Creation of a separate Revenue District for Southern Cebu

March 3, 1978 REVENUE REGULATIONS NO. 04-78 SUBJECT : Creation of a separate Revenue District for Southern Cebu TO : All Internal Revenue Officers and others concerned Pursuant to the provisions of Section 326 in relation to Section 8, both of the National Internal Revenue Code of 1977, and in order to better serve the interests of the public and the revenue service, the following regulations creating a separate revenue district for Southern Cebu is hereby promulgated and shall be known as Revenue Regulations No. 4-78. SECTION 1. Revenue District No. 60 shall comprise Cebu City with the City itself as the station town. SECTION 2. Revenue District No. 60-A to be known as Southern Cebu shall comprise the municipalities of Talisay, Minglanilla, Carcar, Naga, San Fernando, Alcoy, Argao, Dalaguete, Sibonga, Alcantara, Alegria, Badian, Boljoon, Ginatilan, Malabuyoc, Moalboal, Oslob, Samboan, Santander, Aloguinsen, Barili, Dumanlog, Pinamungahan, Ronda and Toledo City, with Talisay as the station town of the Revenue District Officer. SECTION 3. This Regulation shall take effect on May 1, 1978. cd CESAR VIRATA Secretary of Finance Recommended by: EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-F2828-A-8 ANNEX A March 3, 1978 The Honorable Secretary of Finance Metro Manila S i r : I have the honor to forward to you herewith the attached proposed Revenue Regulations No. 4-78 of even date, recommending the creation of Revenue District Office No. 60-A, known as Revenue District Office for Southern Cebu, comprising twenty-four (24) municipalities and one (1) city. The said municipalities and city have a combined population of 589,496 as of May, 1975 and a combined total internal revenue collections in the sum of P47.9(M) for the Fiscal Year ending June 30, 1975. Considering that the tax potential of the proposed district have increased considerably due to the extension of rural electrification service in this area coupled with the concentration of the mining industry, such as coal and copper(ATLAS mining) to mention a few, it is hereby respectfully recommended that for more effective and to maximize internal revenue collections, the attached proposed Regulations creating the said district be approved. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN P4519-F2828-A-8 ANNEX B BUREAU OF INTERNAL REVENUE QUEZON CITY MEMORANDUM FOR: Sec. 8. Internal Revenue Districts . With the approval of the Secretary of Finance, the Commissioner of Internal Revenue shall divide the Philippines into such number of revenue districts as may from time to time be required for administrative purposes. Each of these districts shall be under the supervision of a Revenue District Officer. Sec. 326. Authority of Secretary of Finance to promulgate rules and regulations . The Secretary of Finance, upon the recommendation of the Commissioner, shall promulgate all needful rules and regulations for the effective enforcement of the provisions of this Code. Republic of the Philippines Department of Finance BUREAU OF INTERNAL REVENUE Office of the Regional Director Revenue Region No. 7 Central Visayas Cebu City January 14, 1976. MEMORANDUM FOR: The Commissioner of Internal Revenue M a n i l a SUBJECT : Re-Creation of the Dissolved "Southern Cebu" Revenue District I hereby recommend the re-creation of the revenue district of Southern Cebu formerly Revenue District No. 61, with station town at Talisay , Cebu, which was dissolved upon the re-organization of the Bureau of Internal Revenue under Presidential Decree No. 640 and the Letter of Instructions No. 204. Under Revenue Regulations No. 5-68 dated October 23, 1968, the former Revenue District No. 61 which is sought to be re-created, comprised the municipalities of Talisay, Minglanilla, Carcar, Naga, San Fernando, Alcoy, Argao, Dalaguete, Sibonga, Alcantara, Alegria, Badian, Boljoon, Ginatilan, Malabuyoc, Moalboal, Oslob, Samboan, Santander, Aloguinsan, Barili, Dumanjug, Pinamungajan, Ronda and Toledo City, with Talisay as station town of the Revenue District Officer. JUSTIFICATION The re-creation of the "Southern Cebu" revenue district is believed imperative for the following reasons: 1. Size of the area The jurisdictional area is practically one-half of the entire province of Cebu, with 24 municipalities and 1 city under it. 2. Population The 24 municipalities and 1 city under the proposed revenue district have a combined population of 598,496 as per May, 1975 actual census conducted by the National Census & Statistics Office. 3. Tax Collections The erstwhile Revenue District No. 61 which is sought to be re-created, reported a total internal revenue collections of P47.9(M) for the Fiscal Year ended June 30, 1975. 4. Tax Potential Statistics: No. of income tax filers (1974): Individual, Total 59,024 a) Taxable 4,222 b) Exempt 51,333 c) Refundable 3,469 Partnership 4 Corporation 20 The area and population of the revenue district proposed to be re-created present a tax potential that remains to be tapped, especially the agricultural sector where the people are mostly engaged in the coconut industry. Despite the presence of the Atlas Consolidated Mining & Development Corporation and the concomitant economic activity that it generates, there seems to be no appreciable number of taxable individual income tax filers proportionate to the population of the area, which logically leads to no other conclusion than that its tax potential still needs to be exploited. Its immediate future tax potential will be further enhanced WHEN a. The rural electrification program of the government will be on-stream in 1977; b. The coal mining industry in the area is fully developed with the strong support that the government is now giving to the industry; c. The already-programmed copper refining plant of ATLAS in the area starts to operate. 5. Effective Tax Administration Revenue District No. 60 which comprised Cebu City alone before the 1975 BIR re-organization, was already a big tax-area to be administered by a revenue district. When the 24 municipalities and 1 city of the erstwhile Revenue District No. 61 were merged to it, the combined area and population of the consolidated district became too big for a more effective tax administration. 6. No Additional Expenditures for Re-creation The re-creation of the dissolved Revenue District No. 61 would entail no additional expenditure in the form of salaries and equipment outlays. The rental of office space in Talisay, Cebu, and the re-installation of the telephone service will constitute the only additional expenses. IN VIEW OF THE FOREGOING, it is recommended that this proposal be given due course and approved. JESUS PARADO Regional Director TAN-3009-144-1 ANNEXES: 1. Revenue District Annual. Report (FY 1974-1975) of the dissolved Rev. Dist. No. 61, Talisay, Cebu 2. Revenue Regulations No. 5-68 dated October 23, 1968, creating and defining the jurisdiction of Rev. Dist. No. 61.