BUREAU OF INTERNAL REVENUE

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

ALL FUNDS
For the Year Ended December 31, 2022

1. General Information/Agency Profile

The consolidated financial statements (Collection Books and Disbursement Books) of the
Bureau of Internal Revenue (BIR) were authorized for issue on February 13, 2023 as shown
in the Statement of Management’s Responsibility for Financial Statements signed by
Commissioner Romeo D. Lumagui, Jr. and Officer-in-Charge - Head Revenue Executive
Assistant Eloisa C. Tamina and Assistant Commissioner Clavelina S. Nacar of Finance
Service and Collection Service, respectively.

The BIR is an agency established under Reorganization Act. No. 1189 on July 2, 1904 and
became fully operational on August 1, 1904. Its organization and functions are defined in
the National Internal Revenue Code (NIRC) under Republic Act (RA) No. 8424, the
Comprehensive Tax Reform Program, otherwise known as NIRC of 1997, as amended by
RA No. 10653. It is under the supervision and control of the Department of Finance.

The BIR is mandated to assess and collect all national internal revenue taxes (NIRT), fees
and charges, and to enforce all forfeitures, penalties and fines connected therewith, including
the execution of judgements in all cases decided in its favor by the Court of Tax Appeals
and the ordinary courts. It also gives effect to and administer the supervisory and police
powers conferred by the NIRC and other laws.

The chief officials of the BIR are composed of the Commissioner and four Deputy
Commissioners. The Deputy Commissioners head the following offices:

 Operations Group
 Legal Group
 Information Systems Group
 Resource Management Group

The BIR operates through its National Office (NO), 5 Large Taxpayers (LT) Audit
Divisions, 2 LT District Offices and 22 Revenue Regions (RRs), headed by Regional
Directors (RDs). The RDs of each RR has jurisdiction of the region and their respective
Revenue District Offices (RDOs). There are 126 district offices which is composed of 124
RDOs and 2 LT District Offices.

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 The RRs and their respective number of RDOs are as follows:

RR Region Number of RDOs

1 Calasiao, Pangasinan 6
2 Cordillera Administrative Region (CAR) 6
3 Tuguegarao, Cagayan 4
4 San Fernando City, Pampanga 11
5 Caloocan City 5
6 Manila 7
7A Quezon City 4
7B East National Capital Region (NCR) 5
8A Makati City 4
8B South NCR 5
9A CaBaMiRo 7
9B LaQueMar 6
10 Legaspi City 7
11 Iloilo City 5
12 Bacolod City 4
13 Cebu City 5
14 Eastern Visayas 6
15 Zamboanga City 7
16 Cagayan de Oro City 6
17 Butuan City 4
18 Koronadal City 5
19 Davao City 5
Total 124

The BIR NO is located in BIR Road, Diliman, Quezon City.

2. Statement of Compliance and Basis of Preparation of Financial Statements

The accompanying financial statements have been prepared in accordance with the
Government Accounting Manual (GAM) and the Revised Chart of Accounts per
Commission on Audit (COA) Circular No. 2020-001 dated January 8, 2020 and complies
with the Philippine Public-Sector Accounting Standards (PPSASs) per COA Resolution No.
2014-003 dated January 24, 2014, renamed International Public Sector Accounting
Standards (IPSASs) under COA Resolution No. 2020-001 dated January 9, 2020.

The consolidated financial statements have been prepared on the basis of historical cost. The
Statement of Cash Flows is prepared using the direct method.

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3. Summary of Significant Accounting Policies

3.1 Basis of Accounting

The Collection Books is prepared on a modified cash basis of accounting and

Disbursement Books is prepared on an accrual basis in accordance with the IPSASs.
The basis of accounting for both books are subsequently discussed.

3.2 Consolidation

a. Fund accounting

In compliance with GAM for National Government Agencies (NGAs), the BIR
maintains separate books of accounts by fund clusters. The following fund clusters
are included in the consolidated financial statements:

Fund No. Description

01 Regular Agency Fund
03 Special Account-Locally Funded/Domestic Grants Fund
07 Trust Receipts

b. Books of account

The consolidated financial statements include the accounts of the Collection and
Disbursement Books.

c. RRs

The consolidated financial statements include the accounts of the NO and 22 RRs.
Each reporting Office maintains Collection and Disbursement Books except for
the LT Office of which its collections are recorded by the Revenue Accounting
Division (RAD) – NO.

3.3 Revenue of the National Government

Revenue is the gross inflows of economic benefits or service potential during the
reporting period when those inflows result in an increase in net assets/equity, other
than increases that result to liability of the National Government (NG) or a public
debt. The revenues of the NG may arise from exchange and non-exchange
transactions.

Revenue from non-exchange transactions arises from transactions that are not
exchange transactions. In a non-exchange transaction, the NG either receives value
from another entity without directly giving approximately equal value in exchange, or
gives value to another entity without directly receiving approximately equal value in
exchange. The NIRT is revenue from non-exchange transaction because the taxpayer

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transfers resources to the government, without receiving approximately equal value
directly in exchange. While the taxpayer may benefit from a range of social policies
established by the NG, these are not provided directly in exchange as consideration
for the payment of taxes. Revenue from non-exchange transaction is governed by
IPSAS 23, Revenue from Non-Exchange Transactions (Taxes and Transfers).

Collection Books

Amounts collected by the BIR, as defined in the NIRC, will not give rise to an increase
in net assets or disposable revenue of the BIR for its operation. This is because the
BIR cannot control the use of, or otherwise benefit from, the revenue and collections
in the pursuit of its objectives. This is in accordance with Section 65(1) of Presidential
Decree No. 1445, known as the Government Auditing Code of the Philippines, which
states:

Unless otherwise specifically provided by law, all income accruing to the

agencies by virtue of the provisions of law, orders and regulations shall be
deposited in the National Treasury or in any duly authorized government
depository, and shall accrue to the unappropriated surplus of the General Fund
of the Government.

When the NG imposes a tax that is collected by the BIR, assets and revenue accrue to
the NG, not to the BIR. The BIR in this regard is acting as an agent for the NG.

Hence, the NIRT, among others, are accounted under the Collection books. The
accounts in the Collection books include Tax Revenue, Service and Business Income,
Other Non-Operating Income, and assets and liabilities arising from taxation
transactions, such as receivables, forfeited property/assets and Other Deferred Credits
related to tax refunds.

Taxes are economic benefits or service potential compulsorily paid or payable to the
government or public-sector entities, in accordance with laws and/or regulations,
established to provide revenue to the government. Taxes do not include fines or other
penalties imposed for breaches of the law. The NIRT are composed of the following:

 Income tax;
 Estate and donor’s tax;
 Value-added tax;
 Other percentage taxes;
 Excise taxes;
 Documentary stamp taxes; and
 Such other taxes that may be imposed and collected by the BIR.

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Disbursement Books

The NG incurs cost in relation to revenue arising from taxation revenue, particularly
expenses paid through the tax system. Taxation revenue is determined at a gross
amount, and any outflow of resources is recognized as a cost of the transaction. The
expenses paid through the tax system are expenses of the government and are
recognized separately in its financial statements. The transactions related to the
operation of the BIR, in the performance of its mandate, are accounted for under the
Disbursement books. The Disbursement Books is prepared on an accrual basis in
accordance with the IPSAS.

Recognition of revenue from taxation transactions

The modified cash basis of accounting is applied in the recognition of revenue from
taxation transactions until a reliable model of measurement is developed. Asset and
the corresponding revenue or liability that arises from taxation is recognized when
collected or when these are measurable and legally collectible.

Unless otherwise specified in laws and regulations, the taxable event for:

 Income tax is the earning of assessable income during the taxation period by the
taxpayer;
 Value added tax is the undertaking of taxable activity during the taxation period
by the taxpayer;
 Goods and services tax is the purchase or sale of taxable goods and services
during the taxation period;
 Death duty is the death of a person owning the taxable property; and
 Property tax is the passing of the date on which the tax is levied, or period for
which the tax is levied, if the tax is levied on a periodic basis.

Measurement of revenue from taxation transactions

Revenue from taxation is measured at the amount of the increase in net assets
recognized by the NG, unless it is also required to recognize a liability.

Measurement of assets from taxation transactions on initial recognition

An asset acquired through taxation is initially measured at its fair value as at the date
of acquisition. Accordingly, assets arising from taxation transactions are measured at
the best estimate of the inflow of resources to the entity. Cash, receivables related to
tax collection and forfeited property/assets are those that arise from taxation revenue.
This is consistent with IPSAS 12, Inventories, IPSAS 16, Investment Property, IPSAS
17, Property, Plant and Equipment and IPSAS 29, Financial Instruments: Recognition
and Measurement.

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Subsequent measurement of assets arising from taxation transactions

Cash and receivables arising from taxation transactions are subsequently measured in
accordance to applicable IPSAS.

Other revenue from non-exchange transactions

Transfers are other revenue from non-exchange transactions that have common
attribute, in a sense that they transfer resources from one entity to the BIR without
providing approximately equal value in exchange. This includes gifts and donations,
and fines.

Gifts and donations are voluntary transfers of assets, including cash or other monetary
assets, goods in-kind, and services in-kind that one entity makes to the BIR, normally
free from stipulations.

Fines are economic benefits or service potential received or receivable by the BIR,
from an individual or other entity, as determined in the law, BIR issuances, rules and
regulations, Court of Tax Appeals, Supreme Court, or other law enforcement body, as
a consequence of the individual or other entity breaching the requirements of laws or
regulations.

Recognition of transfers

The BIR recognizes an asset in respect of transfers when the transferred resources
meet the definition of an asset and satisfy the criteria for recognition as an asset.
Transfers satisfy the definition of an asset when the entity controls the resources as a
result of a past event (the transfer), and expects to receive future economic benefits or
service potential from those resources. Transfers satisfy the criteria for recognition
as an asset when it is probable that the inflow of resources will occur, and their fair
value can be reliably measured.

Measurement of transfers

Transferred assets are measured at their fair value as at the date of acquisition.

Revenue from exchange transactions are those resulting from transactions which the
BIR receives asset or services, or has liabilities extinguished, and directly gives
approximately equal value (primarily in the form of cash, goods, services, or use of
assets) to another entity in exchange. This includes Service and Business Income and
Miscellaneous Income. Revenue from exchange transactions is governed by IPSAS
9, Revenue from Exchange Transactions. The revenue of BIR from exchange
transactions accrues from the following:

 Rendering of services;
 Sale of goods; and
 Interest, dividends and similar distribution.

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 Recognition of revenue from exchange transactions

Revenue from rendering of service is recognized when the outcome of a transaction

can be estimated reliably by reference to the stage of completion of the transaction at
the reporting date. The BIR, incidental to its mandate, generates the following in
rendering service:

 Registrations fees;
 Clearance and certification fees;
 Franchising fees;
 Processing fees;
 Fines and penalties;
 Rent/lease income;
 Income from printing and publication; and
 Other service income.

Incident to its mandate and regular agency functions, the BIR recognizes revenue from
the following:

 Sale of bid documents;

 Sale of documentary stamps; and
 Sale of accountable forms.

Measurement of revenue from exchange transactions

Revenue from exchange transactions are measured at the fair value of the
consideration received or receivable. The fair value is the amount of cash received or
the rate of fees imposed by the BIR.

3.4 Financial Instruments

Financial instrument is any contract that gives rise to both a financial asset of one
entity and a financial liability or equity instrument of another entity.

Recognition

Financial instruments are recognized in the consolidated statements of financial

position: (i) when the BIR becomes a party to the contractual provision of the
instruments; or (ii) the obligation of the taxpayer to pay taxes, penalties, fees, charges
and fines becomes measurable and legally collectible at the taxable event or
transaction date; (iii) there is judgment of cases in the favor of BIR to be executed; or
(iv) obligation of the BIR to refund taxpayers of excess amount paid/withheld arise.

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Measurement

Financial instruments are initially recognized at fair value.

Financial assets of the BIR include (i) cash, (ii) receivables arising from taxation
transactions (iii) receivables arising from regular agency operation; and, (iv) equity
instruments arising from taxation transactions.

Cash is the most basic financial instrument because it is the medium of exchange and
is the basis on which all transactions are measured and recognized in the consolidated
financial statement. Cash deposited in the National Treasury Account or Authorized
Government Depository Banks (AGDB) is a financial asset because it represents the
contractual and legal right of the NG and the BIR to withdraw money from the
depository or to draw a check or similar instrument against the balance in favor of a
creditor in payment of a financial liability. The depository, on the other hand, views
this deposit as a financial liability because of its obligation to deliver the money upon
demand from the BIR or the NG.

Cash is comprised of cash on hand, cash in the National Treasury and cash deposits
in AGDB. The account is comprised of cash controlled by the BIR and cash collected
on behalf of the NG.

Petty Cash Fund is maintained under the Imprest System. All replenishments are
directly charged to the expense account.

Receivables are non-derivative financial assets with fixed or determinable. The

receivables of the BIR include those arising from contractual provisions in the
financial instrument and those arising from taxation transactions.

Equity instruments arising from taxation transactions are intangible property of the
delinquent taxpayer, forfeited by the BIR for purpose of selling the asset to recover,
through cash proceeds, the delinquent tax liability of the taxpayer. These equity
instruments are accounted under the Forfeited Property/Assets.

Derecognition

The BIR derecognizes a financial asset or, where applicable, a part of a financial asset
when:

 In case of financial asset arising from the legally enforceable tax obligation of the
taxpayer:

 The obligation has been satisfied through forfeiture of property/assets under

Section 205 of NIRC; or

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  The Commissioner in the exercise of his authority to compromise, abate or
credit taxes under Section 204 of the NIRC; and
 The forfeited intangible asset of the delinquent in form of equity instruments,
held as available for sale, has transferred substantially all the risks and rewards
of ownership of the financial asset.

 In case of financial assets arising from contractual provisions in the financial

instruments:

 The rights to receive cash flows from the asset have expired or is waived; and
 The BIR has transferred its rights to receive cash flows from the asset or has
assumed an obligation to pay the received cash flows in full without material
delay to a third party; and either: (a) the BIR has transferred substantially all
the risks and rewards of the asset; or (b) the BIR has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred
control of the asset.

It must be noted that derecognition of the financial asset arising from taxation
transactions are different from the extinguishment of the tax obligation of the
taxpayer.

Impairment of financial assets

The BIR assesses at the end of each reporting period whether there is any objective
evidence that a financial asset or group of financial assets is impaired. If any such
evidence exists, the BIR measures the amount of loss as the difference between the
carrying amount of the asset and the present value of estimated future cash flows
discounted at the financial asset’s original effective interest rate. The carrying amount
of the asset is reduced either directly or through use of an allowance account. The
amount of the loss is recognized in surplus or deficit. In case of Accounts Receivable,
the Allowance for Impairment is provided in an amount based on collectability of
receivable balances and evaluation of such factors as aging of accounts, collection
experiences of the agency, expected loss experiences and identified doubtful accounts.

The write off of financial asset is governed by COA Circular No. 97-001 dated
February 5, 1997. Beginning December 19, 2016, the write off of financial assets is
governed by COA Circular No. 2016-005, dated such.

Financial liability is any liability that is a contractual or legal obligation of the BIR to
deliver cash or another financial asset to another entity. The financial liabilities of the
BIR include: (i) Accounts Payable, (ii) Due to Officers and Employees, (iii) Finance
Lease Payable, (iv) Tax Refunds Payable, (v) Due to National Government Agencies,
and (vi) Other Payables.

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 Subsequent measurement

After initial recognition, the BIR measure the: (i) Accounts Payable, (ii) Due to
Officers and Employees, (iii) Tax Refunds Payable, (iv) Due to National Government
Agencies and (v) Other Payables at face value while (vi) Finance Lease Payable is
measured at amortized cost using the effective interest method.

The amortized cost of the finance lease payable is the amount at which the financial
liability is measured at initial recognition minus principal repayments, plus or minus
the cumulative amortization using the effective interest method of any difference
between that initial amount and the maturity amount, and minus any reduction
(directly or through the use of an allowance account) for impairment. The effective
interest method is a method of calculating the amortized cost of a financial liability
and of allocating the interest expense over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash payments through the
expected life of the financial instrument or, when appropriate, a shorter period to the
net carrying amount of the financial asset or financial liability.

