Amendment to Section 5 of Revenue Regulations No. V-32, as amended by Rev. Reg. Nos. V-49 and V-61

January 20, 1964 REVENUE REGULATIONS NO. 01-64 SUBJECT : Amendment to Section 5 of Revenue Regulations No. V-32, as amended by Rev. Reg. Nos. V-49 and V-61 TO : All Internal Revenue Officers and Others Concerned SECTION 1. The provisions of Section 5 of Revenue Regulations No. V-32 (Revised Regulations Governing the Issuance of Tax Clearance Certificates),as amended by Revenue Regulations Nos. V-49 and V-61, is hereby further amended to read as follows: "Sec. 5. Officials authorized to issue tax clearance certificates The Commissioner of Internal Revenue, or any official designated by him, is hereby invested with the exclusive authority to issue tax clearance certificates in Manila, Quezon City, Pasay City, Caloocan City, Cavite City, Trece Martires City and Tagaytay City and the provinces of Rizal, Bulacan and Cavite. In all other parts of the Philippines, the regional director or the chief revenue officer of the region or inspection district, as the case may be, in which the applicant is temporarily residing or has his place of business, and the deputy provincial treasurers stationed in the sub-ports of Bongao, Sitangkai, Taganak, Cagayan de Sulu, and Balabac, are hereby also authorized to issue tax clearance certificates in their respective territorial jurisdictions. The aforesaid deputy provincial treasurers shall submit to the chief revenue officer at Jolo, Sulu, a weekly report containing a list of all the names and addresses of applicants who had been issued tax clearance certificates. A tax clearance certificate may be issued only after application has been duly processed and the tax liability of the applicant determined and duly paid, or covered by a surety bond as the case may be and one of two guarantors has duly executed the guaranty on the other side of the application, B.I.R. Form No. 17.30 (Revised February 16, 1954). SECTION 2. These regulations shall take effect upon their promulgation in the Official Gazette. cdta (SGD.) JORGE LABAYO Acting Secretary of Finance Recommended by: (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue ATTACHMENT 1st Indorsement January 23, 1964 Respectfully returned to the Commissioner of Internal Revenue, Manila, the within Revenue Regulations dated January 20, 1964, amending Section 5 of Revenue Regulations No. V-32, otherwise known as the Revised Regulations Governing the Issuance of Tax Clearance Certificates, as amended by Revenue Regulations No. V-49 and V-61, approved. JORGE LABAYO Acting Secretary January 20, 1964 The Honorable The Secretary of Finance M a n i l a S i r : Attached herewith is a proposed revenue regulation amending Sec. 5 of Rev. Reg. No. V-32 (Revised Regulations Governing the Issuance of Tax Clearance Certificates),as amended by Rev. Reg. Nos. V-49 and V-61. The proposed amendment consists of the inclusion of the cities of Quezon, Caloocan, Pasay, Cavite, Trece Martires and Tagaytay and the provinces of Rizal, Bulacan and Cavite in the jurisdiction of the National Office for the purpose of the issuance of tax clearance certificates. Under existing regulations the regional director in Quezon City has authority to issue tax clearance certificates. It was found out, however, that taxpayers who could not secure their tax clearance certificates at the National Office, because of tax delinquencies appearing in the IBM lists at the Delinquent Accounts Division, would merely go to Quezon City and re-file an application there, using an address within the jurisdiction of the Quezon City regional office. Because the delinquency listing in Quezon City includes only taxpayers within the territorial jurisdiction of the regional office, applicants succeed in securing the tax clearance certificate without much difficulty. To plug this loophole, it is proposed that the authority to issue a tax clearance be withdrawn from the regional director of Quezon City and the respective CRO's of Quezon City, Pasay City, Caloocan City, Rizal, Cavite and Bulacan. It is believed that this will not cause inconvenience to travelers because, anyway, they have to come to Manila for their other travel papers. In view of the foregoing, it is hereby respectfully recommended that Rev. Reg. No. __ be approved. BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue August 2, 1956 REVENUE REGULATIONS NO. V-49 SUBJECT : Amending Sections 2, 4 and 5 of Revenue Regulations No. V-32 TO : All Internal Revenue Officers and Others Concerned Sec. 1. The provisions of section 2, 4 and 5 of Revenue Regulations No. V-32 (Revised Regulations Governing the Issuance of Tax Clearance Certificates) are hereby amended to read as follows: "Sec. 2. Certificate of tax clearance to be secured by all persons leaving the