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CM 404.3 - PRIVATE/NEGOTIATED SALE OF ACQUIRED REAL/PERSONAL PROPERTY

Negotiated or private sale of acquired/forfeited real assets shall be resorted to after two (2) failed public biddings, subject to the approval of the Secretary of Finance,  pursuant to the provisions of Section 216 of the NIRC of 1997, as amended. Relative thereto, the administrative remedy of foreclosure sale of levied real properties in payment of taxes where there is no bidder shall not be considered as failed public bidding for purposes of negotiated sale.

Acquired personal property may be resold through private sale or negotiated sale. The requirements of two (2) failed public biddings and approval of the Secretary of Finance can be dispensed.

Procedures for Sale Notification and Acceptance of Offer

The Corporate Communications Division shall:

  1. Post the NOSAFA and/or the invitation to buy BIR-acquired/forfeited assets not through public auction in the BIR

For Negotiated Sale of Acquired Real Property

The RDO/Regional Collection Division shall:

  1. Recommend to the Regional Director the acceptance of offer for negotiated/ private sale of acquired real properties that were not sold at two (2) public auctions under the following procedures:
  • Require the buyer to make a written offer addressed to the Commissioner of Internal Revenue indicating the amount offered and mode of payment;
  • Evaluate if the offer is to the best interest of the government;
  • Prepare a memorandum recommending the acceptance of the offer for negotiated sale; and
  • Secure the approval by the Secretary of Finance, thru the Regional Director and the Commissioner, of the acceptance of the offer to buy the property:
    • If the offer is acceptable to the Commissioner and approved by the Secretary of Finance:
      • Request the Legal Division to prepare the Deed of Sale;
      • Request the buyer to sign the Deed of Sale; and
      • Forward the Deed of Sale, together with the docket of the case to the Regional Director for signature.
    • If the offer is disapproved by the Secretary of Finance:
      • Prepare a letter to the interested buyer informing him/her of the disapproval of the offer; and
      • Request the buyer to increase the offer, if he/she/ is still interested to buy the property.

The Regional Director shall:

  1. Prepare recommendations on applications/offers of negotiated or private sale of acquired/forfeited asset after two (2) failed consecutive biddings and submit the same to the Commissioner, thru the DCIR-OG and ACIR-CS, Attention: Chief­ CED, for necessary review and approval; and
  1. Sign the Deed of Sale.
The CED shall:
  1. Prepare the recommendation to the Department of Finance (DOF) relative to the negotiated sale of acquired/forfeited real assets for the signature of the Commissioner, thru the ACIR-CS and DCIR-OG.
The ACIR-Collection Service, Deputy Commissioners-Operations Group and Legal Inspection Group shall:
  1. Forward to the Commissioner the request for DOF authority for private or negotiated sale of acquired/forfeited real assets, for final review and approval.

The Commissioner of Internal Revenue shall:

  1. Recommend for the approval by the Secretary of Finance the offer for private or negotiated sale of acquired/forfeited real

For Private/Negotiated Sale of Acquired Personal Property

The RDO/Regional Collection Division shall:

  1. Recommend to the Regional Director the acceptance of offer for negotiated/ private sale of acquired/forfeited personal properties; and
  1. Secure prior approval of the Regional Director of the offer to buy the acquired personal properties:
    • If the offer is acceptable to the Regional Director:
      • Request the Legal Division to prepare the Deed of Sale;
      • Request the buyer to sign the Deed of Sale; and
      • Forward the Deed of Sale, together with the docket of the case to the Regional Director for signature.
    • If the offer is disapproved by the Regional Director:
      • Prepare a letter to the interested  buyer informing  him/her of  the disapproval of the offer; and
      • Request the buyer to increase the offer, if he/she/ is still interested to buy the

The Regional Director shall:

  1. Review and approve offer for negotiated or private sale of acquired/forfeited personal asset; and
  1. Sign the Deed of Sale

Procedures for Payment and Reporting of Proceeds of Private/Negotiated Sale 

The RDO/Regional Collection Division shall:

  1. Coordinate acceptance of payment from the buyer upon receipt of the signed Deed of Sale;
  1. Attach copy of the signed Deed of Sale and proof of payment to the docket of the case; record the case as closed and transmit docket to Regional Administrative Division for future reference;
  1. Submit to the Regional Finance Division a copy of the report of Acquired / Forfeited Assets Sold/Disposed thru private/negotiated sale for recording in the NG Books of Accounts (Refer to CM 404.2 Recording the Sale/Disposition of Acquired Assets and Updating the Inventory); and
  1. Prepare and submit to the CED a Report on  Acquired/Forfeited  Intangible Assets Sold/Disposed thru private or negotiated sale, together with the certified photocopies of pertinent documents relative to the sale/disposition (Refer to CM 404.2 Recording the Sale/Disposition of Acquired Assets and Updating the Inventory).