REVENUE MEMORANDUM ORDER NO. 1-2001 issued January 5, 2001 prescribes the policies and procedures in the generation and printing of 1209 Reports. The generation of Integrated Tax System (ITS) 1209 report will be done at the Revenue Data Centers every 5th day of the following month. Remote printing of the 1209 Report, on the other hand, will now be done by the Collection Section of computerized Revenue District Offices (RDOs), Collection Division of computerized Regional Offices and Revenue Accounting Division every 6th day of the following month.

Printing of 1209 Report by the computerized RDOs can be done through the Remote 1209 Printing Procedures.

REVENUE MEMORANDUM ORDER NO. 2-2001 issued January 18, 2001 defines and delineates the functions and processes of the National Office Management Information System (NOMIS)-Management Reporting through Executive Information System (EIS) Capability (Release 4).

The following officials will have access on the NOMIS (Release 4): 1) Commissioner; 2) Deputy Commissioners; 3) concerned Assistant Commissioners; 4) concerned Head Revenue Executive Assistants; 5) Regional Directors; 6) Asst. Regional Directors of Metro Manila and Cebu City; and 7) selected Division Chiefs and Section Chiefs.

The reports and screens that can be generated, printed or viewed through NOMIS (Release 4) are specified in the Order, including the Office Scorecard that will be used in the monitoring of performance of concerned BIR offices.

REVENUE MEMORANDUM ORDER NO. 3-2001 issued February 1, 2001 prescribes the policies and procedures relative to the BIR Work Planning and Accomplishment Reporting Process for CY 2001. All BIR offices will prepare their respective Work Plan of Activities for the year 2001 based on the priority activities and the corresponding performance indicators and targets prescribed per applicable Program specified in the Order. To monitor the performance of BIR offices, all Revenue District Officers (RDOs) and Division Chiefs will prepare and submit a monthly Accomplishment Report per Program applicable to their office to their respective superior. The Assistant Commissioners, Regional Directors and Revenue Data Center Heads will review and consolidate the Accomplishment Report submitted by their respective RDOs/Division Chiefs and will give corresponding feedback thereon. The Deputy Commissioners will review the Accomplishment Report of their respective Assistant Commissioners and will present the same during the Management Committee Meeting.

REVENUE MEMORANDUM ORDER NO. 4-2001 issued February 13, 2001 prescribes the manner by which all papers and correspondence for signature of the Commissioner of Internal Revenue will be prepared.

REVENUE MEMORANDUM ORDER NO. 5-2001 issued February 16, 2001 prescribes the policies and procedures in the receipt, transmittal and processing of the Alphabetical List of Employees/Income Payees as an attachment to the Annual Information Return (BIR Form No. 1604-CF and 1604-E). The BIR will no longer accept hard copies of the said alphalists filed by large taxpayers (LTs), excise taxpayers (ETs) and other taxpayers/Withholding Agents (WAs) whose number of employees and/or income payees are fifty (50) or more. LTs, ETs and WAs concerned will submit the alphalists in magnetic form using the 3.5-inch floppy diskettes, together with BIR Form No. 1604-CF and 1604-E to the LT Assistance Division, LT District Offices and to the respective Revenue District Offices. The alphalists must be prepared in conformity with the technical specifications specified in Annex A of the Order. The diskettes for submission in the BIR must also be placed in a secured envelope properly labeled.

All other taxpayers/WAs may have the option to file the alphalists in diskette or magnetic form, provided the content is in conformity with the prescribed format/technical specifications. WAs who failed to re-file/re-submit the returned diskette (due to unsuccessful uploading of the files), within one (1) week from the date of notice or after due date, will be subject to penalties in accordance with the existing rules and regulations provided in the Tax Code.

REVENUE MEMORANDUM ORDER NO. 6-2001 issued February 20, 2001 prescribes the policies and procedures for the establishment of the BIR Revenue Records Center (RRC) and the adoption of a Records Management Program. The Center will be managed by a RRC Head who will be designated by the Commissioner. The RRC Head will furnish all offices, whose records will be archived at the Center, with his/her specimen signature within five working days from the date of his/her official designation.

