MODES OF AND PROCEDURE FOR THE PAYMENT OF INTERNAL REVENUE TAXES THROUGH AUTHORIZED AGENT BANKS AMENDING REVENUE REGULATIONS NO. 4-97, AS AMENDED BY REVENUE REGULATIONS NO. 6-98

SECTION 2.       Recording of BIR Tax Payments by the AABs. —

A) All internal revenue taxes collected through authorized agent banks (AABs) shall be credited to the demand deposit accounts opened and maintained by the Bureau of Treasury (BTr) for BIR in the head offices of AABs;

B) Head offices of AABs shall assign and maintain a separate general ledger account for said BTr demand deposit accounts;

C) Using the online tellering system, the bank tellers shall immediately post the BIR tax payments they collect by crediting the BTr demand deposit accounts in the head offices of the AABs, instead of recording them as mere payables to BTr at the end of each banking day in the AABs’ backrooms.

D) In filing
a tax declaration and making payment to an AAB, a taxpayer must
accomplish and submit a BIR–prescribed deposit slip which AAB’s must design, print and make available in all participating branches.  The deposit slip must in addition to those needed by the bank, provide for the following information:

•        Transaction Date

•        Name of Taxpayer

•        TIN

•        BTR-BIR Account Number

•        Account Name which must be BTR–BIR

•        Name of Drawee Bank

•        Check Number

•        Bank Debit Advice Number (for debit system payments)

•        Amount

E) The bank
teller shall machine validate the BIR–prescribed deposit slip
accomplished by the taxpayer as evidence that the BIR tax payment was
deposited to the account of the BTr.  Said
deposit slip shall be accomplished and issued in triplicate copies,
distributed as follows: original (taxpayer’s copy), duplicate (AAB’s copy) and triplicate (to be attached to the tax return.  Additionally,
the AAB receiving the tax return/payment form shall also machine
validate and stamp mark the word “Received” on the return/payment form
as proof of filing the return/payment form and payment of the tax by the
taxpayer.  The machine validation on the
return/payment form shall reflect the date of payment, amount paid and
transaction code, the name of the bank, branch code, teller’s code and
teller’s initials.

F) Before 12:00 NN of the following banking day, the head offices of the AABs shall provide to BTR/BIR the daily total amount of BIR taxes they collected.

G) After
receipt of payment but not later than 24 hours thereafter, the AAB
branch shall encode into the LBDE System and transmit to the concerned
BIR Data Center, the below data and copy furnish the AAB head office.

1.      Date of the transaction;

2.      Name of the taxpayer;

3.      Taxpayer Identification Number (TIN) of the taxpayer;

4.      Tax type which is being paid for;

5.      Return period for the tax type being paid for;

6.      Amount of tax paid;

7.      Name of the drawee bank and check number, for tax payments through checks;

SECTION 3.       Modes Of Payment To AABs.
— Aside from the electronic payment system currently used by some
taxpayers in paying their BIR taxes, the rest shall pay their tax
liabilities through any of the following modes: a) over–the–counter cash
payments; b) bank debit system; or c) check payment system.

a) “Over–the–counter cash payment”
refers to payment of tax liabilities to authorized agent bank in the
currencies (paper bills or coins) that are legal tender in the Philippines.  The maximum amount allowed per tax payment shall not exceed ten thousand pesos (P10,000.00)

b) “Bank debit system”
refers to the system whereby a taxpayer, through a bank debit
memo/advice, authorizes withdrawals from his/its existing bank accounts
for payment of tax liabilities.

The bank debit system mode is
allowed only if the taxpayer has a bank account with the AAB branch
where he/it intends to file and pay his/its tax return/form/declaration,
provided said AAB branch is within the jurisdiction of the BIR Revenue
District Office (RDO)/Large Taxpayers District Office (LTDO) where the
tax payment is due and payable.

c)  “Checks” refers to a bill of exchange or Order Instrument drawn on a bank payable on demand.

In the issuance and accomplishment
of checks for the payment of internal revenue taxes, as illustrated
below, the taxpayer shall indicate in the space provided for “PAY TO THE
ORDER OF” the following data: (1) presenting/collecting bank or the
bank where the payment is to be coursed and (2) FAO (For the Account Of)
Bureau of Internal Revenue as payee; and under the “ACCOUNT NAME” the
taxpayer identification number (TIN).

