Prescribing the Raffle of Sales Invoices and Receipts, "Humingi ng Resibo Manalo ng Libo-Libo, Part II

November 17, 1998 REVENUE MEMORANDUM ORDER NO. 84-98 SUBJECT : Prescribing the Raffle of Sales Invoices and Receipts, "Humingi ng Resibo Manalo ng Libo-Libo, Part II" TO : All Assistant Commissioners, Regional Directors, Revenue District Officers and Other Internal Revenue Officers Concerned I. Objectives This Order is issued to: 1. Improve tax awareness by encouraging consumers to demand sales invoices and receipts for purchases; 2. Involve the private sector in the government's aim to increase revenue collection; 3. Enhance the Bureau's data bank and facilitate the development of a system for the effective audit of tax liabilities; and 4. Verify authenticity of surrendered sales invoices and receipts and take necessary action in cases of tax fraud and/or tax evasion. prcd II. Policies In order to attain these objectives the following policies are hereby prescribed. 1. Raffle of Sales invoices and receipts shall be conducted as follows: (a) Regional Raffles to cover cities and municipalities within the jurisdictions of Revenue Regional Offices. There shall be nineteen (19) different Regional Raffles. (b) National Raffle to cover all cities and municipalities nationwide. There shall be one National Raffle. 2. All sales invoices and receipts issued by taxpayers within the jurisdiction of the cities and municipalities as specified above for purchases of goods and services by consumers, regardless of amount, shall qualify for the raffles, provided that the following requirements are contained in said sales invoices/receipts: business name and address, Taxpayer Identification Number (TIN) name of printer (BIR Permit Number) with the inclusive serial numbers of the booklets, and date of issuance of the sales invoice/receipts. 3. Receipts or tapes issued in lieu of sales invoices from authorized cash register machines shall be accepted provided the following information are contained: business name and address, taxpayer identification number and date of issuance. 4. Only the original of the Sales Invoices and Receipts shall be used in the Raffle. 5. Only individuals are qualified to join the raffle. 6. The Public Information & Education Division and/or the Tax Assistance Units in Revenue Regions and Revenue District Offices shall assign telephone lines (hot line) which the taxpayers may utilize for complaints against establishments on non-issuance of receipts. III. Raffle Mechanics 1. Sales invoices and receipts issued by taxpayers within jurisdictional cities and municipalities starting December 1, 1998 to April 10, 1999 shall qualify for the raffle draws. 2. Each participant in the raffle shall write at the back of the sales invoice or receipt his name, address, telephone number, if any, and signature and drop the same at designated drop boxes. 3. The Regional Directors, upon recommendation of their Revenue District Officers, shall determine the locations where drop boxes shall be placed. It shall be the responsibility of the Revenue District Officers to gather the sales invoices and receipts from respective drop boxes and forward the same to where the "tambiolos" are located before each raffle. 4. Winners shall be notified by letter, telephone or telegram. The list of regional winners shall be published in locally circulated newspapers while the list of Grand Draw winners shall be published in widely circulated national newspapers. Such lists shall also be posted at BIR Regional and District Offices. 5. On the other hand, a person is qualified to win one prize separately in any of the draws conducted in different revenue regions and shall be entitled to all such prizes. 6. In cases where the winning receipts or invoices are spurious, the winner may still be entitled to the prize. However, the taxpayer who issued said receipt or invoice shall be subject to investigation. A participant of the raffle who falsifies receipts or invoices shall be subject to investigation and if warranted, criminal prosecution. 7. Winning receipts or invoices of each Regional Raffle and the National Raffle which were found to be spurious shall be subject to investigation by the Tax Fraud Division or the Special Investigation Division as the case may be. 8. Prizes not claimed within sixty (60) days after the raffle shall be forfeited in favor of the BIR. Winners may claim their prizes from the Financial and Administrative Service of the BIR, National Office for the National Raffle and in the respective Finance Division of Revenue Regions for the Regional Raffles, upon presentation of proper identification requirements. 9. All raffles shall be supervised by a representative of the Department of Trade and Industry (DTI). 10. The Raffle Committee per RSO No. 1123-98 shall be responsible for the overall control, monitoring and evaluation of the implementation of the raffle and shall undertake all the necessary details and activities related to the BIR Raffle Promo. 11. In accordance with the permit issued by Department of Trade and Industry, BIR employees and their relatives up to the second degree by consanguinity and affinity are disqualified from joining the raffle promo. IV. Raffle Draw Dates and Prizes 1. The Raffle Promo shall be officially launched on December 1, 1998. 2. The following is the schedule of the raffle draws with the corresponding prizes to be awarded. A. Regional Raffles one for each of the nineteen Revenue Regions Draw Dates Prizes Pasko sa Enero: P10,000 Each for fifteen (15) winners January 30, 1999 B. National Raffle one draw nationwide April 10, 1999 1st P1,000,000 2nd 500,000 3rd 200,000 Consolation Prizes 20,000 each for (10) winners 10,000 each for (25) winners 3. All receipts issued from December 1, 1998 until the draw date shall be valid for the Raffles. 