No records will be received for storage in the Center without prior approval for transfer issued by the concerned head of office. Only the following revenue officials will be authorized to effect the transfer of records: 1) The Assistant Commissioner, ISOS and/or his authorized representative - for records from ISOS; and 2) The Regional Director and/or the Administrative Division Chiefs of the Metro Manila Revenue Regions (RRs) - for records from the four (4) Metro Manila RRs and their subordinate district offices. Records for archiving at the Center are the following: 1) all tax returns for the years 1992 to 1996; 2) all tax returns received by the Metro Manila RRs from 1996 to 1999; and 3) all Revenue Data Center bank records. Transport of said records to the Center must be prepared by the office concerned in the manner prescribed in Annex A of the Order. Boxes containing records must be properly labeled according to content and classification. No documents or equipment intended for disposal will be transferred to the Center.

REVENUE MEMORANDUM ORDER NO. 7-2001 issued March 16, 2001 amends RMO No. 31-99 relative to the signatories of checks drawn against regional bank accounts. The designated signatories of the said checks are: 1) as signing official - Chief and Asst. Chief of the Administrative Division of the BIR Regional Office, as alternate; and 2) as countersigning official - Regional Director and Asst. Regional Director, as alternate.

REVENUE MEMORANDUM ORDER NO. 8-2001 issued March 23, 2001 creates and renames the Alphanumeric Tax Codes (ATCs) for the Final Withholding Tax on Fringe Benefits. The following ATCs are created: 1) on payments to alien individuals - WF320; and 2) on payments to non-resident alien individuals not engaged in trade or business in the Philippines-WF330. The ATC on payments to employees (except rank and file) of fringe benefits based on grossed up monetary value is renamed to WF360.

REVENUE MEMORANDUM ORDER NO. 9-2001 issued March 30, 2001 allocates the P 408.058 Billion BIR Collection Goal for CY 2001 as follows: P 226.006 Billion for Net Income and Profits; P 64.677 Billion for Excise Tax; P 65.172 Billion for Value-Added Taxes; P 33.728 Billion for Other Percentage Taxes; and P 19.475 Billion for Other Domestic Taxes. The data and the methodology used in the allocation of goal by implementing group are specified in the Order.

REVENUE MEMORANDUM ORDER NO. 10-2001 issued April 27, 2001 suspends temporarily the conduct of tax audit, examination, investigation and/or verification of taxpayer's book of accounts, records and other transactions. The following cases, however, are not covered by the suspension: 1) investigation of cases prescribing in year 2001; 2) service of Assessment Notices for cases prescribing in the year 2001; 3) processing and verification of Estate Tax Returns, Donor's Tax Returns and tax returns covering the sale of real property or shares of stocks, prior to the issuance of Tax Clearance and/or Certificate Authorizing Registration; 4) examination and/or verification of internal revenue tax liabilities of taxpayers retiring from business; 5) verification and processing of all claims for refund and/or tax credits; 6) requests for reinvestigation/reconsideration (protested tax cases); and 7) cases approved by the Commissioner of Internal Revenue for audit, specifically tax fraud, policy cases and those undertaken by task forces as directed by the Secretary of Finance.

REVENUE MEMORANDUM ORDER NO. 11-2001 issued May 23, 2001 prescribes the policies and procedures for the decentralized issuance of clearance to Accountable Officers (AOs) in the Regional Offices. The Order covers issuance of clearance from cash collections, documentary stamps, science stamps, strip stamps and other accountable forms with money value accountabilities (1961 and onward).

The AOs are required to have an early/yearly reconciliation of his subsidiary ledger balances (1961 and onward) with the Finance Division of his Regional Office (RO). Audited cash book will be transmitted to the Finance Division of ROs concerned upon change of assignment.

The official signatories to the clearance will be the head of office of the clearing AOs/employees, the Chief of Finance Division of RO concerned and the Chief of the Revenue Accounting Division.

REVENUE MEMORANDUM ORDER NO. 12-2001 issued May 30, 2001 amends certain provisions of RMO No. 22-2000 which prescribes the policies, guidelines and procedures for the rollout of the Stop-Filer Capability in computerized Revenue District Offices (RDOs). The Computer Operations Network and Engineering Division under the Revenue Data Center will generate at the end of the 10th day after the tax filing deadline a listing of all stop-filers identified in the top 1000 taxpayers listings, for priority processing by RDOs.

