Amendments to the Matches Regulations

April 8, 1964 REVENUE REGULATIONS NO. 04-64 SUBJECT : Amendments to the Matches Regulations TO : All Internal Revenue Officers and Others Concerned SECTION 1. Scope . Pursuant to the authority granted in Section 338, in relation to Section 4(b), (c) and (j) of the National Internal Revenue Code, the following regulations amending Revenue Regulations No. V-53, otherwise known as the Matches Regulations, are hereby amended and promulgated and shall be known as Revenue Regulations No. 4-64. SECTION 2. Section 9 of Revenue Regulations No. V-53 is hereby amended to read as follows: "SEC. 9. Records and reports . (a) Official register book or transcript sheet shall be kept by the manufacturer or importer of matches. The transcript sheets (B.I.R. Form No. 21.02) shall be open at all times to inspection by internal revenue officers. "Installation of the official register book shall be made by an internal revenue officer who shall enter on the fly-leaf thereof the date of the installation and notations to the effect that all the provisions of the internal revenue laws and regulations governing the business operations have been fully explained to the manufacturer or importer. Report of the installation of the official register book shall be made and transmitted to the Commissioner of Internal Revenue, through the Chief, Alcohol and Tobacco Tax Branch and the Regional Director, if in the province. "(b) Entries in the official register book . There shall be entered on the 'Debit' side of the official register book the kind and quantity of matches imported or produced daily and a statement of the number of sticks contained in each book, booklet or box of matches. The entry shall show the date of importation or production. "Every removal of imported or locally manufactured matches shall be entered on the 'Credit' side of the official register book showing the date, the brand and quantity of cartons, cases, or similar containers; the serial numbers of the cartons, cases or similar containers (these serial numbers shall appear on the labels to be affixed to all the openings of the cartons, cases or similar containers); quantity in gross of boxes or books or booklets of matches removed; the names and addresses of consignees, the amount of specific tax paid, the date of payment and the official receipt number. "(c) Reports on raw materials and finished products . On or before the eight (8th) day of each month following the monthly operations, the manufacturer or importer shall submit the monthly transcript sheets to the Office of the Chief, Alcohol and Tobacco Tax Branch, who in turn shall forward the same to the Chief, Tobacco and Miscellaneous Tax Division. The monthly report of operations shall indicate the quantities of raw materials in stock, purchased, consumed and removed during the month. It shall also contain the true and exact transcript of all entries on both the 'debit' and 'credit' sides of his official register book on finished products during the preceding month, and shall strike a balance on both, respectively, and said balances of stocks on hand, if any, shall be carried over as the first entries for the next succeeding month on the 'Debit' side of the official register books which should be duly signed the manager or his authorized representative and attested to by the assigned revenue officer. "(d) Removal of raw materials . Removal of raw materials from the factory premises either in its original form, still-in-process or manufactured form, shape and structure or configuration may in meritorious cases be allowed upon prior permit or authority from the Commissioner of Internal revenue; provided, however, that the removal of loose matches, labelled and unlabelled loose boxes, damaged and/or waste boxes and matches from the factory premises are prohibited, but which goods may be destroyed upon prior authority from the Commissioner of Internal Revenue. SECTION 3. Section 10 of Revenue Regulations No. V-53 is hereby amended to read as follows: "SEC. 10. Packing and marking of manufactured matches . The boxes, packages, cartons, cases, books, booklets and similar containers of matches shall bear the mark or brand of the manufacturer. "Books, booklets, or boxes of matches shall not be removed from the manufactory unless packed in cartons, cases, and similar containers in quantities of gross. In no case shall the packing be made in quantities of less than a gross. "On the cartons, cases, and similar containers, there shall be affixed at all openings labels on which shall be indicated the name of the company, location of its factory, the administrative schedule, assessment number, the number of gross of matchboxes, books or booklets, carton contents, case, or similar containers, the number and date of official receipt of payment of specific tax due thereon, the serial number of the carton, case or similar container, and the date of removal. aisadc The re-use of used cartons, cases, or similar containers is prohibited. SECTION 4. Section 12 of Revenue Regulations No. V-53 is hereby amended to read as follows: "SEC. 12. Marking of containers of matches for export . All containers of matches either in books, booklets, boxes, cartons, cases of similar containers wherein matches are packed shall be marked "FOR EXPORT" prior to their withdrawal from the place of manufacture. All removals for export shall be entered in the 'Credit' side of the official register book referred to under Section 9 hereof duly described as "FOR EXPORT". SECTION 5. Date of Effectivity . These regulations shall take effect upon publications in the Official Gazette. RUFINO G. HECHANOVA Secretary of Finance Recommended by: BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue ATTACHMENT 1st Indorsement April 8, 1964 Respectfully forwarded to the Honorable, Secretary of Finance, Manila, the attached recommended regulations amending Revenue Regulations No. V-53. Recent developments and business practices in