Legal basis and amended law
- Republic Act No. 1603 amends provisions of Act Numbered Thirty-nine hundred and ninety-two, otherwise known as the Motor Vehicle Law, as amended.
- Republic Act No. 1603 amends Section 4, Article III, Chapter I of the Motor Vehicle Law.
- Republic Act No. 1603 amends Section 5, Article I, Chapter II of the Motor Vehicle Law.
- Republic Act No. 1603 amends Section 12, Article III, Chapter II of the Motor Vehicle Law.
- Republic Act No. 1603 further amends Section 14, Article III, Chapter II of the Motor Vehicle Law.
Definitions (as expressly used)
- Republic Act No. 1603 uses the phrase “tax-free persons, entities, or agencies in the Philippines” as the category from whom motor vehicles may be purchased or acquired.
- Republic Act No. 1603 uses “common carriers or transportation contractors subject to the fixed and percentage taxes” under Sections 182 and 192 of the National Internal Revenue Code.
- Republic Act No. 1603 uses the terms “sales or compensating tax” and “internal revenue taxes” in linking motor-vehicle registration actions to tax payment.
Duty to require proof of tax payment
- The Chief, Motor Vehicles Office and the deputies must require registration applicants to show proof of payment of the sales or compensating tax on motor vehicles purchased or acquired from tax-free persons, entities, or agencies in the Philippines (Section 4, Article III, Chapter One, as amended).
- If the required sales or compensating tax has not been paid, the Chief, Motor Vehicles Office must have the same powers granted in Section 14 of the Motor Vehicle Law (Section 4, Article III, Chapter One, as amended).
- If there is non-payment, the Chief, Motor Vehicles Office must immediately notify the Collector of Internal Revenue of the non-payment (Section 4, Article III, Chapter One, as amended).
Mandatory reporting of purchases or acquisitions
- Any person who purchases or acquires a motor vehicle from tax-free persons, entities, or agencies in the Philippines must, within fifteen days from the purchase or acquisition, render a report to the Chief, Motor Vehicles Office (Section 5, Article I, Chapter II, as amended).
- The report must state:
- the name and address of the person, entity, or agency from whom the motor vehicle was acquired;
- the date of purchase or acquisition;
- the manufacturer’s serial number and motor number;
- a brief description of the vehicle; and
- whether or not the sales or compensating tax on the vehicle has already been paid (Section 5, Article I, Chapter II, as amended).
- The report must also include such other information as the Chief, Motor Vehicles Office may require (Section 5, Article I, Chapter II, as amended).
- The Collector of Internal Revenue must be furnished with a copy of the report within the same period (Section 5, Article I, Chapter II, as amended).
- Failure to submit the required report constitutes an offense punished by a fine of not more than two hundred pesos or imprisonment of not more than six months, or both, at the discretion of the court (Section 5, Article I, Chapter II, as amended).
Registration issuance requirements for certain carriers
- Upon receipt of an application for registration with the corresponding fee, the Chief, Motor Vehicles Office or deputies must cause the application to be registered or filed for future reference, and must issue a numbered certificate of registration to the applicant for each separate motor vehicle (Section 12, Article III, Chapter II, as amended).
- No certificate of registration may be issued to common carriers or transportation contractors subject to the fixed and percentage taxes under Sections 182 and 192 of the National Internal Revenue Code unless the applicant shows evidence of payment of the required taxes for the period up to and including the calendar quarter immediately preceding the date of application for renewal of registration (Section 12, Article III, Chapter II, as amended).
- Evidence of payment may consist of:
- a tax clearance certificate issued by the Collector of Internal Revenue (if in Manila) or by his deputies (if in the provinces); or
- the official receipts under which the taxes were paid (Section 12, Article III, Chapter II, as amended).
- Any evidence presented must be noted on the certificate of registration by the issuing officer (Section 12, Article III, Chapter II, as amended).
Suspension of registration and plate surrender
- If, on inspection under Section four (h), the Chief, Motor Vehicles Office or deputies find a motor vehicle to be unsightly, dangerous, overloaded, or capable of causing excessive damage, the Chief may refuse to register the vehicle or may require the number plates to be surrendered (Section 14, Article III, Chapter II, as amended).
- After requiring surrender or refusal, the Chief must provide seventy-two hours notice to the owner or operator and may suspend registration until the defects are corrected (Section 14, Article III, Chapter II, as amended).
- If the record of any motor vehicle or its chauffeur shows, within a twelve months period:
- more than three warnings to the owner or chauffeur for violations of the Motor Vehicle Law or the Public Service Acts, or
- more than one conviction by the Courts,
the Chief, Motor Vehicles Office may suspend the certificate of registration and require surrender of the number plates for a period not to exceed sixty days, in his discretion or upon recommendation of the Public Service Commissioner (Section 14, Article III, Chapter II, as amended).
- Upon recommendation of the Collector of Internal Revenue due to failure or refusal to pay internal revenue taxes, the Chief, Motor Vehicles Office may suspend certificates of registration of motor vehicles of common carriers and transportation contractors and require surrender of the license plates within a period of sixty days (Section 14, Article III, Chapter II, as amended).
- After two such suspensions, the owner may be refused re-registration of the vehicle concerned for one year (Section 14, Article III, Chapter II, as amended).
- The action of the Chief, Motor Vehicles Office or deputies under this section must be communicated in writing to the owner of the motor vehicle (Section 14, Article III, Chapter II, as amended).