REVENUE MEMORANDUM ORDER NO. 13-2001 issued May 31, 2001 prescribes the revised guidelines and procedures for the issuance of Tax Verification Notices (TVNs), Tax Clearance Certificates (TCLs) and Certificates Authorizing Registration (CARs) in Revenue District Offices (RDOs).

TVNs will be signed and issued by the Revenue District Officer to facilitate the verification and processing of non-audit cases requiring the immediate issuance of TCLs/CARs, including cases not covered by the audit threshold under the existing audit programs being implemented by the RDOs.
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Only one TVN will be issued by the RDO for each taxable year/period under verification. The practice of indicating "unverified prior years" on the TVN is prohibited.

In case there is a deficiency tax as a result of the verification of the tax return and the taxpayer agrees to pay the same, a Payment Form will be signed and issued by the revenue official who signed the TVN.

TCLs/CARs will be issued by the RDO having jurisdiction over the location of the real property being transferred.

REVENUE MEMORANDUM ORDER NO. 14-2001 issued July 11, 2001 prescribes the guidelines and procedures in maintaining the records of accountabilities of revenue officers and employees on issued and transferred furniture, equipment, vehicle and other semi-expendable properties.

Only the heads of offices shall have the sole authority to requisition the said items through a duly accomplished Requisition and Issue Voucher. All accountable officers and employees to whom equipment has been issued for official use must submit the duly signed Memorandum Receipt/Invoice Receipt for Property to reflect such issuance immediately upon delivery of said items into their custody.

Any requisitioned/allocated item(s) claimed by/delivered to a requisitioning office may be re-issued only to another official or employee within the same office where the item(s) are located.

REVENUE MEMORANDUM ORDER NO. 15-2001 issued July 19, 2001 prescribes the policies, guidelines and procedures in the use of on-line electronic Documentary Stamp Tax (DST) metering machine.

Unless exempted by the Commissioner of Internal Revenue, the following classes of taxpayers shall use the said machine in the payment and remittances of DST: 1) banks, quasi banks or non-bank financial intermediaries, finance companies or insurance, surety, fidelity, or annuity companies; 2) Philippine Stock Exchange, in the case of shares of stock and other securities traded in the local stock exchange; 3) shipping and airline companies; 4) pre-need companies on sale of pre-need plans; and 5) such other industries as may be required by the Commissioner.

The BIR shall identify and notify the DST taxpayers/users who are required to use the Documentary Stamp Electronic Imprinting Machine with Encryption (DS-EIM). The BIR shall purchase and distribute, free of charge, the DS-EIM to the taxpayer/user. However, the taxpayer/user shall have the option to purchase directly their own DS-EIM. The taxpayer/user shall shoulder the costs to install and operate the BIR-owned DS-EIM in the premises and the cost of maintaining the same. BIR retains the ownership of the DS-EIM purchased and distributed to the taxpayers/users.

The large taxpayers, such as commercial and universal banks, shall pay/remit the DST payment through the Direct Tax Debit System. Schedule I, Details of Documentary Stamp Tax for Replenishment, of BIR Form 2000 (Documentary Stamp Tax Declaration/Return) shall be accomplished/attached to the Tax Return when paying DST, while the use of BIR Form No. 2002 (Information Return for Documentary Stamp Taxes Paid) shall be discontinued. However, in the initial payment of DST through DS-EIM, Schedule I of the Tax Return need not be accomplished. Payment of DST shall be made per machine to be supported by the corresponding BIR Form 2000.

REVENUE MEMORANDUM ORDER NO. 16-2001 issued July 19, 2001 extends until December 31, 2002 the use of the Alphanumeric Tax Codes (ATCs) created pursuant to RMO No. 28-2000 for certain taxes due from the services of stock, real estate, commercial and immigration brokers. Beginning January 1, 2003, the said ATCs shall be dropped and replaced by new ATCs to cover income earned from the said transactions, which shall then be subject to VAT.

