RMO No. 15-2025 — Policies and Procedures on Recording of Collections, Tax Receivables and Acquired Assets in Compliance with Reportorial Requirements of the Commission on Audit - Governing Accounting Standards

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPArtMENt OF FINANCE

Bringing In Revenues for Nation-Building PILIDINAS BAGONG

November 25, 2024

REVENUE MEMORANDUM ORDER NO. 0 1 5 - 2 0 2 5

SUBJECT : Policies and Procedures on Recording of Collections, Tax Receivables and

Commission on Audit - Government Accounting Standards. Acquired Assets in Compliance with Reportorial Requirements of the

TO : All Internal Revenue Officials. Employees and Others Concerned

GENERAL OBJECTIVE:

This Order is hereby issued to:

I Amend Item IHI J of Revenue Memorandum Order (RMO) No. 36-2016, which

states that in meritorious cases, a tentative financial report shall be submitted to concerned offices containing initially completed, validated and/or reconciled collection data.

2 Provide additional procedures to RMO No. 13-2022 on recording of collection

transfer between :the national and regional office collection books to ensure completeness and accuracy of balances of the Cash-Treasury/Agency Deposit, Regular (CTADR) account.

E 3 Reiterate guidelines on recording of Tax Remittance Advice (TRA) and Special Allotment and Release Order (SARO) in acco ordance with Section 62 of the

Government Accounting Manual (GAM).

Prescribe procedures to ensure proper disclosure of pertinent information on Tax Receivables in the Notes to Financial Statements (FS) in accordance with

Liabilities and Assets. International Public Sector Accounting Standard (IPSAS) 19: Contingent

5 Prescribe policies on disclosure of pertinent information on Acquired Assets in

the Notes to FS in compliance with reportorial requirements of the Commission on Audit (COA). BuREAU OF INterNAL REVENE RECOATSMaNAGFMF OVISION

AAYHE A E 2

MAR 21 2025

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BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Bringing In Revenues for Nation-Building PILIPINAS BAGONG

H. GENERAL POLICIES

1. The monthly, quarterly and annual consolidated{Trial Balances (TBs), FS, and January 31 (for the Revenue Regions) and February 14 (for the National Office) National Government Collection Books (NGCB) shall be submitted to COA on the tenth (10th) day from the end of each month and quarter, and on/before Supporting Schedules (SS) of the Bureau of Internal Revenue's (BIR's)

GAM. of the following year as prescribed under Chapter 19 Section 60.b and 60.c of

2. A monthly interin trial balance shall be generated thru the Electronic New

Government Accounting System (eNGAS) by the Regional Finance Division (RFD) and Revenue Accounting Division - Bookkeeping Section (RAD-BKS) every 15th day of the month for submission to management thru RAD, for the purpose of reporting collection performance by implementing offices.

3 The interim trial balance shall consist of all collection book transactions

recorded and approved as of the 15th day of thelcurrent month. This procedure shall facilitate timely and accurate reporting, recording and reconciliation of collection figures.

Y The deadline for the submission of the Year-end Pre closing and Post Closing TB, FS and SS shall be on or before March 25 of the following year for the Regional Office Collection Books (ROCB) to) RAD, and March 31 for the

ADMIN UNTIM: MAR 2.1 2225 BA B MantehNaN ey B c consolidated collection books to COA. The three (3) month deadline for the Year-end Pre-closing Trial Balance shall be deemed enough time to account for all collection data and to receive the

E corresponding supporting documents for the closing calendar year.

95 e collection books for the current year as prior year adjustments. Any additional collection data and its corresponding supporting documents received and accounted for after the 31st of March shall be recorded in the

The recognition, derecognition, transfer in and;transfer out of collection from one collection book to another (e.g., National Office Collection Books to ROCB and/or vice versa) shall be strictly supported by the signed and approved copy of the corresponding Journal Entry Vouchers (JEVs) from the receiving collection books within two (2) days from receipt hereof.

6. The preparation of JEV should be dated not earlier than the date of receipt of supporting documents. The only exception shall/be during the preparation of the

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BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARtMENT OF FINANCE

Bringing in Revenues for Nation-Building PILIDINAS BAGONG

year-end Revised FS where all collection transactions for the closing year are duly accounted for and recorded in its proper collection period/calendar year.

T The recognition of the constructive receipt of tax revenue from SARO in the

NGCB shall be debited to the account Cash-Tax Remittance Advice (CTRA) instead of CTADR account.

