Internal Revenue Commissioner Kim Jacinto-Henares has ordered an inventory of all cash register machines (CRMs), point-of-sales (POS) machines, special purpose machines (SPMs) and other similar machines generating sales invoices or receipts.
The mandate came in the wake of a Treasury report that, while the main collection arm of the government continues to report expanding revenues, such has grown at a slower-than-expected pace of only 3 percent in April.
Henares issued Revenue Memorandum Circular 36-2015 ordering the mandatory one-time submission by taxpayers of their inventory of these machines to effectively supervise and monitor the issuance of sales invoices and receipts by business establishments using these machines.
Earlier, Henares issued an order to all offices of the Bureau of Internal Revenue (BIR) to stop issuing provisional permits to use CRMs, POS machines and other similar machines because the provisional permits were found to be prone to abuse.
Under the new circular, taxpayers shall submit by July 31, 2015, the inventory of CRMs, POS, SPMs and other similar machines that they are using for purposes of validation by the BIR.
“This circular is hereby issued to require the submission by all concerned taxpayers of Inventory List, as of June 30, 2015, of all CRMs/POSs/SPMs and/or any other similar machines generating sales invoices/receipts used by business establishments in business operations or otherwise, and are physically located in said business premises, for purposes of validation,” the circular said.
The inventory list shall be submitted along with a notarized Sworn Declaration signed by the taxpayer or an authorized officer, if the taxpayer is a juridical entity, certifying to the veracity of the information contained in the inventory.
In cases where the taxpayer is a juridical entity, the sworn declaration should be signed by any principal officer duly designated through a board resolution issued for the purpose, and sworn to by such officer and by the corporate treasurer or assistant treasurer.
In cases wherein the taxpayer is an individual who authorizes another person to submit the inventory, the submission must be accompanied by a notarized special power of attorney.
The noncompliance with the submission of the inventory shall result in the automatic revocation of the taxpayer’s permit to use the said machines; immediate post-evaluation of the said machines; imposition of penalties, and; inclusion in the priority audit program of the concerned investigating Revenue Office.
“The payment of the appropriate penalty shall not relieve the taxpayer from the submission of the prescribed Inventory List. The BIR shall enforce appropriate measures in order to ensure that the taxpayer shall fully comply with the provisions of this circular,” the circular said.
Upon the submission of the inventory list to the appropriate BIR office, the said offices shall validate the information and shall, in appropriate cases, approve the pending applications for cancellation/withdrawal for use, either by retirement or sale of the machines, to ensure that the purpose of the one-time validation or updating of the inventory of the machines is achieved.
The guidelines as to the forms to be used in the submission of the inventory list are provided for in the said circular which can be found at the BIR web site.