CM 305.6 - PURCHASE BY GOVERNMENT AT SALE OR TAX SALE
When the amount of bid for the property under distraint is not equal to the amount of the tax or it is very much less than the actual market value of the articles offered for sale, the Commissioner or his authorized representative may purchase the same in behalf of the National Government for the amount of taxes, penalties and cost due thereon.
The property so acquired by actual possession/dominion by the government may also be further sold by public/negotiated sale subject to prior approval of the Commissioner of Internal Revenue.
Procedures in the Purchase of Personal Property by the Government at Auction Sale
The RDO/LTDO/LTCED shall:
- Make announcement on the failure of bid and that the government has taken actual possession/dominion over the distrained property;
- Record the same in the inventory of seized personal property (Refer to CM 307- Monitoring Warrant Enforcement and proceed to CM 401 of Chapter IV- Management of Absolutely Forfeited Assets); and
- Prepare a Report of Properties Purchased and/or Forfeited by the Government (Annexes 300-1.48) and submit the same not later than the tenth (10th) day of the following month to the Regional Director thru the Regional Collection Division/LTS thru the LTCED for consolidation and submission to the Collection Service thru the CED not later than the 15th day of the following month (Annex 300-1.49) [Refer to CM 307-Monitoring Warrant Enforcement].
 Section 212 of the NIRC of 1997, as amended.