QuestionsQuestions (LETTER OF INSTRUCTION NO. 497)
To authorize the Central Bank, Department of Finance, and BIR to modify and expand the existing system of effecting tax payments through banks, and to ensure proper reimbursement to the Central Bank for expenses incurred in assisting tax collection for the National Government.
They must be booked as Central Bank accounts receivable from the National Government.
Executive Orders Nos. 2 (Jan. 5, 1966), 206 (Jan. 9, 1970), 339 (Sept. 9, 1971), and 425 (Feb. 16, 1974), Republic Act No. 6125, and Presidential Decree No. 230, plus other future directives requiring Central Bank participation.
All such expenses in assistance to the National Government must be treated as accounts receivable from the National Government.
The Central Bank of the Philippines and the Bureau of Internal Revenue.
The system may be expanded as may be warranted, through the authorized changes by the Central Bank and BIR.
The Secretary of Finance is authorized to set up, within the Department of Finance, the BIR, and the Bureau of Customs, the necessary counterpart office units, personnel complement, and facilities.
It authorizes the Central Bank to advance additional expenses incurred in connection with the implementation, and those advances must likewise be treated as Central Bank accounts receivable from the National Government.
It states that the necessary funds for liquidation shall be drawn by the Central Bank from its profits under Section 41 of the Central Bank Charter.
It creates a receivable claim by the Central Bank against the National Government, establishing a formal reimbursement mechanism for tax collection assistance expenses.
It recognizes that using the banking system facilities is very effective in government collection efforts and directs expansion/changes to strengthen this mechanism.
No. It covers activities in assistance to the National Government implementing the cited laws and also extends to such other laws, presidential orders, and directives that may hereafter be promulgated requiring Central Bank participation.
The President issues the directive; the Secretary of Finance sets up counterpart offices and authorizes Central Bank advances; the Central Bank and BIR modify/expand the tax payment system through banks; and reimbursement is handled by treating expenses/advances as receivables liquidated from Central Bank profits under Section 41 of its Charter.