Derecognition

A financial liability is derecognized when the obligation under the liability is

discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a derecognition of the
original liability and the recognition of a new liability, and the difference in the
respective carrying amounts is recognized in surplus or deficit.

3.5 Inventories

Inventories are assets in form of materials or supplies to be consumed or distributed

in the rendering of the BIR’s service, and held for sale or distribution in the ordinary
course of operations. The inventories of the BIR include those: (i) held for
distribution, and (ii) held for consumption.

Semi-expendable properties are tangible items with useful life of more than one year,
costing less than the capitalization threshold of P50,000.00. Semi-expendable
properties included in the inventories consist of: (i) semi-expendable machinery, and
(ii) semi-expendable furniture, fixtures and books.

Measurement

Inventories are measured at cost upon initial recognition. To the extent that inventory
was received through non-exchange transactions (for no cost or for a nominal cost),
the cost of the inventory is its fair value at the date of acquisition.

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 After initial recognition, inventory is measured at the lower of cost and net realizable
value as at the accounting date.

The cost of inventories comprises all costs of purchase, costs of conversion, and other
costs incurred in bringing the inventories to their present location and condition.

Net realizable value is the estimated selling price in the ordinary course of operations,
less the estimated costs of completion and the estimated costs necessary to make the
sale, exchange, or distribution.

Inventories of BIR forms with money value, including documentary stamps, are
recognized as inventories at cost and not reported at face value, in accordance to
IPSAS 12, Inventories.

Recognition as an expense

Inventories are recognized as an expense when deployed for utilization or

consumption in the ordinary course of operations of the BIR, or in case of semi-
expendable properties upon issuance. The cost of the inventories recognized as an
expense is determined using the weighted average method.

3.6 Property, Plant and Equipment

Property, plant and equipment (PPE) are tangible items expected to be used during
more than one reporting period and held for use in the production or supply of goods
or services, for rental to others, or for administrative purposes of the BIR, and have
met the capitalization threshold.

Recognition

An item of PPE is recognized as an asset if:

a. It is probable that future economic benefits or service potential associated with

the item will flow to the entity; and
b. The cost or fair value of the item can be measured reliably.

Measurement at initial recognition

An item recognized as PPE is measured at cost. A PPE acquired through non-

exchange transaction is measured at its fair value as at the date of acquisition. The
cost of the PPE is the cash price equivalent or, for PPE acquired through non-exchange
transaction its cost is its fair value as at recognition date.

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Cost includes the following:

a. Its purchase price, including import duties and non-refundable purchase taxes,
after deducting trade discounts and rebates;
b. Expenditure that is directly attributable to the acquisition of the items; and
c. Initial estimate of the costs of dismantling and removing the item and restoring
the site on which it is located, the obligation for which an entity incurs either
when the item is acquired, or as a consequence of having used the item during
a particular period for purposes other than to produce inventories during that
period.

Measurement after recognition

After recognition, all PPE are stated at cost less accumulated depreciation and
impairment losses. Except for land all PPE is depreciated.

When significant parts of PPE are required to be replaced at intervals, the BIR
recognizes such parts as individual assets with specific useful lives and depreciates
them accordingly. Likewise, when a major repair/replacement is done, its cost is
recognized in the carrying amount of the plant and equipment as a replacement if the
recognition criteria are satisfied. All other repair and maintenance costs are recognized
as expense in surplus or deficit as incurred.

Depreciation

Each part of an item of PPE with a cost that is significant in relation to the total cost
of the item is depreciated separately. The depreciation charge for each period is
recognized as expense unless it is included in the cost of another asset.

Initial recognition of depreciation

Depreciation of an asset begins when it is available for use such as when it is in the
location and condition necessary for it to be capable of operating in the manner
intended by management.

The depreciation is for one month if the PPE became available for use on or before
the 15th of the month. However, if the PPE became available for use after the 15th
of the month, no depreciation is recognized for the month and depreciation starts on
the succeeding month.

Depreciation method

The straight-line method of depreciation is adopted by the BIR.

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 Estimated useful life

The BIR determines the estimated useful life of its PPE pursuant to Section 27,
Chapter 10, Volume, GAM for NGAs:

Class of PPE Estimated Useful Life

Land Improvements Over the useful life of the asset to which the
improvement was made or the useful life of the
improvement if significantly shorter
Infrastructure Assets 20 to 50 years
Buildings and Other Structures 30 to 50 years
Machinery and Equipment 5 to 15 years
Transportation Equipment 5 to 15 years
Furniture, Fixtures and Books 2 to 15 years
Leased Assets Over the useful life of the leased asset or the lease
term, whichever is shorter. The lease term would
include any renewal option periods where
extension of the lease is expected.
Other PPE 2 to 15 years

The BIR uses a residual value equivalent to at least five percent of the cost of the PPE.

Impairment

An asset’s carrying amount is written down to its recoverable amount, or recoverable

service amount, if the asset’s carrying amount is greater than its estimated recoverable
service amount.

Derecognition

The BIR derecognizes items of PPE and/or any significant part of an asset upon
disposal or when no future economic benefits or service potential is expected from its
continuing use. Any gain or loss arising on derecognition of the asset (calculated as
the difference between the net disposal proceeds and the carrying amount of the asset)
is included in the surplus or deficit when the asset is derecognized.

3.7 Lease (BIR as lessee)

Lease is an agreement whereby the lessor conveys to the BIR, in return for a payment
or series of payments, the right to use an asset for an agreed period of time.
Finance lease are leases that transfer substantially all the risks and benefits incidental
to ownership of the leased item to the BIR.

Recognition

Assets held under a finance lease are capitalized at the commencement of the lease at
the fair value of the leased property or, if lower, at the present value of the future

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 minimum lease payments. The BIR also recognizes the associated lease liability at
the inception of the lease. The liability recognized is measured as the present value
of the future minimum lease payments at initial recognition.

Measurement

Subsequent to initial recognition, lease payments are apportioned between finance

charges and reduction of the lease liability so as to achieve a constant rate of interest
on the remaining balance of the liability. Finance charges are recognized as finance
costs in surplus or deficit.

An asset held under a finance lease is depreciated over the useful life of the asset.
However, if there is no reasonable certainty that the BIR will obtain ownership of the
asset by the end of the lease term, the asset is depreciated over the shorter of the
estimated useful life of the asset and the lease term.

Operating lease are leases that do not transfer substantially all the risks and benefits
incidental to ownership of the leased item to the BIR. Operating lease payments are
recognized as an operating expense in surplus or deficit on a straight-line basis over
the lease term.

3.8 Intangible Assets

Intangible assets are identifiable non-monetary asset without physical substance. The
intangible assets of BIR is composed of Computer Software and Websites.

Recognition

The BIR recognizes the item as an intangible asset if it is probable that the expected
future economic benefits or service potential that are attributable to the assets will
flow to the entity; and the cost or fair value of the assets can be measured reliably.

Measurement

An intangible asset is measured initially at cost. If an intangible asset is acquired

through a non-exchange transaction, its initial cost at the date of acquisition is
measured at its fair value as at that date.

3.9 Changes in accounting policies and estimates

The BIR recognizes the effects of changes in accounting policy retrospectively. The
effects of changes in accounting policy are applied prospectively, if retrospective
application is impractical.

The BIR recognizes the effects of changes in accounting estimates prospectively by

including in surplus or deficit.

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 The BIR corrects material prior period errors retrospectively in the first set of financial
statements authorized for issue after their discovery by:

a. Restating the comparative amounts for prior period(s) presented in which the error
occurred; or
b. If the error occurred before the earliest prior period presented, restating the opening
balances of assets, liabilities and net assets/equity for the earliest prior period
presented.

The issuance of COA Circular No. 2022-004 dated May 31, 2022 prescribing the
guidelines in the implementation of Section 23 of the General Provisions of RA No.
11639 also known as the General Appropriations Act for Fiscal Year 2022 increased
the capitalization threshold of PPE from P15,000.00 to P50,000.00. All PPE accounts
below P50,000.00 were already considered semi-expendable and should be
reclassified into appropriate semi-expendable accounts.

3.10 Budget information

The Budget and Financial Accountability Reports (BFARs) are prepared on cash basis
and is published in the BIR website, accessible through the Transparency Seal and the
Department of Budget and Management (DBM) website.

The difference resulting from the basis of accounting between the BFARs and the
financial statements is reconciled in the Statement of Comparison of Budget and
Actual Amounts, which shows the basis, timing or entity differences.

3.11 Employee benefits

The employees of BIR are members of the Government Service Insurance System
(GSIS) which provides life and retirement insurance coverage.

The BIR recognizes the undiscounted amount of short-term employee benefits, like
salaries, wages, bonuses, allowance, etc., as expense unless capitalized, and as a
liability after deducting the amount paid.

The BIR recognizes expenses for accumulating compensated absences when these are
paid (commuted or paid as terminal leave benefits). Unused entitlements that have
accumulated at the reporting date are not recognized as expense. Non-accumulating
compensated absences, like special leave privileges, are not recognized.

3.12 Measurement uncertainty

The preparation of consolidated financial statements in conformity with IPSASs

requires management to make estimates and assumptions that affect the reporting
amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at

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 the date of the consolidated financial statements and the reported amounts of the
revenues and expenses during the period.

Estimates were based on the best information available at the time of preparation of
the consolidated financial statements and were reviewed annually to reflect new
information as it becomes available. Measurement uncertainty exists in these
consolidated financial statements. Actual results could differ from these estimates.

4. Prior Period Adjustments

The Bureau restated various account balances due to the following:

4.1 Asset Accounts

The restatement of asset account balances was due to, among others, the recognition
of prior years’ collections and remittances made by Authorized Agent Banks (AABs),
recognition of prior years’ collections and deposits made by Revenue Collecting
Officers (RCOs), settlement of prior years’ bank penalties, recognition of unrecorded
prior years’ sale of accountable forms/documentary stamps, recognition/redemption
of prior years’ dishonored checks, recognition of prior years’ deliveries and issuances
of supplies, materials and semi-expendable properties, depreciation/amortization and
disposal of PPE items and intangible assets pertaining to prior years, and
recording/adjustment of forfeited assets titled to the Republic of the Philippines in
calendar year (CY) 2022 which were acquired in prior years.

Balances in
Balances in
Adjustment CY 2021
Account CY 2021
(As Restated)
(in P)
Cash and Cash Equivalents 136,334,816.93 (7,445,251.99) 128,889,564.94
Receivables 10,217,441,884.24 (431,898,394.19) 9,785,543,490.05
Inventories 1,406,404,382.68 (446,649,637.71) 959,754,744.97
Property, Plant and Equipment 6,574,350,656.53 (113,528,989.35) 6,460,821,667.18
Intangible Assets 120,647,462.98 1,713,567.65 122,361,030.63
Other Assets
Current 19,837,353.80 (1,463,315.28) 18,374,038.52
Non-Current 2,413,212,494.50 (22,954,048.56) 2,390,258,445.94
Total 20,888,229,051.66 (1,022,226,069.43) 19,866,002,982.23

26
 4.2 Liability Accounts

The balances of various liability accounts were restated due to, among others, the
recognition of accounts payable and other payables relating to purchases/expenses in
prior periods.

Balances in
Balances in
Adjustment CY 2021
Account CY 2021
(As Restated)
(in P)
Financial Liabilities 1,569,345,705.23 138,862,354.59 1,708,208,059.82
Intra-Agency Payables 1,010,874.16 0.00 1,010,874.16
Inter-Agency Payables 136,078,670.30 (888,605.96) 135,190,064.34
Trust Liabilities 127,218,881.09 1,109,971.72 128,328,852.81
Deferred Credits/Unearned Income 6,446,262,538.17 0.00 6,446,262,538.17
Other Payables 18,329,339.57 (2,118,991.32) 16,210,348.25
Total 8,298,246,008.52 136,964,729.03 8,435,210,737.55

4.3 Revenue Accounts

The restatement of revenue account balances was mainly due to the recognition in CY
2022 of miscellaneous income and donations in kind relating to prior years.

Balances in
Balances in
Adjustment CY 2021
Account CY 2021
(As Restated)
(in P)
Shares, Grants and Donations 7,194,801.34 9,371,658.56 16,566,459.90
Other Non-Operating Income 48,566,035.74 (137,800.64) 48,428,235.10
Gains 1,344,887.26 61,798.95 1,406,686.21
Total 57,105,724.34 9,295,656.87 66,401,381.21

4.4 Expense Accounts

Various Expense account balances were restated due to the recognition in CY 2022 of
transactions/ expenses pertaining to prior periods such as payment of salaries, PERA
and other personnel benefits, issuances of supplies, materials and semi-expendable
properties, payment of other maintenance and operating expenses as well as recognition
of losses on sale of PPE and other assets and non-cash expenses namely depreciation
and amortization.
Balances in CY
Balances in CY
Adjustment 2021
Account 2021
(As Restated)
(in P)
Personnel Services (PS) 8,029,543,386.89 51,303,981.57 8,080,847,368.46
Salaries and Wages - Regular 5,199,282,423.07 (5,948,966.25) 5,193,333,456.82
Salaries and Wages - Casual/Contractual 0.00 38,788.04 38,788.04
Personnel Economic Relief Allowance (PERA) 318,475,032.18 87,436.32 318,562,468.50
Representation Allowance (RA) 26,912,347.73 8,500.00 26,920,847.73
Transportation Allowance (TA) 15,564,475.00 (4,375.00) 15,560,100.00

27
 Balances in CY
Balances in CY
Adjustment 2021
Account 2021
(As Restated)
(in P)
Clothing/Uniform Allowance 79,572,000.00 148,000.00 79,720,000.00
Honoraria 192,338.75 (165,538.75) 26,800.00
Hazard Pay 80,863,250.00 40,385,287.00 121,248,537.00
Overtime and Night Pay 7,576,618.57 (147,368.34) 7,429,250.23
Year-End Bonus 492,679,162.16 130,366.90 492,809,529.06
Cash Gift 67,056,500.00 (2,092,500.00) 64,964,000.00
Mid-Year Bonus 0.00 87,611,504.00 87,611,504.00
Other Bonuses and Allowances 632,852,203.96 (79,464,049.73) 553,388,154.23
Retirement and Life Insurance Premiums 612,291,894.59 871,690.38 613,163,584.97
Pag-IBIG Contributions 15,617,612.96 19,637.14 15,637,250.10
PhilHealth Contributions 74,610,038.29 70,484.32 74,680,522.61
Employees Compensation Insurance
15,813,146.19 34,625.12 15,847,771.31
Premiums
Terminal Leave Benefits 195,624,564.91 2,390,966.81 198,015,531.72
Other Personnel Benefits 194,559,778.53 7,329,493.61 201,889,272.14
Maintenance and Other Operating Expenses
2,757,482,525.91 210,794,206.54 2,968,276,732.45
(MOOE)
Traveling Expenses - Local 126,644,329.43 373,463.81 127,017,793.24
Office Supplies Expenses 179,818,155.62 10,130,595.82 189,948,751.44
Training Expenses 6,562,415.53 (9,218.00) 6,553,197.53
Accountable Forms Expenses 38,882,617.31 4,782,816.50 43,665,433.81
Non-Accountable Forms Expenses 25,558,431.68 1,095,446.85 26,653,878.53
Medical, Dental and Laboratory Supplies
2,113,959.53 945,153.25 3,059,112.78
Expenses
Fuel, Oil and Lubricants Expenses 11,497,855.12 (901,248.45) 10,596,606.67
Semi-Expendable Machinery and Equipment
19,910,918.10 37,161,604.28 57,072,522.38
Expenses
Semi-Expendable Furniture, Fixtures and
43,499,217.59 24,603,593.78 68,102,811.37
Books Expenses
Other Supplies and Materials Expenses 42,203,457.73 882,955.14 43,086,412.87
Water Expenses 22,123,889.73 74,420.11 22,198,309.84
Electricity Expenses 253,242,903.01 580,264.49 253,823,167.50
Postage and Courier Expenses 26,495,649.24 (49,138.70) 26,446,510.54
Telephone Expenses 34,616,880.02 66,781.11 34,683,661.13
Internet Subscription Expenses 45,582,748.31 (1,515,835.39) 44,066,912.92
Cable, Satellite, Telegraph and Radio Expenses 124,651.97 1,266,227.88 1,390,879.85
Awards/Rewards Expenses 105,000.00 95,000.00 200,000.00
Prizes 95,000.00 (95,000.00) 0.00
Confidential Expenses 7,500,000.00 2,500,000.00 10,000,000.00
Extraordinary and Miscellaneous Expenses 4,621,875.00 19,500.00 4,641,375.00
Legal Services 25,968.29 44,921.00 70,889.29
Auditing Services 2,712,305.25 (44,921.00) 2,667,384.25
Other Professional Services 31,686,430.29 291,484.56 31,977,914.85
Environment/Sanitary Services 990,686.25 10,823,391.54 11,814,077.79
Janitorial Services 220,229,952.56 (10,024,867.08) 210,205,085.48
Security Services 276,841,569.86 369,479.49 277,211,049.35
Other General Services 50,710,420.99 60,019,469.72 110,729,890.71
Repairs and Maintenance - Buildings and Other
22,569,753.33 2,043,129.75 24,612,883.08
Structures
Repairs and Maintenance - Machinery and
10,148,851.58 510,319.44 10,659,171.02
Equipment

