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CM 404.4 - SALE OF ACQUIRED PERSONAL INTANGIBLE ASSETS FORFEITED BY THE LTS

The sale or disposition of intangible personal properties forfeited by the LTS shall be undertaken by the LTS considering  that the same are not covered  by the devolution of the function to the concerned regional office having physical jurisdiction over the place where the absolutely forfeited real properties are located or where the absolutely forfeited tangible personal properties are stored.

The Large Taxpayer Collection Enforcement Division (LTCED) and Large Taxpayer District Office shall:

  1. Initiate actions for the sale/disposition of acquired/forfeited personal intangible assets:
    • Identify all the acquired properties that may be sold to interested parties based on the updated CISFA;
    • Publish in the BIR Website the list of acquired assets that are already eligible for sale/disposition for purposes of inviting any interested person to buy the said property;
    • Make a formal communication to potential buyers of the property (e.g. officers/existing stockholders of the issuing corporations for forfeited shares of stocks, stock brokers for stocks listed in the stock market, etc.);
    • Study the practicability of pre-terminating bonds, debentures, and similar instruments for the immediate conversion of these types of acquired assets into cash; and
    • Consider other available options that may be undertaken for the speedy disposition of the acquired/forfeited
  1. Receive formal offers to buy the acquired/forfeited assets from interested parties;
  1. Evaluate the offers made and prepare the appropriate recommendation on the matter to the Commissioner, through the ACIR-LTS;
  1. Receive the decision of the Commissioner on the proposal to sell/dispose the acquired/forfeited properties:
    • If the offer is acceptable to the CIR:
      • 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 Commissioner, for signature.
    • If the offer is disapproved by the CIR:
      • 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.
  1. Notify the identified buyer  of the Commissioner's approval of his/her offer to buy the acquired/forfeited assets. Advise him/her to pay to the General Services Division (GSD), National Office, in cash or manager's check, the full amount of the negotiated price for the property being purchased from the BIR;
  1. Receive from the buyer certified copies of the Payment Order issued by RAD and the Official Receipt issued by GSD evidencing full payment of the proceeds from sale of acquired/forfeited assets;
  1. Verify authenticity of the Official Receipt issued by GSD, and release to the buyer the copy of the duly signed Deed of Sale and other pertinent documents;
  1. Prepare and submit to the ACIR-LTS on or before the fifteenth (15th) day of the following month, the following reports:
    • Monthly Report on Acquired /Forfeited Intangible Assets Sold/Disposed under its custody thru private or negotiated sale, together with the certified photocopies of pertinent documents relative to the sale/disposition; and
    • Monthly Report ofUnsold/Undisposed Acquired/Forfeited Intangible Assets.
  1. Prepare and submit to the RAD, thru the ACIR-LTS, a report on the sale/ disposition of the acquired/forfeited personal intangible assets, together with the certified copies of all the supporting documents, for recording purposes at the NG Books of Accounts (Refer to CM 404.2 Recording the Sale/Disposition of Acquired Assets and Updating the Inventory); and
  1. Transmit to the Records Division, thru the Administrative Service, the docket of the case bearing on the sale/disposition of the acquired/forfeited assets, together with the original copies of the pertinent documents for safekeeping and future

The Large Taxpayer Service shall:

  1. Review the recommendations made by the concerned LTS Office on the proposed sale/disposition of the acquired assets;
  1. Endorse to the Commissioner the recommendation to sell/dispose the property for his final review and approval; and
  1. Prepare and submit to the ACIR-CS attention: CED a consolidated Report on Acquired /Forfeited Intangible Assets Sold/Disposed (Refer to CM 2 Recording the Sale/Disposition of Acquired Assets and Updating the Inventory).

The Revenue Accounting Division shall:

  1. Receive the request for the issuance of Payment Order authorizing the GSD to issue Official Receipt to the buyer of the acquired/forfeited asset sold by LTS; and
  1. Receive from the General Services Division, National Office, the report on the receipt of proceeds from the sale/disposition of acquired/forfeited assets by the LTS, as well as the certified copy of the proof of remittance of the said proceeds to the BTr through an AGDB.

The General Services Division shall:

  1. Receive from the RAD the Payment Order for the issuance of Official Receipt for the proceeds on sale/disposition of acquired/forfeited assets by the LTS;
  1. Receive the payment for the property sold/disposed by the LTS from the concerned buyer and issue the corresponding Official Receipt therefor;
  1. Remit to the BTr the collection from the sale of acquired/forfeited assets; and
  1. Prepare and submit to the RAD the certified report on collection and remittance of the proceeds from sale of acquired/forfeited assets, for recording

The Commissioner of Internal Revenue shall:

  1. Approve/confirm the sale of acquired/forfeited assets the sale of acquired/ forfeited assets by the LTS.