REVENUE MEMORANDUM ORDER NO. 17-2001 issued July 19, 2001 creates new Alphanumeric Tax Codes (ATCs) for marginal income earners and for other income earnings not otherwise classified as compensation or business income or income derived from the practice of profession. The newly-created ATCs for Individual Income Tax are: 1) II040 for earnings derived by marginal income earners; and 2) II041 for other income (not compensation or business income or income from the practice of profession).

REVENUE MEMORANDUM ORDER NO. 18-2001 issued July 19, 2001 renames the Alphanumeric Tax Codes (ATCs) for Percentage Tax on winnings and prizes withheld by race track operators. The following ATCs for Other Percentage Taxes are renamed: 1) Government Withholding Agent (4%) - from WB191 to WB191; 2) Government Withholding Agent (10%) - from WB191 to WB192; 3) Private Withholding Agent (4%) - from WB192 to WB193; and 4) Private Withholding Agent (10%) - from WB192 to WB194.

REVENUE MEMORANDUM ORDER NO. 19-2001 issued August 30, 2001 renames the Alphanumeric Tax Codes (ATCs) for PEZA-registered enterprises from OT011 to IC200.

REVENUE MEMORANDUM ORDER NO. 20-2001 issued September 5, 2001 creates new Alphanumeric Tax Code, MC032, for taxes collected through the Voluntary Assessment Program.

REVENUE MEMORANDUM ORDER NO. 21-2001 issued September 13, 2001 prescribes the guidelines and procedures for the availment of Voluntary Assessment Program (VAP) which grants taxpayers last priority in audit and investigation of all internal revenue taxes for the taxable year ending December 31, 2000 and all prior years under certain conditions.

The last priority in audit and investigation shall apply to all internal revenue taxes for taxable year ending December 31, 2000 and all prior years, namely: 1) Income Tax; 2) Improperly Accumulated Earnings Tax; 3) Value-Added Tax; 4) Percentage Tax; 5) Excise Tax; 6) Documentary Stamp Tax; 7) Withholding Taxes; 8) taxes on one-time transactions such as Estate Tax, Donor's Tax, Capital Gains Tax, Expanded Withholding Tax, Documentary Stamp Tax on the sale, exchange, disposition of real property and/or shares of stock not traded through the local stock exchange; and 9) taxes imposed pursuant to special laws.

The following, however, are not covered by the privilege of last priority in audit: 1) those covered by a Preliminary Assessment Notice, or by a Final Assessment Notice, or by a Collection Letter issued on or before July 31, 2001; 2) persons under investigation on or before July 31, 2001; 3) tax fraud cases already filed and pending in Court for adjudication; and 4) those with unpaid tax liabilities or previously recognized tax liabilities, unless they pay the same prior to or at the time of availment.

The payment of the VAP amount shall not be allowed unless the unpaid tax liabilities are paid. The conditions for the availment of VAP, as well as the rates for the computation of the VAP amount, are specified in the Order.

In cases where VAP is availed on refundable returns or on excess/erroneous payments where there is a pending request for tax refund/credit, such availment of VAP shall not constitute an automatic approval of said refund or tax credit.

Taxpayers deriving income from compensation and business may choose to avail of VAP for both or one of such income only. Husband and wife may avail of VAP by filing separately VAP application and payment forms. One spouse may avail of VAP even if the other spouse would not avail.

Taxpayers retiring from business or has business entities already closed or dissolved may avail of the VAP, provided that the last day of his/its operation is not later than December 31, 2000.

The VAP payment can neither be used as tax credits in the year of payment as well as in the returns for subsequent year(s), nor as a deduction for internal revenue tax purposes, except as provided for in Section 6.8 of the Order. Excess tax credits appearing on the returns filed in the covered year(s) as well as unutilized balance of Tax Credit Certificates shall not be allowed as payment under the Program.

REVENUE MEMORANDUM ORDER NO. 22-2001 issued October 5, 2001 prescribes the guidelines and procedures for evaluating, processing and accepting offers of compromise settlement of delinquent accounts and disputed assessments, including those already filed in court.

No offer for compromise settlement by reason of financial incapacity shall be considered unless and until the taxpayer waives in writing his privilege of secrecy of bank deposits. The waiver shall constitute as the authority of the Commissioner to inquire into the bank deposits of the taxpayer.

