Tax Census Regulations

August 21, 1959 REVENUE REGULATIONS NO. V-71 TO : All Internal Revenue Officers and Others Concerned SECTION 1. Scope. Pursuant to Section 7 of Republic Act No. 2070, An Act to Provide for National Tax Census, as amended by Republic Act No. 2212, the following regulations are hereby promulgated to carry out the provisions of said act and shall be known as the TAX CENSUS REGULATIONS. SECTION 2. Filing of Statements. (B.I.R. Forms Nos. 1.80 & 1.81). Every resident of the Philippines over eighteen years of age, every guardian of minors and executor or administrator of estates and every corporation, joint stock company, partnership, joint account or association, whether domestic or resident foreign, shall within the month of February, 1962, and within the same month every four years thereafter, file with the city or municipal treasurer of the city or municipality of which he is a resident or where the entity has its office or place of business, a sworn statement in quintuplicate of his or its assets, income and liabilities during the preceding year on BIR Form No. 1.80, in case of individuals, or on BIR Form No. 1.81, in case of corporations, joint stock companies, partnerships, joint accounts or associations. BIR Forms Nos. 1.80 and 1.81 may be secured free of charge from the city or municipal treasurers or from the offices of the Regional Directors and Provincial Revenue Officers. In the City of Manila, said forms may be secured either from the City Treasurer or direct from the Bureau of Internal Revenue. Husband and wife may file a consolidated statement of their assets, income and liabilities, in which case, the statement shall be subscribed by both of them. Where either spouse is out of the country, the resident spouse may subscribe alone their consolidated return, but the fact of absence should be noted in the space provided for the signature of the absent spouse. Where an individual is unable to make his own statement because of sickness or absence from the Philippines, the statement may be made for him by his authorized representative, but the authority should be attached to the statement. Guardians of minors who have no property or income need not file a tax census statement for such minors. DSCIEa The phrase "executors or administrators of estates" refers to estates of both living and deceased persons. For the purpose of the Tax Census Law, an administrator need not be one legally constituted and any person charged with the care of the property of a person is considered an administrator. Corporations or associations organized and operated for religious, charitable, scientific, athletic, cultural or educational purposes, including social clubs, chambers of commerce, business leagues and trade organizations regardless of whether or not they have properties or earn income or exempt from income tax, must file the required statement. A corporation whose accounting period is on the basis of the fiscal year may file the sworn statement for the fiscal year period ending within the year immediately preceding the year of filing. A government agency not engaged in business is not required to file the sworn statement. Priests and brothers of religious corporations must file the sworn statement. Filipinos who have lost their residence in the Philippines are not required to file the sworn statement, but should they have properties in the Philippines, they must file the same thru their administrators. The same rule holds true in the case of the non-resident alien individuals. SECTION 3. Transmission and Processing of Statements. Within ten days, after the last day set for filing the return, the city or municipal treasurers must transmit the original and two copies of the statements filed with them to the Regional Director in whose district they are comprised, retaining for themselves one copy. The treasurer concerned shall arrange the copies retained by him alphabetically and have them in batches of 500. The statements for individuals (Form No. 1.80) and entities (Form No. 1.81) must be separately arranged and bound. aTAEHc The Regional Director shall cause the forms to be sorted into 1.80 and 1.81 and have them processed and segregated as follows: A. Group I Perfect Tax Census Forms This means that the forms are properly accomplished with the important blanks filled and the forms signed and duly subscribed by the declarants. B. Group II The Imperfect Tax Census Forms This means that the forms are not properly accomplished in the sense that some important blanks are not filled; that they lack signature of wife in proper cases and that they are not under oath in which case efforts should be made to have them perfected. C. Group III Out of Region Tax Census Forms received which belong to other regions and which must be forwarded to the corresponding Regional Office. The Regional Directors shall transmit the triplicate copies found to correspond to their regions to the Bureau of the Census and Statistics wrapped in batches of 500. Statements insufficient to make up a batch of 500 shall be transmitted only when no forms are forthcoming anymore. The original and duplicate copies of all perfect tax census forms must be stamped with the same number in the space (File No. _______) provided for the purpose on the upper right hand corner of the form. The following are the numbers assigned for each region. Region B.I.R. Form No. 1.80 B.I.R. Form No. 1.81 From To From To 1 1,000,000 1,999,999 10,000 19,999 2 2,000,000 2,999,999 20,000 29,999 3 3,000,000 3,999,999 30,000 39,999 4 4,000,000 4,999,999 40,000 49,999 5 5,000,000 5,999,999 50,000 59,999 6 6,000,000 6,999,999 60,000 69,999 7 7,000,000 7,999,999 70,000 79,999 8 8,000,000 8,999,999 80,000 89,999 9 9,000,000 9,999,999 90,000 99,999 10 000,000 999,999 100,000 109,999 After the original and duplicate copies of the statement have been duly stamped with the file numbers, they shall be segregated and filed in numerical order in batches of 100. Each batch should be placed in one folder and the folders should be properly marked on the outside and then filed in proper sequence either in shelves