Procedures Governing the Processing and Issuance of the Certificate of Payment of Internal Revenue Taxes for Purpose of Registering Motor Vehicles

December 18, 1987 REVENUE MEMORANDUM ORDER NO. 44-87 SUBJECT : Procedures Governing the Processing and Issuance of the Certificate of Payment of Internal Revenue Taxes for Purpose of Registering Motor Vehicles TO : All Internal Revenue Officers and Others Concerned Pursuant to the Memorandum of Agreement entered into by and between the Bureau of Internal Revenue (BIR) and the Land Transportation office (LTO) on September 10, 1987, implementing Sections 135-A and 163 of the National Internal Revenue Code, the following procedures are hereby promulgated to govern the issuance of BIR Certificate of Payment as a condition precedent for the registration of motor vehicles that were assembled or re-assembled using imported/local parts. cd i SECTION 1 . Scope . This Order shall govern the filing, processing and issuance of BIR Certificate of Payment of internal revenue taxes on motor vehicles assembled or re-assembled using imported and/or locally manufactured parts and accessories, the correct taxes of which have not been paid. This shall not, however, apply to motor vehicles under seizure proceedings as well as those apprehended or impounded by duly authorized agencies of the government. SECTION 2 . Procedures . (a) A written application for the issuance of such certificate, containing the following information: (1) Make of vehicle; (2) Type of body; (3) Engine Number; (4) Piston Displacement; (5) Chassis Number; (6) Serial/Body Number; and (7) Year Model. shall be filed with the Special Investigation Team (SIT), Room 406, BIR Bldg., Revenue Region No. 4-A, Manila. (b) The revenue enforcement officer assigned to the case shall then evaluate the application. If the application papers are complete and in order, he prepares, in triplicate, the Authority to Issue Payment Order (ATIPO) for the signature of the Regional Director, Revenue Region No. 4-A, Manila. (c) After signing the ATIPO, the same is presented to the Collection Agent for the issuance of Payment Order, which shall in turn be the basis of the bank to whom it is addressed to issue the Confirmation Receipt. (d) The Confirmation Receipt is then presented to the SIT which shall issue the Certificate of Payment (Annex "A"), in four copies to be distributed as follows: (1) Original (white) copy - LTO; (2) Duplicate (blue) copy - Taxpayer/owner; (3) Triplicate (pink) copy - Regional Director; (4) Quadruplicate (yellow) copy - SIT. and approved by the Regional Director Revenue Region 4-A, Manila. (e) To obviate the possibility that a false or spurious Certificate of Payment might be presented to the LTO, the original copy of the certificate shall not be released to the owner but handcarried by authorized BIR representative to the LTO. Only Certificates of Payment approved by the Regional Director, Revenue Region No. 4-A, Manila shall be accepted by the Regional Office of the LTO for purposes of registration of motor vehicles. aisa dc SECTION 3 . Amount of Compromise . Due to the great difficulty of producing now the receipts/invoices evidencing purchases of parts and accessories plus the fact that the importers or assemblers may have availed of the various tax amnesties, the appropriate national internal revenue taxes (sales tax, compensating tax, and excise tax) applicable on the importation or sale of the motor vehicles cannot be correctly determined. In view thereof, in lieu of the above taxes due thereon, the following amounts shall be collected as compromise, depending on the piston displacement of the vehicle: I. Utility Van 1981 & Earlier Models 1982-1985 1600 cc and below P6,000.00 P8,000.00 Over 1600 cc to 2000 cc 8,000.00 10,000.00 Over 2000 cc and up 10,000.00 15,000.00 II. Light Trucks 1 ton to 1.5 ton P6,000.00 P8,000.00 1.6 tons to 3.5 tons 8,000.00 10,000.00 3.6 tons to 6 tons 10,000.00 12,000.00 6.1 tons to 12 tons 12,000.00 15,000.00 III. Cars 1300 cc and below P10,000.00 P15,000.00 Over 1300 cc and 1600 cc 15,000.00 20,000.00 Over 1600 cc 20,000.00 25,000.00 Motor vehicles that are of the 1986 or 1987 model and those that are classified as luxury cars shall be levied and assessed the appropriate rates of taxes prescribed in Sections 135-A and 163 of the Tax Code, without penalties. SECTION 4 . Immunities . Upon full payment of the amount of compromise stated above the motor vehicle may be registered with the Land Transportation office within three (3) days from the date of issue of the Certificate of Payment. Moreover, the taxpayer shall be absolved from any civil or criminal liability under the Tax Code arising from his possession of an untaxed motor vehicle. cd SECTION 5 . Effectivity . This Order shall take effect immediately. (SGD.) BIENVENIDO A. TAN, JR. Commissioner