the match industry show that the present regulations are inadequate and insufficient to contain manipulations which lead to outright tax evasion. These amendments will definitely plug the loopholes in the law on the matter and will certainly close the avenues for tax evasion. Your immediate approval is urgently requested. BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue April 8, 1964 MEMORANDUM FOR: The Commissioner of Internal Revenue (Through channels) The attached proposed amendments to the Matches Regulations, on even date, are believed sufficient to plug the loopholes existing under Revenue Regulations No. V-53. Said amendments are prepared in lieu of the suggested amendments dated December 23, 1963 referred to the Secretary of Finance which were believed misplaced and, therefore, cannot be made available for purposes of the 1st Indorsement dated April 6, 1964 of the Assistant Commissioner (Administration). For your consideration and approval, the attached proposed amendments to the Matches Regulations aimed at plugging the apparent defects, are submitted. Respectfully submitted, VICTORIANO S. ALIP Chief, Miscellaneous Specific Tax Section 2nd Indorsement April 13, 1964 Respectfully returned to the Commissioner of Internal Revenue, Manila, the amendments to Regulations No. V-53, as approved by this Department. It is desired that immediate steps be taken to implement and enforce the same. RUFINO G. HECHANOVA Secretary of Finance April 16, 1964 The Director Bureau of Printing M a n i l a S i r : I have the honor to forward herewith a copy of Revenue Regulations No. 4-64, the subject matter of which is the "amendments to the Matches Regulations", with the request that it be published in the Official Gazette on the first available issue. cd Very truly yours, BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue By: P. F. LANDAS Assistant Commissioner of Administration April 17, 1964 The Director Bureau of Printing M a i l an S i r : Enclosed herewith is Revenue Regulations No. 4-64, dated April 8, 1964 and duly approved by the Secretary of Finance, amending Revenue Regulations No. V-53. The Secretary of Finance manifested his desire to have these amendments enforced and implemented immediately because there is an urgent need to plug the loopholes. Any delay is certain to cause substantial drain on our government revenues. I know you share my view that all of us in the government service must join hands to protect the interests of the government. Therefore, I request your good office to publish this amendatory regulations in the Official Gazette soonest. cdi Very truly yours, BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue 1. Who must File? Every person conducting business on which a percentage tax is imposed under Title V of the National Internal Revenue Code (Sections 184, 185, 186, 189, 191, 192 and 195) is required to make a true and complete return of the amount of his, her or its gross monthly sales, receipts or earnings, or gross value of output actually removed from the factory or mill warehouse. In order to be properly credited with the tax paid, the name, trade name and address of the taxpayer should be typewritten or printed in black letters in the spaces provided thereto. 2. Where and When To File? File your return in duplicate with the Collection Agent of the city or municipality where your place of business is located and where your books of accounts are kept, within twenty (20) days after the end of each month. 3. Payment of Tax . The total amount of percentage tax due as shown on line 8 must be paid within twenty (20) days after the end of each month preferably at the same time as the filing of the return. 4. Preparation of Return . Before entries are made on the summary appearing on page one of the return, fill in the schedules applicable to your business subject to percentage tax. Line 6 should indicate the total percentage taxes as shown in all the schedules. Under line 7 indicate the amount of any tax credit due you. Present the original of the letter evidencing the tax credit to the Collection Agent for proper annotation of payment. If payment is made by check or money order, make such check or money order payable to the order of the Commissioner of Internal Revenue. 5. Keeping of Records . Keep on file at your principal place of business and where your books of accounts are kept a true copy of this return and accurate records and accounts of all transactions containing sufficient information to indicate whether the correct amount of the tax has been computed and paid. Records and information in support of all credit taken and all deductions, exemptions and adjustments claimed must also be complete. All records shall be maintained for a period of at least five years from the date of the last entry in the records. Such records shall be available and open to inspection by representatives of the Bureau of Internal Revenue duly authorized to make investigations. 6. Penalty . Avoid penalty by filing correct returns on time and by paying the correct tax due with the returns. Sections 183 of the National Internal Revenue Code, as amended, provides a surcharge of 25% of the tax if the percentage tax is not paid within twenty (20) days after the end of each month. A surcharge of 50% of the tax is also imposed if there is willful neglect on your part to file this return or if you file a false and fraudulent return which is in addition to the 25% surcharge for late payment. June 25, 1964 The Director Bureau of Printing M a n i l a S i r : I have the honor to forward herewith a copy of Revenue Regulations No. 5-64, the subject of which is the "Classifications of Revenue Inspection Districts and prescribing the qualifications of Chief Revenue Officers", with the request that it be published in the Official Gazette on the first available issue. cdlex Very truly yours, BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue By: LAURO D. ABRAHAN Assistant Commissioner on Administration