RMO No. 30-2021 — Amends the provisions of RMO No. 83-2010 and 13-2014 particularly on the recognition of absolutely forfeited properties in the National Government Books of Accounts Digest | Full Text

@ REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE October 22,2021 il- REVENUE MEM,RANDUM oRDER No. lna'l SUBJECT : Amending the Provisions of Revenue Memorandum Order No. 83-2010 and 13- 2014, Particularly on the Recognition of Absolutely Forfeited Properties in the National Government Books of Accounts. TO All Intemal Revenue Officers and Others Concemed I. GENERAL OBJECTIVE This Order is hereby issued to prescribe general policies and guidelines in the recognition of absolutely forfeited properties in accordance with required financial reporting standards under Paragraph 30-33 ofthe International Public Sector Accounting Standard (IPSAS) 23, in order to comply with COA Circular No. 2020-001 prescribing the Revised Chart of Accounts (RCA) Updated 201 9, Effective January 1 , 2020. II. GENERAL POLICIES AND GUIDELTNES l. All absolutely forfeited real properties shall be recorded in the National Government (NG) Books of Accounts of the Regional Finance Division (RFD), after the lapse of the one-year redemption period, based on the fair value ofthese assets. 2. The fair value of absolutely forfeited real properties shall be determined using the existing published value which is the zonal value ofthese assets at the date offorfeiture. Absolutely forfeited properties with legal issues or encumbrances shall be disclosed in the quarterly Notes to Financial Statements (FS) with details on the fair value of these properties and the nature of said legal issues and encumbrances. 4. An Aging and Breakdown of all absolutely forfeited real properties by classification shall be disclosed in the quarterly Notes to FS for the purpose of monitoring and immediate disposal ofthese properties. 5. All Forfeited Properties Held for Sale shall be recorded in the NG Books using the account title Merchandise Inventory (Account Code 10401010) in accordance to COA Circular No. 2020-00l prescribing the Revised Chart of Accounts (RCA) Updated 2019,Effective January 1,2020, the details of which are as follows: '#ii,w Real Merchandise Levied Real Held for Sale Real properties duly levied in accordance Properties Properties LInveevntioeryd- Real with Section 307 (B) of the NIRC in Property satisfaction ofthe delinquent tax liability. r Page I ol2 EURE AU OF INTERN I rRl a RE(i0FliS {\ GI'.

Eescription Merchandise Acquired/ Held for Sale Levied real properties which have been: Forfeited Real Held for Sale L Inventory - 2. subjected to Pfoubrlficeaituecdtiont,o the Properties Acquired/Forfeited declared Government because there is no Real Property bidder 3. or the highest bid is insufficient to pay taxes, Penalties and costs, in accordance with Section 215 of the NIRC. Forfeited real properties can be redeemed by the delinquent ta.xpayer within I year Personal Merchandise Distrained from the date offorfeiture. Properties Personal Inventory - Properties Personal properties duly distrained or Seized/Distrained Acquired/ garnished in accordance with Section 207 Personal Property Forfeited Personal (A) and 208 of the NIRC. Forfeited Property/ Properties Not Held for Distrained personal properties subjected to Asset Sale public auction and purchased by the * Merchandise Held for Sale Commissioner of Internal Revenue or his Inventory Not Held for Deputy in accordance with Section 212 of Seized/Distrained Personal Properly Sale the NIRC because the bid for the property is not equal to the amount of tax or is very Forfeited Property/ much less that the actual market value of the Asset articles. II I. REPEALING CLAUSE The pertinent provisions of RMO No' 13-2014, RMO 83-2010 and irther relevant revenue issuances which are inconsistent with this Order are hereby repealed, modified or amended accordingly. IV. EFFECTIVITY This order shall take effect immediately. )y"^,\r*1,/ CAESAR R. DULAY i;' o46BBg Commissioner of Internal Revenue