RMO No. 41-2004 — Prescribes the policies and procedure in the implementation of the BIR SMS Raffle Promo:"Bayan I-Txt ang Resibo 2004" Digest | Full Text | Annex A | Annex A1 | Annex B | Annex C | Annex C1 | Annex D | Annex D1

REPUBLIKA NG PILIPINAS KAGAWARAN NG PANANALAPI KAWANIHAN NG RENTAS INTERNAS August 16, 2004 REVENUE MEMORANDUM ORDER NO. 41-2004 SUBJECT : BIR SMS Raffle Promo: "Bayan I-txt ang Resibo 2004" TO : All Assistant Commissioners, Regional Directors, Revenue District Officers and Other Internal Revenue Officers Concerned _________________________________________________________________ The issuance of receipts is one of the most indispensable aspects of effective tax administration. To emphasize this fact, the Bureau has implemented over the years a series of raffle promos intended to encourage the public to habitually ask for receipts for their purchases of goods and services, and in so doing compel sellers of goods and service providers to issue receipts. Among the more recent of these raffle promos were the "Bayan I-txt ang Resibo Parts I & II" which were successfully concluded last year. Considering the success of these undertakings, and the need to continually encourage the public to ask for receipts and ensure the issuance of receipts by business establishments, "Bayan I-txt ang Resibo 2004" will be implemented again (through this Order). As in previous promotions, this latest raffle of receipts will continue to make use of the Short Messaging System (SMS), popularly known as text messaging, in keeping with the current developments in Information and Communications Technology (ICT). I. Objectives This Order is being issued to: 1. Improve tax awareness by encouraging consumers to continually demand as a matter of practice official receipts for goods purchased and services rendered; 2. Involve the private sector in the government's aim to increase revenue collection;

3. Promote voluntary compliance from taxpayers and thereby generate revenues; and 4. Enhance the bureau's databank for data mining and effective tax audit. II. Definition of Terms 1. Valid Entry � is an entry that contains the required receipt information sent by a consumer via the SMS. A valid entry entitles a consumer to join the raffle promo. 2. Wrong Entry - is an entry that lacks one, some or all of the required receipt information sent by a consumer via the SMS. A wrong entry does not entitle the consumer to join the raffle promo. 3. Official Receipt (OR) � is a receipt issued for the payment of services rendered or goods sold. It contains the following information: a. Business name and address; b. Taxpayer Identification Number (TIN); c. Name of printer (BIR Permit No.) with inclusive serial number of booklets and date of issuance of receipts. This term shall likewise include machine-validated utility bills or statements of account that bear the above information (3.a � 3.c). It does not however include credit card statements of account or similar documents showing items/transactions (purchases of goods or services) evidenced by individual receipts of invoices 4. Sale Invoice (SI)/Cash Invoice (CI) � is a written account of goods sold or services rendered and the prices charged therefor used in the ordinary course of business evidencing sale and transfer or agreement to sell or transfer of goods and services. It contains the same information found in an Official Receipt. 5. Cash Register Machine/Point of Sales (CRM/POS) Receipt � is a receipt generated from machines that may or may not be electronically connected to a Computerized Accounting System (CAS) or to a central server. It contains the information as provided for in Section II.3 hereof. 2

6. Spurious Receipt � is a receipt that lacks one, some or all of the elements of a valid receipt. 7. Weekly Draw � The weekly draw shall cover the days preceding the day of the weekly draw as specified in Section III.1.a hereof (e.g. September 8 to September 30 for the October 1, 2004 draw date; November 26 � December 2 for the December 3, 2004 draw date). 8. Monthly Draw � The monthly draw shall cover the days prior to the day of the monthly draw as provided for in Section III.1.b hereof (e.g. September 8 to October 28 for the October 29, 2004 draw date; October 29 - November 25 for the November 26, 2004 draw date). 9. Christmas Draw � The Christmas draw shall cover the period from September 8, 2004 to December 15, 2004. 10. Bonanza Draw � The Bonanza draw shall cover all receipts sent or entered prior to the date of the said draw which shall be held if there are accumulated savings from the allotted fund. III. Policies In order to attain the objectives, the following policies are hereby prescribed: 1. The raffle of official receipts shall be centralized, preferably in the national office, the draw and conduct of which may be televised, as follows: a. Weekly Draw � there shall be drawn weekly winners in each of the nineteen (19) BIR Revenue Regions to be held on the following dates: October 1, 8, 15, 22 & 29, 2004 November 5, 12, 19 & 26, 2004 December 3, & 10, 2004 b. Monthly Draw � there shall be nationwide monthly draws to be held on the following dates: 3

