It is based on Section 1 of BSP Revised Circular No. 472 (Series of 2005), which amends Subsection X304 of the Manual Regulations for Banks (MORB), and BIR Regulations No. 4-2005 implements that BSP requirement.

All bank borrowers and co-makers, including situations where the credit applicant may be an endorser, surety, and/or guarantor, if applicable.

A statement of assets and liabilities and of income and expenses, plus (1) a copy of the latest ITR stamped as received by the BIR, (2) the latest financial statements submitted for taxation purposes to the BIR if engaged in business, and (3) a waiver/authority allowing the bank to verify authenticity with the BIR and/or waive confidentiality of client information.

(a) For taxpayers already with an Annual ITR: the ITR for the preceding tax year (calendar or fiscal year). (b) For new establishments: the most recent quarter's ITR.

FS must include the balance sheet, statement of income, statement of changes in equity, and statement of cash flows, together with all notes to the statements.

Only financial statements audited by external auditors accredited by the SEC shall be acceptable.

EFPS is the internet-based BIR system for paperless filing of tax returns and payment, and submission of certain tax information, including financial statements and related schedules; it also supports loan compliance by enabling download of filed ITRs from the BIR Portal.

Returns filed with AABs or through EFPS with the corresponding reference number are deemed duly stamped and received by the BIR.

By checking for authenticity either by telephone to the BIR Contact Center (Tel 981-8888) or through the BIR Portal.

The bank must fax a copy of the tax return to the BIR Contact Center with a covering letter requesting verification, including the bank name, contact person, bank telephone/fax number, applicant/co-maker name, and TIN, and the applicant’s telephone/fax numbers.

Banks must fax an Authenticity Verification Request to the BIR Contact Center (Tel 981-8888) attaching the FS to be verified, and include specified details such as bank name, contact person, fax/telephone numbers, applicant name and TIN, and total revenues in the FS.

To allow the bank to access verification mechanisms and conduct checks to establish the authenticity of the ITR and accompanying financial statements submitted by the client.

It means inconsistencies may affect the evaluation of the applicant’s financial capacity and creditworthiness, as banks will review and consider whether reported figures align across documents.

To provide a system ensuring banks can comply with BSP Circular 472-2005 and to ensure only tax-compliant applicants are allowed to apply for credit, including as co-makers, endorsers, sureties, or guarantors.

It emphasizes providing a process for tax-compliant applicants to obtain the required documents and comply with the submission requirements, with EFPS noted as a key facility.

They take effect fifteen (15) days after publication in any newspaper of general circulation.