28
 Balances in CY
Balances in CY
Adjustment 2021
Account 2021
(As Restated)
(in P)
Repairs and Maintenance - Transportation
5,732,625.10 77,935.72 5,810,560.82
Equipment
Repairs and Maintenance - Furniture and
408,777.00 521,881.00 930,658.00
Fixtures
Repairs and Maintenance - Semi-Expendable
3,200.00 5,500.00 8,700.00
Machinery and Equipment
Repairs and Maintenance - Other Property,
5,906,206.75 (521,881.00) 5,384,325.75
Plant and Equipment
Taxes, Duties and Licenses 9,158,775.21 500,342.16 9,659,117.37
Fidelity Bond Premiums 9,966,249.91 106,001.13 10,072,251.04
Insurance Expenses 38,845,597.79 (1,358,179.77) 37,487,418.02
Advertising, Promotional and Marketing
29,970,442.61 215,782.00 30,186,224.61
Expense
Printing and Publication Expenses 4,210,396.20 (82,882.00) 4,127,514.20
Representation Expenses 666,922.00 1,343,400.00 2,010,322.00
Transportation and Delivery Expenses 4,827,220.29 371,106.24 5,198,326.53
Rent/Lease Expenses 873,103,580.20 (8,358,502.39) 864,745,077.81
Membership Dues and Contributions to
0.00 7,302,134.68 7,302,134.68
Organizations
Subscription Expenses 223,345,496.30 10,659,445.96 234,004,942.26
Donations 4,397,459.68 218,045.63 4,615,505.31
Bank Transaction Fee 57,508.64 3,200.00 60,708.64
Other Maintenance and Operating Expenses 39,766,174.91 53,751,087.28 93,517,262.19
Financial Expenses (FE) 68,000.00 (3,200.00) 64,800.00
Bank Charges-Loans/Borrowings 60,800.00 (1,600.00) 59,200.00
Other Financial Charges 7,200.00 (1,600.00) 5,600.00
Non-Cash Expenses 304,820,683.06 14,442,370.68 319,263,053.74
Depreciation 296,818,506.70 7,300,848.65 304,119,355.35
Amortization 2,528,444.13 (5,086.82) 2,523,357.31
Impairment Loss 5,473,732.23 7,146,608.85 12,620,341.08

5. Cash and Cash Equivalents

This account consists of:

2021
2022
Account (As Restated)
(in P)
Cash on Hand
Cash-Collecting Officers 88,970,063.47 76,237,825.87
Petty Cash 1,155,054.47 1,242,512.11
Cash in Bank-Local Currency, Current Account 5,173,561.37 6,117,825.29
Treasury/Agency Cash Accounts
Cash - Treasury/Agency Deposit, Regular 0.00 8,550,901.05
Cash - Treasury/Agency Deposit, Trust 36,774,947.81 36,740,500.62
Total 132,073,627.12 128,889,564.94

29
5.1 Cash collected by the BIR on behalf of the NG balance represents funds for Tax
Refunds and NIRT collections that are unremitted to the Bureau of the Treasury (BTr)
as of the accounting date. This is composed of the following:

Cash-Collecting Officers pertains to undeposited NIRT collections of the RCOs and

Special Collecting Officers (SCOs) as at year end.

2021
2022
Particulars (As Restated)
(in P)
SCOs:
General Services Division (GSD), NO 3,500.00 34,198,391.43
Various Collecting Agents 86,575.11 0.00
Inactive Collection Agents 34,111,716.32 0.00
RCOs:
1 Calasiao, Pangasinan 986,173.66 28,554.00
2 CAR 3,161.11 0.00
3 Tuguegarao, Cagayan 5,300,019.57 (4,080.09)
4 San Fernando City, Pampanga 1,778,166.53 35,871.52
5 Caloocan City 8,747,464.72 0.00
6 Manila 147,105.96 7,455,686.04
7A Quezon City 8,215,583.83 9,722,301.19
7B East NCR 2,355,741.52 3,696,114.69
8A Makati City 6,630.20 370.00
8B South NCR 10,822.00 16,221.25
9A CaBaMiRo 2,804,835.88 39,873.27
9B LaQueMar 176,683.34 398,900.79
10 Legaspi City 1,898,780.00 759,884.61
11 Iloilo City 1,399,518.68 747,831.28
12 Bacolod City 36,865.00 0.00
13 Cebu City 18,470.20 (945,884.28)
14 Tacloban City 408,532.84 540,090.60
15 Zamboanga City 38,181.60 (323,934.94)
16 Cagayan de Oro City 3,799,910.56 3,799,810.66
18 Koronadal City 3,290,297.76 3,263,517.83
19 Davao City 12,737,207.90 12,701,628.65
Total 88,361,944.29 76,131,148.50

The collections of the SCO consist of non-tax revenues, such as processing fees and
certification fees from taxpayers applying for tax clearance for bidding purposes,
certification of tax payments (1999 and prior years), penalties imposed to AABs
violations and other miscellaneous income collected by the SCO assigned at the GSD
of the NO.

The AABs are banks accredited by the BIR and who has entered in a tri-partite
Memorandum of Agreement (MOA) between the BIR and the BTr to collect payments
of NIRT, including payments an Electronic Filing and Payment Systems (eFPS) filers,
over-the-counter (OTC) and others. The AABs remit their collections to the BTr.

The RCOs in the RRs collect internal revenue taxes through the issuance of electronic
Revenue Official Receipt (eROR), electronic Official Receipt (eOR) and electronic

30
 Acknowledgement Receipt (eAR) using the Collection Officers Receipting Device
and through the issuance of manual ROR or OR.

5.2 Cash controlled by the BIR pertains to the cash received through a Notice of Cash
Allocation (NCA) accounted for in the Disbursement books. This is collected by, or
appropriated or granted to the BIR to fund its operating objectives, acquire capital
assets or repay its debt. This consists of the following:
2021
2022
Account (As Restated)
(in P)
Cash on Hand
Cash -Collecting Officers 608,119.18 106,677.37
Petty Cash Fund 1,155,054.47 1,242,512.11
Cash in Bank-Local Currency
Cash in Bank-Local Currency, Current Account 5,173,561.37 6,117,825.29
Treasury/Agency Cash Accounts
Cash-Treasury/Agency Deposit, Regular 0.00 8,550,901.05
Cash-Treasury/Agency Deposit, Trust 36,774,947.81 36,740,500.62
Total 43,711,682.83 52,758,416.44

Petty Cash is used to recognize the amount granted to duly designated Petty Cash
Custodian for payment of authorized petty or miscellaneous expenses which cannot
be conveniently paid through checks. This account represents petty cash granted to
the special disbursing officers of the Bureau.

Cash in Bank-Local Currency, Current Account represents cash collections from sale
of bid documents related to the Bids and Awards Committee (BAC) and financial
assistance to BIR employees affected by typhoon Yolanda and Sendong from the
President’s Socio-Civic Project Fund (formerly the President’s Social Fund). This
account is also used to pay for the honoraria of the BAC.

Cash-Treasury Agency/Deposit, Trust is used to record the amount of collections from

trust receipts, such as receipts of performance securities, and adjustments for lapsed
NCA under the Trust Fund.

6. Receivables

This account is composed of:

2021
2022
Account (As Restated)
(in P)
Loans and Receivables
Accounts Receivable 0.30 0.00
Tax Receivable 2,509,307,581.79 2,324,573,246.27
Inter-Agency Receivables
Due from National Government Agencies 146,261,992.84 159,679,673.77

31
 2021
2022
Account (As Restated)
(in P)
Due Government-Owned or Controlled Corporations 238,028.47 0.00
Intra-Agency Receivables
Due from Central Office 1,771,989.23 1,771,989.23
Due from Regional Offices 361,392.31 1,015,176.36
Other Receivables
Receivables-Disallowances/Charges 43,777,058.21 43,779,305.66
Due from Officers and Employees 7,028,884.34 13,959,989.71
Other Receivables 8,572,602,985.16 7,426,504,872.14
Allowance for Impairment-Other Receivables (187,090,262.95) (185,740,763.09)
Total 11,094,259,649.70 9,785,543,490.05

6.1 Receivables arising from taxation transactions consists of the following:

2021
2022
Account (As Restated)
(in P)
Loans and Receivables
Tax Receivable 2,509,307,581.79 2,324,573,246.27
Other Receivables
Due from Officers and Employees 2,764,515.77 4,971,386.41
Other Receivables 8,518,337,358.73 7,370,055,010.05
Allowance for Impairment-Other Receivables (185,611,642.31) (184,284,606.27)
Total 10,844,797,813.98 9,515,315,036.46

Tax Receivable is composed of unpaid revenues and assessments from validated

unpaid dishonored checks, tax due per tax returns filed by the taxpayer, second
installment of income tax by individual taxpayers, and tax liabilities of taxpayers per
final and executory decision of the Court. The balance is composed of the following:
2021
2022
RR (As Restated)
(in P)
1 – Calasiao, Pangasinan 497,245.73 (231,458.59)
3 – Tuguegarao City 28,427.68 28,427.68
4 – San Fernando, Pampanga 1,478,768.56 1,473,541.06
5 – Caloocan City 122,444.90 96,444.90
6 – Manila City 976,114.58 591,791.28
7A – Quezon City 1,331,641.85 681,910.16
7B – East NCR 8,639,245.41 0.00
8A – Makati City 29,036,554.96 16,311,935.76
8B – South NCR 103,109,412.34 1,113,263.13
9A – CaBaMiRo 129,528.45 56,293.22
9B – LaQueMar 6,688,298.34 3,475,424.91
10 – Legazpi City 0.00 (439,833.13)
11 – Iloilo City 10,865,250.75 10,424,841.91
12 – Bacolod City 2,278,428,357.21 2,276,919,989.87
13 – Cebu City 24,460,751.99 0.00
14 – Tacloban City 893,072.00 892,052.00
15 – Zamboanga City 1,096,072.01 130,773.45
16 – Cagayan De Oro City 238,219.83 121,763.80
17 – Butuan City 12,758,965.86 12,758,965.86

32
 2021
2022
RR (As Restated)
(in P)
18 – Koronadal City 28,362,090.34 0.00
19 – Davao City 167,119.00 167,119.00
Total 2,509,307,581.79 2,324,573,246.27

Due from Officers and Employees is composed of long outstanding balance of BIR
employees designated as RCOs in various municipalities nationwide from CYs 1961
to 1989, the collectability of which is not assessed as of the reporting date, subject of
the on-going verification of outstanding balances. The balance is composed of the
following:
2021
2022
RR (As Restated)
(in P)
2 – Cordillera Administrative Region 190,072.24 190,072.24
4 – San Fernando City, Pampanga 0.00 1,136,870.14
6 – Manila 624,208.25 624,208.25
13 – Cebu City 575,264.17 575,264.17
15 – Zamboanga City 1,374,971.11 1,444,971.61
17 – Butuan City 0.00 1,000,000.00
Total 2,764,515.77 4,971,386.41

Other Receivables are made up of collectibles related to taxation revenue transactions

from NGAs, RRs, officers and employees. The significant increase in the balance
from P7,370,055,010.05 to P8,518,337,358.73 or P1,148,282,348.68 mostly due to
the issuance of Tax Credit Certificates (TCCs) and Tax Debit Memo (TDM) during
CY 2022.

The outstanding Other Receivables are as follows:

2021
2022
Particulars (As Restated)
(in P)
NO
a. Receivable funding for the issuance of TCCs and 7,597,012,329.91 6,445,465,084.12
TDM by various BIR issuing offices and the
Department of Finance (DOF) One-Stop-Shop to the
taxpayers
b. Outstanding balance of dishonored checks thru bank 102,162,897.59 102,162,897.59
for CY 2010 and prior years
c. Bank penalties on delayed remittance of collection 841,064.68 1,002,247.91
and procedural errors
e. Outstanding balance of Municipal Treasurers 35,664,385.84 35,664,385.84
designated as RCOs
f. Balance transfer from Cash-Collecting Officers 30,256,013.40 30,256,013.40
(Department of Foreign Affairs (DFA) –
P30,255,312.15 and Others – P701.25)
g. Cash shortages of former RCOs during the year 6,837,298.98 6,837,298.98
1961-1970 who were no longer in service and whose
whereabouts could no longer be located

33
 2021
2022
Particulars (As Restated)
(in P)
(subject to completion of documentary requirements
for write-off)
h. Outstanding balance BIR designated Revenue 767,578.20 767,578.20
Attaché/Revenue Representative who were no
longer in service
i. Due to incomplete documentary requirements per 70,430.45 70,430.45
COA Circular No. 97-001, the said balance
could not be requested from COA for an authority to
drop/write-off from the NG Book.
j. Outstanding balance of DFA Finance Officers (FOs) 6,511,582.75 6,511,582.75
designated as Collecting Agents of the BIR for
collection from abroad
k. Balance transferred from Due from Officers and 96,224.92 96,224.92
Employees (For Reconciliation) for impairment loss
m. Philippine National Bank tax refund 75,462,835.41 75,462,835.41
n. Pertains to Accounts Receivable by the BIR from the 3,166,827.45 3,166,827.45
DFA for collections of internal revenue taxes thru the
DFA FO assigned at various foreign post
o. Remaining balance of collections thru OTC for the 97,093.05 97,093.05
period 2002-2003 and adjustments on the said
balance could not be taken up by the BS of RAD due
to the absence of pertinent documents from the
concerned AABs and BTr
p. Allowance for Impairment (161,250,741.71) (161,250,741.71)
RR
1 – Calasiao, Pangasinan 1,578,946.65 2,354,522.17
2 – CAR 701,623.22 701,623.22
3 – Tuguegarao City 3,511,480.31 3,736,357.23
4 – San Fernando, Pampanga 78,003,678.65 78,008,616.01
5 – Caloocan City 13,574,307.48 13,574,307.48
6 – Manila 70,902,808.51 70,902,808.51
7A – Quezon City 12,045,110.23 11,620,602.31
7B – East NCR 177,554,556.36 177,554,556.36
8A – Makati City 210,986,916.83 211,349,088.22
8B – South NCR 7,113,686.03 7,113,686.03
9A - CaBaMiRo 15,846,132.25 15,847,902.76
9B - LaQueMar 10,419,572.64 14,538,074.98
10 – Legazpi City 12,861,785.50 11,458,855.32
11 – Iloilo City 11,342,316.40 11,784,614.34
12 – Bacolod City 2,065,391.52 2,065,391.52
13 – Cebu City 3,394,088.25 3,394,088.25
14 – Tacloban City 3,689,088.19 3,690,108.19
15 – Zamboanga City 10,484,110.72 10,484,110.72
16 – Cagayan De Oro City 22,533.74 22,533.74
17 – Butuan City 12,378,514.59 11,378,514.59
18 – Koronadal City 564,105.24 564,105.24
19 – Davao City 350,042.79 350,042.79
Allowance for Impairment (Unreconciled accounts of
various former RCOs which were recommended for legal (24,360,900.60) (23,033,864.56)
action or write-off by COA)
Total 8,332,725,716.42 7,185,770,403.78

34
 Other Receivables recorded in the RRs consist of dishonored checks and cash
shortages of RCOs whose collectability cannot be ascertained as of the reporting date.

