June 1, 1995

Summary:

The Memorandum of Agreement published in this Circular was implemented in Department of Finance Order No. 34-95 (dated May 25, 1995) Re: Creating an Inter-Agency Task Force to Implement the Memorandum of Agreement between the Bureau of Internal Revenue and the Bureau of Local Government Finance adopting certain measures to improve both national and local tax collections, which was published in Revenue Memorandum Circular No. 20-95 (dated June 1, 1995) Re: Publishing the full text of the Department Order No. 34-95 dated May 25, 1995 creating an Inter-Agency Task Force to implement the Memorandum of Agreement between Bureau of Internal Revenue (BIR) and Bureau of Local Government Finance (BLGF); and Revenue Memorandum Order No. 23-95 (dated August 14, 1995) Re: Prescribing Guidelines and Procedures in the Implementation of the Memorandum of Agreement dated May 25, 1995, Between the Bureau of Internal Revenue and the Bureau of Local Government Finance.

REVENUE MEMORANDUM CIRCULAR NO. 19-95

SUBJECT : Publishing the full text of the Memorandum of Agreement between the Bureau of Local Government Finance (BLGF) and the Bureau of Internal Revenue (BIR) to ensure their support and assistance in the taxpayer service and information activities of BIR.

TO : All Internal Revenue Officials and Employees and Others Concerned.

For the information of all internal revenue officials and employees and others concerned, quoted hereunder his the Memorandum of Agreement by and between the Bureau of Local Government Finance (BLGF) and the Bureau of Internal Revenue (BIR), dated May 25, 1995 :

"MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement made and entered into this 25th day of May, 1995, at Quezon City, Philippines by and between:

The BUREAU OF INTERNAL REVENUE with principal office at BIR National Office Building, Diliman, Quezon City represented by its Commissioner LIWAYWAY VINZONS-CHATO, hereinafter referred to as the BIR;

and

The BUREAU OF LOCAL GOVERNMENT FINANCE with principal office at the Palacio del Gobernador, 7th Floor, Intramuros, Manila represented by its Executive Director LORINDA M. CARLOS, hereinafter referred to as the BLGF.

WITNESSETH, that:

WHEREAS, Executive Order No. 53, series of 1993, directs all government agencies concerned to provide the Bureau of Internal Revenue (BIR) with the necessary information to help increase tax collections;

WHEREAS, Executive Order No. 52, series of 1993, requires the indication of Taxpayer Identification Numbers (TINs) on certain documents;

WHEREAS, under Section 2 of Executive Order No. 53 series of 1993, the local government-owned and controlled corporations, and other agencies and instrumentalities of the government shall immediately comply with requests of the BIR for information relevant to its mission of effectively implementing existing revenue laws;

WHEREAS, the BLGF is the principal agency that exercises administrative and/or technical supervision over local treasury and assessment operations of the local government units in accordance with Section 43 of Executive Order No. 127, as amended; Section 201, 470 and 471 of R.A. 7160 (The Local Government Code of 1991); and Articles 287 and 291 of the Implementing Rules and Regulations of the Code;

WHEREAS, certain records, documents, data and information vital to the BIR's program of augmenting the revenue base and of increasing tax collection are filed and maintained by the local treasury and assessment offices;

WHEREAS, the BIR is adopting an intensified tax information and education campaign to improve tax collection efficiency;

WHEREAS, under Revenue Memorandum Order No. 12-95, the BIR is undertaking Tax Mapping Operations with the objective of updating its datafiles, increasing the taxable base and ferreting our tax evaders;

NOW, THEREFORE, for and in consideration of the foregoing premises, the BIR and BLGF hereby mutually agree to undertake/adopt the following measures:

1. BLGF shall require the Assessment Offices of local government units to provide the BIR, thru its respective Revenue District Offices, the following:

a. Assessment Roll of Taxable Real Properties for the tax year,

b. Monthly Updates of Real Property Assessment;

c. Copies of Tax Maps with corresponding Tax Map Control Rolls (TMRC); and

d. Such other property records as may be requested by BIR.

All costs incurred by the Provincial/City/Municipal Assessor in the reproduction of tax maps with the corresponding Tax Map Control Rolls (TMCR) shall be shouldered by the BIR.