4. Receipts not drawn during the Regional Raffle will be included in the National Raffle. prLL V. Responsibilities of RDOs and RDs 1. Revenue District Officers and their Regional Directors shall be responsible for all sales receipts and invoices placed in drop boxes within their areas of jurisdiction. 2. For the National Raffle, receipts shall be retrieved by the Revenue District Officers from drop box centers within their jurisdiction. These will then be forwarded to their respective Revenue Regional Office and shall either be gathered by an authorized representative of the National Office or sent by the Regional Director to the Public Information and Education Division on March 31, 1999. The RDO shall likewise retrieve all drop boxes within their area of jurisdiction. 3. The Revenue District Officers thru their Regional Director shall prepare a report using the format in Annex A on the drop boxes and streamers allocated to them and the name of the responsible person for the delivery of the drop boxes in designated drop box centers and retrieval of the receipts and submit the same on or before December 29, 1998 to the Public Information & Education Division. 4. Regional Directors shall submit a report using the format in Annex B on or before April 19, 1999 covering all activities performed in connection with the raffles from December 1, 1998 to April 10, 1999. 5. The Regional Director shall coordinate with their respective RDOs; control, supervise and ensure proper observance of these policies and guidelines. VI. Monitoring of Surrendered Receipts/Invoices 1. Surrendered receipts and invoices are the official receipts, sales invoices and cash register tapes which were placed in the drop boxes for inclusion in the raffle promos conducted by the BIR. 2. After raffle promos are conducted, the BIR Raffle Committee shall take charge of undertaking a random sampling of sales receipts and invoices from the lot of entries and endorse custody of this sample as well as receipts and invoices drawn in the raffle to the Tax Fraud Division or to the Special Investigation Divisions of Revenue Regions. 3. The Tax Fraud Division shall develop and take charge of a system for checking and verifying the authenticity of the surrendered receipts and invoices transmitted by the BIR Raffle Promo Committee. 4. All Special Investigation Divisions of the Revenue Regions shall coordinate with the Tax Fraud Division in the implementation of such system. dctai 5. The following functions shall be included in the system to be undertaken by Tax Fraud Division: a) Check and verify the authenticity, validity and correctness of the receipts, invoices or cash register tapes. b) If warranted, investigate through Letters of Authority the following: i) Taxpayers who have issued receipts and invoices which have not met the requirements of authentic receipts, sales invoices, or cash register tapes; and ii) Taxpayers who have issued spurious receipts, sales invoices or cash register tapes. 6. All verifications and investigations shall be done in accordance with the procedures provided under existing issuances. 7. The BIR Raffle Promo Committee shall prepare and submit to the Commissioner of Internal Revenue a report on the activities and outcome of the Raffles. 8. Unless otherwise required by the Tax Fraud Division or the Special Investigation Divisions, all surrendered sales invoices and receipts shall be disposed by the Records Division. VII. Effectivity This Order shall take effect immediately. llcd (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue ANNEX A REPORT ON THE DISTRIBUTION OF DROP BOXES AND STREAMERS REVENUE REGION NO. ____ Date ___________ RDO No. ______ A. Total Number of allocated drop boxes for distribution: ______ Places distributed : No. of drop box/es 1. 2. 3. 4. 5. 6. B. Posters C. Total Number of allocated streamers to be distributed: _______ Places distributed: No. of streamer/s 1. 2. 3. 4. 5. 6. Person responsible for delivery of the drop boxes: _________________ Person responsible for the retrieval of receipts: ____________________ Submitted by: ____________________________ (RDO) Attested by: __________________________ Regional Director ANNEX B REPORT ON THE RAFFLE OF SALES INVOICES AND RECEIPTS REVENUE REGION NO. _____ _________________________ 1. DATE AND PLACE OF RAFFLE: ____________________________________ 2. NUMBER OF DROP BOXES AND DESIGNATED ESTABLISHMENT __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ 3. LIST OF WINNERS AND PRIZES AWARDED PRIZES WINNERS ESTAB. ISSUING RECEIPT ______________ ____________________ ______________________ ______________ ____________________ ______________________ ______________ ____________________ ______________________ 4. PROCEDURE (including modifications) UNDERTAKEN IN IMPLEMENTING THE RAFFLE ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 5. INFORMATION DISSEMINATION TECHNIQUES UTILIZED ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 6. PROBLEMS/CONSTRAINTS ENCOUNTERED AND SOLUTIONS APPLIED AND/OR RECOMMENDED PROBLEMS/CONSTRAINTS SOLUTIONS/RECOMMENDATION ___________________________ ________________________________ ___________________________ ________________________________ ___________________________ ________________________________ ___________________________ ________________________________ 7. SIGNIFICANT EFFECTS OF THE RAFFLE (i.e., participation of public, tax compliance, issuance of receipts by establishments, Revenue Collection, etc.) ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 8. Other Comments, Remarks, Recommendations ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ Submitted By: ________________________ Regional Director Date: ___________________ Instructions : 1. Accomplish all the required information contained herein. Use additional sheets whenever necessary. 2. Submit the report to the Chairman, Raffle Promo Committee, copy furnished Public Information and Education Division.