Revised Regulations on the Installation and Use of Stamps Metering Machines for Documentary and Science Stamps

October 1, 1975 REVENUE REGULATIONS NO. 06-75 SUBJECT : Revised Regulations on the installation and use of stamps metering machines for documentary and science stamps in the offices of the Registers of Deeds and Collection Agents of provinces and cities and such other offices as may be designated by the Commissioner of Internal Revenue TO : All Revenue Officers and Others Concerned SECTION 1. Scope . Stamps metering machines for documentary and science stamps shall be installed in the offices of the Registers of Deeds of provinces and cities, in the offices of Collection Agents, and such other places as may be designated by the Commissioner of Internal Revenue. These stamps metering machines shall be operated by authorized employees of the Bureau of Internal Revenue who are duly bonded and trained in the operation of such machines. SECTION 2. Goals . The goals desired to be attained in the installation of the metering machines for documentary and science stamps are: (1) to reduce the expenditures in the printing and handling of conventional documentary and science stamps; (2) to minimize, if not totally eradicate, the use of fake stamps; (3) to eliminate the use of "washed" stamps; and (4) to enhance collection from these revenue sources. It is also hoped that the theft of genuine documentary and science stamps shall be diminished because the market for conventional stamps shall be reduced by the use of stamps metering machines. SECTION 3. Procedures . The control of the operation of the stamps metering machines and the methods of accounting and remitting collections from documentary and science stamps shall be as follows: a. Designation of Operators of the Machine . The Revenue Regional Director concerned shall recommend to the Commissioner of Internal Revenue the revenue employee or employees who shall be designated and trained as regular and alternate tellers for each office where the metering machines shall be installed. The alternate teller shall act as teller or operator of the machines only when the regular teller is absent or incapacitated to perform the duties of a teller. While not thus substituting for the regular teller on absent status, the alternate teller shall be assigned in the office of the collection agent in the city or municipality where the metering machines are located. b. Loading of the Metering Machines . A Committee shall be formed to be known as the "Loading Committee" in every area where the metering machines are established. The Committee members in the Regional Offices shall be as follows: The Chief, Administrative Branch shall be the Chairman, with the Revenue District Officer or his duly authorized representative, and the teller or his alternate, as members. In the Tax Clearance Section, Receivable Accounts Division, of the National Office, the Loading Committee shall be composed of: the Chief, Receivable Accounts Division as Chairman, with the Chiefs, Accountable Forms Division and Fiscal Control Division and the Auditor for the Bureau of Internal Revenue or their respective duly designated representatives, as members. Whenever loading of the stamps metering machine becomes necessary, the teller or operator shall immediately notify all the members of the Loading Committee who shall lose no time in loading such metering machines. At the time of the loading of a metering machine, except in the Tax Clearance Section in the National Office, the City/provincial auditor or his authorized representative shall be present, who shall be duly informed in advance and in writing of the time and place of loading. The Committee shall keep a record audit of the accounts of the teller and shall seal the machines with a sealing plier after loading, and record the amount loaded and the meter reading before and after loading the machines. The record of loading shall be made in four (4) copies and shall contain the following information: (1) the ascending balance at the time of loading, and (2) the descending balance also at the time of loading. Each member of the Committee shall have his copy and the original shall be given to the city/provincial auditor or his authorized representative who shall append his signature in the appropriate space on all the four (4) copies, indicating that he was present and a witness to the loading. The fourth copy shall be retained by the teller or operator of the metering machine. A sample form to record the load of the metering machines is attached as Annex "A". After the machine is loaded, a seal, consisting of wire and lead, shall be attached to the machines properly sealed with a sealing plier. The Chief, Administrative Branch shall be custodian of the sealing plier in the Regional Office, and the Auditor of the Bureau of Internal Revenue shall be custodian of the sealing plier in the National Office. c. The keys of the Metering Machines . Each metering machine has duplicate keys. One of the keys shall be kept in a sealed envelope to be turned over, under receipt, to the Chief, Administrative Branch of the Regional Office concerned, and to the Chief, Receivable Accounts Division in the case of the Tax Clearance Section in the National Office, and the other key shall be kept by the teller. In case the regular teller is sick or is absent, he shall cause the delivery of his key to his alternate so that the latter can take over the operation of the machines. The key kept by the Chief, Administrative Branch shall be used only after a written request is filed with and approved by the Regional Director. d. Design of the Die for Documentary and Science Stamps . Each metering machine shall be provided with a die which shall bear the following captions: 1. For the die of the combined documentary and science stamps: "DOCUMENTARY & SCIENCE STAMPS REPUBLIC OF THE PHILIPPINES BUREAU OF INTERNAL REVENUE" 2. For the die of the documentary stamp only: The die shall remain the same as the one being used at present, in printing documentary stamps for tax clearance certificates. 