May 28, 1982

REVENUE MEMORANDUM CIRCULAR NO. 13-82

Subject : Procedure in the Issuance of Permits to Use Loose Leaf Books

of Accounts, Records, Invoices and Receipts.

To : All Regional Directors, Revenue District Officers, Collection

Agents and Others Concerned.

In order to insure effective control and supervision in the issuance of permits

to use loose leaf books of accounts, records, invoices and receipts, the following
procedure is hereby promulgated for the guidance of all concerned:

1. All requests for permit to use loose leaf books of accounts, records,
invoices and receipts should be filed either in the office of the
Revenue District Officer or the Regional Director. The said request
should be referred to the fieldmen of the revenue district who has
jurisdiction over the taxpayer, for appropriate investigation. cdtai

The investigation should be conducted in accordance with

the following:

a) The necessity of the use of the loose leaf forms requested

should be determined and the reason or reasons for
recommending the approval or disapproval of the request
should be clearly stated in the report;

b) The report should, likewise, include a statement of the

privilege or fixed taxes paid by the taxpayer by citing the
official receipt/confirmation number, date of payment,
amount paid and the corresponding paragraph and schedule,
including a statement whether the business of the taxpayer
has been duly registered with the Bureau of Internal
Revenue. The examiner should investigate whether all the
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 privilege and fixed taxes due on the activities engaged in by
the taxpayer have been duly paid;

c) The taxpayer should be informed by the investigating

examiner that a condition precedent to the issuance of a
permit to use loose leaf invoices and receipts is that the
taxpayer upon receipt of the permit should immediately
register with the Collection Agent or the Revenue District
Officer, a register which should be a bound book. The
bound book should show in detail and in column the serial
numbers of the invoices or receipts printed for use by the
business on the left side of the book. Every additional
printing should be recorded on the same side of the bound
book. On the right hand side, the serial number of the
invoices and receipts used during the week, together with
the total amount involved should be entered weekly.

2. Upon receipt by the Revenue District Officer of the report of the

investigating examiner, he must check with his IBM list of
delinquent accounts to determine whether the taxpayer owes
anything to the Bureau. If the taxpayer is delinquent in the
payment of his tax liabilities, such fact should be communicated to
the taxpayer with the request that the delinquent taxes should be
paid, otherwise his request to use loose leaf forms will not be
given due course. If there is no delinquency, on the part of the
taxpayer, the report should be forwarded to the Regional Office. casia

3. Upon receipt by the Regional Office, the reports should be

processed to determine further through the Collection Branch
whether the taxpayer has no delinquent tax liabilities, through the
Tax Fraud Unit to determine whether the taxpayer has derogatory
information regarding tax evasion, and through the Assessment
Branch to determine whether the taxpayer has any pending report
for processing which will involve a big amount of deficiency tax.
In case of positive information on any of the above-mentioned
branches, the Regional Director should inform the taxpayer of such
fact, informing him that his request cannot be given due course.

4. In the preparation of the permit to use loose leaf invoices which

should be prepared for the signature of the Regional Director, the
taxpayer should be required to bind the loose leaf forms within
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 fifteen (15) days after the end of his taxable year and the condition
to register a bound book for recording of the serial numbers of
invoices printed and serial numbers of invoices used within the
week and the amount involved. The letter should likewise contain
a statement that if the taxpayer is discovered to have violated any
of the provisions of the bookkeeping regulations, his permit to use
loose leaf forms will be immediately cancelled.

5. The permit should be duly numbered and a permit register should

be kept in the Assessment Branch showing the number of the
permit, name of the taxpayer, address, nature of loose leaf to be
used and such other information as may be necessary for the
keeping of the register.

6. All permits to be issued under this Circular are to be considered on

a permanent basis unless otherwise revoked. cda

This Revenue Memorandum Circular revokes all Circulars or Orders

previously issued which are inconsistent herewith.
This Circular shall become effective upon approval.

(SGD.) RUBEN B. ANCHETA

Acting Commissioner

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