8. Thc Regional Collection Division (RCD) shall prepare the Summary Report of

signed report to RFD as basis for recording in the ROCB. Approved Retention and Manual Transfer of collection and forward the duly

9 The Tax Receivable to be recorded in the NGCB shall be reported by RCD and

supported by proper documentation. the concerned Large Taxpayer Offices to their respective RFDs and RAD duly

10. The following pertinent information on Tax Receivables shall be disclosed in

the quarterly Notes to FS in compliance with IP$AS 19:

b. Movement of Tax Receivables: Bureau's policies and procedures or guidelines on Tax Receivables;

C Aging of Tax Receivables; and d Level of Collectability of Tax Receivables.

11. The RCD shall prepare the quarterly Movement and Level of Collectability of

Tax Receivables and forward said reports to RFD for disclosure in the Notes to FS and to ARMD for consolidation.

12. The RCD, RFD, ARMD and RAD shall prepare and submit to concerned offices

the following prescribed reports: : BY: W MIN I MAR 21 2025 W S FAINERINAY REVENUN G 3 Responsible Office RCD RFD Movement of Tax Receivable. eNGAS-generated GL of the Aging of Tax Receivable Tax Receivable account Level of Collectability Name of Report f(After the end of the Deadline 6th day gt't day quarter) Receiving RCD and RFD and Office ARMD RAD

:4P C ARMD RAD Consolidated Aging and GL of Level of Collectability of Tax Consolidated Movement and Tax Receivable Receivable 10th day gth day ARMD RAD

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BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHHLIPPINES DEPARtMENT OF FINANCE

Bringing In Revenues for Nation-Building PILIPINAS BAGONG

13. The RFD shall maintain subsidiary ledger accounts for each recorded case of

Tax Receivables in the eNGAS for monitoring purposes.

14. The policies prescribed in RMO No. 30-2021 re: Recognition of Absolutely Forfeited Properties in the National Government Books of Accounts, shall be

reiterated as guidelines in the recording of Acquired Assets in the NGCB.

15. The following relevant information on Acquired Assets shall be disclosed under

accountability of custodial functions of concerned Regional Offices: the Merchandise Inventory account in the Notes to FS for transparency and

a Bureau's policies and procedures or guidelines on Acquired Assets: b. Total fair value, basis of fair value, restrictions in recording and total area: C. Aging of Acquired Assets; and d List of Unrecognized Acquired Assets, fair value, total area and status.

HI. PROCEDURES

A. Recording of Trausfer in/out of Collection between Collection Books

The RAD shall: *** Receive from the Data Warehousing and Systems Operations Division

(DWSOD) tax collection data every seventh (7th) day of the following month:

MAR 2 1 225 XW Ugeans RFantermaN reveN Prepare the following Summary Report of Tranisfer In/Out of Collections from one Revenue Region (RR) to concerned RR: a. Summary of Validated Transfer-Out from Out-of-District Collections

CNSA TG S b. Summary of Validated Transfer-In from Out-of-District Collections (Annex C of RMO NO. 56-2019), and

(Annex D of RMO NO. 56-2019).

3 Send thru email to the concerned RFD and RCD the scanned copy of the

Summary Report of Transfer in/out of Collections:

4. Prepare Summary Report of Transfer In/Out of Collections from Large Taxpayer (LT) offices to RR;

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R

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Bringing In Revenues for Nation-Building PILIDINAS BAGONG

5. Prepare JEV to record the transfer in/out of collections to/from the NOCB or

LT Offices from/to the ROCB, and send thru email to the concerned RFD the scanned copy of approved RAD JEV and supporting report:

6. Receive from RFD the scanned copy of approved RFD JEV within two (2)

days from receipt of email:

I Check correctness of details of approved RFD JEV, and

8 Attach RFD JEV as supporting document to the corresponding RAD JEV for

submission to COA.

The RFD shall:

Receive from RAD thru email the following scanned copies:

a Approved RAD JEV recording the transfer in/out of collection from/to LT

Offices to/from ROCB, and

b. Summary Report of Transfer in/out of Collections from LT to RR.

2 Check correctness of details of RAD JEV against the supporting report;

3 Prepare and approve JEV to record the transfer in/out of collection to/from the

PADMIN UN MAR 2 1 2025 S Y rereag gf internan O NOCB from/to the concerned ROCB; Attach RAD JEV and supporting report to the RFD JEV for submission to

d Y COA: and

U.SA S E E Send to RAD scanned copy of approve RFD (JEV within two (2) days from receipt of the following scanned documents: Approved RAD JEV recording the transfer in/out of collection from/to LT Offices to/from ROCB, and

b. Summary Report of Transfer in/out of Collections from LT to RR.