6.2 Receivables arising from regular agency operation is composed of the following:

2021
2022
Account (As Restated)
(in P)
Loans and Receivables
Accounts Receivable 0.30 0.00
Inter-Agency Receivable
Due from National Government Agencies 146,261,992.84 159,679,673.77
Due from Government-Owned or Controlled
Corporations 238,028.47 0.00
Intra-Agency Receivables
Due from Central Office 1,771,989.23 1,771,989.23
Due from Regional Offices 361,392.31 1,015,176.36
Other receivables
Receivables-Disallowances/Charges 43,777,058.21 43,779,305.66
Due from Officers and Employees 4,264,368.57 8,988,603.30
Other Receivables 54,265,626.43 56,449,862.09
Allowance for Impairment-Other Receivables (1,478,620.64) (1,456,156.82)
Total 249,461,835.72 270,228,453.59

Due from National Government Agencies pertains to advances made by the BIR to the
Procurement Service.

Due from Central Office refers to the unreconciled amount of receivable from the NO
arising from the transfer of funds not covered by allotment by RR No. 5- Caloocan.

Due from Regional Offices pertains to the unreconciled amount of receivable from RR
No. 5-Caloocan amounting to P5,302.20 and outstanding balance under RR No. 7A-
Quezon City books amounting to P356,090.11.

Receivables-Disallowances/Charges refers to the Notice of Disallowances and Notice

of Charge resulting from the regular audit and cash examinations, conducted by the
Audit Teams.

Due from Officers and Employees pertains to amount of claims from agency's officers
and employees for overpayment, cash shortage, loss of assets and other bills issued by
the agency.

Other Receivables refers to amount due from debtors and other agencies not falling
under any of the specific receivable account. This includes advances to officers and
employees and salary overpayment which were reclassified to this account.

Allowance for Impairment-Other Receivables relates to the impairment loss on other

receivables particularly of dormant unliquidated cash advances as of December 31,
2017 as per COA recommendation.

35
7. Inventories

The components of this account are as follows

2021
2022
Account (As Restated)
(in P)
Inventory Held for Consumption:
Merchandise Inventory 577,928,378.07 478,244,148.10
Office Supplies Inventory 181,127,857.76 187,703,486.54
Accountable Forms, Plates and Stickers Inventory 127,617,268.40 120,507,114.23
Non-Accountable Forms Inventory 98,458,932.88 96,320,212.59
Drugs and Medicines Inventory 0.00 3,667.50
Medical, Dental and Laboratory Supplies Inventory 0.25 22,750.05
Other Supplies and Materials Inventory 8,593,374.15 14,047,276.80
Semi-Expendable Machinery and Equipment:
Machinery 299,760.00 562,623.14
Office Equipment 6,624,397.41 6,677,062.36
Information and Communications Technology 29,433,681.51 26,723,502.14
Equipment
Communications Equipment 2,299,446.07 2,120,060.81
Disaster Response and Rescue Equipment 367,555.00 439,843.00
Military, Police and Security Equipment 86,898.40 91,221.40
Medical Equipment 32,538.00 35,038.00
Sports Equipment 9,250.00 0.00
Other Equipment 1,172,082.66 1,305,996.39
Semi-Expendable Furniture, Fixtures and Books:
Furniture and Fixtures 18,264,878.31 24,566,359.40
Books 177,406.52 384,382.52
Total 1,052,493,705.39 959,754,744.97

In compliance with IPSAS provisions and COA recommendations, Revenue Memorandum

Order (RMO) No. 31-2021 amends provisions of RMO Nos. 83-2010 and 13-2014,
particularly the recognition of absolutely Forfeited Property/Assets for Consolidation,
valuation basis and the reclassification to the Merchandise Inventory.

Merchandise Inventory is composed of the following under different jurisdictions:

2021
2022
Account (As Restated)
(in P)
NO
Land 719,143.49 719,143.49
Office Equipment 5,401,084.24 5,401,084.24
Other Property, Plant and Equipment 13,993.60 13,993.60
Shares of Stock/Stock Certificates 10,401,320.00 10,401,320.00
RR
1 – Calasiao, Pangasinan 15,186,705.00 12,698,044.54
2 – CAR 1,750,000.00 1,690,616.57
4 – San Fernando, Pampanga 34,918,416.00 34,923,640.50
5 – Caloocan City 83,240,889.25 83,240,889.25
6 – Manila 7,213,040.00 6,432,005.67
7A – Quezon City 9,267,700.00 0.00

36
 2021
2022
Account (As Restated)
(in P)
7B – East NCR 18,712,200.00 14,849,803.56
8A – Makati City 8,070,550.00 2,119,000.00
8B – South NCR 46,441,000.00 43,846,150.00
9A – CaBaMiRo 4,571,300.00 4,571,300.00
9B – LaQueMar 39,009,750.50 39,009,750.50
10 – Legazpi City 769,784.01 68,475.60
11 – Iloilo City 3,326,101.00 3,326,101.00
12 – Bacolod City 24,591,018.00 24,591,018.00
13 – Cebu City 71,432,102.50 72,421,285.69
14 – Tacloban City 9,255,871.20 10,478,810.18
15 – Zamboanga City 260,160.00 231,520.00
16 – Cagayan De Oro City 88,597,394.28 12,599,978.71
17 – Butuan City 77,212,692.00 77,212,692.00
18 – Koronadal City 540,000.00 221,016.00
19 – Davao City 17,026,163.00 17,176,509.00
Total 577,928,378.07 478,244,148.10

The Aging of Merchandise Inventory for CY 2022 is based on the zonal value of Forfeited
Property/Assets in the Consolidated Inventory of Seized and Forfeited Assets.

Property Classification
Aging Agricultural Commercial
Total
(Years in BIR Custody) and Residential and Others
(in P) (in P)
No Forfeiture Date 10,173,381.40 12,000.00 10,185,381.40
0-3 years 19,567,193.00 102,374,900.00 121,942,093.00
4-10 years 178,770,987.98 54,751,140.00 233,522,127.98
11-20 years 43,201,496.50 676,080.00 43,877,576.50
21 years and above 120,381,662.35 95,170,300.00 215,551,962.35
Total 372,094,721.23 252,984,420.00 625,079,141.23

Accountable Forms, Plates and Stickers Inventory under Inventory Held for Consumption
consists of forms with identified series of numbers. This is composed of with and without
money value, such as Cigarette Strip Stamps, Documentary Stamps, Labels and Wines, and
Miscellaneous Accountable Forms (e.g. BIR Form No. 2313- Electronic Certificate
Authorizing Registration and BIR Form No. 0535- Tax Information Sheet).

Non-Accountable Forms Inventory under Inventory Held for Consumption consists of

forms, reports and documents utilized for operations, which includes BIR Forms used by
taxpayers for filing and those used internally, such as BIR Form No. 1700-Annual Income
Tax Return and Accounting Form No. 82- Property Card.

Semi-Expendable Machinery and Equipment and Semi-Expendable Furniture, Fixtures and

Books are items with useful life of more than one year and whose cost is below the
capitalization threshold of P50,000.00.

37
8. Other Current Assets

This is composed of the following:

2021
2022
Account (As Restated)
(in P)
Advances
Advances to Officers and Employees 2,250,895.94 0.00
Prepayments
Prepaid Rent 2,797,200.00 3,854,841.22
Prepaid Registration 12,289.48 15,268.53
Prepaid Insurance 14,227,968.29 14,503,928.77
Total 19,288,353.71 18,374,038.52

Advances to Officers and Employees pertains to the advances for the Confidential Fund of
the Commissioner.

Prepaid Rent represents the two months security deposit to Colt Global Land Development
Corporation for lease of storage area located at ARCA COLT Compound, F. Dahlia St. cor.
Lingunan-Exit, Valenzuela City and two months security deposit and one month advance
to Arnold Cabiltes Holdings.

Prepaid Registration represents the amount advanced by RR No. 2-CAR, RR No. 8A-
Makati City and RR No. 8B-South NCR for registration of motor vehicles with the Land
Transportation Office (LTO).

Prepaid Insurance represents the insurance payment for vehicles, buildings and other
properties of the Bureau.

9. Property, Plant and Equipment

9.1 This account consists of the following:

Land Land Improvements

2021 2021
Particulars 2022 2022
(As Restated) (As Restated)
(in P)
Carrying Amount, January 1 716,529,090.36 702,154,793.51 2,235,348.83 2,707,214.67
Adjustments 2,800,000.00 10,411,870.00 0.00 (45,781.70)
Additions / Acquisitions 2,680,000.00 9,043,181.85 0.00 0.00
Total 722,009,090.36 721,609,845.36 2,235,348.83 2,661,432.97
Disposals (650,000.00) (5,080,755.00) 0.00 0.00
Depreciation 0.00 0.00 (329,526.54) (426,084.14)
Carrying Amount, December 31 721,359,090.36 716,529,090.36 1,905,822.29 2,235,348.83

Gross Cost 721,359,090.36 716,529,090.36 6,294,731.13 6,294,731.13

Less: Accumulated Depreciation 0.00 0.00 4,388,908.84 4,059,382.30
Carrying Amount, December 31 721,359,090.36 716,529,090.36 1,905,822.29 2,235,348.83

38
 Infrastructure Assets Buildings and Other Structures
2021 2021
Particulars 2022 2022
(As Restated) (As Restated)
(in P)
Carrying Amount, January 1 1,094,755.35 0.00 3,676,341,574.59 3,732,813,385.32
Adjustments 0.00 1,094,755.35 14,010,136.74 (81,539,074.90)
Additions / Acquisitions 2,089,050.57 0.00 256,366,922.64 168,758,153.34
Total 3,183,805.92 1,094,755.35 3,946,718,633.97 3,820,032,463.76
Disposals 0.00 0.00 (7,670,982.50) (6,841,049.55)
Depreciation (164,644.77) 0.00 (127,781,417.68) (136,849,839.62)
Impairment Loss 0.00 0.00 (7,745,578.30) 0.00
Carrying Amount, December 31 3,019,161.15 1,094,755.35 3,803,520,655.49 3,676,341,574.59
Gross Cost 3,607,982.40 3,157,094.40 4,908,352,921.03 4,660,970,897.65
Less: Accumulated Depreciation 588,821.25 2,062,339.05 1,104,832,265.54 984,629,323.06
Carrying Amount, December 31 3,019,161.15 1,094,755.35 3,803,520,655.49 3,676,341,574.59

Machinery and Equipment Transportation Equipment

2021 2021
Particulars 2022 2022
(As Restated) (As Restated)
(in P)
Carrying Amount, January 1 439,708,714.51 605,681,033.66 58,128,346.06 70,782,771.05
Adjustments 7,084,726.00 (131,421,769.29) 4,452,045.40 4,985,685.39
Additions / Acquisitions 183,350,140.63 137,333,562.49 5,217,133.45 8,617,592.88
Total 630,143,581.14 611,592,826.86 67,797,524.91 84,386,049.32
Disposals (104,022,045.97) (57,818,141.02) (6,192,050.00) (14,766,612.04)
Depreciation (98,813,875.83) (105,664,275.23) (10,709,983.66) (11,491,091.22)
Impairment Loss (9,186,357.36) (8,401,696.10) 0.00 0.00
Carrying Amount, December 31 418,121,301.98 439,708,714.51 50,895,491.25 58,128,346.06

Gross Cost 1,310,017,164.78 1,390,755,682.34 247,181,309.58 248,138,249.03

Less: Accumulated Depreciation 890,193,195.37 949,340,644.07 196,193,868.33 189,917,952.97
Accumulated Impairment Loss 1,702,667.43 1,706,323.76 91,950.00 91,950.00
Carrying Amount, December 31 418,121,301.98 439,708,714.51 50,895,491.25 58,128,346.06

Furniture, Fixtures and Books Leased Assets

2021 2021
Particulars 2022 2022
(As Restated) (As Restated)
(in P)
Carrying Amount, January 1 45,242,935.37 70,568,318.75 1,114,546,988.52 858,818,461.35
Adjustments (1,314,056.44) (45,451,597.56) 0.00 9,594,240.73
Additions / Acquisitions 319,993.00 38,328,318.04 0.00 281,276,513.55
Total 44,248,871.93 63,445,039.23 1,114,546,988.52 1,149,689,215.63
Disposals (3,643,602.86) (8,723,581.29) 0.00 0.00
Depreciation (7,117,020.38) (9,395,866.12) (36,642,680.84) (35,142,227.11)
Impairment Loss (57,684.49) (82,656.45) 0.00 0.00
Carrying Amount, December 31 33,430,564.20 45,242,935.37 1,077,904,307.68 1,114,546,988.52

Gross Cost 87,765,930.65 100,401,925.78 1,457,496,413.49 1,457,496,413.49

Less: Accumulated Depreciation 54,334,570.82 55,158,194.78 379,592,105.81 342,949,424.97
Accumulated Impairment Loss 795.63 795.63 0.00 0.00
Carrying Amount, December 31 33,430,564.20 45,242,935.37 1,077,904,307.68 1,114,546,988.52

39
 Construction in Progress Other Property, Plant and Equipment
2021 2021
Particulars 2022 2022
(As Restated) (As Restated)
(in P)
Carrying Amount, January 1 366,015,449.51 347,139,934.52 40,978,464.08 52,628,460.26
Adjustments (271,164,952.71) (14,882,444.96) 11,734,614.19 (8,057,207.24)
Additions / Acquisitions 76,071,942.67 33,757,959.95 22,363,069.25 4,882,598.65
Total 170,922,439.47 366,015,449.51 75,076,147.52 49,453,851.67
Disposals 0.00 0.00 (14,235,574.84) (2,658,450.34)
Depreciation 0.00 0.00 (6,651,789.39) (5,816,937.25)
Impairment Loss 0.00 0.00 0.00 0.00
Carrying Amount, December 31 170,922,439.47 366,015,449.51 54,188,783.29 40,978,464.08

Gross Cost 170,922,439.47 366,015,449.51 121,255,069.66 113,937,739.51

Less: Accumulated Depreciation 0.00 0.00 67,066,286.37 72,959,275.43
Carrying Amount, December 31 170,922,439.47 366,015,449.51 54,188,783.29 40,978,464.08

Total
Note 2021
Particulars 2022
(As Restated)
(in P)
Carrying Amount, January 1 6,460,821,667.18 6,443,294,373.09
Adjustments (232,397,486.82) (255,311,324.18)
Additions / Acquisitions 9.1 548,458,252.21 681,997,880.75
Total 6,776,882,432.57 6,869,980,929.66
Disposals (136,414,256.17) (95,888,589.24)
Depreciation 24.1 (288,210,939.09) (304,786,320.69)
Impairment Loss 24.3 (16,989,620.15) (8,484,352.55)
Carrying Amount, December 31 6,335,267,617.16 6,460,821,667.18

Gross Cost 9,034,253,052.55 9,063,697,273.20

Less: Accumulated Depreciation 2,697,190,022.33 2,601,076,536.63
Accumulated Impairment Loss 1,795,413.06 1,799,069.39
Carrying Amount, December 31 6,335,267,617.16 6,460,821,667.18

9.2 The adoption of the PPE capitalization threshold from previous P15,000.00 to
P50,000.00 resulted to the partial reclassification of the same to semi-expendable
accounts for CY 2022 which have an impact on the comparability balances of the PPE.

