BIR allows district officers to issue payment certificates

Revenue district offices (RDOs) are now authorized to issue certificates that prove tax payments have been made for a particular transaction.

The Bureau of Internal Revenue has issued Revenue Memorandum Order 7-2016 which gives RDOs and the Large Taxpayers Service (LTS) the power to issue certificates of internal revenue tax payments.

Previously, only the BIR’s Revenue Accounting Division (RAD) is authorized to receive applications and issue such certificates.

Certificates of internal revenue tax payments are secured by individuals and corporations as proof they paid necessary levies on particular transactions such as transfer of land, processing of tax credits, as well as claims for tax refund.

The memorandum is intended “to address the increasing volume of applications filed with the RAD by the applicants.”

It is also meant to address the “inconvenience on the part of the applicants located in distant places.”

RDOs shall cater to individuals and corporations covered by their area of jurisdiction, while the LTS shall manage the applications of the biggest corporations with a market capitalization of more than P300 million, including listed firms.

The agency reminded the RDOs and LTS to ensure they follow the procedures in issuing internal revenue tax certificates properly.

“The processing revenue office shall exercise utmost due care and diligence in the preparation and issuance of the certification in order to ensure that the information reflected therein are accurate...,” the memorandum said.

Under its blueprint of 2016 priorities, the BIR has laid out several projects and programs, mostly concerning improvements of IT systems, in a bid to raise P2.026 trillion in revenues this year.

The agency will also continue to boost tax administration efforts through the regular filing of tax evasion cases under the Run After Tax Evaders program and Oplan Kandado.