In cases where the basic tax assessed has been adjusted as a result of reconsideration/reinvestigation and the taxpayer has signified in writing his conformity to the adjusted assessment, said taxpayer can no longer request for compromise based on doubtful validity of the assessment. Nonetheless, should the taxpayer still not agree to the adjusted assessment, but he wants to avail of the Program, the offer for compromise settlement shall be decided on a case to case basis, but in no instance shall it be lower than the minimum percentage rates prescribed by law.

Any offer of compromise on the ground of doubtful validity of the assessment involving a compromise offer of less than 40% of the basic assessed tax shall state compelling or strong reasons for such offer. All such offers shall be approved by the National Evaluation Board (NEB).

Assessments confirmed by a lower court but appealed by the taxpayer to a higher court cannot also be compromised on the ground of doubtful validity of the assessment.

The NEB shall have the authority to approve offers of compromise on the following: 1) offers less than the minimum prescribed minimum rates; 2) on delinquent accounts or disputed tax cases as well as on minor/major criminal violations (other than criminal tax fraud cases already filed in courts) of taxpayers under the jurisdiction of the National Office; and 3) on delinquent accounts or disputed tax cases involving assessments where the basic assessed tax, on a per tax type basis, exceeds P 500,000.00, and of major criminal violations (other than criminal tax fraud cases and criminal cases already filed in courts) of taxpayers under the jurisdiction of the Regional Offices (ROs).

The Regional Evaluation Board (REB) shall have the authority to approve offers of compromise of deficiency assessments issued by the ROs involving basic assessed tax, on a per tax type basis, of P 500,000.00 or less, and of minor criminal violations of taxpayers discovered by the Regional Office/Revenue District Office having jurisdiction over said taxpayers.

The prescribed minimum percentages shall likewise apply to offers of compromise settlements of assessment/deficiencies/findings consisting solely of increments (i.e. surcharge, interest, etc.) based on total amount assessed.

Tax Credit Certificates/Tax Debit Memos shall not be allowed as payment in the offers of compromise. The evaluation of the offers of compromise shall be done on a per tax type basis. The deadline for the filing of application for compromise offer shall be one or before November 15, 2001.

REVENUE MEMORANDUM ORDER NO. 23-2001 issued October 8, 2001 creates new Alphanumeric Tax Codes (ATCs) of revenue resources for Final Withholding Tax, to wit: 1) W1310-on income payments to oil exploration service contractors/ subcontractors; and 2) W1340-on gross income derived by a non-resident cinematographic film owners, lessors or distributors.

REVENUE MEMORANDUM ORDER NO. 24-2001 issued October 9, 2001 revises the regional allocation of the BIR collection goal for CY 2001 which was adjusted downward by the Development Budget and Coordinating Committee from P 408,058 M to P 388,058 M. The goal is broken down as follows: 1) Net Income and Profits - P 216,859 M; 2) Excise Taxes - P 63,933 M; 3) Value-Added Tax - P 58,279 M; 4) other Percentage taxes - P 27,994 M; and 5) other domestic taxes -P 20,993 M.

REVENUE MEMORANDUM ORDER NO. 25-2001 issued October 23, 2001 clarifies the procedures on the receipt, processing, control, transmittal and collection of returned/dishonored checks received through Accredited Agents Banks (AABs).

Dishonored checks received by the AABs, whether under a computerized or non-computerized Revenue District Office (RDO), shall be submitted to the RDO having jurisdiction over the receiving AAB branch and the Large Taxpayers Service/Large Taxpayer District Office, as the case may be.

Penalties shall be imposed on the AABs for receiving checks which were dishonored due to the following: 1) accommodation check; 2) stale check; 3) post-dated check; 4) unsigned check; and 5) out-of-town check.

Checks which were dishonored due to "Account Closed" shall be forwarded to the Legal Division of the Regional Office or to the Legal Service of the National Office for filing of a court case against the taxpayer for violation of the Anti-Bouncing Check Law.

Dishonored check cases shall not be the subject of any compromise settlement.