9.3 The difference between PPE additions in the table and the purchases of PPE reflected
in the Cash Flow Statements amounting to P368,735,914.95 and P549,434,632.79 for
CY 2022 and 2021, respectively, pertains to purchases of PPE on account. These are
included in the Accounts Payable transactions. PPE additions are composed of the
following:

2021
2022
Additions (As Restated)
(in P)
Land 2,680,000.00 9,043,181.85
Infrastructure Assets 2,089,050.57 0.00
Buildings and Other Structures 256,366,922.64 168,758,153.34
Machinery and Equipment 183,350,140.63 137,333,562.49
Transportation Equipment 5,217,133.45 8,617,592.88

40
 2021
2022
Additions (As Restated)
(in P)
Furniture, Fixtures and Books 319,993.00 38,328,318.04
Leased Assets 0.00 281,276,513.55
Construction in Progress 76,071,942.67 33,757,959.95
Other Property, Plant and Equipment 22,363,069.25 4,882,598.65
Total per PPE Schedule 548,458,252.21 681,997,880.75
Per Cash Flow Statement 179,722,337.26 132,563,247.96
Unpaid as of December 31 368,735,914.95 549,434,632.79

9.4 Seven parcels of land donated to the Bureau with a total amount of P44,552,910.00
represents those acquired by the Bureau thru donation and shall be used as site for the
construction of office building of Regional Offices. The records of the same are still in
the books of accounts of the NO awaiting to be transferred to Regional Office books
upon the receipt of Transfer of Certificate of Title, details are as follows:

Amount
Particulars Date of Donation
(in P)
1,000 sq. m. located at Manggas, Barangay Del February 08, 2012 1,100,000.00
Carmen, Iligan City (RDO 101)
1,476.77 sq. m. located Brgy. Combado, Maasin City, April 11, 2013 1,476,770.00
Southern Leyte (RDO 90)
Candahug Brgy. Baras Palo, Leyte March 15, 1997 2,013,600.00
Commercial Parking Lot, Ntra. Sra. De Natividad, December 31, 1983 262,730.00
Laoag City
Kumintang Ibaba, Batangas City June 07, 1971 1,580,250.00
Leonard Wood Road, Session Rd., Baguio City August 19, 1995 37,800,000.00
Zone IV City Proper, Zamboanga City June 23, 1990 319,560.00
Total 44,552,910.00

10. Intangible Assets

10.1 The movements in this account are as follows:

2021
2022
Particulars (As Restated)
(in P)
Acquisition Cost
Beginning Balance 602,566,235.41 598,567,768.67
Additions 39,927,488.08 4,877,138.52
Disposal (21,387,572.42) (1,846,148.32)
Adjustments (470,400.00) 967,476.54
Balance as of December 31 620,635,751.07 602,566,235.41
Accumulated Amortization/Impairment Loss
Beginning Balance 480,205,204.78 482,081,860.92
Amortization 4,111,780.49 2,523,357.31
Impairment 153,639.78 2,273.60
Adjustments 134,094.99 (4,402,287.05)

41
 2021
2022
Particulars (As Restated)
(in P)
Balance as of December 31 484,604,720.04 480,205,204.78
Total 136,031,031.03 122,361,030.63

10.2 This account is composed of the following per Office:

2021
2022
Office (As Restated)
(in P)
NO 567,620,653.58 564,327,164.33
RRs:
1 Calasiao, Pangasinan 1,787,668.31 1,328,484.10
2 CAR 3,468,706.43 2,767,846.32
3 Tuguegarao, Cagayan 1,675,842.32 1,144,155.34
4 San Fernando City, Pampanga 5,540,899.32 3,203,065.86
5 Caloocan City 4,805,056.40 3,885,267.90
6 Manila 2,942,191.62 2,362,169.46
7A Quezon City 6,066,151.28 4,906,177.32
8A Makati City 3,639,516.26 1,996,190.50
8B South NCR 2,421,536.23 77,280.00
10 Legaspi City 1,565,430.20 935,074.52
11 Iloilo City 557,146.98 73,795.18
12 Bacolod City 2,659,678.24 2,263,442.34
14 Eastern Visayas 2,189,112.63 1,527,033.24
15 Zamboanga City 4,050,873.45 3,470,851.29
16 Cagayan de Oro City 2,726,001.99 1,531,717.14
17 Butuan City 66,080.00 1,660,396.21
18 Koronadal City 2,928,969.71 2,083,104.06
19 Davao City 3,924,236.12 3,023,020.30
Total 620,635,751.07 602,566,235.41

10.3 Intangible Assets of the Bureau consist of software and systems developed, contracted
and purchased in the performance of its mandate. The major intangible assets of the
BIR NO consist of the following:

2022 2021
Computer Software (As Restated)
(in P)
License for electronic New Government
6,265,294.06 6,265,294.06
Accounting System (eNGAS)
Electronic Registration System 1,787,240.00 1,787,240.00
Software Licenses for electronic Tax Information
System 151,310,507.90 151,310,507.90
Microsoft Office 172,515,539.76 170,702,970.51
Other Software Licenses 235,742,071.86 234,261,151.86
Total 567,620,653.58 564,327,164.33

10.4 The license for eNGAS was procured for enhancing the existing eNGAS and to align
with the implementation of the new GAM for NGAs.

42
 10.5 Other systems and software refers to various anti-viruses and Microsoft Office
installed in desktops used by employees of the BIR.

11. Other Non-Current Assets

11.1 These are composed of the following:

2021
2022
Account (As Restated)
(in P)
Prepayments
Advances to Contractors 12,867,215.38 21,710,723.08
Other Prepayments 18,147,149.23 18,313,883.05
Deposits
Guaranty Deposits 10,299,774.47 10,299,774.47
Other Deposits 6,617,544.48 1,583,121.32
Other Assets
Forfeited Property/Assets 0.00 106,356,139.74
Other Assets 2,232,039,088.54 2,231,994,804.28
Total 2,279,970,772.10 2,390,258,445.94

11.2 The Advances to Contractors represents the amount advanced to contractors for the
procurement and development of various assets of the BIR. The balance is made up
of advances made by the following offices:

2021
2022
Office/RR (As Restated)
(in P)
NO 1,024,146.86 1,024,146.86
RR:
4 San Fernando City, Pampanga 734,352.73 734,352.73
5 Caloocan City 0.00 8,229,053.48
7B East NCR 20,968.56 65,844.55
11 Iloilo City 281,598.38 1,407,991.90
14 Eastern Visayas 8,774,370.00 8,774,370.00
16 Cagayan de Oro City 675.62 675.62
17 Butuan City 2,031,103.23 1,474,287.94
Total 12,867,215.38 21,710,723.08

11.3 Guaranty Deposits represents the installation deposits, among others, made by the
offices to guaranty compliance with the terms of agreements on purchases and rentals
of tools and equipment.

11.4 Other Deposits includes, among others, the deposits made by RR 19-Davao City to
utility companies which shall be refunded once their services are terminated such as
the electrical installations paid to Davao Light in February and June, 2010 for the new
BIR Regional Office at Bolton Extension, Davao City.

43
 11.5 The Forfeited Property/Assets pertains to absolutely forfeited properties recorded in
the Bureau’s Book of Accounts before the implementation of eNGAS. Forfeited
Property/Assets balance was reclassified to Merchandise Inventory (Note 7) in
compliance with COA Circular No. 2020-001 which prescribed the Revised Chart of
Accounts effective January 1, 2020.

11.6 Policies, Procedures, Restrictions and Valuation

RMO No. 83-2010 prescribes policies and procedures in the decentralization of
recording of forfeited properties/assets in the books of accounts of the Regional Office
Collection Books.

11.7 Other Assets balance pertains to, among others, various PPE items and other assets
that are subject to reconciliation. The balance is composed of the following Offices:
2021
2022
Office/RR (As Restated)
(in P)
NO 2,217,081,587.47 2,217,082,085.27
RR:
14 Eastern Visayas 12,218,468.46 12,266,972.96
16 Cagayan de Oro City 139,378.39 139,378.39
17 Butuan City 93,286.56 0.00
19 Davao City 2,506,367.66 2,506,367.66
Total 2,232,039,088.54 2,231,994,804.28

12. Current Liabilities

12.1 Financial Liabilities

This is composed of the following:

2021
2022
Account (As Restated)
(in P)
Payables
Accounts Payable 562,097,126.55 633,696,071.18
Due to Officers and Employees 318,630,028.24 292,996,099.51
Finance Lease Payable (current portion) 112,342,809.39 95,325,992.27
Awards and Rewards Payable 158,138.95 158,138.95
Tax Refunds Payable 19,272,486.14 20,753,479.95
Total 1,012,500,589.27 1,042,929,781.86

Accounts Payable represents the obligations incurred by the BIR for goods and
services in the normal course of operation outstanding as of the accounting date.

44
The balance is composed of the following:

2021
2022
Office/RR (As Restated)
(in P)
NO 436,440,893.11 423,904,989.50
RR:
1 Calasiao, Pangasinan 10,593,642.23 4,671,397.82
2 CAR 1,484,571.56 5,264,498.61
3 Tuguegarao, Cagayan 1,506,846.57 3,279,301.94
4 San Fernando City, Pampanga 8,868,261.50 7,723,182.56
5 Caloocan City 14,719,463.82 21,167,889.94
6 Manila 4,650,748.99 6,423,868.36
7A Quezon City 10,943,843.63 15,407,700.50
7B East NCR 4,250,011.98 9,722,995.75
8A Makati City 5,356,939.85 36,465,704.57
8B South NCR 1,168,468.14 5,469,502.17
9A CaBaMiRo 7,173,136.05 10,921,172.19
9B LaQueMar 16,196,023.49 24,697,575.10
10 Legaspi City 6,370,795.00 934,741.57
11 Iloilo City 2,879,768.36 2,652,547.71
12 Bacolod City 5,648,783.98 7,107,800.48
13 Cebu City 50,261.00 4,730,455.84
14 Eastern Visayas 4,729,790.96 16,762,398.40
15 Zamboanga City 2,455,633.76 1,372,532.78
16 Cagayan de Oro City 2,983,990.47 10,338,264.79
17 Butuan City 1,727,682.77 2,833,277.32
18 Koronadal City 7,477,414.30 6,870,864.79
19 Davao City 4,420,155.03 4,973,408.49
Total 562,097,126.55 633,696,071.18

Not yet due and demandable obligations are those charged against the current year
and prior years’ budget for which goods, services and projects are not yet delivered,
rendered completed and/or accepted. As at year-end, not yet due and demandable
obligations of BIR reported an aggregate amount of P68,679,515.75

Due to Officers and Employees refers to the liabilities incurred by the BIR to its
officers and employees for salaries, benefits, and other emoluments including
authorized expenses advanced by the officers and employees. The balance pertains to
the following:
2021
2022
Office/RR (As Restated)
(in P)
NO 100,682,855.28 60,964,257.96
RR:
1 Calasiao, Pangasinan 11,714,420.55 10,556,699.44
2 CAR 7,160,473.27 7,047,613.13
3 Tuguegarao, Cagayan 1,482,699.77 923,961.56
4 San Fernando City, Pampanga 19,663,012.03 17,963,277.52
5 Caloocan City 17,334,689.89 13,284,884.53
6 Manila 19,416,168.49 22,581,399.12

45
 2021
2022
Office/RR (As Restated)
(in P)
7A Quezon City 18,384,427.79 21,467,782.13
7B East NCR 2,493,898.83 11,941,731.45
8A Makati City 997,366.99 8,166,809.13
8B South NCR 8,564,837.32 12,240,302.65
9A CaBaMiRo 11,586,974.81 12,562,934.75
10 Legaspi City 9,030,477.63 6,532,426.66
11 Iloilo City 6,999,065.87 6,680,709.41
12 Bacolod City 6,690,770.72 7,627,485.72
13 Cebu City 25,774,997.27 24,195,673.84
14 Eastern Visayas 8,314,930.89 8,692,045.63
15 Zamboanga City 6,996,283.24 5,693,952.55
16 Cagayan de Oro City 9,590,659.32 10,235,689.92
17 Butuan City 6,473,785.88 4,951,995.39
18 Koronadal City 12,000,192.60 9,619,503.73
19 Davao City 7,277,039.80 9,064,963.29
Total 318,630,028.24 292,996,099.51

Tax Refunds Payable represents the amount refundable to taxpayers for excess amount
of paid/withheld.

The balance is composed of the following tax refunds payable per office:

2021
2022
Office/RR (As Restated)
(in P)
7A Quezon City 0.00 48,845.00
8A Makati City 17,471,950.35 17,323,453.35
9A CaBaMiRo 105,948.08 105,947.72
9B LaQueMar 765,306.18 765,306.18
13 Cebu City 0.00 0.00
12 Bacolod City 929,281.53 2,509,927.70
Total 19,272,486.14 20,753,479.95

12.2 Intra-Agency Payables

The Due to Regional Offices amounting to P279,598.09 pertains to the share of RR

No. 7B-East NCR in the electricity and water expenses of the Document Processing
Division (DPD) located at the DPD building under the jurisdiction of RR No. 7A-
Quezon City.

46
12.3 Inter-Agency Payables

This is composed of the following:

2021
2022
Account (As Restated)
(in P)
Due to BIR 71,911,190.82 73,351,250.50
Due to GSIS 32,133,163.81 29,464,504.39
Due to Pag-IBIG 1,478,714.15 2,477,533.86
Due to PhilHealth 8,958,512.76 11,914,138.72
Due to National Government Agencies 12,854,010.74 9,894,870.97
Due to Government-Owned or Controlled Corporations 5,116.51 7,575,348.55
Due to Local Government Units 350,880.93 512,417.35
Total 127,691,589.72 135,190,064.34

Due to BIR represents withholding taxes from officers/employees, suppliers and other
entities, particularly related to the regular agency transactions.

Due to GSIS pertains to withheld employees’ premium payments and other payables
for remittance to the GSIS.

Due to Pag-IBIG consists of withheld employee’s premium payments and other

payables for remittance to the Home Development Mutual Fund.

Due to PhilHealth represents the withholding of employees’ premium payments for

remittance to the Philippine Health Insurance Corporation.

Due to National Government Agencies are receipt of funds for delivery of

goods/services as authorized by law, fund transfers from NGAs, other than the BIR,
for implementation of specific programs or projects and other inter-agency
transactions.

Due to Government-Owned or Controlled Corporations represents receipt of: a)

funds for delivery of goods/services as authorized by law; b) fund transfers from the
Government-Owned or Controlled Corporations (GOCCs) for the implementation of
specific programs or projects; c) NG-managed fund; d) escrow accounts; e) collateral
deposits for the account of GOCCs/Government Financial Institutions (GFIs); and f)
other inter-agency transactions, except those pertaining to GSIS, PhilHealth and Pag-
IBIG.

Due to Local Government Units are receipt of funds from LGUs for delivery of
goods/services as authorized by law, fund transfers for the implementation of specific
programs or projects and other inter-agency transactions. The balance pertains to
excess payment made by LGUs for the procurement of accountable forms which are
to be applied in their next procurement.

47
13. Non-Current Liabilities

13.1 Finance Lease Payable

The breakdown of account balance is as follows:

2021
2022
Account (As Restated)
(in P)
Finance Lease Payable 535,918,651.45 665,278,277.96

The finance lease payable represents the amount of total lease payments under the
finance lease contract payable by the Bureau to the lessor, LBP Leasing Corp. with
lease term of 15 years. The balance of which is as follows:

2022 2021
Particulars
(in P)
Lessor: LBP Leasing Corp.
3 Tuguegarao, Cagayan 15,245,963.24 21,245,777.13
6 Manila 127,153,425.19 167,604,950.31
9B LaQueMar 31,194,757.15 50,643,343.02
12 Bacolod City 53,215,183.08 73,312,809.25
16 Cagayan de Oro City 258,472,379.92 273,946,732.92
18 Koronadal City 28,170,436.35 45,714,783.11
19 Davao City 22,466,506.52 32,809,882.22
Total 535,918,651.45 665,278,277.96

14. Trust Liabilities

This is composed of the following:

2021
2022
(As Restated)
Account
Current Non-Current Current Non-Current
(in P)
Trust Liabilities 168,626.69 0.00 1,405,022.94 0.00
Guaranty/Security
Deposits Payable 0.00 105,136,428.45 0.00 126,923,829.87
Total 168,626.69 105,136,428.45 1,405,022.94 126,923,829.87

Guaranty/Security Deposits Payable is the incurrence of liability arising from the receipt of
cash to guaranty (a) that the winning bidder shall enter into contract with the procuring
entity; and (b) performance by the contractor of the terms of the contract.

48
15. Deferred Credits/Unearned Income

The breakdown of account balance is as follows:

2021
2022
(As Restated)
Account
Current Non-Current Current Non-Current
(in P)
Other Deferred Credits 2,475,732,645.04 5,121,737,988.81 6,445,804,234.23 458,303.94

Other Deferred Credits for CY 2022 under the Regular Agency books includes donated lot
by the City of Government to RDO No. 88 Tacloban City, Leyte for its building site
amounting to P421,030.00 and the accountability of eight personnel for the loss of PPE of
RR No. 15- Zamboanga City amounting to P37,273.94.

Under the NG books, Other Deferred Credits includes balances of unredeemed Backpay
Certificate of Indebtedness turned over to the BTr for redemption for the period 1971 to
1983 amounting to P2,320,065.46 whose request for an authority to drop/write-off the same
from the Bureau’s book of accounts as per letter to the Chairperson of COA dated October
28, 2014 was denied.

The account balance includes issued TCCs by the various BIR Issuing Offices and DOF
One-Stop-Shop to the taxpayers in acknowledgment of approved tax credit amounting to
P7,597,012,329.91.

Policies and Procedures in the issuance of TCCs

The general policies and guidelines for the issuance of TCCs are laid down under Revenue
Regulations (RR) No. 5-2000, as amended by RR No. 14-2020. However, with respect to
the formulation of policies and procedures on the processing of applications for tax
credits/refunds, it falls exclusively under the functional jurisdiction of the Assessment
Service of this Bureau. RMO No. 47-2020 prescribes the consolidated and updated
guidelines and procedures for the processing of claims for Value-Added Tax credit/refund
except those under the authority and jurisdiction of the Legal Group of this Bureau. The
applicable provisions of Revenue Memorandum Circular No. 17-2018 govern the claims
for issuance of tax refund/TCC on income tax, erroneous payment of taxes under Section
204(C) and recovery of tax erroneously or illegally collected under section 229 of the Tax
code, as amended, and other taxes except VAT under Section 112.

For the grant of tax credit/refund based on the Writ of Execution issued by the Court of Tax
Appeals and Supreme Court, the same falls under the jurisdiction of the Litigation Division
of this Bureau pursuant to the provisions of Revenue Administrative Order No. 1-2019.

The Collection Service, on the other hand, has functional jurisdiction over the processing
of applications for issuance of TDM from TCCs issued by Regional Offices, other than RR
No. 8-Makati and the Large Taxpayers Service (LTS) after the recommendation from the
concerned Regional Offices, cash conversion of TCCs after recommendation from the

49
 Regional Offices and LTS, and revalidation of TCCs directly filed by the concerned
taxpayers. The policies and procedures governing these functions of the Collection Service
can be found under RMO No. 37-2011 and No. 20-2018.

Lastly, RMO No. 38-2014 prescribes the uniform policies and guidelines on the
implementation of cash disbursement for Tax Refunds thru the Trust Receipts Fund.

16. Other Payables

This is composed of the following:
2021
2022
(As Restated)
Account
Current Non-Current Current Non-Current
(in P)
Other Payables 10,200,510.53 0.00 16,210,348.25 0.00

The balances represent the miscellaneous liabilities and trust receipts that do not fall under
any of the specific payable account such as employee’s contribution and/or loan payments
for remittance to BIR Employees Association, BIR Savings and Loan Association and BIR
Multi-Purpose Cooperative, among others.

The balance is composed of the following other payables per office:

2022 2021
Office/RR
(in P)
NO 936,929.00 4,853,097.01
RR:
1 Calasiao, Pangasinan 18,109.32 42,385.76
2 CAR 135.00 990.00
3 Tuguegarao, Cagayan 155,626.49 313,538.10
4 San Fernando City, Pampanga 25,800.00 0.00
5 Caloocan City 1,028,846.37 731,219.91
6 Manila 3,170,799.78 2,017,177.90
7A Quezon City 1,598,511.46 694,559.22
7B East NCR 493,711.26 139,519.19
8A Makati City 489,936.17 1,815,583.56
8B South NCR 58,451.01 2,001.00
9A CaBaMiRo 275,322.34 227,575.29
9B LaQueMar 106,012.47 76,499.83
10 Legaspi City 450.00 806,650.29
11 Iloilo City 230,703.50 0.00
12 Bacolod City 57,543.99 33,463.03
13 Cebu City 3,279.94 204,120.73
14 Eastern Visayas 121,458.12 1,497,142.56
15 Zamboanga City 11,792.55 582,580.41
16 Cagayan de Oro City 976,441.62 1,979,646.37
17 Butuan City 0.00 5,039.23
18 Koronadal City 407,272.32 154,228.04
19 Davao City 33,377.82 33,330.82
Total 10,200,510.53 16,210,348.25

50
17. Tax Revenue

17.1 The tax revenue related to the NIRT is as follows:

2021
2022
Account (As Restated)
(in P)
Tax Revenue-Individual and Corporation:
Income Tax 1,207,942,337,403.08 1,033,000,107,551.27
Tax Revenue-Property:
Estate Tax 4,855,888,114.80 3,745,228,032.14
Donors Tax 6,774,518,539.68 4,833,256,750.46
Capital Gains Tax 31,300,799,256.12 32,453,826,611.40
Tax Revenue-Goods and Services:
Excise Tax 312,930,513,756.20 303,286,755,730.25
Business Tax 578,937,937,272.17 522,199,932,214.53
Tax Revenue-Others:
Documentary Stamp Tax 161,606,096,874.70 149,642,225,692.90
Other Taxes 29,998,348,350.05 29,166,808,472.45
Tax Revenue-Fines and Penalties:
Taxes on Individual and Corporation 2,110,781,664.06 1,985,659,267.88
Property Taxes 421,300,334.09 395,100,499.86
Taxes on Goods and Services 409,410,358.73 357,309,805.81
Other Taxes 1,754,884,456.35 1,961,676,325.13
Total 2,339,042,816,380.03 2,083,027,886,954.08

The collection goal of the BIR for CY 2022 amounts to P2,392,587,000,000.00. The
total amount of P2,342,718,003,943.94 reflects the BIR collection figures in the
Collection Books as of December 31, 2022, including Service and Business Income
and Other Non-Operating Income of the BIR. The difference of P35,296,265.27 in
the Revenue Collection per Financial Performance versus Collection Revenue per
BTr/BIR-RAD represents adjustments and accrued income taken up as Other
Receivables/Tax Receivables as of December 31, 2022, as follows:

Particulars Amount (in P)

Tax Revenue 2,339,042,816,380.03
Service and Business Income 3,366,045,686.13
Other Non-Operating Income 309,141,877.78
Total Collection Revenue per Statement of Financial Performance 2,342,718,003,943.94
Total Collection Revenue per BTR/BIR-RAD 2,342,682,707,678.67
Difference 35,296,265.27

17.2 Tax Revenue from Individual and Corporations are raised through the following taxes:

17.2.1 Income Tax is imposed upon the taxable income of individuals as citizens,
resident aliens, non-resident citizens, non-resident aliens (for income earned
in the Philippines), aliens employed by regional offices of multinational
corporations, aliens employed by offshore banking units, and alien individual
employed by petroleum service contractor and sub-contractor. The revenue
from income tax include those imposed upon the taxable income of domestic
corporations, proprietary educational institutions and hospitals, GOCCs,
51
 agencies or instrumentalities, and the taxable income derived from all sources
within the Philippines of resident foreign corporations and non-resident
foreign corporations and the final tax imposed on certain passive income of
individuals and corporations. It also includes additional tax on the improperly
accumulated taxable income of each corporation.

17.2.2 Professional Tax is imposed on all persons engaged in the exercise/practice of

their professions requiring government examination.

17.3 Tax Revenue on Property includes the following taxes:

17.3.1 Estate Tax is imposed on the right of the deceased person to transmit his/her
estate to his/her lawful heirs and beneficiaries at the time of death and on certain
transfers which are made by law as equivalent to testamentary disposition.

17.3.2 Donors Tax is imposed on a donation or gift and is imposed on the gratuitous
transfer of property between two or more persons who are living at the time of
the transfer.

17.3.3 Capital Gains Tax is imposed on the gains presumed to have been realized by
the seller from the sale, exchange, or other disposition of capital assets located
in the Philippines, including pacto de retro sales and other forms of conditional
sale.

17.4 Tax Revenue on Goods and Services are raised from the following:

17.4.1 Excise Tax is imposed on goods manufactured or produced in the Philippines

for domestic consumption or for any other disposition and to things imported.
This includes excise tax on distilled spirits, wines, fermented liquors, tobacco
products, cigars and cigarettes, petroleum products, automobiles and mineral
products. The excise tax may be specific or ad valorem.

17.4.2 Business Tax are imposed on persons or entities in the course of trade or
business. This consists of the following:

17.4.2.1 Value Added Tax – this includes taxes imposed and collected from
the seller in the course of trade or business on every sale of property
(real or personal), lease of goods or property (real or personal) or
vendors of services.

17.4.2.2 Expanded Value Added Tax – this includes taxes imposed under RA
No. 9337 which amended the NIRC of 1997 (RA No. 8424).

17.4.2.3 Percentage Tax – this includes taxes imposed on persons or entities

who sell or lease goods, property or services in the course of trade
or business. This includes percentage taxes on domestic carriers and

52
 keepers of garage, international carriers, taxes on franchises, taxes
on overseas dispatch, message or conversations originating from the
Philippines, taxes on banks and non-bank financial intermediaries
performing quasi-banking functions, taxes on other non-bank
financial intermediaries, taxes on life insurance premiums, taxes on
agents of foreign insurance companies, amusement taxes, taxes on
winnings and taxes on sale, barter or exchange of shares of stocks
listed and traded through the local stock exchange or through initial
public offering.

17.5 Other Tax Revenue includes:

17.5.1 Documentary Stamp Tax is imposed on documents, instruments, loan

agreements and papers evidencing the acceptance, assignment, sale or transfer
of an obligation, rights, or property incident thereto.

17.5.2 Other Taxes includes all other taxes levied not falling under any of the specific
tax accounts, such as science tax and the like.

17.6 Fines and Penalties are charged in relation to the collection of tax revenues as
determined in law, BIR issuances, rules and regulations as a consequence of the
individual or other entity breaching the requirement of laws and regulations.

18. Service and Business Income

Revenue pertaining to this account includes the following:

2021
2022
Account (As Restated)
(in P)
Service Income:
Registration Fees 1,174,703,062.91 1,738,085,360.97
Clearance and Certification Fees 2,187,654,983.50 1,298,837,873.94
Processing Fees 283,360.00 378,982.95
Fines and Penalties-Service Income 92,165.94 6,435.50
Business Income:
Rent/Lease Income 2,413,450.00 226,950.00
Income from Printing and Publication 77,800.00 98,750.00
Interest Income 66.19 40.15
Fines and Penalties-Business Income 973,863.78 13,654,902.77
Other Business Income 100,000.00 175,000.00
Total 3,366,298,752.32 3,051,464,296.28

18.1 Service Income are derived from the following:

18.1.1 Registration Fees are collections from registration of property, deeds,

individuals and associations. These include fees for registration of
enterprises, individuals, corporations and partnerships.
53
 18.1.2 Clearance and Certification Fees are collections from the issuance of
clearance/certificates to taxpayers requesting for certification of payments.

18.1.3 Processing Fees pertain to fees collected for the processing of documents for
securing permits/applications. This also includes import processing fees,
processing for permit application and the like.

18.1.4 Fines and Penalties-Service Income are collected for the processing of
documents for fines and penalties charged to service income.

18.2 Business Income are derived from the following:

18.2.1 Rent/Lease Income represents the income collected by the NO from the rental
of room/ space by Lettered L Canteen Services and the income collected by
RR No. 1- Calasiao, Pangasinan from the dorm rental exclusively for BIR
officials and employees.

18.2.2 Income from Printing and Publication arises from other related expenses
(packing materials) in the sale of community tax certificates.

18.2.3 Interest Income represents the interest earned, net of withholding taxes, from
the bureau’s bank savings accounts.

18.2.4 Fines and Penalties-Business Income are those charged for delayed or non-
compliance with business regulatory requirements.

18.2.5 Other Business Income represents the proceeds from the sale of bidding
documents by RR No. 19-Davao City.

19. Shares, Grants and Donations

Donations in Kind amounting to P6,005,249.45 and P16,566,459.90 for CY 2022 and 2021,
respectively, represents various equipment other properties donated to the Bureau.

20. Other Non-Operating Income

20.1 This is composed of Miscellaneous Income earned by the Bureau during CY 2022
and recorded in the Collection Books amounting to P309,141,877.78.

20.2 The remaining Miscellaneous Income recorded in the Disbursement Books

amounting to P31,578,467.67 represents penalty for the delay in the delivery of goods
purchased and performance of service by the creditors, payments for the lost property
accountabilities of the employees, dormitory rentals of employees from different
regional/district offices, and other miscellaneous income earned by the Bureau.

54
21. Personnel Services

Personnel Services incurred by the BIR is composed of the following:

2021
2022
Account (As Restated)
(in P)
Salaries and Wages:
Salaries and Wages-Regular 5,825,969,764.90 5,193,333,456.82
Salaries and Wages-Casual/Contractual 0.00 38,788.04
Other Compensation:
Personnel Economic Relief Allowance (PERA) 336,167,400.55 318,562,468.50
Representation Allowance (RA) 28,230,102.27 26,920,847.73
Transportation Allowance (TA) 16,622,386.92 15,560,100.00
Clothing/Uniform Allowance 83,755,000.00 79,720,000.00
Honoraria 295,161.94 26,800.00
Hazard Pay 0.00 121,248,537.00
Overtime and Night Pay 15,534,468.17 7,429,250.23
Year-End Bonus 551,217,828.00 492,809,529.06
Cash Gift 70,799,500.00 64,964,000.00
Mid-Year Bonus 150,063,014.00 87,611,504.00
Other Bonuses and Allowance 490,578,326.80 553,388,154.23
Personnel Benefit Contributions:
Retirement and Life Insurance Premiums 698,548,631.35 613,163,584.97
Pag-IBIG Contributions 17,354,173.04 15,637,250.10
PhilHealth Contributions 116,080,331.38 74,680,522.61
Employees Compensation Insurance Premiums 17,232,617.78 15,847,771.31
Other Personnel Benefits:
Terminal Leave Benefits 310,676,067.08 198,015,531.72
Other Personnel Benefits 267,125,024.08 201,889,272.14
Total 8,996,249,798.26 8,080,847,368.46

21.1 Employees Future Benefits

The BIR and its employees contribute to the GSIS in accordance with RA No. 8291,
GSIS Act as of 1997. The GSIS administers the plan, including payment of pension
benefits to employees to whom the act applies. Under Section 5 (Contributions) of
this Act, it shall be mandatory for the member and the employer to pay the monthly
contributions specified in this Act. The employer shall include in its annual
appropriation the necessary amounts for its share of the contributions plus any
additional premiums that may be required on account of the hazards or risks of its
employees’ occupation.

GSIS Benefit Plan is a defined contribution plan which includes Separation Benefits,
Retirement Benefits, Permanent Disability Benefits, Temporary Disability Benefits,
Survivorship Benefits, Funeral Benefits, and Life Insurance Benefits. Retirement and
Life Insurance Premiums for CYs 2022 and 2021 amounted to P698,548,631.35 and
P613,163,584.97, respectively, and Employees Compensation Insurance Premiums
for CYs 2022 and 2021 amounted to P17,232,617.78 and P15,847,771.31,
respectively.

55
22. Maintenance and Other Operating Expenses

Maintenance and Other Operating Expenses consists of the following:

2021
2022
Account (As Restated)
(in P)
Traveling Expenses:
Traveling Expenses-Local 188,540,420.57 127,017,793.24
Traveling Expenses-Foreign 948,215.20 0.00
Training and Scholarship Expenses:
Training Expenses 11,150,563.67 6,553,197.53
Supplies and Materials Expenses:
Office Supplies Expenses 247,548,283.20 189,948,751.44
Accountable Forms Expenses 41,219,091.70 43,665,433.81
Non-Accountable Forms Expenses 10,990,677.54 26,653,878.53
Welfare Goods Expenses 0.00 8,000.00
Drugs and Medicines Expenses 19,878.24 16,762.15
Medical, Dental and Laboratory Supplies Expenses 2,690,070.14 3,059,112.78
Fuel, Oil and Lubricants Expenses 19,138,208.77 10,596,606.67
Textbooks and Instructional Materials Expenses 80,000.00 0.00
Semi-Expendable Machinery and Equipment Expenses 43,200,813.46 57,072,522.38
Semi-Expendable Furniture, Fixtures and Books 40,169,596.23 68,102,811.37
Expenses
Other Supplies and Materials Expenses 44,651,692.97 43,086,412.87
Utility Expenses:
Water Expenses 23,884,697.38 22,198,309.84
Electricity Expenses 313,337,503.34 253,823,167.50
Communication Expenses:
Postage and Courier Expenses 31,309,285.18 26,446,510.54
Telephone Expenses 33,359,233.95 34,683,661.13
Internet Subscription Expenses 44,996,888.91 44,066,912.92
Cable, Satellite, Telegraph and Radio Expenses 114,611.86 1,390,879.85
Awards/Rewards, Prizes and Indemnities
Awards/Rewards Expenses 55,000.00 200,000.00
Prizes 20,000.00 0.00
Confidential, Intelligence and Extraordinary Expenses:
Confidential Expenses 7,901,510.00 10,000,000.00
Extraordinary and Miscellaneous Expenses 4,665,550.00 4,641,375.00
Professional Services:
Legal Services 49,999.45 70,889.29
Auditing Services 4,877,203.82 2,667,384.25
Consultancy Services 21,747,609.88 45,516,656.00
Other Professional Services 40,730,688.80 31,977,914.85
General Services:
Environment/Sanitary Services 1,678,615.21 11,814,077.79
Janitorial Services 235,104,827.75 210,205,085.48
Security Services 293,820,463.26 277,211,049.35
Other General Services 290,377,265.65 110,729,890.71
Repairs and Maintenance:
Infrastructure Assets 19,924.00 0.00
Buildings and Other Structures 33,462,410.94 24,612,883.08
Machinery and Equipment 18,879,611.13 10,659,171.02

56
 2021
2022
Account (As Restated)
(in P)
Transportation Equipment 7,159,572.50 5,810,560.82
Furniture and Fixtures 364,186.00 930,658.00
Leased Assets Improvements 2,096,368.25 1,920,000.00
Semi-Expendable Machinery and Equipment 112,833.75 8,700.00
Other Property, Plant and Equipment 6,096,358.75 5,384,325.75
Taxes, Insurance Premiums and Other Fees:
Taxes, Duties and Licenses 6,182,040.47 9,659,117.37
Fidelity Bond Premiums 12,993,947.32 10,072,251.04
Insurance Expenses 45,242,095.24 37,487,418.02
Other Maintenance and Operating Expenses:
Advertising, Promotional and Marketing Expenses 45,555,015.09 30,186,224.61
Printing and Publication Expenses 4,628,643.97 4,127,514.20
Representation Expenses 2,226,582.30 2,010,322.00
Transportation and Delivery Expenses 5,400,764.42 5,198,326.53
Rent/Lease Expenses 922,294,220.28 864,745,077.81
Membership Dues and Contributions to Organizations 45,000.00 7,302,134.68
Subscription Expenses 178,150,531.09 234,004,942.26
Donations 528,055.57 4,615,505.31
Bank Transaction Fee 34,400.00 60,708.64
Other Maintenance and Operating Expenses 48,032,226.97 93,517,262.19
Total 3,337,883,254.17 3,015,738,150.60

Maintenance and Other Operating Expenses refer to expenditures to support the operations
of the agency, such as, but not limited to supplies and materials, utilities, travels and repairs.
The material increase in traveling expenses for foreign and local was caused by the lifting
or easing of travel restrictions in CY 2022 compared to prior years due to Coronavirus
Disease 2019 outbreak. Likewise, the significant decrease in Supplies and Material
Expenses (e.g., non-accountable forms) resulted from the accessibility of taxpayers of
downloadable forms in the BIR website since the start of the pandemic.

23. Financial Expenses

Financial Expenses of the BIR consist of the following:

2022 2021
Account
(in P)
Interest Expenses 97,911,470.61 105,068,517.73
Bank Charges-Loans/Borrowings 25,800.00 59,200.00
Other Financial Charges 3,200.00 5,600.00
Total 97,940,470.61 105,133,317.73

Interest Expenses represents the amount of total financial charges under the finance lease
contracts with LBP Leasing Corporation as discussed in Note 13.1.

57
24. Non-Cash Expenses

This is composed of the following:

2021
2022
Account (As Restated)
(in P)
Depreciation 288,210,939.09 304,119,355.35
Amortization 4,111,780.49 2,523,357.31
Impairment Loss 20,234,985.13 12,620,341.08
Total 312,557,704.71 319,263,053.74

24.1 Depreciation

This is composed of the Depreciation of the following:

2021
2022
Account (As Restated)
(in P)
Depreciation-Land Improvements 329,526.54 426,084.14
Depreciation-Infrastructure Assets 164,644.77 0.00
Depreciation-Buildings and Other Structures 127,781,417.68 136,849,839.62
Depreciation-Machinery and Equipment 98,813,875.83 105,664,275.23
Depreciation-Transportation Equipment 12,026,979.22 11,491,091.22
Depreciation-Furniture, Fixtures and Books 5,800,024.82 9,395,866.12
Depreciation-Leased Assets 36,642,680.84 35,142,227.11
Depreciation-Other Property, Plant and Equipment 6,651,789.39 5,149,971.91
Total 288,210,939.09 304,119,355.35

24.2 Amortization

This represents the amount of amortization of the computer software of the BIR
amounting to P4,111,780.49 and P2,523,357.31 for CY 2022 and 2021, respectively.
(Note 10.1)

24.3 Impairment Loss

2022 2021
Account
(in P)
Impairment Loss-Other Receivables 1,327,036.04 1,914,379.04
Impairment Loss-Inventories 1,764,689.16 1,552,370.55
Impairment Loss-Property, Plant and Equipment 16,989,620.15 9,151,317.89
Impairment Loss-Intangible Assets 153,639.78 2,273.60
Total 20,234,985.13 12,620,341.08

58
25. Capital Outlays (COs)

This represents the amount of machinery and equipment of RR No. 12-Bacolod City
amounting to P20,231.00 and other property plant and equipment amounting to
P495,000.00 which represents the generator ordered by RR No. 4-Pampanga for RDO17B
Paniqui, Tarlac.

26. Assistance/Subsidy

This is composed of the following:

2022 2021
Account
(in P)
Assistance/Subsidy from NGAs, LGUs, GOCCs:
Subsidy from National Government 11,840,705,869.01 9,539,722,614.45
Assistance from National Government Agencies 1,069,702,313.77 93,192.83
Subsidy from Central Office 0.00 211,155,797.07
Subsidy from Regional Office/Staff Bureaus 0.00 1,863,893,835.77
Less: Assistance/Subsidy to NGAs, LGUs, GOCCs,
NGOs/POs
Assistance to NGAs 38,736.41 24,438.94
Subsidy to Regional Office/Staff Bureaus 6,931,824.19 235,451,740.81
Net Assistance/Subsidy 12,903,437,622.18 11,379,389,260.37

For CY 2022, reciprocal accounts Subsidy from Central Office, Subsidy from Regional
Office/Staff Bureaus, and Subsidy to Regional Offices/Staff Bureaus amounting to
P359,457,472.57 which pertains to transfer of funds for retirement gratuity, terminal leave,
property, plant and equipment, supplies, accountable and other BIR forms from the NO to
Regional Offices and/or Regional Offices to other Regional Office were eliminated.

27. Gains or Losses

27.1 Gains

This is composed of the following:

2021
2022
Account (As Restated)
(in P)
Gain on Sale of Property, Plant and Equipment 217,641.89 33,171.64
Gain on Sale of Unserviceable Property 169,816.80 0.00
Other Gains 136,438.70 1,373,514.57
Total 523,897.39 1,406,686.21

Gain on Sale of Property, Plant and Equipment pertains to gain from the disposal of
PPEs thru public bidding.

59
 Other Gains represents the proceeds of bid documents and securities by the regional
offices, collections from sale of scrap materials and payment for liquidated damages.

27.2 Losses

This is composed of the following:

2021
2022
Account (As Restated)
(in P)
Loss on Sale of Property, Plant and Equipment 526,990.67 224,650.70
Loss on Sale of Assets 0.00 9,795,789.14
Loss of Assets 1,964,339.29 14,182.97
Other Losses 0.00 0.92
Total 2,491,329.96 10,034,623.73

Loss on Sale of Property, Plant and Equipment and Loss of Assets for CY 2022 pertain
to the losses arising from the sale of unserviceable properties of the Bureau thru public
bidding.

28. Revenue and Expenses per Responsibility Center

The breakdown of revenue and expenses per major offices/organizational unit of the Bureau
are shown below:

2022
RR No. 1 RR No. 3 RR No. 4
RR No. 2
Calasiao, Tuguegarao, San Fernando
Particulars CAR
Pangasinan Cagayan City, Pampanga
(in P)
Revenue:
Tax Revenue 16,920,617,962.63 7,567,078,299.71 10,275,999,049.42 48,734,659,838.81
Service and Business Income 71,673,150.01 46,336,747.64 49,258,108.52 42,373,559.45
Shares, Grants and Donations 0.00 0.00 0.00 1,046,040.00
Other Income 4,999,857.87 198,148.31 78,765.57 23,343,110.00
Total Revenue 16,997,290,970.51 7,613,613,195.66 10,325,335,923.51 48,801,422,548.26
Current Operating Expense (COE):
Personnel Services 350,344,307.66 277,354,958.46 272,009,946.02 561,833,941.92
Maintenance and Operating
77,128,457.29 50,768,451.90 51,935,310.20 148,732,661.32
Expense
Finance Services 0.00 2,400.00 1,600.00 0.00
Non-Cash Expenses 8,207,932.84 3,853,443.77 6,127,482.71 34,737,100.08
Total COE 435,680,697.79 331,979,254.13 330,074,338.93 745,303,703.32
Surplus/ (Deficit) from Current
16,561,610,272.72 7,281,633,941.53 9,995,261,584.58 48,056,118,844.94
Operations
Assistance/Subsidy 423,558,614.12 337,720,117.89 331,328,416.44 727,411,127.85
Gains 0.00 0.00 14,717.00 0.00
Losses (16,718.10) 0.00 (55,743.36) 0.00
Surplus/ (Deficit) for the period 16,985,152,168.74 7,619,354,059.42 10,326,548,974.66 48,783,529,972.79

60
 2022
RR No. 5 RR No. 6 RR No. 7A RR No. 7B
Particulars Caloocan City Manila Quezon City East NCR
(in P)
Revenue:
Tax Revenue 31,423,776,778.03 56,245,970,910.48 87,625,354,422.86 95,469,291,329.49
Service and Business Income 72,680,369.40 86,598,297.85 12,602,840.90 96,281,615.42
Shares, Grants and Donations 0.00 0.00 0.00 0.00
Other Income 12,463,614.25 2,254,849.33 9,971,271.13 2,689,177.50
Total Revenue 31,508,920,761.68 56,334,824,057.66 87,647,928,534.89 95,568,262,122.41
Current Operating Expense (COE):
Personnel Services 420,118,629.03 423,166,696.09 375,289,492.56 393,923,043.96
Maintenance and Operating
112,958,283.81 104,754,603.82 148,382,824.00 184,735,438.39
Expense
Finance Services 0.00 0.00 800.00 1,600.00
Non-Cash Expenses 14,415,913.47 4,003,866.60 7,355,501.92 7,164,193.95
Total COE 547,492,826.31 531,925,166.51 531,028,618.48 585,824,276.30
Surplus/ (Deficit) from Current
Operations 30,961,427,935.37 55,802,898,891.15 87,116,899,916.41 94,982,437,846.11
Assistance/Subsidy 581,498,298.54 540,731,598.39 530,856,540.87 609,705,936.83
Surplus/ (Deficit) for the period 31,542,926,233.91 56,343,630,489.54 87,647,756,457.28 95,592,143,782.94

2022
RR No. 8A RR No. 8B RR No. 9A RR No. 9B
Particulars Makati City South NCR CaBaMiRo LaQueMar
(in P)
Revenue:
Tax Revenue 129,512,626,058.15 148,909,761,326.76 49,459,241,678.75 35,533,300,664.65
Service and Business Income 41,414,539.50 24,374,554.90 94,766,389.29 91,924,777.69
Shares, Grants and Donations 0.00 1,470,000.00 0.00 0.00
Other Income 796,719.23 3,857,792.87 124,023.98 111,084.06
Total Revenue 129,554,837,316.88 148,939,463,674.53 49,554,132,092.02 35,625,336,526.40
Current Operating Expense (COE):
Personnel Services 393,176,766.58 409,562,469.98 387,092,543.52 370,260,297.87
Maintenance and Operating
126,578,753.64 141,162,152.41 148,436,725.86 97,066,462.48
Expense
Finance Services 0.00 0.00 0.00 0.00
Non-Cash Expenses 50,541,457.75 11,579,753.26 6,888,266.44 6,683,448.64
Total COE 570,296,977.97 562,304,375.65 542,417,535.82 474,010,208.99
Surplus/ (Deficit) from Current
Operations 128,984,540,338.91 148,377,159,298.88 49,011,714,556.20 35,151,326,317.41
Assistance/Subsidy 572,391,336.75 569,868,916.16 552,941,728.64 481,467,616.81
Gains 0.00 213,326.54 0.00 0.00
Losses 0.00 0.00 (865,405.59) 0.00
Surplus/ (Deficit) for the period 129,556,931,675.66 148,947,241,541.58 49,563,790,879.25 35,632,793,934.22

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 2022
RR No. 10 RR No. 11 RR No. 12 RR No. 13
Particulars Legaspi City Iloilo City Bacolod City Cebu City
(in P)
Revenue:
Tax Revenue 12,776,150,110.32 13,651,867,733.18 12,616,621,498.45 38,503,853,532.45
Service and Business Income 33,485,228.31 41,869,957.62 53,517,400.58 95,173,041.47
Shares, Grants and Donations 0.00 0.00 840,000.00 0.00
Other Income 149,155.36 31,788,881.38 219,728.94 13,892,648.59
Total Revenue 12,809,784,493.99 13,725,526,572.18 12,671,198,627.97 38,612,919,222.51

Current Operating Expense (COE):

Personnel Services 314,629,508.83 275,129,114.78 222,823,209.85 396,459,287.52
Maintenance and Operating
65,093,093.20 75,193,377.50 62,158,367.65 125,096,183.02
Expense
Finance Services 800.00 0.00 4,800.00 1,600.00
Non-Cash Expenses 4,102,128.55 10,254,612.06 2,583,347.73 10,630,012.50
Total COE 383,825,530.58 360,577,104.34 287,569,725.23 532,187,083.04
Surplus/ (Deficit) from Current
Operations 12,425,958,963.41 13,364,949,467.84 12,383,628,902.74 38,080,732,139.47
Assistance/Subsidy 376,665,609.20 360,485,749.95 290,747,418.11 524,016,008.02
Gains 1,112,992.00 12,014.85 0.00 0.00
Losses 0.00 (65,474.20) 0.00 0.00
Surplus/ (Deficit) for the period 12,803,737,564.61 13,725,381,758.44 12,674,376,320.85 38,604,748,147.49

2022
RR No. 16
RR No. 14 RR No. 15 RR No. 17
Cagayan de Oro
Particulars Eastern Visayas Zamboanga City Butuan City
City
(in P)
Revenue:
Tax Revenue 9,310,325,438.02 8,239,823,181.94 14,620,240,078.97 7,168,269,857.78
Service and Business Income 42,542,230.30 38,898,105.29 62,648,891.51 37,394,341.57
Shares, Grants and Donations 0.00 0.00 0.00 0.00
Other Income 5,975,724.08 109,031.98 158,540.00 36,861.00
Total Revenue 9,358,843,392.40 8,278,830,319.21 14,683,047,510.48 7,205,701,060.35
Current Operating Expense (COE):
Personnel Services 300,259,325.15 270,693,991.92 352,793,594.44 193,900,046.54
Maintenance and Operating
57,137,144.04 42,753,716.47 73,102,600.27 41,082,454.41
Expense
Finance Services 0.00 1,600.00 1,000.00 8,000.00
Non-Cash Expenses 8,387,357.16 3,747,021.21 5,402,827.36 12,098,662.78
Total COE 365,783,826.35 317,196,329.60 431,300,022.07 247,089,163.73
Surplus/ (Deficit) from Current
Operations 8,993,059,566.05 7,961,633,989.61 14,251,747,488.41 6,958,611,896.62
Assistance/Subsidy 364,357,047.89 314,859,388.03 443,305,431.77 256,800,724.12
Gains 0.00 0.00 30,040.00 247,245.51
Losses 0.00 (16,711.68) 0.00 0.00
Surplus/ (Deficit) for the period 9,357,416,613.94 8,276,476,665.96 14,695,082,960.18 7,215,659,866.25