Philippines . By mandate of section 343 of Commonwealth Act No. 466 no person shall leave the Philippines without a certificate of tax clearance to be issued by the Collector of Internal Revenue or his duly authorized representative. Any person contemplating to leave the Philippines must, therefore, apply for a tax clearance certificate on the application form prescribed by the Bureau of Internal Revenue. Upon receipt of the application by the Tax Clearance Section at the office of the Bureau of Internal Revenue, if in Manila, or at the office of a regional director or a provincial revenue officer, if outside Manila, the same shall be serially numbered, recorded, and processed. The processing shall be done by a thorough checking of the liabilities of the applicant not only to the income tax but also to all taxes enforced and administered by the Bureau of Internal Revenue with the ample use of taxpayer's delinquency cards and other available records. In all cases where no previous tax clearance certificates have been issued to the applicant, the inquiry into his tax liability should embrace a period of five years prior to the date of application. However, as regards applicants who had previously been issued tax clearance certificates, the period of inquiry as to their tax liability should cover only the intervening period from the date they secured a tax clearance certificate and the date of their subsequent application. Persons departing from the Philippines prior to the last due date of filing an income tax return or any other tax return required by law must file the corresponding return and pay any tax shown by such return to be due before a tax clearance certificate is issued, unless such persons are represented by attorney-in-fact who assume the obligation of filing the return and paying the tax thereon when due and payable. In the event that an applicant is unable to pay in cash his tax obligation but is returning to the Philippines at some future date, he may be allowed to file a surety bond guaranteeing the payment in full of his obligation. A surety bond in lieu of cash for the payment of a tax obligation should not be accepted from visitors, transients, tourists or non-resident aliens and no tax clearance certificate should be issued unless they have fully paid their tax liabilities." "Sec. 4. Certificate of Tax Clearance . After an application for tax clearance certificate has been duly processed as required in section 2 hereof, a tax clearance certificate shall be issued on B.I.R. Form No. 17.14 for applicants desiring to leave the Philippines. The corresponding documentary stamps in accordance with the proviso in section 225 of Commonwealth Act No. 466, as amended by section 14 of Republic Act No. 40, shall be affixed to the duplicate of the tax clearance certificate to be issued and cancelled, to wit: fifteen pesos on each certificate for a first class passenger; eight pesos for a second or tourist class passenger; and two pesos for a third class or steerage passenger. Documentary stamps at the above rates should be affixed to every duplicate of the certificates to correspond to the number of persons of ages one year or over embraced in the tax clearance certificate. A notation shall be made on the original tax clearance certificate that the required documentary stamps have been affixed on the duplicate and duly cancelled. A tax clearance certificate for travel abroad is good for thirty days from the date of issue but may be extended for another thirty days only upon previous application to an approval by the issuing officer after which it shall become invalid. In the cases of import control, export control, naturalization, or change of name, the corresponding tax clearance certificate on the prescribed forms shall be issued. cdtech "Sec. 5. Official authorized to issue tax clearance certificates . The collector of Internal Revenue, or any official designated by him, is hereby invested with the exclusive authority to issue tax clearance certificates in Manila. Outside Manila, the regional director or the provincial revenue officer of the region or province in which the applicant is temporarily residing or has his place of business is hereby also authorized to issue tax clearance certificates. A tax clearance certificate may be issued only after the application had ben duly processed and the tax liability of the applicant determined and duly paid, or covered by a surety bond as the case may be and one or two guarantors have duly executed the guaranty on the other side of the application, B.I.R. Form No. 17.30 (Revised Feb. 16, 1954). Sec. 2. These regulations shall take effect upon their promulgation in the Official Gazette. (SGD) JAIME HERNANDEZ Secretary of Finance Recommended by: SILVERIO BLAQUERA Collector of Internal Revenue