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CM 207 - RECONCILIATION OF COLLECTION THROUGH SPECIAL ALLOTMENT RELEASE ORDER (SARO)

Reconciliation of Collection Through Special Allotment Release Order (SARO)

Reconciliation of collection through SARO requires validation of probable discrepancies from this source due to unreported collections, inaccurate reporting of collections or the same were not encoded in the ITS. The reconciliation process requires the alignment of the BTr and BIR reports of collection and the records of availment of the tax subsidy.

The RAD shall:

  1. Receive copy of BTr JEV on Tax Expenditure Fund (TEF) covered by SARO and copy of SARO from LTDPQAD/LTDO/RDO;
  2. Prepare BIR JEV on collection from SARO, and record the same in the eNGAS;
  3. Receive the Monthly Report of Tax Subsidy Availment Certificates (TSAC) Issued (Annexes 200-1.17 and 200-1.18) from the LTDPQAD/LTDO/RDO for monitoring purposes;
  4. Reconcile the collection data reflected in the Monthly Report of TSACs Issued with the amount appearing in the SARO issued by the Department of Budget and Management (DBM) to the government agency-grantee of TEF e.g. AFPCES/PNPSS/BCDA;
  5. Coordinate with LTDPQAD/LTDO/RDO on the existence of any availmet discrepancies;
  6. Monitor the response of the concerned office and require the submission of amended Monthly Report of TSACs Issued;
  7. In case of any availment discrepancy. Amend the BIR JEV upon receipt of amended monthly report of TSAC, and record in eNGAS; and
  8. Inform LTDPQAD/LTDO/RDO of the adjustment [Refer to CM 111.2 Payment through SARO-Collection Reporting (RDO/Regional Collection Division)].

The LTDPQAD/LTDO/RDO shall:

  1. Receive request from RAD to validate discrepancies in the issuance of TSAC;
  2. Validate the collection data from TSAC/VSC/SVSC issued with the amount appearing in the issued SARO;
  3. Coordinate with the taxpayer/government-grantee of TEF subsidy for noted discrepancies; and
  4. Amend the report of TEF availment, and submit the same to RAD and the concerned National Office or Regional Collection Division.