October 29, 2004 November 26, 2004 c. Christmas Draw - there shall be a nationwide christmas draw to be held on December 17, 2004. d. Bonanza Draw � there shall be a bonanza draw to be announced by the BIR if the condition for its holding arises as provided for in Section II.10 hereof. 2. All Official Receipts, SI/CI and CRM/POS receipts issued by professionals, private business and/or commercial establishments for purchases of goods and services by consumers shall qualify for the raffle. 3. Provisional or temporary receipts, delivery receipts and similar receipts or invoices other than those mentioned in paragraph 2 of this section CANNOT qualify or be entered even if the corresponding original official receipt or invoice is presented to the Receipt Verification Team/s upon claiming the prize won by such entry. 4. The following information must appear in the official receipts or invoices: business name and address; TIN; date of issuance; amount of purchase; and BIR Permit Number. The lack of one information shall render the entry void and therefore disqualified except in the case of receipts issued out of BIR-registered CRM/POS machines. 5. Only official receipts, SI/CI and CRM/POS receipts with total purchases amounting to at least P100.00 can be entered in the promo. 6. An entry with a minimum purchase of P100.00 shall entitle the consumer to one (1) raffle chance. The higher the amount shown in the entry, the more raffle chances are given. For instance, a single official receipt amounting to P300.00 shall entitle the consumer to three (3) raffle chances. 7. Texters joining the raffle promo must be individuals or natural persons. Thus, juridical entities like corporations CANNOT join the promo. 8. There shall be no replacement for the disqualified winner. 9. The text promo shall have the following prizes (for details please refer to Section V of this RMO): 4

a. Weekly Draw Prizes of P25,000.00; b. Monthly Draw Prizes of P1,000,000.00; and c. Christmas Draw total prize of P3,150,000.00. 10. The Taxpayer Information and Education Division (TIED), Tax Assistance Units (TAU) in Revenue Regions and Revenue District Offices and the BIR Contact Center shall assign telephone lines to be used for complaints by taxpayers against professionals/business/commercial establishments for non-issuance of official receipts. 11. A consumer who reports via SMS to the BIR the name and address of the professional/business/commercial establishment, which did not issue a receipt, may be entitled to a cash prize equivalent to ten percent (10%) of the penalties imposed and collected but not to exceed P1,000.00 per establishment regardless of the number of official receipts not issued which prize shall be taken from the P50 Million appropriated for maintenance and other operating expenses as provided for under Special Provision No. 2 of the FY 2003 General Appropriations Act (Reenacted). The cash prize shall be awarded after verification and investigation by the concerned RDO � that the report has been found to be true and the corresponding assessment has been made and the penalties are imposed AND collected � and likewise, after the concerned RDO has submitted to the NO � Budget Division a certification stating among others that the penalty has been collected and remitted by the collecting Accredited Agent Bank (AAB). Furthermore, award of the cash prize shall be made after funding requirements thereof has been determined by the concerned BIR office. 11. The SMS Raffle Promo Task Force created under a Revenue Special Order for this purpose (Raffle Promo 2004) shall be responsible for the overall control, monitoring, and evaluation of the implementation of the raffle project and shall undertake all the necessary activities related to the BIR Raffle Promo. 12. The Receipt Verification Teams (RVT) being referred in this issuance are the same teams created per RMO 19�2003 relative to the guidelines in the verification of receipts submitted as entries in Parts I & II of the 2003 BIR Text Raffle Promo entitled "Bayan, I-txt ang Resibo," namely: 5

Revenue District Office (RDO) Receipt Verification Team shall be composed of the following: Head: Assistant Revenue District Officer (ARDO) Members: Taxpayer Assistance Section (TAS) Large Taxpayers District Office (LTDO) Receipt Verification Team shall be composed of the following: Head: Assistant Chief, LTDO Members: LTDOs' Tax Assistance Unit National Office (NO) Receipt Verification Teams shall be composed of the following: Team I Head: Assistant Chief, Large Taxpayers Assistance Division I (LTAD I) Members: LTAD I personnel Team II Head: Assistant Chief, Large Taxpayers Assistance Division II (LTAD II) Members: LTAD II personnel IV. Mechanics 1. Receipts and Invoices issued beginning September 8, 2004 up to December 15, 2004 by professionals engaged in the practice of their professions and private commercial/business establishments shall qualify for the raffle promo. Such receipts and invoices must be in the actual, unqualified, unconditional and incontestable possession and/or ownership of the texter and can be presented immediately upon demand by any of the participating BIR offices. Thus, receipts or invoices in the name of another (other than the texter) SHALL REQUIRE PROOF OF POSSESSION AND USE OF THE SAME. Receipts and Invoices issued to juridical persons like partnerships and corporations are disqualified from being entered in the promo. Likewise, receipts or invoices supposedly issued by the texter, his representative or business cannot be entered by himself or any of his representatives including relatives by consanguinity or affinity. 6

