs without the corresponding TDMs duly issued by the Center; and d. Restrict TCC usage according to the amounts approved by the Center, as reflected in the corresponding TDMs. Your cooperation on this matter will be greatly appreciated. (SGD.) CORNELIO C. GISON 18 January 2000 MEMORANDUM TO : Commissioner DAKILA B. FONACIER Bureau of Internal Revenue FROM : Undersecretary SOLOMON S. CUA SUBJECT : Problems Encountered on TDM Applications The Tax Debit Division of the One-Stop Shop Inter-Agency tax Credit and Duty Drawback Center has brought to my attention the following problems normally encountered in relation to the applications for TDM filed with this Division: 5. Non-posting of the last transactions/payments at the back of the TCC being applied for TDM. 6. Over application of TDM. 7. Non-attachment of the page showing the last balance of the TCC. 8. Failure of the authorized officer to countersign the postings indicating the amount actually used at the back of the TCC. In view of this, may we reiterate our request for the following: 4. Regular posting of the last transactions/payments at the back of the TCC and attachment of the page showing the latest balance of the TCC. 5. Utilization/application of the TCC only up to the amount of the TDM granted by the said Office. 6. Signature of the authorized officer accepting payments at the back of the TCC. aHIDAE Thank you. (SGD.) SOLOMON S. CUA