QuestionsQuestions (BOC MEMORANDUM CIRCULAR NO. 56-2000)
It aims to prevent problems and ensure proper procedures in the application and use of Tax Credit Certificates (TCC) through Tax Debit Memos (TDM), by requiring regular posting, correct limits on application, proper attachment of balance pages, and countersigning/acceptance signatures.
Non-posting of the last transactions/payments on the back of the TCC; over application of TDM; non-attachment of the page showing the last balance of the TCC; and failure of the authorized officer to countersign postings indicating the actual amount used.
It prevents the TDM office from verifying the updated balance and remaining usable amount of the TCC, increasing the risk of wrongful approval or mismatch in the amount applied.
It refers to using or applying the TCC beyond the amount of TDM actually granted/approved by the One-Stop Shop Inter-Agency tax credit and duty drawback center.
Because without the attached page showing the latest balance, the TDM approving authority cannot accurately confirm how much credit remains available for the requested TDM.
Countersigning serves as verification of the actual amount used and the legitimacy of the postings; failure to do so undermines auditability and increases the risk of errors or irregularities.
Regular posting of the last transactions/payments and attaching the page showing the latest balance; applying the TCC only up to the TDM amount granted; and requiring signatures of the authorized officer accepting payments at the back of the TCC.
It is the office within the Department of Finance that handles TCC and TDM-related matters, including granting the amount covered by TDM applications and receiving related documents.
The Chief must closely supervise and counter-initialize the posting of the transaction/COR at the back of the TCC.
It ensures the taxpayer’s use of tax credits matches the official approval and prevents over-utilization of the TCC beyond what is authorized.
The TDM (Tax Debit Memo) is applied for; the underlying instrument used is the TCC (Tax Credit Certificate), whose updated postings/balance must support the TDM request.
Because the enumerated problems are recurring and can result in incorrect tax credit utilization; strict compliance is meant to prevent commission of similar errors/irregularities.
The authorized officer should sign and certify the acceptance of payments/postings at the back of the TCC, in addition to ensuring the postings are accurate, countersigned, and supported by the latest balance page.
It would be a deficiency in the application that could prevent proper verification of remaining credit and thus obstruct or invalidate processing until corrected.
By requiring updated postings of payments/transactions, attaching the latest balance, limiting usage to approved TDM amounts, and using signatures/countersignatures plus supervision and counter-initialing for verification.