Amendments to Revenue Regulations No. V-39 of the Department (now Ministry) of Finance

May 12, 1986 June 1, 1986 REVENUE REGULATIONS NO. 09-86 SUBJECT : Amendments to Revenue Regulations No. V-39 of the Department (now Ministry) of Finance TO : All Internal Revenue Officers and Others Concerned Pursuant to the provisions of Section 277 in relation to Section 126 of the National Internal Revenue Code, as amended, these regulations are hereby promulgated to amend Section 5 of Revenue Regulations No. V-39 of the Department (now Ministry) of Finance prescribing the manner of paying the specific tax on cigarettes, cigars and other products of tobacco and shall read as follows: acd SEC. 5. Paym ent of Specific Tax on Cigarettes, Cigars and Other Products of Tobacco (a) The payment of specific tax imposed by the National Internal Revenue Code, as amended, upon cigarettes, cigars and other products of tobacco manufactured or produced in the Philippines for sale or consumption therein shall be made before the removal of said articles from the place of manufacture to the Commissioner of Internal Revenue in cash or in manager's/cashier's check, through the "Payment Order" system of tax payments; or for the convenience of the manufacturer thereof the same may be paid in advance in cash or in manager's/cashier's check, in amounts sufficient to cover the specific tax due on the volume of daily removals thereof. To confirm specific tax payments or applications on every removal of cigarettes, the amount so paid together with the Payment Order and Confirmation Receipt Numbers, must be indicated in the sales or delivery invoice covering every such removal and the Sworn Statement provided in paragraph (b) must be presented to the corresponding BIR representative for authentication before removal. The requirements as to the purchase, cancellation and affixture of internal revenue strip stamps for tobacco products heretofore enforced is hereby cancelled and withdrawn. The Payment Order shall be based on the manufacturer's statement mentioned in paragraph (b) and only the cigarettes covered by said manufacturer's statement and payment order may be removed from the manufacturer's premises. (b) Filing of Manufacturer's Sworn Statement Every manufacturer of cigarettes, cigars and other products of tobacco is required to file with the Commissioner daily, two sworn statements, one showing the quantity of raw materials such as leaf tobacco or partially manufactured tobacco and cigarette paper bobbins received by the factory and the total quantity of such raw materials used during the day's operations; the total quantity produced, according to brands and tax classification; and two, the corresponding quantity removed or sold during the day; the corresponding wholesale price thereof and the specific tax payment made thereon. Attached to the second certificate shall be copies of the corresponding invoice of sale to the buyers of the cigarettes so removed indicating name, address and taxpayer's account number. Both sworn statements shall be signed by the owner if it is a single proprietorship, or by the President or General Manager or their Attorney-in-fact, if it is a juridical entity and attested and confirmed as true and correct by the Manufacturer's internal and/or external auditor. casia A monthly summary of the herein-required Manufacturer's Sworn Statements duly certified by the external auditor of the manufacturer shall be submitted to the Commissioner of Internal Revenue on or before the 10th day of the succeeding month. The criminal responsibility for any falsities or misdeclaration in the two sworn statements hereinabove provided for shall be the personal responsibility of the owner, president or general manager of the manufacturer concerned and the external auditor in the case of the monthly report. In case of cigarettes or cigars manufactured for export, the corresponding tax credit shall be issued upon proof of export and proof of receipt of the corresponding foreign exchange. These regulations shall take effect on June 1, 1986. JAIME V. ONGPIN Minister of Finance Recommending Approval: BIENVENIDO A. TAN, JR. Commissioner