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BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Bringing In Revenues for Nation-Building PILIPIHAS BAGONG

B. Procedures in the Disclosure of Tax Receivables in the Quarterly Notes to FS

The RFD shall:

1.Prepare the quarterly Aging of Tax Receivables:

2. Export from eNGAS the quarterly General Ledger (GL) of the Tax Receivable

account:

3. Transmit the Aging and eNGAS-generated GL of the Tax Receivable account

day after the end of the quarter; to RCD for reference, and to RAD for consolidation on/before the sixth (6th)

Receive from RCD the Quarterly Movement of Tax Receivable and the Probability of Collection on/before the eight (8th) day after the end of the quarter:

5. Reconcile balances in the Movement of Tax Receivable against the balance in

the eNGAS-generated GL;

6. Coordinate any identified discrepancy with RCD: and

Disclose in the Notes to FS the Movement of Tax Receivable and Probability of Collection.

.oysa ADMIN NIT B . ENTO 2 1 2025 MAR R DhS H AINTERNANTREN A R The RCD shall: Reconcile the balances of the Unpaid Revenue General Ledger and the eNGAS Receive from RFD the Aging and eNGAS-generated quarterly GL of the Tax quarter; Receivable account for reference on/before the 6th day after the end of the

generated GL of Tax Receivable;

3 Prepare the Quarterly Movement of Tax Receivable and the Probability of

Collection using the following format:

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REPUBLIC OF THE PHILIPPJNES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

T BAGONG Bringing In Revenues for Nation-Buiiding PILEPINAS

Movement and Level of Collectability of Tax Receivables

For the Revenuc Region No. Quarter of

Movement of Ending Level of Collectability of Unpaid Revenues Inventory ARDA During the Period Beginning Inventory 2 --.There is a low possibility that the Unpaid Revenues can be collected 1 -- There is a high possibility that the Unpaid Revenues can be colfected LESS: Unpaid Revenues Classified as "Suspense" IESS: Unpaid Revenues Classified as "Eligible for Writc-off ADD/(LESS): Adjustments "LESS: Closed Cases Ending Balance as of Beginning Balance as o ADD: NewIy Created Unpaid Revenucs i. Potentially Collectible b..SAT. Unpaid Taxes due per Return d. FAN with Final and Executory Dccision of the Court iii. Classified as "Eligible for Write-off ii.Classified as "Suspense" a.... SAT - Unredeemed Dishonored Checks C."SAT - Unpaid Sccond Installment ii.Classificd as "Suspense Hi.Classified as "Eligible for Write-off * Potentially Collectible PARTICULARS Total Ending Balance Total Ending Balance Total Total T'otal Dockets No. of Cases Amount. Net

4 Submit to RFD for disclosure in the ROCB Notes to FS, and to ARMD for

consolidation on/before the eight (8th) day after the end of the quarter.

E S 2 1 2025 MAR B H RFINTEN AHEVI C L The ARMD shaHI: Receive from RCD the Movement of Tax Receivable and Probability of Collection on/before the 8th day after the end of the quarter;

w.4s B t H # account per ROCB on/before the 8th day after the end of the. quarter: Receive from RAD the Consolidated Aging and balance of the Tax Receivable

Check the correctness of details of both reports and reconcile:

4 Consolidate all Movement of Tax Receivables and Probability of Collection

from all RRs; and

5 Submit to RAD the Consolidated Movement of Tax Receivable and Probability

of Collection on the tenth (1Oth) day after the end of the quarter for disclosure in the consolidated Notes to FS of the NGCB.

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BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Bringing In Revenues for Nation-Building PILIPINAS BAGONG

The RAD shall:

1 Receive from RFD the Aging and eNGAS-generated GL of the Tax Receivable

account on/before the 6th day after the end of the quarter:

2 Prepare the Consolidated Aging and balance of Tax Receivable account;

3 Transmit to ARMD the Consolidated Aging and balance of Tax Receivable account on/before the 8th day after the end of the quarter;

4 Receive from ARMD the Consolidated Movement of Tax Receivable and

Probability of Collection on or before the 1oth day after the end of the quarter; and

5 Disclose in the NGCB Notes to FS the Consolidated Movement and Probability

of Collection of Tax Receivables.

IV. REPEALING CLAUSE

This Order repeals all existing issuances that are inconsistent herewith

V. EFFECTIVITY *

t This order shall take effect immediately.

Rv UYA GUI, JR.

issioner of Internal Revenue

J3RAD Gde

D rreay gF internal revenue RVISION

MAR 21 2025

ADM;h tmIT Jy y HME 9.YST

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