REVENUE MEMORANDUM ORDER NO. 26-2001 issued October 24, 2001 amends certain provisions of RMO No. 62-99 regarding the prescribed procedures in the review and reporting of tax fraud cases recommended for criminal prosecution.

All reports of investigations shall be reviewed by the Enforcement Service subject to final approval by the Office of the Commissioner. However, reports of investigation recommending criminal prosecution for tax fraud or evasion shall be initially reviewed within 15 days from receipt by the Prosecution Division. This is in order to determine the relevancy and sufficiency of the evidence to support the criminal charges against the subject taxpayer prior to the issuance of the Preliminary Assessment Notice.

REVENUE MEMORANDUM ORDER NO. 27-2001 issued October 25, 2001 amends specific provisions of RMO No. 16-2000 relative to the policies and procedures for processing and monitoring of Withholding Tax payments from National Government Agencies (NGAs).

The Department of Budget and Management shall stop the issuance of Tax Remittance Advice (TRA) to NGAs. The NGA, instead, shall requisition blank TRA forms from the RDO where they are registered. The Withholding Tax Division shall be the office responsible for the distribution of blank TRA forms to the Regional Administrative Division due for the RDOs, and shall strictly monitor the usage of the TRAs.

The NGA shall prepare a separate TRA for each Withholding Tax Return (WTR) filed. Only WTRs from NGAs duly supported by the TRAs shall be accepted by the RDOs.

All WTRs filed by the NGAs under this new system shall still be subject to the regular verification and audit.

REVENUE MEMORANDUM ORDER NO. 28-2001 issued October 26, 2001 prescribes the guidelines and procedures in the reconciliation of collections and remittances of Authorized Agent Banks (AABs) at the Revenue District Office (RDO) level.

For computerized RDOs, the Batch Control Sheet-Consolidated Report of Daily Collections (BCS-CRDC) reconciliation facility shall be installed as part of the Collection and Bank Reconciliation (CBR) system. This shall be used as the BIR's reconciliation tool to identify discrepancies between the BCS-A and CRDC as well as to gauge collection and remittance performance by banks. Reconciliation shall be done by the Collection Section of the RDO within 9 working days after the date of collection. Discrepancies noted in the reconciliation process shall be communicated within 24 hours to the concerned AABs and BIR offices.

For non-computerized RDOs under computerized Regional Offices (ROs), the Collection Division of the RO (RO-CD) shall perform the reconciliation functions following the procedures prescribed in the RMO, except communication with AABs which shall still be done by the non-computerized RDOs. For discrepancies that need to be communicated with the AABs, the RO-CD shall endorse the matter to the RDO. The RDO shall function as an intermediary between the RO-CD and the concerned AAB towards the resolution of the discrepancy.

For non-computerized RDOs under non-computerized ROs, the Revenue Accounting Division shall be the office in-charge of reconciliation using the BCS-CRDC reconciliation screen or the CBR BCS-CRDC Reconciliation Worksheet.

REVENUE MEMORANDUM ORDER NO. 29-2001 issued November 13, 2001 defines the new composition of the Inspection and Acceptance Committee in the National Office. The Chairman of the Committee is the Head Revenue Executive Assistant of the Policy and Planning Service or his duly authorized representative. Members of the Committee are Chiefs of the Procurement Division, General Services Division and Systems Support Division (for computer supplies, equipment and related services) or Accountable Forms (for accountable forms), or their duly authorized representatives.

REVENUE MEMORANDUM ORDER NO. 30-2001 issued November 26, 2001 revises the policies, guidelines and procedures in the processing of application for bank accreditation; renewal of accreditation and disaccreditation of Authorized Agent Banks (AABs); AABs merger/buy-out; change of names and/or addresses; monitoring of performance and evaluation of AABs; and imposition of penalties on AABs violations and settlement of unremitted collection.

The accreditation of the AAB Head Office (AAB-HO) does not automatically result in the accreditation of its branches unless otherwise included in the application for accreditation. AAB-HO should apply for the accreditation of its branches not included in the initial application for accreditation. The disaccreditation of the AAB-HO automatically results in the cancellation of the accreditation of all its branches while the disaccreditation of any or all its branches does not automatically cancel the accreditation of the AAB-HO.

