Processing of Documents and Work Responsibilities of the "Last Priority" Program Under RMC No. 75-90

August 17, 1990 REVENUE MEMORANDUM ORDER NO. 40-90 SUBJECT : Processing of Documents and Work Responsibilities of the "Last Priority" Program Under RMC No. 75-90 TO : All Revenue District Officers, Chiefs, Collection Branch, Chiefs, Assessment Branch, Chief, Statistical Analysis Division, Collection Agents and All Other Internal Revenue Officers Concerned Presented hereunder are the work responsibilities of particular revenue officials and employees for the processing of documents and transactions pertaining to the "last priority" program under RMC No. 75-90: 1. REVENUE DISTRICT COLLECTION AGENT a. Receive and check as to the completeness of the Voluntary Declaration Form, Sworn Declaration of Inventory and attachments. If there are information and/or documents that are lacking, require the completion of the incomplete information and/or submission of the lacking document not later than the following day. cdt b. Process the deficiency tax payment. Four (4) payment orders (PO) of revenue officials receipts (ROR), whichever is applicable, shall be prepared for the payment. These shall correspond to the following tax payments: 1988 deficiency income tax, 1989 deficiency income tax, 1988 value added tax (VAT) or 2% percent tax, and 1989 VAT or 2% tax. The determination or apportionment of the amount corresponding to the four taxes above shall be as follows: i. If the amount paid equals the inventory factor, the apportionment shall be based on the amounts in lines 17, 18 and 19 of the Voluntary Declaration Form; ii. If the amount paid equals the taxes due per return factor, the apportionment shall be based on the amounts in line 21 of the Voluntary Declaration Form; iii. If the amount paid equals the minimum tax factor, the apportionment shall be based on the proportion of the corresponding taxes as computed in the inventory factor. EXAMPLE: Deficiency taxes determined in the Voluntary Declaration Form are as follows: Line 17. Deficiency business tax, 1988 P30,000 Deficiency business tax, 1989 20,000 Line 18. Deficiency income tax, 1988 10,000 Line 19. Deficiency income tax, 1989 40,000 Line 20. Total tax due (inventory factor) 100,000 Line 21. Tax due per return factor 240,000 Line 22. Minimum tax factor (for relative last priority) 300,000 Line 23. Deficiency tax paid 300,000 Since the amount paid equals the minimum tax, the apportionment shall be as follows: For 1988 deficiency business tax P90,000A For 1989 deficiency business tax 60,000B For 1988 deficiency income tax 30,000C For 1989 deficiency income tax 120,000D A (20,000/100,000) x P300,000 = P90,000 B (20,000/100,000) x P300,000 = P60,000 C (10,000/100,000) x P300,000 = P30,000 D (40,000/100,000) x P300,000 = P120,000 c. Transmit all documents to the Revenue District Officer (RDO) not later than the day following the filing of the same. cdt 2. REVENUE DISTRICT OFFICER a. Pre-audit the Voluntary Declaration Form and re-check the completeness of all the documents. If there are discrepancies in the computation, notify the taxpayer immediately for amendment of the form and/or additional payment, if any. b. List the names of the taxpayers paying on installment, the amount of taxes still payable, and their addresses. c. Send a complete list of taxpayers paying on installment, to the Chief, Collection Branch not later than November 9, 1990. d. Transmit all documents received and processed for the week to the Chief, Assessment Branch not later than Tuesday of the following week. e. Coordinate with the Chief, Collection Branch on the monitoring and collecting of installment payments. Transmit information of taxpayers who have paid their installments and the amount paid to the Chief, Collection Branch on the following day. 3. CHIEF, COLLECTION BRANCH a. Send out reminder notices to taxpayers paying on installment informing them of the due date(s) of their installments. b. Prepare monthly report on installment payment collections and submit to the Chief, Statistical Analysis Division not later than the tenth day of the following month. 4. CHIEF, ASSESSMENT BRANCH a. Locate all copies of the 1988 and 1989 income tax returns, VAT returns and 2% tax returns of the taxpayers who have availed of this "last priority" program. Transmit all returns to the Chief, Administrative Branch for filing and for future reference. These returns may not be taken out of said files unless there is a prior authorization from the Commissioner. b. Prepare weekly report of collections (ANNEX A) and transmit to the Chief, Statistical Analysis Division not later than Wednesday of the following week. 5. CHIEF, STATISTICAL ANALYSIS DIVISION a. Prepare weekly consolidated report of collections and submit to the Commissioner and the two Deputy Commissioners not later than Tuesday of the particular week. b. Prepare certificate of availment (ANNEX B) for the signature of the Commissioner for taxpayers who have fully paid the deficiency taxes. c. Prepare analysis of the overall results and tax policy implications of this program and submit to the Commissioner and the two Deputy Commissioners not later than January 31, 1991. cd i This order takes effect immediately. EUFRACIO D. SANTOS Officer-in-Charge ANNEX A REPORT OF WEEKLY COLLECTIONS for Last Priority Program under RMC No. 75-90 for RDO NO.______, ________ for the week ending _________, 1990 Name of taxpayer Address Amount Paid CR/ROR No. Date Amount Due Certified correct: ______________________ Chief, Administrative Branch ______________________ Regional Director ANNEX B No. _____ CERTIFICATE OF AVAILMENT This is to certify that __________________________, with Tax Account Number _______, and business address in __________________________, has availed of the last priority program under RMC No. 75-90, and is entitled to the privilege of: casia [ ] Relative last priority [ ] Absolute last priority in audit for 1988 and 1989 income tax, and value added tax or 2% per cent liabilities. Issued this _________ day of ________, 1990. JOSE U. ONG Commissioner of Internal Revenue