The following checks are, however, not acceptable as check payments for internal revenue taxes:

1.      Accommodation checks — checks issued or drawn by a party other than the taxpayer making the payment;

2.      Second endorsed checks — checks issued to the taxpayer as payee who indorses the same as payment for taxes;

3.      Stale checks — checks dated more than six (6) months prior to presentation to the authorized agent bank;

4.      Postdated checks — checks dated a day or several days after the date of presentation to the authorized agent bank;

5.      Unsigned checks — checks with no signature of the drawer;

6.      Checks with alterations/erasures.

AABs
accepting checks for the payment of BIR taxes and other charges must see
to it that the check covers one tax type for one return period only.
Moreover, AABs must strictly comply with the
systems and procedures for the reception, processing, clearing and
accounting of the checks to be prescribed under a separate regulation.

Second indorsement of checks which are payable to the Bureau of Internal Revenue or Commissioner of Internal Revenue is absolutely prohibited.

SECTION 4.       Tax Returns Partly Paid Thru Tax Debit Memos (TDMs) — AABs
are mandated to accept tax returns/payment forms partly paid thru any
of the modes of payment mentioned in Section 3 hereof and partly thru TDMs
duly and validly issued by the BIR. Before accepting the BIR tax
return/payment form partly paid thru tax debit memo, the AAB shall
insure that the number of the TDM is indicated in the BIR tax
return/payment form in the same manner that the check number/drawee
bank and bank debit advice number are indicated in the tax
return/payment form paid thru check or bank debit system, respectively.  A photocopy of the tax credit certificate (TCC), front and back page, which was
the source of the TDM, together with a copy of the TDM, must be
required from the taxpayer and attached to the BIR tax return/payment
form.

TDMs
are, however, not acceptable as payments for withholding taxes,
including Fringe Benefit Tax (clarified and implemented under RR No.
2-98, as amended, and RR No. 3-98), and for taxes, fees and charges
collected under special schemes/procedures/programs of the Government /
BIR as discussed and elucidated in a separate revenue regulation.  AABs shall see to it that this restriction is strictly observed in the BIR tax returns/payment forms they receive.

SECTION 5.       Enrollment Of Taxpayers With Authorized Agent Bank Not Required
— Taxpayers are not required to enroll with any AAB where they intend
to file tax returns/payment forms and/or pay internal revenue taxes.  Taxpayers
may file tax returns/payment forms and pay internal revenue taxes with
any AAB of the appropriate BIR office (Revenue District Office (RDO),
Large Taxpayers District Office (LTDO), or Large Taxpayers Service,
etc., whichever is applicable) where they are required to file the
particular return/payment form.

SECTION 6.       Responsibility And Privilege Of Taxpayers.
— Taxpayers shall see to it that their tax returns/payment forms with
payment are filed with and internal revenue taxes paid to legitimate AABs of the BIR.  Nonetheless,
they may confirm their tax payments with their home RDO/LTDO or
LTDO/RDO where they are required to file tax returns/payment form and
pay internal revenue taxes.

SECTION 7.       Additional Liabilities/Responsibilities Of Authorized Agent Banks (AABs). —

(a)            Any diversion, non-remittance or under-remittance of the taxes collected by AABs
through fault or negligence of the bank accepting such payment as well
as the diversion of any payment for BIR taxes using the facilities of
the bank through fault or negligence of any of the bank’s personnel
shall subject the bank to civil and criminal liabilities provided for
under Sections 248 and 275 of the Tax Code, as amended, and other
existing laws, rules and regulations.  AABs shall be liable to the BIR for double the amount of taxes diverted and unremitted,
plus the increments and penalties prescribed by the Tax Code, as
amended, but the total penalties imposed may be reduced on meritorious
grounds subject to the approval of the majority of the members of the
Management Committee (MANCOM) of the BIR, composed of the Commissioner
of Internal Revenue and the four (4) Deputy Commissioners, where the
Commissioner of Internal Revenue votes for such reduction.

(b)            The reports of AABs to be submitted to BTr/BIR (under Sec. 2) of all the tax payments collected shall be in accordance with the forms prescribed by BIR.

(c)            The
requirements prescribed in these regulations shall be included in the
accreditation criteria to be mentioned in the Memorandum of Agreement to
be signed by and among the BTR, BIR and the AAB for compliance by all AABs.

SECTION 8.       Repealing Clause.
— All rules and regulations or portions thereof inconsistent with the
provisions of these regulations are hereby modified, amended or repealed
accordingly.

SECTION 9.       Effectivity.
— These regulations shall take effect fifteen days from date of
publication in the Official Gazette or any newspaper of general
circulation.  However, to provide sufficient time for AABs to make available to all participating branches the deposit slip required under Section 2-D, the effectivity date of the switch-over from the current acknowledgment slip shall be fifteen days from the effectivity of this Revenue Regulation.

Adopted: 11 Oct. 2002

(SGD.) JOSE ISIDRO N. CAMACHO
Secretary of Finance

Recommending Approval:

(SGD.) GUILLERMO L. PARAYNO, JR.
Commissioner of Internal Revenue