Campaign Against Non-Issuance of Sales Invoices or Receipts

December 12, 1973 REVENUE MEMORANDUM ORDER NO. 40-73 TO : All Regional Directors, Revenue District Officers and Others Concerned. SUBJECT : Campaign Against Non-Issuance of Sales Invoices or Receipts. You are hereby informed that reliable confidential reports reaching this Office from responsible sources in both private and government sectors tend to establish the fact of the widespread practice by merchants of non-issuance of sales invoices or receipts, in violation of Chapter IV of the Bookkeeping Regulations (Rev. Reg. No. V-1) in relation with Section 204 of the National Internal Revenue Code, as amended. Such illegal practices have persisted notwithstanding the continuing tax information drives being undertaken by the Bureau. In view of the above and in order to enforce the sanctions provided by law by the apprehension of all violators referred to above, you are hereby directed to conduct an intensive campaign against non-issuance of sales invoices or receipts, enjoining all concerned to comply strictly with the following guidelines: cdt 1. Jurisdictional Limits : The campaign shall be conducted within the territorial jurisdiction of each of the Regional Offices. The Regional Director of each Region and the Revenue District Officers under his direction, shall be responsible for the planning, supervision and implementation of the campaign. 2. Assignment of Fieldmen : Only select teams composed of fieldmen who are highly qualified, discreet and dependable shall be authorized to conduct the campaign. The Regional Director shall submit to this Office: Attn.: Deputy Commissioner (Operations) the list of the fieldmen designated to participate in this campaign with their corresponding assignments. 3. Issuance of Apprehension Receipts (BIR Form No. 19.14) For Seized Documents, Books, Papers and Articles . a. No other receipt except BIR Form No. 19.14 shall be used or issued for seized tax receipts, licenses, books, documents, papers and/or articles. b. An inventory should be taken of booklets of receipts in the possession of fieldmen within the jurisdiction of each Revenue District Office, which should be withdrawn and collected by the Revenue District Officer for transmittal to their respective Regional Directors for re-assignment to members of the Teams created for purposes of the present campaign. 4. Schedule of Compromises : As an exception to existing circulars, regulations and/or other schedules of compromises, you are hereby directed to impose the compromise penalties in accordance with the following schedule: Persons or firms Persons or firms subject ONLY to subject to Per- Fixed Taxes centage Taxes (a) For the first offense P 50.00 P 100.00 (b) For the second offense 100.00 200.00 (c) For the third offense 200.00 300.00 (d) For the fourth offense The Imposition of any compromise penalty shall be held in abeyance and the case must be reported to the Regional Director for proper disposition, prosecution or referral to the military authorities. NO OTHER FORM OF SETTLEMENT OF THE CASE IS ALLOWED, EXCEPT IN ACCORDANCE WITH THE ABOVE SCHEDULE . 5. Notation of the number of violations on the face of the Percentage Tax Receipt : In every case of an apprehension, the following notations shall be made on the face of the taxpayer's percentage tax receipt: Violation Date Nature 1st offense, or (Date appearing (Non-issuance, on the apprehension understatement, 2nd offense or receipt) etc.) 3rd offense 6. On Special Mission Orders for Surveillance Work : As this campaign will necessitate surveillance work and undercover activities during and after official working hours, Special Mission Orders, shall first be secured from higher authorities before undertaking such phases of the campaigns, especially in places and establishments where government personnel are banned, in accordance with the following guidelines: a. For the Greater Manila Area, Special Mission Orders shall be secured from the Deputy Commissioner for Operations; b. `For Regions outside the Greater Manila Area, the Regional Directors are authorized to issue such Special Mission Orders. c. All Special Mission Orders shall be for specified areas, places or establishments and shall be effective only for a definite self terminating period stated in such Orders. 7. Reports : The Regional Director shall consolidate the reports of the fieldmen assigned to this campaign and shall submit a summary report of apprehensions made during the month to this Office, Attn.: Deputy Commissioner (Operations) , to be transmitted not later than the 10th day of the month following, with these information: (a) Name and address of taxpayers apprehended; (b) Nature of violation (c) Issuing fieldmen (d) Status of the case. Strict compliance herewith is enjoined. MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5