RMO No. 07-2013 — Prescribes the endorsement of fraud cases discovered in the processing and issuance of Certificates Authorizing Registration (CARs) and Tax Clearances (TCLs) and amends the manner and procedures in the issuance of CARs and TCLs for transactions or transfers within the area of jurisdiction of Revenue Region No. 1

BEAU OF INTERNAL REVENTENENT OF FINANCE TAL COMMUNICABOR&BNWSON[NTERNAL REVENUE ME APR b 15T w 3 REPUBLIC OF THE PHLIPPINES BUREAU OY INTNAL HUYUNUM RECORNS MOTDVIION RECEIVED 4Fn J ZOf3 f 8:58A.M WM

March 12.2013

REVENUE MEMORANDUM QRDER NO. -3013

SUBJECT : Prescribing the Endorsement of Fraud Cases Discovered in the the Area of Jurisdiction of Revenue Region No. 1 Processing and issuance of Certificates Authorizing Registration (CARs) in the Issuance of CARs and TCLs for Transactions or Transfers within and Tax Clearance$ (TcLs); and Amending the Manner and Procedures

TO : All Internal Revenue Officials, Employees and Others Concerned

Under Revenue Memorandum Order (RMO) No. 15-03 dated May 8, 2003. thel

real properties considered as capital assets, Capital Gains Tax on the net capital gain Expanded Withholding Tax on the sale of real properties considered as ordinary assets, Clearances (TCLs) covering transactions subject to Final Capital Gains Tax on sale of Donor's Tax, Estate Tax and other taxes including Documentary Stamp Tax related to being the Head af the One-Time Transactions (ONETT) Team, or the Assistant Revenue District Officers (ARDOs) when designated as the Head of the ONETT Team.) on the sale, transfer or assignment of stocks not traded in the Stock Exchange.l the sale/transfer of properties, are Iodged with the Revenue District Officers (RDOs) approval and .issuance of Certificates Authorizing Registration (CARs) and Tax

It has come to the attention of this Office that there is a proliferation of anomalous ONETT-related incidents particularly within the area of jurisdiction of

Norte, 2 - Vigan, llocos Sur, 3 - San Fernando, La Union, 4 - Calasiao, West Pangasinan, 5 - Alaminos, West Pangasinan, and 6 - Urdaneta, East Pangasinan. These incidents include'the use of fake CARs and TCLs, manipulations of Tax Revenue Region No. 1 comprised of Revenue District Offices Nos. 1 - Laoag, llocos

Declarations of real properties, underdeclaration of consideration in sale and other transactions, and misrepresentation as to the transferors' status (e.g., making it appear as living when in fact dead or single when in fact married).

issuance and use of valid CARs and TCLs, the following guidelines shall be observed: In order to ensure the proper payment and collection of taxes due and the

A) For Af Offices Processihg. Issuing and Reviewing CARs and TCLs --

all other offices lodged with the function of processing and issuance of CARs and TCLs shall, upon discovery of evidence of fraud in the course of processing or evaluating new All Revenue District Offices, Assessment Divisions in the Regional Offices. and

transmit the docket of the case together with a report on the initial findings to the applications for CARs or TCLs, or those that have been previously issued. immediately

investigation under the RATE Program. However, for transfer of properties valued at fraudulent which are deemed perpetrated by the same group of persons, the docket of the case shall be transmitted to the National Investigation Division (NID) together with the report on the initial findings. A copy of the report on the initial findings shall also be transmitted by the concerred office.to the Qffices of the Deputy Coimmissioner for Legal and Inspection Group, and for Operalions Group. corresponding Special Investigation Division (SID) of their Revenue Regions, for Ten Million Pesos (Php10,000,000) or more, or for series of transactions considered

B} For CARs and TCLs for Transactions and Transfers within the Area of Jurisdiction of Revenue Region No. 1

1. The Commissioner of Internal Revenue shall sign/approve all CARs and TCLs Region No. 1 of the Bureau. covering transactions and transfers within the area of jurisdiction of Revenue

2. For this purpose, the process of receiving, processing, evaluating and corresponding dockets to the Office of the Commissioner of Internal Revenue, through the Revenue Regional Director, for final approvai by the Commissioner. recommending for the approval/disapproval of applications for CARs and TCLs Revenue District Officers or Assistant Revenue District Officers under Revenue Region No. 1 shall only affix their initial (to signify their recommendation for approval) in the subject CARs or TCLs, and shall forward the applications and under RM0 15-2003 shall conlinue to be observed. However, the concerned

inconsistent with this Order are hereby revoked, modified or amended accordingly. The provisions of RMO 15-2003 and all other revenue issuances that are

revoked or arnended. This Order shail take effect immediately and shall continue to be in force until

Strict compliance herewith is enjoined.

BDREAU OF INTERNAL REVENUE RECORDS MGT DIVSON ap1+2013 f -f 8:58.A.M. Ua Commissibner of Internal Revenue KIM S ACINTO-HENARES 014898 T

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