Re-classification of Status of Taxpayers Previously Classified as Large Taxpayers Under Revenue Regulations No. 12-93, as Amended by Revenue Regulations No. 3-94

October 23, 2000 REVENUE MEMORANDUM ORDER NO. 48-00 TO : All Revenue Officials and Employees and Others Concerned SUBJECT : Re-classification of Status of Taxpayers Previously Classified as Large Taxpayers Under Revenue Regulations No. 12-93, as Amended by Revenue Regulations No. 3-94 I. OBJECTIVES : This Order is issued to: A. Clarify the status relative to tax payment deadlines and venues of taxpayers previously notified as large taxpayers under Revenue Regulations No. 12-93, as amended by Revenue Regulations No. 3-94, but who were no longer identified as such under Revenue Regulations No. 1-98; B. Define the office having jurisdiction over these previously notified Large Taxpayers for efficient monitoring and proper crediting of collections; and C. Prescribe procedures for the re-classification of their status from large to regular taxpayers. II. POLICIES : A. Taxpayers previously classified as large taxpayers under Revenue Regulations No. 12-93 who are not included among the following categories shall be classified as regular taxpayers: 1. Taxpayers notified as Large Taxpayers pursuant to Revenue Regulations No. 1-98, which are now under the jurisdiction of either the Large Taxpayers Service or the Excise Taxpayers Service; 2. Taxpayers which are under the Large Taxpayers District Office (LTDO)-Makati; and 3. National Government Agencies (NGAs) covered under DOF-DBM-COA Joint Circular (JC) No. 1-2000. B. Taxpayers who are re-classified from large to regular shall be guided by the following: 1. Returns with payment shall be filed at any BIR Authorized Agent Bank (AAB) within the revenue district having jurisdiction over the taxpayer's head office or branch, as the case may be, except insurance companies, which shall file their returns at the duly designated bank of the Insurance Commission, Land Bank-UN Ave. Branch, pursuant to Revenue Memorandum Order (RMO) No. 66-98. 2. Returns without payment shall be filed with the respective Revenue District Office (RDO) having jurisdiction over the taxpayer's head office or branch, as the case may be. 3. Deadline for withholding tax remittances (on compensation, expanded and final taxes) filed using BIR Form Nos. 1601-C, 1601-E and 1601-F shall be on the 10th day of each month. 4. The head office of a regular taxpayer is not mandated to file consolidated withholding tax and/or percentage tax returns for its head office and branches. Thus, branches of these taxpayers may remit/pay their taxes individually at the respective revenue districts in accordance with procedures for regular taxpayers. 5. The taxpayer shall continue to be a withholding agent for the 1% creditable withholding tax on regular suppliers of goods pursuant to Revenue Memorandum Circular No. 28-94 and Revenue Regulations No. 2-98. C. The LTS shall issue a listing of all taxpayers who shall be re-classified from large to regular taxpayer and prepare corresponding notification letters thereto, for distribution by corresponding RDOs having jurisdiction over such taxpayers' head offices. D. Notification letters for Large Taxpayers to be re-classified shall be signed by the Commissioner and taxpayers so notified shall follow prescribed procedures for returns to be filed in the next month following their receipt of such notification letters. III. PROCEDURES : A. The Large Taxpayers Service (LTS), thru the Large Taxpayers Programs Division (LTPD) shall: 1. Classify Large Taxpayers notified under Revenue Regulations No. 12-93 according to proper office of jurisdiction and prepare corresponding listings, as follows: a. Taxpayers under the LTS, pursuant to Revenue Regulations No. 1-98; b. Taxpayers under the Excise Tax Service; c. Taxpayers under the LTDO-Makati; d. National Government Agencies, which are covered by DOF-DBM-COA JC No. 1-2000; e. Non-large insurance companies, which shall be under RDO No. 34 (Paco); and f. Other Large Taxpayers not classified in any of the above; 2. Prepare notification letters regarding taxpayer re-classification for each of the taxpayers under no. 1(e) and (f) above, for signature of the Commissioner; 3. Indicate control numbers in signed notification letters and distribute the same to concerned RDOs, for delivery to taxpayers; and 4. Monitor the distribution by RDOs of said notification letters and ensure that all letters are distributed and accounted for by November 15, 2000. B. The Revenue District Office shall: 1. Distribute, by personal delivery, notification letters to taxpayers who shall be re-classified, and have the taxpayer acknowledge receipt thereof by indicating the signature, printed name, office and designation of the receiving personnel/official on the duplicate copy; 2. Forward to the new home RDOs notification letters for taxpayers which have transferred out of the district; 3. Submit to the LTPD, on or before November 15, 2000, the duplicate (BIR receiving copy) of the notification letters and a final report on the status of the distribution of said notification letters (using the sample format in Annex A); and 4. Ensure that all notification letters are distributed and accounted for by November 15, 2000. IV. TRANSITORY PROVISIONS : Taxpayers who shall receive their notification letters within November 2000 shall follow procedures for regular taxpayers for returns to be filed starting December 1, 2000, while taxpayers receiving their notification letters within December 2000 shall follow procedures for regular taxpayers for returns to be filed starting January 2, 2001. V. REPEALING CLAUSE : All other issuances and/or portions thereof inconsistent herewith are hereby repealed and amended accordingly. VI. EFFECTIVITY : This Order takes effect immediately. (SGD.) DAKILA B. FONACIER Commissioner of Internal Revenue ANNEX A Sample Format of RDO Report on the Distribution of Notification Letters to Re-classified Taxpayers Report on the Distribution of Notification Letters to Taxpayers Previously Classified as Large Taxpayers Under Rev. Regs. No. 12-93, as amended by Rev. Regs. No. 3-94 Revenue District Office No. 39 (South Quezon City) As of November 15, 2000 Status Number Remarks Total number of letters for distribution 94 Number of letters distributed 88 (Enclose duplicate copies with taxpayers acknowledgment of receipt) Number of letters forwarded to new 3 (Provide listing of names of Home RDOs taxpayers who have transferred to new home RDOs in Attachment Number of undelivered letters 3 (Provide listing of names of taxpayers for which letters were not delivered and corresponding reasons in Attachment 2) Attachment 1 - List of Taxpayers Who Have Transferred to New Home RDOs Name of Taxpayer New Home RDO Remarks 1. AAA Corporation 47 (East Makati) Letter forwarded Sept. 22 2. BCD, Inc. 56 (Calamba) Letter forwarded Sept. 25 3. XYZ Co., Inc. 40 (Cubao) Letter forwarded Sept. 25 Attachment 2 - List of Taxpayers Whose Letters are Undelivered Name of Taxpayer Reason for Non-delivery 1. AEI Corporation Corporation was dissolved in February 1999 2. MNO Inc. Absorbed in May 1998 by ABC Corporation, a Large taxpayer now under LTS 3. Three R's Inc. Merged with JJ, Inc. in Jan. 1999, as of R & J Inc., a Large Taxpayer now under LTDO-Makati