3. For the die of the science stamp only: The die shall remain the same as the one being used at present, in printing science stamps for tax clearance certificates. e. Designation, Assignment and Operation of the Stamps Metering machines . 1. The Commissioner of Internal Revenue shall designate the places where the metering machines shall be stationed. Every station shall have one metering machine using a combined documentary and science stamps where the amount of documentary stamp being affixed is equal to the amount of science stamp required. Where the amount of documentary stamp to be affixed is not equal to that of the science stamp required, or when only either a documentary stamp or a science stamp is needed, the conventional printed documentary or science stamp shall be affixed, except in the case of tax clearance certificates issued for travel abroad where there shall be separate metering machines for documentary stamps and another for science stamps. 2. In case the stamps metering machine installed in the office of the Register of Deeds goes out of order due to mechanical defect, the teller or metering machine operator shall requisition adequate quantity of conventional stamps, in appropriate denominations, based on the value of sale corresponding to a period that the metering machine shall be under repair, to be sold during such period. In no other circumstances shall conventional stamps be sold, except as provided for in this section. At the end of each month, the operator shall make proper accounting of the conventional stamps so requisitioned and sold by accomplishing the Accountable Forms Account Current (Gen. Form No. 16A) as required in Section 62 of the National Accounting and Auditing Manual. The daily sales of such conventional stamps shall be appropriately indicated as such in the Report of Collections (BIR Form 12.31), indicating in the column for "Explanation" that the collection was derived from the sale of conventional stamps. For operators who are directly under the office of a collection agent, no such requisition for stamps shall be made. 3. With the use of the metering machines, the required stamps shall be printed on the document presented to or filed with the Office where the metering machines are installed. 4. The payment for the documentary or science stamps shall be collected immediately prior to the printing of the documentary or science stamps to insure collection of the amount due. cdt 5. In case of underprinting of the amount due for documentary or science stamps occasioned by error, the corresponding amount underprinted shall be printed again on the document in another space and in no case to overlap with the stamps already printed on said document. 6. In case of overprinting of the amount of documentary or science stamps, the teller shall immediately notify any member of the Loading Committee. The amount over-printed shall be certified under oath, jointly by the teller, the bearer of the document, and by the personnel authorized by the office where the machines are installed, as witnesses to the overprinting. This certificate, shall state among other things, the amount overprinted on the document. The document where the overprinting was made must be described in the certificate. A sample of this form is also attached as Annex "B" for reference. The corresponding amount thereof shall be entered in the credit column of the cash book. 7. In a case where the document subject to documentary and science stamps does not have enough space on both sides for the printing of such stamps required because of the large amount involved, an additional sheet of paper shall be attached securely and shall become an integral part thereof, upon which the additional stamps shall be printed. The additional paper so attached shall contain specific reference to the principal document by indicating the title or exact nature thereof and clearly indicating the stock certificate or document number, the total value of stamps required and shall be certified by the taxpayer or his authorized representative. After printing the required stamps on the additional paper, the stamps metering machine operator shall attest to the fact that the total amount for documentary and science stamps required to be affixed thereon have actually been printed and duly paid for. 8. The seal of the metering machines affixed by the Loading Committee shall not be broken by the teller except in the presence of the members of the Loading Committee and the Auditor concerned. f. Tender of Payments . 1. Payments for documentary and science stamps printed on the document shall be made in cash. In no case, may a personal check be accepted for payment of documentary and science stamps, nor shall the teller accept for encashment personal checks or treasury warrants. However, certified checks or cashier's checks drawn in favor of the Commissioner of Internal Revenue may be accepted as payment for documentary and science stamps printed on the document. The teller shall exercise care and prudence in ascertaining the authenticity of the check and the identity of the maker of the check. 