RMO No. 06-2012 — Pre cribe the policie and guideline for the phy ical/ocular in pection and upervi ion over the de truction/di po al or verification of ca ualty lo in ca e wherein the inventorie , machinerie or equipment applied for de truction or di po al are located out ide the territorial juri diction of Large Taxpayer Office or Revenue Di trict Office where the taxpayer i regi tere

CORRATE COMMON D FREONBLIC OF THE PH BUREAWOFINTERNAL REVENUE ** DEPARTMENT OF FINANCE Quezon City ILIPPINES RECORDE MGY MITOK BUREAU GF INTHRNAL RBVONUE RECEIVED aPF 0 3 2012/- te

April 2, 2012

REVENUE MEMORANDUM ORDER NO. - 301

SUBJECT: Prescribing the Policies and Guidelines for the physical/ocular verification of casualty loss in cases wherein the inventories, located outside the territorial jurisdiction of Large Taxpayers Office or Revenue District Office where the taxpayer is registered, in Inventory of Goods, Assets which have been declared as Waste or or Other Causes rendering the same Unfit for Sale or for Use in machineries or equipments applied for destruction or disposal are relation to the Determination of Deductible Expense pertaining to Obsolete Due to Spoilage, Deterioration, Obsolescence, Expiration, Production. inspection and supervision over the destruction/disposal or

TO: All Internai Revenue Officers and Others Concerned

I OBJECTIVE

relation to the determination of deductible expense pertaining to inventory of goods, assets which have been declared as waste or obsoiete due to rendering the same unfit for sale or for use in production. inventories, machineries or equipments applied for destruction or disposal are located outside the territorial jurisdiction of the Large Taxpayers (LT) spoilage, deterioration, obsolescence, expiration, or other causes the Bureau of internal Revenue, this Order is issued to prescribe policies and guidelines for the physicai/ocular inspection and supervision over the destruction/disposal or verification of casualty loss in cases wherein the Office or Revenue District Office where the taxpayer is registered, in In order to have seamless cooperation among revenue offices in

I POLICIES AND GUIDELINES

1. The application for inventory assets disposal/destruction loss shali be Office where the principal place of business of the taxpayer is registered filed with and processed by the concerned LT or Revenue District

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2. No application shali be received and processed by the concerned LT or Revenue District Offices unless the prescribed supporting documents and information are sufficient and complete.

3. In case where the inventories, machineries or eguipments applied for the taxpayer is registered. destruction/disposal or._verification of casualty ioss thereof may be save travel expenses_upon the request of, and with the proper the LT or Revenue District Office where the taxpayer is registered, the conducted by the LT or Revenue District Office having_territorial jurisdiction over_the_place where the said items are iocated in order to coordination by the concerned LT or RDO where the principal office of destruction or disposal are located outside the territorial jurisdiction of physical/ocular inspection and supervision over the

4. In the event that the inventories/eguipments involve a considerable

in one (1) day, the same may be scheduled in a manner acceptable to both the taxpayer and the BIR authorized representative until the total this purpose, no destruction or disposal of any inventory machinery or authorized BiR representative volume such that the destruction/disposal thereof cannot be conducted volume applied for has been completely destroyed or disposed of. For equipment shall be made without the presence and supervision of the

5. The authorized BIR representative of the LT or Revenue District Office who conducted the supervision on the physical destruction/disposal of the inventories/eguipments shall make a report on the result of supervision of disposal/destruction/verification of casualty loss. The

to the concerned LT or Revenue District Office where the taxpayer of the certificate of deductibility of inventory earlier filed its application, for processing, evaluation and preparation destructed/disposed/lost. said report together with the supporting documents shall be transmitted or asset

I EFFECTIVITY

This Order shall take effect immediately

RECORDS MGT. DIVISION BUREAU OF INTERNAL REVENUE APR 0 3 20f2 4:28P Commisstondr of Internal Revenue KIM S.AAQINTO-HENARES

RECEIVED 00892