Furthermore, those acquired in the course of trade or business cannot be entered. 2. For the initial entry, subscriber should register and text in to the BIR access number via SMS the following: � Name; � Address; � TIN of professional/business/commercial establishment; � Receipt number; and � Amount of purchase. Format: RESIBO(SPACE)NAME*ADDRESS*TIN OF PROFESSIONAL/BUSINESS/COMMERCIAL ESTABLISHMENT*RECEIPTNUMBER*AMOUNT OF PURCHASE Example: RESIBO JUAN DELA CRUZ*8 TATALON HOMES QC*888888888888*99999*800.00 3. For the succeeding entries, the subscriber will only send the following information: � TIN of professional/business/commercial establishment; � Receipt number; and � Amount of purchase. Format: RESIBO(SPACE)TIN OF PROFESSIONAL/BUSINESS/COMMERCIAL ESTABLISHMENT*RECEIPT NUMBER*AMOUNT OF PURCHASE Example: RESIBO 777777777777*56789*900.00 4. Professionals/business/commercial establishments which did not issue a receipt upon taxpayer request can be reported to the BIR via SMS, with the following information: � Name of professional/business/commercial establishment; and � Address of professional/business/commercial establishment. Format: NO(SPACE)OR(SPACE)NAMEOF PROFESSIONAL/BUSINESS/COMMERCIAL ESTABLISHMENT(SPACE)ADDRESS OF 7

PROFESSIONAL/BUSINESS/COMMERCIAL ESTABLISHMENT Example: NO OR LUCIO RETAIL 15 BINONDO MLA 5. All qualified entries shall be electronically drawn using a random- selection software. 6. All qualified entries (receipts and Invoices) shall be entered in the weekly draw that covers the week in which they were entered as well as in the succeeding monthly, bonanza and Christmas draws, if such entries were not drawn as winners in the preceding (weekly, bonanza or monthly) draws. 7. A texter sending several entries (receipts) is qualified to win more than one prize in any of the draws; provided, however, that one raffle entry shall be entitled to only one prize. 8. Several entries containing the same information shall be considered only as one (1) entry. The texter who first sent the entry shall be credited with the entry. 9. For the Weekly Draw, the following rules shall apply: a) A lucky texter electronically drawn in the weekly draw shall be informed through text within one (1) working day from the draw date that he/she won in the text promo; b) Per text advisory, the winner shall call and inform the BIR Contact Center (BIRCC) as to where he/she prefers to claim the prize. The winner has the option to choose the office from which to claim the prize: the National Office (NO) or Revenue District Office (RDO). The winner shall not be limited to claim the prize from the RDO where he/she is registered; c) The BIR Contact Center Desk shall then inform the BIR office (NO or RDO) where the winner will claim the prize and which office shall expect the said winner for verification. BIRCC shall likewise inform the Taxpayer Assistance Service (TAS) and TIED; d) If the winner claims the prize in the NO, the winner shall proceed to the Large Taxpayer Assistance Division I (LTAD I) or the Large Taxpayer Assistance Division II (LTAD II) Verification Team. 8

Otherwise, the winner shall proceed to the RDO he/she identified and chose; e) The RVTs in the NO/RDO shall entertain the winner regardless of whether or not he/she is registered with the said BIR office; f) The RVTs in the NO/RDO shall: � ascertain the identity of the lucky texter through valid identification papers to be presented by the lucky texter, such as but not limited to Driver's License, GSIS I.D., SSS I.D., TIN Card, Company I.D., School I.D., Voter's I.D., or Passport; and � properly validate the content of the text message received by the texter notifying him/her as winner (if details are consistent and correct) and the original receipt, which was used by the said texter as basis of the entry. g) After proper validation, the RVTs in the NO/RDO shall: � issue a "Claim Your Prize Notice" to the winning texter (see Annex "A"), which shall contain, among others, when and where to claim the prize; � ask the winner to sign a waiver which declares, among others, that he/she has no BIR relatives within the 2nd degree of consanguinity or affinity" (see Annex "B") and send the same to NO � Personnel Division for verification; � get the original receipt (the winning entry) and reproduce certified true copies of the same; � immediately notify the NO � Financial and Administrative Service (NO � FAS), through fax or other means, of the name and address of the winning texter signifying that it has been duly validated (see Annex "C"); � forward the duly validated original receipt and a copy of Annex "C" to the NO � TAS / Regional Office (RO) � Administrative Division, within one (1) working day after validation. 9

