Investigation of Trucks with "T" Licenses Actually Used for Carrying Cargo of Other Persons Other than the Truck Owner

November 2, 1962 REVENUE MEMORANDUM ORDER NO. 61-62 SUBJECT : Investigation of Trucks with "T" Licenses Actually Used for Carrying Cargo of Other Persons Other than the Truck Owner TO : All Regional Directors and Others Concerned This Office is in receipt of reliable information to the effect that many truck operators, who for the purpose of evading payment of both the registration fees and internal revenue percentage taxes, register their trucks for hire as "T" trucks thereby causing a considerable loss in revenue annually. cdi In order to stop the practice of these unscrupulous truck operators and to bolster the collection of revenues both from registration fees and internal revenue taxes, all Regional Directors are instructed to wage an intensive campaign upon receipt of this memorandum order and in accordance with "Operation New Taxpayers", against all operators of trucks for hire with a view to requiring these operators to pay both the fixed and percentage taxes and the documentary stamp tax on the waybills. Their liability to income tax should likewise be verified. For the purpose of insuring the success of this campaign, the records of the local Motor Vehicles Office should be consulted in order to determine the owners of trucks registered under "T" license. To determine whether the truck is exclusively used by the owner in his own business to justify the "T" registration, the volume of business as recorded in the sales book should be looked into. If the recorded volume of business is so small as not to warrant the exclusive use of a truck, then it should be subject to "TH" license and the owner should be required to pay the fixed and percentage taxes as well as the documentary stamp tax on the waybills as required by the National Internal Revenue Code. Regional Directors and Provincial Revenue Officers should solicit the cooperation of Provincial Commanders of provinces within their regions so that the facilities of these Agencies can be requested to render assistance in the apprehension of trucks operated for hire but registered under "T" license. Spot checking of "T" trucks with cargoes on the highways should be done and invoices of the loaded merchandise should be checked to determine whether they belong to the owner of the truck or to somebody else. Records of companies like sugar centrals, oil mills, PMC, gasoline companies, government agencies like Namarco, Accfa, RICOA and other offices should be checked to get the list of truck owners hauling for them. Progress reports on the result of this campaign should be submitted monthly not later than the fifteenth day of the succeeding month. The required report should be submitted beginning with the month of November, 1962. (SGD.) JOSE B. LINGAD Acting Commissioner of Internal Revenue