2. BLGF shall require the Treasury Offices of local government units to provide the BIR, thru its respective Revenue District Offices the following:

a. Quarterly listings of Business Tax Filers;

b. Monthly listings of newly-opened businesses;

c. Monthly listings of professional tax filers;

d. Monthly listings of Community Tax Payments made by corporations and other juridical entities;

e. Monthly listings of Franchise Tax filers;

f. Monthly listings of Amusement Tax filers; and

g. Such other data as may be requested by BIR.

3. BLGF shall comply with the requirements of Executive Order No. 52, series of 1993, requiring the indication of TINs on permits and licenses issued by their local treasury and assessment offices;

4. BLGF shall ensure that local treasury/assessment offices shall assist the BIR in its regional, district and field offices in the conduct of tax information and education campaign and in the dissemination of materials and messages through the distribution of primers, flyers and tax leaflets in all transactions dealing with taxpayers;

5. BIR shall furnish the BLGF with the following records, provided that the same are not prohibited under Section 269 of the National Internal Revenue Code, as amended, regarding unlawful divulgence of trade secrets :

a. Quarterly lists of income tax filers;

b. Quarterly lists of capital gains tax filers;

c. Schedules of approved zonal values;

d. Lists of banks filing their quarterly gross receipts tax returns under Section 119 of the NIRC; and

e. Such other data as may be requested by the BLGF.

6. BIR shall utilize the data provided by the BLGF in its program augment the revenue base and increase tax collection efficiency, especially for the "BIR's Tax Mapping Operations", and that BLGF shall likewise furnish local treasury and assessment offices with the data provided by the BIR for purposes of LGU revenue generation programs and the overall efforts to improve local tax administration;

7. BIR shall require all taxpayers to indicate their Community Tax Certificate Number in their Annual Income Tax Returns;

8. BIR and BLGF shall organize an Inter-Agency Task Force to effect, implement, and monitor the provisions of this Memorandum of Agreement within thirty (30) days upon approval hereof.

This Memorandum of Agreement shall take effect upon approval by the Secretary of Finance and shall remain in force until mutually abrogated by the parties concerned.

In WITNESS WHEREOF, the parties have hereunto affix their signature this 25th day of May, 1995 at Manila, Philippines.

BUREAU OF INTERNAL REVENUE BUREAU OF LOCAL GOVERNMENT

FINANCE

By: By:

(SGD) LIWAYWAY VINZONS-CHATO (SGD) LORINDA M. CARLOS

Commissioner Executive Director

Signed in the presence of:

(SGD) BEETHOVEN L. RUALO (SGD) ANGELINA M. MAGSINO

Deputy Commissioner for Operations Deputy Director

APPROVED :

(SGD) ROBERTO F. DE OCAMPO

Secretary of finance"

All concerned are hereby enjoined to give this circular as wide a publicity as possible.

LIWAYWAY VINZONS-CHATO

Commissioner of Inter Revenue

ATTACHMENT

MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement made and entered into this 25th day of May, 1995, at the City of Manila, Philippines by and between:

The BUREAU OF INTERNAL REVENUE with principal office at the BIR National Office Building, Diliman, Quezon City represented by its Commissioner LIWAYWAY VINZONS-CHATO, hereinafter referred to as the BIR;

and

The BUREAU OF LOCAL GOVERNMENT FINANCE with principal office at the Palacio del Gobernador, 7th Floor, Intramuros, Manila represented by its Executive Director LORINDA M. CARLOS hereinafter referred to as the BLGF.

WITNESSETH, that;

WHEREAS, Executive Order No. 53, series of 1993, directs all government agencies concerned to provide the Bureau of Internal Revenue (BIR) with the necessary information to help increase tax collections;

WHEREAS, Executive Order No. 52, series of 1993, requires the indication of Taxpayer Identification Numbers (TINs) on certain documents.