2. All sales during the day shall be posted in the BIR Form No. 12.31. The total collection shall be posted in the debit column of BIR Form No. 12.31 and the credit column shall be for documentary stamps representing 50% of the collection for the day and the other column shall be for science stamps also representing 50% of the collections for the day. There shall be a separate cash book for sales of documentary and science stamps. Entries in the cash books shall be made when loading the metering machines, when remittance of collection is made, or when error in overprinting of documentary or of science stamps, is committed, or when there is change in operators of the machines. A sample of the possible entries in the cash books are illustrated to guide the operator, and attached as Annex "C". g. Safeguard Against the Use of Fake prints of Documentary and Science Stamps . Where the amounts printed as documentary and science stamps are less than P2.00, the initial of the teller shall be indicated in the stamps printed on the documents. Where the amounts printed as documentary and science stamps amount to P2.00 or more, the signature of the teller shall be indicated across the stamps printed on the documents. aisa dc h. Remittance of Collections . The stamps metering machine operator shall remit his collections daily to the officer primarily accountable if the operator is under the office of a collection agent. However, if the operator is assigned in the Office of the Register of Deeds, such operator shall be deemed as an officer primarily accountable for collections made and shall remit his collections directly to the nearest Philippine National Bank Branch or Agency in accordance with the provisions of Department Order No. 20-73 dated June 14, 1973 of the Secretary of Finance, published under Revenue Memorandum Circular No. 36-73 dated July 3, 1973; or to the nearest Branch or Agency of the Development Bank of the Philippines, prescribed under Department Order No. 10-74 dated March 25, 1974 and published under Revenue Memorandum Circular No. 35-74 dated June 20, 1974; or to the nearest Branch or Agency of the Philippine Veterans Bank, prescribed under Presidential Decree No. 236 and Department Order No. 23-73 dated August 22, 1973 and published under Revenue Memorandum Circular No. 70-73 dated December 17, 1973; or to such other financing Agency or Agencies as may later be authorized by proper authorities. i. Report of Collections . Operators of stamps metering machines stationed in the office of the Register of Deeds shall accomplish and submit the Report of Collections on BIR Forms Nos. 12.31 and 12.01 promptly after the close of each month. In case an alternate teller is designated to act as operator during the month pursuant to Section 3a of these Regulations, a separate collection report shall be prepared by the alternate teller on BIR Form No. 12.31. However, only one report for the month shall be prepared by the regular teller and the alternate teller on BIR Form 12.01 for said month. The stamps metering machine operator stationed in the office of collection agent shall not prepare the Report of Collection on BIR Form 12.31 and 12.01 but shall invoice the collections daily to the collection agent who is the official primarily accountable. Such collection shall form part of collections of the collection agent concerned. The stamps metering machine operator or teller stationed in the Office of the Register of Deeds shall keep and maintain a record of all documents upon which documentary and/or science stamps are affixed indicating (1) the date of registry; (2) type or nature of the document; (3) parties involved in the document; (4) amount involved; subject to documentary and science stamps; and (5) the amount of documentary and science stamps printed thereon. j. Supervision and Control of Tellers or Operators of the Metering Machines . The teller or operator of stamps metering machine stationed in the office of the Register of Deeds shall be considered as a separate collection unit, and as such, he shall be directly under the supervision and control of the revenue district officer concerned. A stamps metering machine operator assigned in the office of a collection agent shall be supervised directly by the collection agent concerned. However, those assigned in the Receivable Accounts Division shall be supervised by the Chief of the said Division. The revenue district officer shall see to it that the employees assigned as tellers or operators of stamps metering machines comply with these Regulations. SECTION 4. Repealing Clause . The provisions of Revenue Regulations No. 1-72 dated January 28, 1972 and instructions pursuant thereto which are inconsistent herewith are hereby repealed and modified accordingly. SECTION 5. Effectivity . These Regulations shall take effect upon approval. cdt CESAR VIRATA Secretary of Finance Recommending Approval: EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 ANNEX "A" BUREAU OF INTERNAL REVENUE DOCUMENTARY STAMPS METER READINGS Date ________________ Readings before loading : Totals (Ascending Balance) :___:___:___:___:___:___:___: Credits (Descending Balance) :___:___:___:___:___:___:___: Amount Loaded :___:___:___:___:___:___:___: Reading After loading : Credits (New Balance) :___:___:___:___:___:___:___: Totals(Cumulative Balance) :___:___:___:___:___:___:___: _______________________ _________________ Revenue District Officer Or Regular Teller or his his representative Alternate Teller ___________________________ Chief, Administrative Branch ANNEX "B" Bureau of Internal Revenue CERTIFICATE OF OVERPRINTED STAMPS To Whom It May Concern: This is to certify under my official oath that on ___________________, 19___ documentary/science stamp valued at P__________ was printed on the ________________________(State nature of document) identified as Doc. No.