62
 2022
RR No. 18 RR No. 19
NO Total
Particulars Koronadal City Davao City
(in P)
Revenue:
Tax Revenue 11,472,318,786.32 21,628,710,983.07 1,471,376,956,859.79 2,339,042,816,380.03
Service and Business Income 46,793,941.02 91,992,822.52 2,091,697,841.56 3,366,298,752.32
Shares, Grants and Donations 0.00 413,481.00 2,235,728.45 6,005,249.45
Other Income 215,644,861.97 5,669,559.36 5,073,946.69 339,607,353.45
Total Revenue 11,734,757,589.31 21,726,786,845.95 1,473,475,964,376.49 2,342,754,727,735.25
Current Operating Expense (COE):
Personnel Services 273,206,558.47 365,965,829.76 1,396,256,237.35 8,996,249,798.26
Maintenance and Operating
61,743,474.34 128,613,844.35 1,213,784,104.80 3,338,398,485.17
Expense
Finance Services 2,400.00 2,400.00 97,911,470.61 97,940,470.61
Non-Cash Expenses 10,556,215.05 15,975,621.16 67,261,537.72 312,557,704.71
Total COE 345,508,647.86 510,557,695.27 2,775,213,350.48 12,745,146,458.75
Surplus/ (Deficit) from Current
Operations 11,389,248,941.45 21,216,229,150.68 1,470,700,751,026.01 2,330,009,581,276.50
Assistance/Subsidy 340,147,003.58 483,461,688.41 2,889,111,303.81 12,903,437,622.18
Gains 6,553.49 0.00 0.00 1,636,889.39
Losses 0.00 0.00 (1,471,277.03) (2,491,329.96)
Surplus/ (Deficit) for the period 11,729,402,498.52 21,699,690,839.09 1,473,588,391,052.79 2,342,912,164,458.11

2021 (As Restated)

RR No. 1 RR No. 3 RR No. 4
RR No. 2
Calasiao, Tuguegarao, San Fernando
Particulars CAR
Pangasinan Cagayan City, Pampanga
(in P)
Revenue:
Tax Revenue 13,951,974,953.12 5,965,221,384.62 9,013,722,890.71 37,604,726,249.16
Service and Business Income 65,946,887.36 40,220,863.42 40,882,237.58 100,861,164.97
Shares, Grants and Donations 0.00 0.00 0.00 2,139,770.84
Other Income 308,421.61 47,671.77 140,203.83 653,022.00
Total Revenue 14,018,230,262.09 6,005,489,919.81 9,054,745,332.12 37,708,380,206.97
Current Operating Expense (COE):
Personnel Services 321,505,434.37 250,574,792.74 239,438,542.76 482,149,192.31
Maintenance and Operating
69,312,480.37 43,843,580.75 43,437,502.60 140,444,429.93
Expense
Finance Services 0.00 1,600.00 2,400.00 5,600.00
Non-Cash Expenses 9,454,981.30 3,788,732.56 8,045,978.18 35,345,602.25
Total COE 400,272,896.04 298,208,706.05 290,924,423.54 657,944,824.49
Surplus/ (Deficit) from Current
Operations 13,617,957,366.05 5,707,281,213.76 8,763,820,908.58 37,050,435,382.48
Assistance/Subsidy 404,323,875.20 289,990,134.96 277,553,036.52 612,318,172.54
Gains 254.14 0.00 0.00 65,528.40
Losses 0.00 0.00 631,455.48 0.00
Surplus/ (Deficit) for the period 14,022,281,495.39 5,997,271,348.72 9,040,742,489.62 37,662,819,083.42

63
 2021 (As Restated)
RR No. 5 RR No. 6 RR No. 7A RR No. 7B
Particulars Caloocan City Manila Quezon City East NCR
(in P)
Revenue:
Tax Revenue 27,595,424,618.95 46,061,815,259.92 80,421,822,955.06 81,519,024,702.89
Service and Business Income 59,110,395.58 77,376,410.17 70,220,876.39 101,708,381.62
Shares, Grants and Donations 0.00 0.00 0.00 2,355,881.20
Other Income 304,434.25 220,856.58 4,393,420.95 211,564.84
Total Revenue 27,654,839,448.78 46,139,412,526.67 80,496,437,252.40 81,623,300,530.55
Current Operating Expense (COE):
Personnel Services 381,075,628.80 390,824,755.00 333,350,957.82 335,914,323.42
Maintenance and Operating
104,216,997.25 84,869,916.05 146,528,328.22 173,881,759.32
Expense
Finance Services 0.00 0.00 0.00 800.00
Non-Cash Expenses 7,637,493.05 3,626,963.56 9,800,488.63 5,128,893.39
Total COE 492,930,119.10 479,321,634.61 489,679,774.67 514,925,776.13
Surplus (Deficit) from Current
Operations 27,161,909,329.68 45,660,090,892.06 80,006,757,477.73 81,108,374,754.42
Assistance/Subsidy 466,296,943.85 494,539,620.77 499,738,934.96 503,516,332.92
Gains 0.00 0.00 0.00 0.00
Losses 0.00 0.00 8,899,730.79 0.00
Surplus (Deficit) for the period 27,628,206,273.53 46,154,630,512.83 80,497,596,681.90 81,611,891,087.34

2021 (As Restated)

RR No. 8A RR No. 8 RR No. 9A RR No. 9B
Particulars Makati City South NCR CaBaMiRo LaQueMar
(in P)
Revenue:
Tax Revenue 110,878,371,732.20 122,204,578,743.05 42,274,237,838.09 29,522,795,309.84
Service and Business Income 16,669,238.57 37,139,487.13 109,507,314.07 68,108,734.51
Shares, Grants and Donations 0.00 6,679,921.95 0.00 1,750,000.00
Other Income 12,365,488.41 68,560.38 70,932.32 175,452.07
Total Revenue 110,907,406,459.18 122,248,466,712.51 42,383,816,084.48 29,592,829,496.42
Current Operating Expense (COE):
Personnel Services 317,667,150.98 338,131,533.79 343,308,167.77 336,013,156.00
Maintenance and Operating
124,942,511.51 126,181,338.66 112,466,502.05 86,833,449.34
Expense
Finance Services 0.00 3,200.00 0.00 0.00
Non-Cash Expenses 48,297,990.95 9,919,670.27 6,441,285.47 8,705,482.04
Total COE 490,907,653.44 474,235,742.72 462,215,955.29 431,552,087.38
Surplus (Deficit) from Current
Operations 110,416,498,805.74 121,774,230,969.79 41,921,600,129.19 29,161,277,409.04
Assistance/Subsidy 527,279,057.02 457,943,407.78 455,680,453.68 419,827,846.37
Gains 0.00 29,000.00 0.00 0.00
Losses 0.00 48,809.49 0.00 0.00
Surplus (Deficit) for the period 110,943,777,862.76 122,232,154,568.08 42,377,280,582.87 29,581,105,255.41

64
 2021 (As Restated)
RR No. 10 RR No. 11 RR No. 12 RR No. 13
Particulars Legaspi City Iloilo City Bacolod City Cebu City
(in P)
Revenue:
Tax Revenue 10,648,335,911.80 11,033,554,899.36 10,195,467,044.78 32,748,055,628.53
Service and Business Income 53,175,446.34 42,122,313.08 50,060,098.86 83,577,619.37
Shares, Grants and Donations 0.00 490,000.00 0.00 0.00
Other Income 37,901.00 17,824,758.16 1,118,400.00 0.00
Total Revenue 10,701,549,259.14 11,093,991,970.60 10,246,645,543.64 32,831,633,247.90
Current Operating Expense (COE):
Personnel Services 270,243,008.27 257,069,493.56 214,519,405.96 360,614,879.91
Maintenance and Operating
41,908,460.80 63,728,954.64 51,773,584.71 115,119,103.26
Expense
Finance Services 800.00 4,800.00 6,400.00 1,600.00
Non-Cash Expenses 5,291,544.28 9,969,329.59 3,511,188.42 10,254,623.00
Total COE 317,443,813.35 330,772,577.79 269,810,579.09 485,990,206.17
Surplus (Deficit) from Current
10,384,105,445.79 10,763,219,392.81 9,976,834,964.55 32,345,643,041.73
Operations
Assistance/Subsidy 317,220,912.17 315,343,452.89 264,975,383.49 480,788,856.61
Gains 0.00 1,190,519.94 0.00 0.00
Losses 0.00 224,650.70 0.00 0.00
Surplus (Deficit) for the period 10,701,326,357.96 11,079,528,714.94 10,241,810,348.04 32,826,431,898.34

2021 (As Restated)

RR No. 16
RR No. 14 RR No. 15 RR No. 17
Cagayan de Oro
Particulars Eastern Visayas Zamboanga City Butuan City
City
(in P)
Revenue:
Tax Revenue 7,818,119,255.10 7,167,266,345.12 12,358,851,098.59 5,931,896,797.89
Service and Business Income 38,495,188.28 34,817,468.76 54,736,592.10 30,705,154.07
Shares, Grants and Donations 0.00 0.00 0.00 0.00
Other Income 0.00 1,842.19 0.00 397,270.35
Total Revenue 7,856,614,443.38 7,202,085,656.07 12,413,587,690.69 5,962,999,222.31
Current Operating Expense (COE):
Personnel Services 267,790,772.92 246,260,741.42 321,894,415.64 187,462,547.38
Maintenance and Operating
69,521,246.96 41,076,989.48 61,400,673.80 29,670,571.64
Expense
Finance Services 1,600.00 1,600.00 4,800.00 18,400.00
Non-Cash Expenses 19,907,330.69 4,130,869.71 4,821,893.46 5,446,522.38
Total COE 357,220,950.57 291,470,200.61 388,121,782.90 222,598,041.40
Surplus (Deficit) from Current
Operations 7,499,393,492.81 6,910,615,455.46 12,025,465,907.79 5,740,401,180.91
Assistance/Subsidy 337,447,027.74 285,809,533.12 369,155,486.82 228,409,270.03
Gains 0.00 58,607.45 35,200.00 20,521.04
Losses 0.00 15,657.97 0.00 214,319.30
Surplus (Deficit) for the period 7,836,840,520.55 7,196,467,938.06 12,394,656,594.61 5,968,616,652.68

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 2021 (As Restated)
RR No. 18 RR No. 19
NO Total
Particulars Koronadal City Davao City
(in P)
Revenue:
Tax Revenue 9,452,947,302.02 18,167,173,202.27 1,350,492,502,831.01 2,083,027,886,954.08
Service and Business Income 44,780,021.10 82,143,039.80 1,749,099,363.15 3,051,464,296.28
Shares, Grants and Donations 0.00 3,135,887.91 14,998.00 16,566,459.90
Other Income 567.39 3,771,159.23 6,316,307.77 48,428,235.10
Total Revenue 9,497,727,890.51 18,256,223,289.21 1,352,247,933,499.93 2,086,144,345,945.36
Current Operating Expense (COE):
Personnel Services 237,386,557.71 332,969,182.49 1,314,682,727.44 8,080,847,368.46
Maintenance and Operating
46,721,646.34 96,646,604.76 1,141,211,518.16 3,015,738,150.60
Expense
Finance Services 4,800.00 4,000.00 105,070,917.73 105,133,317.73
Non-Cash Expenses 10,989,394.61 19,797,562.38 68,949,233.57 319,263,053.74
Total COE 295,102,398.66 449,417,349.63 2,629,914,396.90 11,520,981,890.53
Surplus (Deficit) from Current
Operations 9,202,625,491.85 17,806,805,939.58 1,349,618,019,103.03 2,074,623,364,054.83
Assistance/Subsidy 300,043,228.78 422,357,675.64 2,648,830,616.51 11,379,389,260.37
Gains 7,055.24 0.00 0.00 1,406,686.21
Losses 0.00 0.00 0.00 10,034,623.73
Surplus (Deficit) for the period 9,502,675,775.87 18,229,163,615.22 1,352,266,849,719.54 2,085,994,125,377.68

29. Related Party Transactions

29.1 Key Management Personnel

The key management personnel of the BIR are the Commissioner, Deputy
Commissioners and Assistant Commissioners.

29.2 Key Management Personnel Compensation

The aggregate remuneration of members of the governing body and the number of
members determined on a fulltime equivalent basis receiving remuneration within this
category are communicated through the Quarterly Report of Salaries and Allowance
which is being submitted to the COA.

30. Statement of Changes in Net Assets/Equity

30.1 Prior Period Adjustments/Unrecorded Income and Expenses

The amount recognized under prior period adjustments/unrecorded income and

expenses represents income and expenses pertaining to prior years.

30.2 Surplus/(Deficit) for the Period

The amount represents the excess of revenue earned primarily from taxation
transactions over the expenses incurred by the BIR.

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 30.3 Adjustment of Net Revenue Recognized Directly in Net Assets/Equity

The amount represents the balance of Cash-Treasury/Agency Deposit, Regular and

Cash-Tax Remittance Advice which were closed to Accumulated Surplus/(Deficit) at
year-end.

30.4 Others

The amount includes, among others, the transfer of various PPE items to the concerned
RR in prior years as indicated in the Invoice Receipt for property which were
recognized in the books of accounts only in CY 2021 and the effect of adjustments
made that do not fall under any specific item in the statement.

31. Statement of Cash Flows

31.1 Receipt of NCA

The total amount of P28,714,925,239.71 represents the total NCA received by the
Bureau, issued by the DBM to cover the funding requirements of the whole year,
payment of terminal leave and other benefits of retirees, and payment of informer’s
rewards, trust receipts for the refund of performance or bid securities, and payment of
TCCs and tax refund claims amounting to P20,529,148,772.75; transfer of cash
allocation from the NO to the RRs which amounts to P7,639,633,553.67; and
constructive receipt of NCA for the remittance of taxes withheld amounting to
P546,142,913.29. Out of the NCA received by the Bureau, the amount of
P1,273,873,607.42 was reverted to the National Treasury representing unutilized
NCA.

31.2 Other Receipts

Other Receipts represents the collections of bid documents, refund of salary and
PERA overpayment from employees with leave without pay, refund of unused petty
cash fund, and other miscellaneous receipts such as sale of accountable forms and
payment for lost property accountabilities by the employees of the Bureau.

31.3 Adjustments

Adjustments pertain to cash transactions that do not fall under any specific item in the
Statement of Cash Flows resulting to inflows of cash. Among the transactions are
restoration of cash for unreleased checks at year end and restoration of cash for
cancelled/lost/stale checks/ADA, remittance of collections from payments of
performance securities to BTr and set-up of tax refunds payables.

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 31.4 Release of Intra-Agency Fund Transfers

Release of intra-agency fund transfers represents to the transfer of funds by the NO to

the RRs through Notice of Transfer Cash Allocation to cover payment of various
expenses of the regional offices.

31.5 Other Disbursements

Other Disbursements represents the refund of over deduction from

employees/suppliers, closing of petty cash fund due to transfer of assignment and/or
retirement of the petty cash custodian, payment of tax refunds and cash conversion of
TCCs and other miscellaneous disbursements incurred by the Bureau.

31.6 Adjustments

Adjustments pertain to cash transactions that do not fall under any specific item in the
Statement of Cash Flows resulting to outflows of cash. Among the transactions are
reversal of unutilized NCA amounting to P1,273,873,607.42, reversing entry for
unreleased checks in the previous year, and receipt of NCA for trust and other receipts.

32. Statement of Comparison of Budget and Actual Amounts (SCBAA)

32.1 Receipts

This is composed of:

32.1.1 Budgeted amount based on the Estimated Revenue as reflected in the

Estimated Revenue per Approved Budget of the Agency; and

32.1.2 Actual amount based on the actual collection as reflected in the RCD.

The NCA received was not considered as receipts in the SCBAA.

32.2 Payments

Budgeted amount refers to the approved appropriation reflected in the General

Appropriations Act and Allotment Release per classification of Budget (PS, MOOE,
CO and FE). The difference between the Original and Budget Amount reflected in the
report was due to, among others, realignment of funds and issuance of negative
Special Allotment Release Order to effect adjustment on allotment pursuant to
National Budget Circular No. 586 dated May 21, 2021.

Actual amount reflected in this report was based on the actual disbursements reflected
in the Statement of Appropriations, Allotments, Obligations, Disbursements and

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Balances for a more detailed breakdown per classification of budget on a quarterly
and yearly basis.

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