The AAB-HO may, at any time, apply for the cancellation of its or any of its branch(es) accreditation upon written notification to the Commissioner of Internal Revenue (CIR). The CIR, upon the recommendation of the Bank Accreditation Committee (BAC), shall, at any time, suspend/cancel an AAB accreditation thru an official notification to the concerned AAB in cases where the interest of the government is prejudiced.

The Bangko Sentral ng Pilpinas (BSP), through its Accounting Department shall, upon the advise of the BIR, credit the Demand Deposit Account (DDA) of the AAB for over-remittance of internal revenue collection to the BIR and debit the DDA of the AAB for the amount of unremitted collections and unpaid penalties.

AABs accreditation shall be effective from the date of signing of the Memorandum of Agreement (MOA) by the CIR until such time that it is terminated by both parties, or by the AAB subject to the approval of the BIR, or by the BIR in case of violation of any terms and conditions stated in the MOA, or for any reasonable cause, with thirty (30) days advance notice. Any AAB whose accreditation is cancelled may apply for re-accreditation after six (6) months from the date of the cancellation of its accreditation.

Only those banks which meet the following criteria for accreditation shall be authorized to collect internal revenue taxes: 1) it is a government bank, a commercial bank or a universal bank; 2) it should be able to meet the financial ratios required by the BSP and maintain these ratios during the term of agreement; 3) it should have the infrastructure required by the BIR from its AABs; and 4) it shall have been in operation for a minimum of three (3) years.

The AAB shall maintain adequate balance in its DDA with the BSP, which may be required to be maintained, on a per bank branch basis, to take care of its daily remittance of collection.

The AAB shall inform the BIR of any approved plan to merge with/buy out other banks/AABs or sell/fold up, plan to change AABs name and address within thirty (30) days of such approval.

REVENUE MEMORANDUM ORDER NO. 31-2001 issued November 29, 2001 prescribes the guidelines and procedures for the remote printing of report (list of A/R cases) and other related Accounts Receivable (A/R) correspondences from Makati Data Center (MDC) and Revenue Data Centers (RDCs) to the computerized Revenue District Offices.

The procedures specified in the Order shall be initially applied to MDC, and shall consequently be adopted by other RDCs as AR capability is rolled-out. The module which will generate the report (list of A/R cases) shall be included in MDC/RDCs weekly batch run every Saturday and A/R correspondence shall be included in the daily batch jobs.

The Systems Maintenance and Support Division (SMSD) of the Information Systems Development Service (ISDS) shall create a module that enables computerized RDOs to specifically print AR correspondence for AR cases within their jurisdiction only.

The Security Management Division (SMD) of the Information Planning and Quality Service (IPQS) shall issue regular access to the Chief and Assistant Chief - Collection Section of computerized RDOs to view/print the report and correspondences.

REVENUE MEMORANDUM ORDER NO. 32-2001 issued December 5, 2001 prescribes the guidelines on the monitoring of the basis of the property transferred and shares of stock received in a tax-free exchange transaction, as well as revises and updates the requirements and conditions precedent to the non-recognition of gain or loss in said transactions.

The application for Certification/Ruling on the tax consequence of the exchange of properties described in the Order shall be filed with the BIR Law Division using the form provided for the purpose, together with a transmittal letter containing a brief overview of the transaction and three (3) copies of each of the documents specified in the Order.

In the case of executed and/or completed transactions, either original executed and notarized copies or certified true copies of the specified documents must be submitted, together with a proof of payment of the applicable Documentary Stamp Taxes (DST) on the transactions. In the case of issuance of shares/unit of participation by the transferee, the due dates for the payment of the corresponding DST prescribed under RMO No. 8-98, as amended, shall apply.

Soft copy of the form of request for ruling and certification is available at the Taxpayers Information and Education Division and Law Division of the BIR. It may also be downloaded from the BIR website at www.bir.gov.ph.

If the application is to be signed and submitted not by the taxpayer himself, but only by his authorized representative, the appropriate special power of attorney shall be submitted with the application for a certification-ruling. In the case of a juridical person, the corporate secretary shall issue a sworn statement that the signing officer has been authorized by the Board of Directors to represent the company and has personal knowledge of the facts of the exchange transaction.

Before filing the request for certification-ruling, the taxpayer/applicant shall pay first the applicable processing and certification fee as provided in RR No. 18-2001. Said fee shall be adjusted accordingly if additional transfer certificates of title/condominium certificates of title/certificates of stock are submitted for processing.

The Certificate Authorizing Registration/Tax Clearance for the real property or share of stock/unit of participation/interest involved in the exchange shall be issued by the Revenue District Officer or by the authorized Internal Revenue Officer, on the basis of the certification-ruling issued by the Commissioner or his duly authorized representative to the effect that the transaction qualifies as a tax-free exchange or corporate reorganization.

REVENUE MEMORANDUM ORDER NO. 33-2001 issued December 5, 2001 provides the new policies, guidelines and procedures for the grant and revocation of access to identified users of the Integrated Tax Systems (ITS users).

Creation of account shall only be done by the National Office System Administrator. The Site System Administrator (SSA) will be responsible for the modification to access privileges as well as account deletion of their respective users.

Generic accounts are issued for designations whose access privileges are not granted towards sensitive data. However, the immediate supervisor of users using generic accounts shall be held accountable for activities using said user accounts. Offices who have been granted with Generic Accounts are listed in the Order.

The SSA, even without prior notice, shall automatically delete user logins that have become "dormant" for one (1) month, except user/s who have officially filed their leave of absence. This activity will result to the creation of user accounts for others who need to access ITS.

All rolled out Revenue District Offices are required to submit their Inventory of Active ITS Users to the Security Management Division on a quarterly basis.

REVENUE MEMORANDUM ORDER NO. 34-2001 issued December 13, 2001 prescribes the policies and procedures in the processing of request for conversion of Tax Credit Certificates (TCC) into cash refund.

All requests for cash conversion shall be filed with the office which originally issued the TCC. The said office shall process the requests for conversion, issue a Memorandum recommending approval/disapproval thereof, and certify as to the authenticity, accuracy and validity of the TCC issued.

In the case of TCCs issued by the One-Stop Shop (OSS) Inter Agency Tax Credit and Duty Drawback Center under the Department of Finance, requests for cash conversion of such TCCs shall be filed with the said office. The recommendation on the request, which shall likewise be in memorandum form, shall be signed by the Assistant Commissioner of Internal Revenue (ACIR) - Assessment Service who has functional jurisdiction over the Tax Revenue Group of the OSS.

No request for conversion into cash refund of TCCs issued by the OSS shall be processed and approved by the BIR unless such request has been duly processed, evaluated and recommended for approval by the OSS.

No cash conversion shall be allowed where the TCC is the result of availment of incentives granted pursuant to special laws for which no actual payment was made.

All requests for cash conversion shall be approved by the ACIR-Collection Service. After approval, the same shall be referred to the ACIR-Financial and Administrative Service, for funding purposes.

TCCs which were previously transferred or assigned and those which remain unutilized after five (5) years from date of issue, unless revalidated before the end of the fifth year, shall not be allowed to be converted into cash.

REVENUE MEMORANDUM ORDER NO. 35-2001 issued December 21, 2001 suspends the tax audit, examination, investigation and/or verification of taxpayers' books of accounts and records effective December 18, 2001 up to January 15, 2002.

No Letters of Authority/Audit Notices, Tax Verification Notices, Mission Orders, or any written orders to audit and/or investigate internal revenue taxes shall be issued or made for internal revenue tax purposes, except in the following cases: 1) investigation of cases prescribing on or before June 30, 2002; 2) service of Assessment Notices, including Notice for Informal Conference and Preliminary Assessment Notices, for cases prescribing on or before June 30, 2002; 3) processing and verification of Estate Tax Returns, Donor's Tax Returns, Capital Gains Tax Returns and Withholding Tax Returns on the sale of real property and shares of stocks, together with the Documentary Stamp Tax Returns related thereto; 4) examination and/or verification of taxpayers retiring from business; 5) investigation and processing of all claims for tax refunds/credits; 6) requests for reinvestigation/reconsideration (protested tax cases); and 7) audit of National Government Agencies, Local Government Units and Government-Owned and -Controlled Corporations, including its subsidiaries and affiliates.