Repeal of Revenue Regulations No. V-62, as Amended by Revenue Regulations No. V-66

January 4, 1962 REVENUE REGULATIONS NO. 02-62 SUBJECT : Repeal of Revenue Regulations No. V-62, as Amended by Revenue Regulations No. V-66 TO : All Internal Revenue Officers and Others Concerned These regulations, repealing Revenue Regulations No. V-62, as amended by Revenue Regulations No. V-66, shall hereafter be known as Revenue Regulations No. V-2-62. cdtech SECTION 1. Revenue Regulations No. V-62, as amended by Revenue Regulations No. V-66, governing the business of wholesale dealers in liquors, fermented liquors, wines, and tobacco, is hereby repealed. SECTION 2. Date of Effectivity . These regulations shall take effect upon promulgation in the Official Gazette. FERNANDO E. V. SISON Acting Secretary of Finance Recommended by: MELECIO R. DOMINGO Commissioner of Internal Revenue ATTACHMENT 1st Indorsement March 2, 1962 Respectfully returned to the Commissioner of Internal Revenue, Manila, the attached Revenue Regulations No. 2-62, dated January 4, 1962 of that Bureau repealing Regulations No. V-62 as amended by Revenue Regulations No. V-66, approved. FERNANDO E. V. SISON Acting Secretary of Finance January 4, 1962 The Honorable The Secretary of Finance M a n i l a S i r: This refers to Revenue Regulations No. V-62, as amended by Revenue Regulations No. V-66, governing the business of wholesale dealers of articles subject to specific taxes. Since these regulations became effective, sometime in 1958, numerous complaints have been received by this Office from the taxpayers affected thereby, among which are that they have been forced to incur additional expenses in hiring services of additional bookkeepers or accountants in handling their books of accounts, in preparing and submitting monthly and periodic reports to this Office, and that the requirements provided for in these regulations are unnecessary because they have been religiously complying with the Revised Bookkeeping Regulations embodied in Revenue Regulations No. V-1, as amended, of the Department of Finance, the provisions of which are sufficient to guarantee the purposes for which Revenue Regulations No. V-62 was promulgated. Revenue Regulations No. V-62 was promulgated to implement the provisions of Section 157 of the National Internal Revenue Code, requiring the keeping of records of purchases, sales and deliveries by wholesale dealers of articles subject to specific taxes, such forms to be prescribed by this Bureau. These forms have been printed and made available to these dealers, and for a period from February to December 1959, a total of P29,945.98 was spent for the purpose. This amount was part of the P90,000.00 set aside to cover the total expenses for the printing alone of these forms for the year 1959. These figures represents only the initial expenses when said Revenue Regulations No. V-62 took effect in February, 1959. Aside from expenses incurred, the Tobacco and Miscellaneous Tax Division and the Alcohol Tax Division, which are the two bodies that implement these regulations, have been overloaded with the preparation of permits, keeping records, consolidation and compilation of reports, verification of reports, and the like, for the proper implementation of the regulations, because of the inadequacy of personnel. cdtech Because of all the foregoing, the undersigned has thought it best to make a restudy and determine the effects of the regulations upon the taxpayers concerned, and it has been observed that the disadvantages brought about by said regulations far outweigh the advantages sought, both as regards the Bureau and the taxpayer. The following are worth mentioning, namely: 1. That Revenue Regulations No. V-62 is just a duplication of Revenue Regulations No. V-1, otherwise known as the Bookkeeping Regulations, which have been strictly complied with by the taxpayers. 2. That this Bureau would lose approximately the sum of P90,000.00 annually for the printing of the forms prescribed in said regulations. 3. That many wholesale dealers have abandoned their business, thus decreasing the collection of fixed tax on said business. 4. That cigarette manufacturers have been prejudiced by the retirement from business of wholesale dealers because they are their only mainstay in far-flung provinces in the propagation and sale of their products. This is also true with wine and liquor manufacturers. 5. That because of the deleterious effect on cigarette and wine and liquor manufacturers, mentioned in the preceding number, specific taxes on these products have also decreased. 6. That the interest of the Government is not and will not be prejudiced by the repeal of Revenue Regulations No. V-62, as amended by Revenue Regulations No. V-66. It is, therefore, recommended that said Revenue Regulations No. V-62, as amended, be repealed by the accompanying Revenue Regulations prepared for your approval. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue March 23, 1962 The Director Bureau of Printing M a n i l a S i r : I have the honor to enclose herewith Revenue Regulations No. 2-62 dated January 4, 1962, with the request that said Regulations be published in the Official Gazette. aisadc Payment will be made on your bill upon its receipt by this Office. Very truly yours, BENEDICTO PADILLA Acting Commissioner of Internal Revenue