or filing cabinets. A complete listing in alphabetical order by regions shall be prepared by the IBM Unit, National Office. Each Regional Director shall be furnished with a list of the forms filed in the National Office. The originals of forms 1.80 and 1.81 shall be packed separately in numerical order of 500 sheets each and sent to the National Office as soon as possible accompanied by a transmittal letter. SECTION 4. Preparation and Keeping of Tax Registers. On the basis of the data and information given in the statements, each regional Director and City and Municipal Treasurers shall keep and maintain a register in alphabetical order of every individual and entity filing said statements indicating such information as regards their business and/or occupation, value of assets, amount of income and liabilities. The register shall also show at any time all the taxes due and taxes paid by the taxpayer concerned whether said taxes are self-assessing or covered by a letter of demand or assessment notice. The tax register shall be accomplished by filling in B.I.R. Form No. 1.80-A for individuals and 1.81-A for corporations, partnerships, joint accounts and associates. After accomplishment of said forms, they shall be arranged alphabetically and conveniently filed for ready reference. The tax register must be revised and kept up to date as verification, investigation or additional information may disclose or require. It shall be available for use by any internal revenue or other tax collection officer as aid in the collection of taxes. SECTION 5. Assistance to Directors Remuneration Therefor. In the preparation and periodic revision of the tax registers, Regional Directors may require the assistance of the city and municipal treasurers, public school officials, teachers and other employees assigned in the cities and municipalities within their jurisdiction and it shall be the duty of said treasurers, public school officials, teachers and other employees to render such assistance. For assistance rendered by them, the persons mentioned above shall receive compensation at the rate of five centavos per register form accomplished. They shall also be entitled to the payment of ordinary traveling expenses upon the proper presentation of reimbursement receipts. Before requiring the aforesaid assistance, the Regional Director shall first ascertain from the Commissioner of Internal Revenue whether there are funds available for the purpose and the amount thereof. SECTION 6. Preparation of Tax Census. The Commissioner of Internal Revenue shall consolidate the statement furnished him into a tax census and shall transmit copies thereof to the Secretary of Finance not later than 4 months after the last day set for filing. The Secretary of Finance shall submit to Congress within five months after the last day set for filing, a report on said tax census and the extent to which such census has been compiled, consolidated and analyzed in relation to actual revenue collections. SECTION 7. Confidential Character of the Statements. No information secured from the statement required in Section one of Republic Act No. 2070 shall be published except in the form of tabulation or summaries having no reference to individuals, Provided, That any court of record by order or subpoena duces tecum may require the presentation of documents or information herein provided for when such documents or information are necessary for the adjudication of the case at issue. SECTION 8. Penal Provision. Any person who fails to file the statement required in the Act or who intentionally gives false or fraudulent information therein shall, upon conviction, be punished by a fine of not more than five hundred pesos or by imprisonment of not more than six months or both, in the discretion of the court. Any responsible officer of any corporation, joint stock company, partnership, joint account or association, required by the Act to make and file such statement, who refuses or neglects to make or file such statements within the time prescribed in the Act or who makes any false or fraudulent statement, shall be punished by a fine of not exceeding four thousand pesos or by imprisonment of not exceeding six months or both, in the discretion of the court. In case the offender is an alien, said offender, upon conviction, shall be deported immediately without the necessity of further proceedings in the Deportation Board (Section 5, Republic Act No. 2070). STIHaE Any officer or employee who shall divulge to any unauthorized person information regarding the business, income or inheritance of any taxpayer, the secrets, operation, style of work or apparatus of any manufacturer or producer, or confidential information, knowledge of which was acquired by him in the discharge of his official duties under the provisions of the Act shall be fined in a sum not exceeding two thousand pesos or imprisoned for a term of not less than six months nor more than five years, or both, in the discretion of the court. (Section 6, Republic Act No. 2070). SECTION 9. Exemption from Penal Liability. No penal liability shall attach in instances where the information regarding the business, income or inheritance of any taxpayer, the secrets, operation, style of work, or apparatus of any manufacturer or producer, or confidential information, constitute prima facie evidence of the commission of a crime, or constitute in itself a crime. In such cases the obligation to reveal to any duly constituted investigating body shall exempt the officer or employee from any liability. (Section 6, Republic Act No. 2070). Nothing contained in Section 6 of Republic Act No. 2070 shall be construed to prevent courts of justice or the Congress or any legislative committee to require the production of any statement referred to therein when relevant to the issues or matters subject to judicial or legislative investigation. IDTcHa SECTION 11. Date of Effectivity. These regulations shall take effect upon promulgation in the Official Gazette. (SGD.) DOMINADOR R. AYTONA Secretary of Finance RECOMMENDED BY: (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue