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CM 404.6 - TRANSFER OF UNSOLD OR UNDISPOSED ACQUIRED ASSETS TO OTHER GOVERNMENT AGENCIES

Since the BIR is not engaged in the business of buying, selling and renting out acquired/ forfeited properties, and pursuant to its mandate  of generating  optimum  revenues  for the government, the immediate disposition of all assets and properties acquired in the course of performing its fundamental mandate of collecting taxes is also of primordial importance. However, the task of disposing these properties is replete with difficulties and problems such as the lack of funds, poor marketability of the properties, and existence of certain legal concerns on the ownership over these properties, among others. In order to unsaddle itself in handling such assets and properties that will even necessitate the use of its limited human and financial resources for its upkeep and management, all efforts must be exerted for their immediate disposition not only to the open market for purposes of generating fresh funds for the government, but even to other government entities such as Government-Owned and Controlled Corporations (GOCCs), National Government Agencies (NGAs) and Local Government Units (LGUs) that may have imperative need to acquire these assets/properties.

The transfer to other government agencies of assets/properties acquired/forfeited by the BIR is allowed and governed by the COA Circular NO. 89-296 dated January 27, 1989 entitled "Audit Guidelines  on the Divestment or Disposal of Property and Other Assets of National Government Agencies and Instrumentalities, Local Government Units and Government-Owned or Controlled Corporations and their Subsidiaries". The provisions of Accounting Policies on Garnished Properties issued by the COA Government Accountancy and Financial Management Information Sector (COA-GAFMIS)  can also be the basis of undertaking the disposition of said assets/properties to other government agencies.

The purchase of the Bureau's acquired/forfeited assets by NGAs may constitute mere transfer of funds from one pocket to another in the National Government. The funds for the NGA's purchases may be authorized under the General Appropriations Act, while payments  therefor  can be effected  through direct crediting  by the BTr, upon approval by the Department of Budget and Management (DBM). For GOCCs and LGUs, the purchase and payment thereof may require prior approval by their respective Boards/ Councils. Furthermore, cash or non-cash payments for these purchases of acquired assets may be made, subject to approval by the concerned approving authorities, as well as the observance of proper recording/accounting thereof in the books of accounts pursuant to existing COA rules and regulations.

CM 404.6.1 TRANSFER OF UNSOLD OR UNDISPOSED ACQUIRED PERSONAL ASSETS TO OTHER GOVERNMENT AGENCIES (FOR REAL/PERSONAL PROPERTIES OTHER THAN STOCKS, BONDS AND DEBENTURES) [Refer to FC 404.6.1]

The Collection Enforcement Division shall:

  1. Prepare an annual list of all acquired/forfeited assets (whether income earning or not) which were offered for auction sale or negotiated sale but were not sold after two consecutive offerings for listings in the BIR website , other government postings, and other applicable media of dissemination;
  1. Identify acquired/forfeited assets with existing contracts, whether with the private and public persons/entities, and those undergoing administrative and/or judicial litigations;
  1. Segregate all acquired/forfeited assets that can be immediately transferred/ disposed to other government agencies and that can be used by the said agencies in the discharge of their respective mandates;
  1. Require the RDOs and the Regional Collection Divisions having administrative control/supervision over the acquired/forfeited assets to prepare/update the information profile of the properties to include, among others, their respective physical, financial and economic/business characteristics such as:
    • Existence of improvements on the properties;
    • Occupancy by informal settlers on the properties;
    • For real property, the current assessor's valuation;
    • For personal property, the current appraisal value;
    • For equipment and motor vehicles - get the original cost of acquisition including the date, the accumulated depreciation and the net book value at the time of the appraisal; and
    • For personal properties like jewelries, paintings and works of arts, among others - get the same data including appraised values thereof at the time of appraisal.
  1. Set the floor transfer/selling prices of the acquired/forfeited assets based on the latest valuations thereof;
  1. Prepare a Master List of acquired/forfeited assets and their respective  floor prices, with accompanying latest profiles of these assets such as the photographs of the assets showing their current status/conditions etc.;
  1. Submit to the Commissioner, thru the ACIR, CS and the DCIR, Operations Group (OG), the Master List of Acquired/Forfeited Assets for disposition to other government agencies, together with the appropriate recommendations therefor;
  1. Revise/Update the Master List of Acquired/Forfeited Assets for Transfer/ Disposition, together with their respective floor prices, if needed and as often as necessary, in coordination with the concerned RDOs and Regional Collection Divisions;
  1. Post the Master List of Acquired/Forfeited Assets for Transfer/Disposition at the BIR website and other government posting media like the Government Procurement Policy Board (GPPB), Philippine Government Electronic Procurements Systems (PGEPS), Official Gazette, ;
  1. Disseminate the Master List of Properties for Transfer/Disposition to various NGAs, LGUs and GOCCs through the DBM, Office of the Government Corporate Counsel (OGCC), League of Cities and Municipalities, and other associations/organizationsthat may have potential use for these properties;

 

  1. Receive and respond immediately to all queries and expressions of interest made by any interested agency;
  1. Undertake simplified bidding procedures as spelled out under the Procurement Act (RA No. 9184), if appropriate and practicable, and if there are more than one agencies interested to acquire/purchase the property;
  1. Request the interested agency/ies to formalize its/their intent to acquire the property in writing addressed to the Commissioner, through the ACIR-CS;
  1. Evaluate the offer by any government agency and verify existence of the following requirements, in coordination with the Regional Director:
    • If interested purchaser is an NGA - the approved budgetary allocation and approval of the Office of the President;
    • If interested purchaser is a GOCC- Board approval of its plan and adequacy of funding; and
    • If interested purchaser is an LGU - Council approval of its plan and adequacy of funding;
  1. Prepare a recommendation to sell/transfer the acquired/forfeited assets and submit the same to the Commissioner, thru  the ACIR-CS,  and  the DCIR-OG, for final approval and acceptance of the offer, if the agency's offer or proposal is advantageous to the government;
  1. Coordinate with the Legal Service for the preparation of the Deed of Transfer/ Sale to Other Government Agencies (Annex 400-1.37) for the signature of the Commissioner, upon receipt of the approval of the proposal from the Secretary of Finance or other appropriate approving authority of the government agency such as the Office of the President, the Board of Directors, or the Provincial/Municipal/ City Council, whichever is applicable;
  1. Coordinate with the purchaser (NGA/GOCC/LGU) on the payment arrangements, in accordance with COA Circular 89-296 and COA-GAFMIS, and in coordination with the concerned RDOs and Regional Directors/Regional Finance Division (Refer to CM 404.2 Recording of Sale/Disposition of Acquired Assets and Updating the Inventory); and
  1. Receive from the concerned Regional Collection Division a report on the acquired assets transferred to other government agencies and update the CISFA (Refer to CM 404.2 Recording of Sale/Disposition of Acquired Assets and Updating the Inventory).

The RDO/Regional Collection Division/Regional Director shall:

  1. Prepare/update the information profile of the acquired/forfeited assets by gathering materials on the physical, topographical, financial and economic/business characteristics to include photographs, improvements, current assessor's valuation, appraisals, etc.;
  1. Submit the updated information profile of the subject acquired/forfeited assets for disposition to other government agencies;
  1. Coordinate with the CED in the evaluation of the GOCC/NGA/LGU offers and in the finalization of the payment arrangements with the purchaser; and
  1. Submit a report on the subject acquired assets transferred to other government agencies to the CED for the update of the inventory of acquired

The ACIR-CS and DCIR-OG shall:

  1. Receive and review the Master List of acquired/forfeited assets that may be sold to other government agencies;
  1. Submit the Master List to the Commissioner for approval, if the Master List of Acquired/Forfeited Assets is in order; and
  1. Receive and review the recommendation to accept GOCC/NGA/LGU offers to buy acquired/forfeited assets prior to the transmission of the same to the Commissioner for final acceptance and approval.

The Commissioner of lnternal Revenue shall:

  1. Evaluate and approve the Master List of Acquired/Forfeited Assets that may be sold to other government agencies;
  1. Evaluate and approve/disapprove the recommendation for the acceptance of offers of other government agencies to buy BIR-acquired/forfeited assets;
  1. Secure the approval of the Secretary of Finance, whenever necessary under existing rules and regulations, for the authority to sell acquired/forfeited assets to other government agencies; and
  1. Sign the Deed of Transfer/Sale to Other Government Agencies covering the sale of acquired/forfeited assets (real/personal properties other than stocks, bonds and debentures).

CM 404.6.2 TRANSFER OF UNSOLD OR UNDISPOSED ACQUIRED PERSONAL ASSETS TO OTHER GOVERNMENT AGENCIES (FOR STOCKS, BONDS AND DEBENTURES) [Refer to FC 404.6.2]

 

The Collection Enforcement Division shall:

  1. Secure all pertinent information on the basic profile of stocks, bonds, debentures such as their respective nature, values, interest rates, terms including maturities and issuing company, etc.;
  1. Receive and respond immediately to all queries and expressions of interest made by any interested GOCC or GFI;
  1. Prepare a recommendation to sell the acquired/forfeited assets and submit the same to the Commissioner, thru the ACIR-CS and the DCIR-OG, if the offer is found advantageous to the government and compliant with the provisions of existing rules and regulations on the sale or disposition of BIR properties;
  1. Coordinate with the Legal Service for the preparation of the Deed of Transfer/ Sale to Other Government Agencies for the signature of the Commissioner, upon receipt of the approval of the proposal from the Secretary of Finance;
  1. Coordinate with the purchaser on the payment arrangements, in accordance with COA Circular 89-296 and COA-GAFMIS, and in coordination with the concerned RDOs/Regional Directors;
  1. Coordinate with the RDO and/or concerned LTS Office on matters relating to public or private/negotiated sale of shares of stocks, bonds, and other securities, as well the pre-termination of the bonds and other securities, in the absence of any offer to buy from any interested party; and
  1. Receive from the concerned Regional Collection Division a report on the acquired assets transferred to other government agencies and update the CISFA (Refer to CM 404.2 Recording of Sale/Disposition of Acquired Assets and Updating the Inventory).

The RDO/Regional Collection Division/Regional Director shall

  1. Coordinate with the CED in the evaluation of the GOCC/GFI offers and in the finalization of the payment arrangements with the purchaser;
  1. Effect the sale, retirement, or pre-termination of all shares, bonds, and other securities by way of public or private/negotiated sale;
  1. Remit the proceeds from the sale, retirement or pre-termination of all acquired securities to the BTr; and
  1. Submit a report on the subject acquired assets transferred to other government agencies to the CED for the update of the inventory of acquired

The ACIR-CS and DCIR-OG shall:

  1. Receive and review the recommendation of the CED relative to the proposal of the GOCC/GFI to purchase the assets/properties acquired by the BIR, prior to transmission of the same to the Commissioner for final acceptance and

The Commissioner of Internal Revenue shall:

  1. Evaluate and approve/disapprove the recommendation for the acceptance of offers from other government agencies to buy acquired /forfeited shares of stocks, debentures and other securities of the Bureau; and
  1. Sign the Deed of Transfer/Sale to Other Government Agencies covering the sale of acquired/forfeited shares of stocks, bonds, debentures, and other securities.