WHEREAS, under Section 2 of Executive Order No. 53, series of 1993, the local government units, government-owned and controlled corporations, and other agencies and instrumentalities of the government shall immediately comply with requests of the BIR for information relevant to its mission of effectively implementing existing revenue laws;

WHEREAS, the BLGF is the principal agency that exercises administrative and/or technical supervision over local treasury and assessment operations of the local government units in accordance with Section 43 of Executive Order No. 127, as amended; Section 201, 470 and 471 of R.A. 7160 (The Local Government Code of 1991); and Article 287 and 291 of the Implementing Rules and Regulations of the Code;

WHEREAS, certain records, documents, data and information vital to the BIR's program of augmenting the revenue base and of increasing tax collections are filed and maintained by the local treasury and assessment offices;

WHEREAS, the BIR is adopting an intensified tax information and education campaign to improve tax collection efficiently;

WHEREAS, under Revenue Memorandum Order No. 12-95, the BIR is undertaking Tax Mapping Operations with the objective of updating its datafiles, increasing the taxable base and ferreting out tax evaders;

NOW, THEREFORE, for and in consideration of the foregoing premises, the BIR and BLGF hereby mutually agree to undertake/adopt the following measures;

1. BLGF shall require the Assessment Offices of local government units to provide the BIR, thru its respective Revenue District Offices, the following:

a. Assessment Roll of Taxable Real Properties for the tax year;

b. Monthly Updates of Real Property Assessments;

c. Copies of Tax Maps with corresponding Tax Map Control Rolls (TMRC); and

d. Such other property records as may be requested by BIR.

All costs incurred by the Provincial/City/Municipal Assessor in the reproduction of tax maps with the corresponding Tax Map Control Rolls (TMCR) shall be shouldered by the BIR.

2. BLGF shall require the Treasury Offices of local government units to provide the BIR, thru its respective Revenue District Offices the following:

a. Quarterly listings of Business Tax Filers;

b. Monthly listings of newly-opened businesses;

c. Monthly listings of professional tax filers;

d. Monthly listings of Community Tax Payments made by corporations and other juridical entities;

e. Monthly listings of Franchise Tax filers;

f. Monthly listings of Amusement Tax filers; and

g. Such other data as may be requested by BIR.

3. BLGF shall comply with the requirements of Executive Order No. 52, series of 1993, requiring the indication of TINs on permits and licenses issued by the local treasury and assessment offices;

4. BLGF shall ensure that local treasury/assessment offices shall assist the BIR in its regional, district and field offices in the conduct of tax information and education campaigns and in the dissemination of materials and messages through the distribution of primers, flyers and tax leaflets in all transactions dealing with taxpayers;

5. BIR shall furnish the BLGF with the following records, provided that the same are not prohibited under Section 269 of the National Internal Revenue Code, as amended, regarding unlawful divulgence of trade secrets;

a. Quarterly lists of income tax filers;

b. Quarterly lists of capital gains tax filers;

c. Schedules of approved zonal values;

d. Lists of banks filing their quarterly gross receipts tax returns under Section 119 of the NIRC; and

e. Such other data as may be requested by the BLGF.

6. BIR shall utilize the data provided by the BLGF in its program to augment the revenue base and increase tax collection efficiency, especially for the "BIR's Tax Mapping Operations", and that BLGF shall likewise furnish local treasury and assessment offices with the data provided by the BIR for purposes of LGU revenue generation programs and the overall efforts to improve local tax administration.

7. BIR shall require all taxpayers to indicate their Community Tax Certificate Number in their Annual Income Tax Returns;

8. BIR and BLGF shall organize an Inter-Agency Task Force to effect, implement, and monitor the provisions of this Memorandum of Agreement within thirty (30) days upon approval hereof.

This Memorandum of Agreement shall take effect upon approval by the Secretary of Finance and shall remain in force until mutually abrogated by the parties concerned.

In WITNESS WHEREOF, the parties have hereunto affix their signature this 25th day of May, 1995 at Manila, Philippines.

BUREAU OF INTERNAL REVENUE BUREAU OF LOCAL

GOVERNMENT FINANCE

By: By:

LIWAYWAY VINZONS-CHATO LORINDA M. CARLOS

Commissioner Executive Director

Signed in the presence of:

BEETHOVEN L. RUALO ANGELINA M. MAGSINO

Deputy Commissioner for Operations Deputy Director

APPROVED:

ROBERTO F. DE OCAMPO

Secretary of Finance

C o p y r i g h t 2 0 0 2 C D T e c h n o l o g i e s A s i a, I n c.

06-05-1995 Revenue Memorandum Circular No. 18-95