Supplementary Guidelines in the Implementation of Letter of Instructions No. 308 and Revenue Memorandum Order No. 45-75

September 16, 1975 REVENUE MEMORANDUM ORDER NO. 45-A-75 SUBJECT : Supplementary Guidelines in the Implementation of Letter of Instructions No. 308 and Revenue Memorandum Order No. 45-75 TO : All Internal Revenue Officers and Others Concerned In order to achieve uniformity in the proceedings, accounting and reporting of accomplishments under Letter of Instructions No. 308, all concerned shall likewise be guided by the following guidelines which are supplementary to those set forth in Revenue Memorandum Order No. 45-75. 1. Cases Covered All cases of delinquent accounts assessed on or before December 31, 1974, with the exception of cases under the Informer's Reward Law, or where an important question of law or policy is involved, which shall be considered on a case to case basis by the National Review Committee in consultation with the Commissioner and the Deputy Commissioner. 2. Period of Implementation Implementation of LOI No. 308 shall be up to December 31, 1975. 3. Delegated Authority Regional Directors shall have the authority to make the final approval of recommendations of their respective Regional Review Committees on cases where the total amount due does not exceed P5,000.00. 4. Format of Report and Recommendation The action of every member of the working group or a member of the Review Committees performing the work of the working group shall be embodied in a Memorandum addressed to the Commissioner or to the Regional Director depending upon the amount involved. For convenience and uniformity, a format is attached, marked Annex "A". Such memorandum shall invariably set forth successively the following portions: a. Nature of the case; b. Basis of the assessment/s which have become delinquent; c. Evaluation/justification/classification of the case; and d. Recommendation to include the % of the proposed compromise settlement in relation to the total amount of the delinquent account. The working group member shall sign his memorandum of recommendation followed by the signatures of all the members of the Review Committee, whether concurring or dissenting. In case of the latter, the dissenter should submit his dissenting opinion. Immediately below will be the approval or disapproval of the Commissioner or the Regional Director, as the case may be. The memorandum of evaluation and recommendation should be as brief as can be, accommodating the same in one sheet of paper if possible, in accordance with II-B-3 of Revenue Memorandum Order No. 45-75. 5. Time for Payment Immediate payment should always be imposed as a condition to the settlement by compromise of all delinquent accounts. This should be followed strictly where the amount proposed as compromise settlement does not exceed P50,000.00. If the amount proposed as settlement is in excess of P50,000.00 the terms of payment may be entertained but the same should be incorporated in the Memorandum of recommendation for the approval or disapproval of the Commissioner and Deputy Commissioner. Only cash or manager/cashier/crossed check shall be accepted in payment. Payments on accounts above P5,000 may be accepted by the Regional Review Committee as conditional and taxpayer or representative should be expressly advised that the same is not considered final until approval of the recommendation by the Commissioner or other official in the National Office so authorized. 6. Official Receipts For easier control and reporting of accomplishments, specific booklets of official receipts or tax payment acceptance orders (TPAOs) in case the taxpayer elect to pay to the bank should be assigned. In the case of the latter, special request should be made to present the bank official receipt covering each payment for recording thereof in the docket and in succeeding action for the final disposition of the case. 7. Acceptance and Accounting of Collection The Authority to Accept Payment (ATAP), Tax Payment Acceptance Order (TPAO), Official Receipt (ROR) or Bank Official Receipt (BOR) should contain all the information prescribed by operating procedures. In addition, the suffix "308" should be added after the assessment notice number or demand number of the case. Illustration: EA-15-2771-63/66-308 is the number of a transfer tax delinquency settled under LOI No. 308 that will appear in the proper space of all official forms used in accepting the evidencing payment under LOI NO. 308. Where two or more delinquent taxes of a particular taxpayer are lumped together in one proposal for compromise settlement invoking the same justification under LOI 308, the Memorandum of Recommendation should include a breakdown of application of the lump sum so offered. Even if no such breakdown is made, the officers responsible for accepting and accounting for the payment should proportionally apportion the same, and use as many forms of ATAP or TPAO, ROR or BOR and as many numeric codes as are required by operating procedures. 8. Report of Accomplishments Summary Progress Reports of monthly Accomplishments shall be submitted by Regional Directors within five (5) days after the end of September, October and November. A Final Report on total accomplishment to include accomplishment for December shall be submitted not later than January 10, 1976. A reporting form for the purpose, marked Annex "B", is attached hereto. Another form for detailed reporting of accomplishment on cases within Regional jurisdiction is also attached hereto as Annex "C" and should be submitted with and as supporting document of the Monthly Progress Report and the Final Report. 9. Closing All cases settled pursuant to LOI 308 where the amount paid is less than the total amount due as defined in Revenue Memorandum Order No. 50-75 dated August 29, 1975, shall be covered by appropriate Authority to Change Assessment (ATCA), copies of which shall be distributed in the usual manner. The ATCA shall be signed and approved by the Regional Director where the total amount due does not exceed P20,000.00 (regional accounts) and by the Chairman, National Review Committee for national accounts. All concerned are enjoined to follow the provisions of Revenue Memorandum Order No. 45-75 and this supplementary guidelines. This Order takes effect immediately. CONRADO P. DIAZ Acting Commissioner of Internal Revenue TAN 1182-568-4 ANNEX "A" Compromise Settlement Under LOI No. 308 _______________ Date MEMORANDUM FOR The Commissioner/Regional Director a. Nature of the case; b. Basis of the assessment/s which have become delinquent; c. Evaluation/justification/classification of the case; and d. Recommendation to include the % of the proposed compromise settlement in relation to the total amount of the delinquent account. Respectfully submitted: _________________________ Member, Working Group Recommending Approval: _____________________________ __________________________________ Chairman, Review Committee Vice-Chairman, Review Committee (if any) _____________________ ___________________ ___________________ Member Member Member APPROVED : ________________________________________ Commissioner of Internal Revenue/Regional Director ANNEX B ANNEX C