h) The NO � FAS shall cause the transfer of funds for the prizes to the RO � Finance Division concerned, if the prize would be claimed in the RO/RDO, within one (1) working day following the receipt of the notification; i) The RO � Administrative Division shall: � Prepare the Disbursement Voucher and check upon receipt of the duly validated original receipt and copy of Annex "C" for the winning texter; and � release the check to the winner upon surrender of the "Claim Your Prize Notice". In cases where the winner is situated in an area far from the Regional Office, the check shall be forwarded to the RDO that validated the receipt for its release to the winner. j) The NO � TAS shall prepare the Disbursement Voucher upon receipt of the duly validated original receipt and copy of Annex "C" for the winning texter and then forward said voucher together with the supporting documents to NO � Budget Division for funding; k) The NO � General Services Division shall thereafter prepare the check and release it to the winner upon surrender of the "Claim Your Prize Notice." 10. For the Monthly / Christmas Draw, the following rules shall apply: a) A lucky texter electronically drawn in the monthly/christmas draw shall be informed through text within one (1) working day from the draw date that he/she won in the text promo; b) Per text advisory, the winner shall call and inform the BIRCC as to where he/she prefers to claim the prize. The winner has the option to choose the office from which to claim the prize: NO or RDO. The winner shall not be limited to claim the prize from the RDO where he/she is registered; c) The BIRCC shall then inform the BIR office (NO or RDO) where the winner will proceed for validation. It shall likewise inform the Taxpayer Assistance Service (TAS) and TIED; 10

d) The Receipt Verification Teams in the NO/RDO shall entertain the winner regardless of whether or not he/she is registered with the said BIR office; e) The Receipt Verification Teams in the NO/RDO shall: � ascertain the identity of the lucky texter through valid identification papers to be presented by the lucky texter such as but not limited to Driver's License, GSIS I.D., SSS I.D., TIN Card, Company I.D., School I.D., Voter's I.D., or Passport; and � properly validate the content of the text message received by the texter notifying him/her as winner and the original receipt, which was used by the said texter as basis of the entry. f) After proper validation the Receipt Verification Team in the NO/RDO shall: � issue a "Claim Your Prize Notice" to the winning texter (see Annex "A"), which shall contain, among others, when and where to claim the prize; � ask the winner to sign a waiver which declares, among others, that he/she has no BIR relatives within the 2nd degree of consanguinity or affinity" (see Annex "B") and send the same to NO � Personnel Division for verification; � get the original receipt (winning entry) and reproduce certified true copies of the same; � immediately notify the NO � Financial and Administrative Service (NO � FAS), through fax or other means, of the name and address of the winning texter signifying that it has been duly validated (see Annex "C"); � forward the duly validated original receipt and copy of Annex "C" to the NO � TAS / RO � Administrative Division, within one (1) working day after validation; and � endorse the certified true copy of the receipt to the BIR office (LTAD I/II, LTDO, or RDO) where the merchant (issuer) is registered, in case of the Christmas Draw (December 17, 2004) winners only for validation of the receipt issuer. 11

g) The NO � FAS shall cause the transfer of funds for the prizes to the RO � Finance Division concerned, if the prize would be claimed in RO/RDO, within one (1) working day following the receipt of the faxed notification; h) The RO � Administrative Division shall: � Prepare the Disbursement Voucher and check upon receipt of the duly validated original receipt and copy of Annex "C" for the winning texter; and � Release the check to the winner upon surrender of the "Claim Your Prize Notice". In cases where the winner is situated in an area very far from the Regional Office, the check shall be forwarded to the RDO that validated the receipt for its release to the winner. i) The NO � TAS shall prepare the Disbursement Voucher upon receipt of the duly validated original receipt and copy of Annex "C" for the winning texter and then forward said voucher together with the supporting documents to NO � Budget Division for funding; j) The NO � General Services Division shall thereafter prepare the check and release it to the winner upon surrender of the "Claim Your Prize Notice"; k) 1) The Receipt Verification Team of the merchant (Christmas Draw Winner) upon receipt of the certified true copy of the receipt shall: � validate the authenticity of the receipt vis-�-vis registration data per RMO 19-2003; � if valid: a) notify the issuer through mail that he/she won, indicating the date when and office where the prize could be claimed (see Annex "D"); b) immediately notify NO � FAS through fax or other means, of the name and address of the merchant (receipt issuer) signifying that it had been duly validated (see Annex "C"); 12