______________, Page No.____________ Book No.__________, Series of 19___ of the Notarial Register of Mr._____________________ which was executed on _______________________19___. That said stamp/s printed has exceeded that required by law by P____________. That only the sum of P___________ was received by the undersigned teller which was duly entered in the official cash book. This certificate is accomplished to establish for accounting purposes the fact of error in the printing of the stamp/s. Given at ___________________, _________________________________ on _________________, 19___. _________________________ Teller Witnesses: ____________________________ Person presenting the document __________________________ Another responsible person ANNEX "C" SAMPLE OF CASH BOOK ENTRIES = = = = = = = = = = = = = = = = = = Date Particulars Remittance Load Deposits Balance Advice No. (Dr) (Cr) P90,000.00 P P90,000.00 7-1-72 To record initial load Remittance 1-73 P20,000.00 P70,000.00 7-2-72 2-73 30,000.00 40,000.00 7-3-72 Error (overprinting) 30.00 39,970.00 7-4-72 3-73 15,000.00 24,970.00 7-5-72 4-73 23,000.00 1,970.00 7-6-72 Load-reading-91,970.00 P90,000.00 91,970.00 NOTE: "Credit" appearing on the metering machine has a descending balance, whereas, "Total" has an ascending balance to show the cumulative amount printed until the maximum of P999,999.99 is reached. 1st Indorsement November 13, 1975 Respectfully returned to the Commissioner of Internal Revenue, Manila, hereby approving Revenue Regulation No. 6-75 entitled "Revised Regulations on the installation and use of stamps metering machines for documentary and science stamp in the offices of the Registers of Deeds and Collection Agents of provinces and cities and such other offices as may be designated by the Commissioner of Internal Revenue." CESAR VIRATA Secretary October 1, 1975 The Honorable The Secretary of Finance Manila Sir: I have the honor to forward herewith Revenue Regulations No. 6-75, the subject matter of which is "Revised Regulations on the installation and use of stamps metering machines for documentary and science stamps in the Offices of the Registers of Deeds and Collection Agents of provinces and cities and such other offices as may be designated by the Commissioner of Internal Revenue", for your approval. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 October 1, 1975 Memorandum For The Commissioner of Internal Revenue Manila This refers to the memorandum dated August 20, 1975 of the Deputy Commissioner of Internal Revenue containing his observations on the provisions of the proposed revised Revenue Regulations on the installation and use of stamps metering machines in the Bureau of Internal Revenue. Item No. 1 in the aforesaid memorandum suggested that a provision should be included against the purchase of metering machines which are capable of overdraft printing. To this, it is respectfully submitted that it shall be sufficient to simply advise the Chief of the Property Division not to purchase such machines. Regarding item No. 2 of the same memorandum, it is believed that whenever a stamps metering machine installed in the office of the Register of Deeds goes out of order due to mechanical defect, or by some other cause, it becomes necessary for the operator to continue serving the taxpayers who are wont to go to the metering machine operator for stamps. To enable the operator to do so, he has to procure appropriate denominations of conventional stamps. Otherwise, taxpayers invariably complain that they are not served at that particular station. Hence, the provision is retained. With the return of these papers, this office took the opportunity to improve the operational and control aspects of the proposed revised Revenue Regulations which is herewith attached for approval. HONORIO A. TODIO Revenue Service Chief (Collection) (TAN-1575-927-7 August 20, 1975 MEMORANDUM FOR: The Commissioner of Internal Revenue Manila In connection with the attached Draft of the proposed Revised Regulations on the installation and use of stamps metering machines for documentary and science stamps, I would like to make the following suggestions: 1. The insertion of a provision in the Regulations against the installation of any stamp metering machine which is capable of over draft printing; and 2. The elimination of paragraph 2 on page 3 which allows the teller or metering machine operator to requisition and keep in stock a reasonable quantity of the conventional documentary or science stamps for disposition in cases where the conventional documentary or science stamps have to be used, instead of the metering machine, as when the documentary stamp to be affixed is not equal to that of the science stamp required; or when only either documentary stamp or science stamp is to be used; or when the metering machines are out of order or rendered inoperative. It is not necessary for the teller or metering machine operator to keep in stock conventional documentary or science stamps because even in cases where these are to be used, instead of the metering machines, the conventional documentary or science stamps are always available at the nearest collection agent's office where the taxpayer may buy them. Moreover, if the teller or metering machine operator does not keep stock of the conventional documentary or science stamps, his work, as well as the keeping of records of his accountability will be much simplified and there is better assurance of compliance with the requirement that in no case will the conventional stamps be sold where metering machines are installed, except in the cases cited above. Respectfully submitted: CONRADO P. DIAZ Deputy Commissioner of Internal Revenue TAN 1182-568-4