c) forward the duly validated certified true copy of the receipt and copy of Annex "C" to the NO � TAS / RO � Administrative Division, within one (1) working day after validation. � if invalid, submit the findings through the Revenue District Office to the NO � National Investigation Division / RO � Special Investigation Division (RO � SID), whichever is applicable. 2) The NO � FAS shall cause the transfer of funds for the prizes to the RO � Finance Division concerned, if the prize would be claimed in the RO/RDO, within one (1) working day following the receipt of the notification; 3) The RO � Administrative Division shall: � Prepare the Disbursement Voucher and check upon receipt of the duly validated certified true copy of the original receipt (owned by the texter) and the copy of Annex "C" for the receipt issuer; and � Release the check to the winner upon surrender of the "Claim Your Prize Notice." In cases where the winner is situated in an area far from the Regional Office, the check shall be forwarded to the RDO that validated the receipt for its release to the winner. 4) The NO � TAS shall prepare the Disbursement Voucher upon receipt of the duly validated certified true copy of the receipt (of the winning texter) and copy of Annex "C", and then forward said voucher together with the supporting documents to NO � Budget Division for funding; 5) The NO � General Services Division shall thereafter prepare the check and release it to the winner upon surrender of the "Claim Your Prize Notice." 11. Prizes not claimed within sixty (60) days from notification shall be forfeited in favor of the BIR. 13

12. The list of winners for the weekly, monthly, bonanza and christmas draws shall be published in a national paper of general circulation, on a monthly basis. Such list shall also be posted at BIR National Office as well as in its Regional and District Offices. 13. In cases where the entry sent via the SMS is spurious, the seller who issued such receipt shall be subject to audit and investigation. 14. BIR employees and their relatives up to the second degree of consanguinity or affinity are disqualified from joining the raffle promo. Employees and officials of SMS service providers and other raffle promo Partners are prohibited from joining the raffle promo. V. Draw Dates and Prizes DRAW DATES PARTICULARS TOTAL (Php) WEEKLY DRAWS October 1, 8, 15, 22, 29 2 winners for each RO @ P25,000.00 4,750,000.00 (texter) November 5, 12, 19, 26 2 winners for each RO @ P25,000.00 3,800,000.00 (texter) December 3, 10 2 winners for each RO @ P25,000.00 1,900,000.00 (texter) 10,450,000.00 TOTAL MONTHLY DRAWS October 29 1 winner @ P1,000,000.00 (texter) 1,000,000.00 November 26 1 winner @ P1,000,000.00 (texter) 1,000,000.00 TOTAL 2,000,000.00 CHRISTMAS DRAW December 17 3 winners @ P1,000,000.00 each 3,000,000.00 (texter) 150,000.00 3 winners @ P 50,000.00 each (issuer) To Be Announced (TBA) TOTAL 3,150,000.00 BONANZA DRAW TBA Tax on Prizes have been paid 14

VI. Monitoring of Official Receipt sent via SMS 1. After the conduct of the raffle promos, the SMS Raffle Task Force shall send exception reports of entries with invalid TINs to the Receipt Verification Teams of the Raffle Promo for evaluation and appropriate action. 2. The Receipt Verification Teams shall develop and implement a system for checking and verifying the system-generated discrepancy reports transmitted by the SMS Raffle Task Force. 3. The Receipt Verification Teams through the Enforcement Service shall prepare and submit to MANCOM a report on the checked and verified receipts. 4. If warranted, the National Investigation Division (NID) or Special Investigation division (SID) shall conduct and investigate spurious receipts or invoices issued to texters through Letters of Authority, if the issuance is warranted. 5. The Receipt Verification Team shall coordinate with SIDs of the Revenue Regions and the NID of the National Office in the implementation of the system. 6. Reports of Non-Issuance of Official Receipts (NO OR) by texters shall be handled by TIED. Monitoring of actions taken thereon including assessment and collection of penalties shall likewise be handled by the same office. It shall likewise coordinate with the Business intelligence Task Force in this task. 7. All verifications and investigations shall be done in accordance with the procedures provided under rules and regulations. VII. Effectivity This order takes effect immediately. (Original Signed) GUILLERMO L. PARAYNO, JR. Commissioner of Internal Revenue 15