Republic of the Philippines

Department of Finance
Bureau of Internal Revenue
Quezon City

November 29, 2002

REVENUE MEMORANDUM ORDER NO. 33-2002

SUBJECT: Policies, Guidelines and Procedures on the Sale/Disposal of

Acquired/Forfeited Real Properties Transferred in the Name of the
Republic of the Philippines Pursuant to Section 216 of the National
Internal Revenue Code of 1997, as Amended.
TO : All Internal Revenue Officers and Others Concerned
I. OBJECTIVES:
This Order is issued to:

1. Prescribe policies, guidelines and procedures on the sale of acquired /

forfeited real properties transferred in the name of the Republic of the
Philippines;

2. Enhance revenue collections through the sale of acquired/forfeited real

properties;

3. Ensure a systematic and timely disposal of acquired / forfeited real

property/(ies) in accordance with existing rules and regulations to avoid
further deterioration of its value ;

4. Define the accountability and responsibility of concerned offices and officials

/employees on the sale of acquired / forfeited real properties.

II. POLICIES:

In order to achieve the above objectives, the following policies shall be

observed:

1. All acquired / forfeited real properties transferred in the name of the Republic
of the Philippines, having passed the one year redemption period shall be
converted into cash within three (3) years from date of acquisition/forfeiture
and/or seizure. Custodians of said properties are required to submit to the
Collection Service or its equivalent office under Executive Order No. 114
inventory list of said properties;

2. Sale of acquired forfeited real properties shall be the responsibility of

Collection Service or its equivalent office under E.O. 114;
3. The actual conduct of auction sale of acquired properties obtained by the
government in payment/satisfaction of taxes, penalties or costs pursuant to

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 Section 216 of the Tax Code shall be implemented in every Revenue Regional
Office by the Regional Office Task Force (ROTF) composed of the Regional
Director; Assistant Regional Director; Chief, Collection Division; Chief,
Administrative Division; Chief, Legal Division; Chief, Finance Division and
Revenue District Officer where the property is located. A National Office
Task Force (NOTF) in the National Office (NO) created under a Revenue
Special Order shall supervise the implementation of plans and programs
relative to the sale of BIR-forfeited assets;

4. The Commissioner shall constitute an “Awards and Bids Committee (ABC)”

in the National Office . The ABC in the National Office shall be headed by the
Assistant Commissioner, Collection Service or its equivalent office under
E.O. 114. The ROTF in the Regional Offices shall act as ABC in their
respective Regions and shall be headed by the Regional Director unless
delegated to the Asst. Regional Director;

5. Sale of acquired/forfeited properties shall be witnessed by a Commission on

Audit (COA) representative to ensure that the processes to be undertaken are
in accordance with existing rules and regulations;

6. A Notice of Sale (Annex C) shall be accomplished in quadruplicate and

signed by Head, NOTF / ROTF, to contain the following information:

a. the floor price or minimum amount of bid;

b. the venue and time when public auction shall be conducted;
c. location and description of property to be sold;
d. terms and manner of payment, whether in cash or manager’s check ;
e. a statement that “THE GOVERNMENT RESERVES THE RIGHT TO
REJECT OR CANCEL ANY OR ALL BIDS.”;

7. A Notice of Sale (NOS) shall be published once (1) a week for two (2)
consecutive weeks in a newspaper of general circulation. The publication of
the notice shall be made at least twenty (20) days prior to the actual date of
public auction sale pursuant to Section 216 of NIRC of 1997, as amended.
Likewise, similar notice shall be posted in conspicuous places/public places in
the city, municipality or Barangay where the property is located;

8. Unless the Commissioner provides otherwise, the Minimum Bid Price/Floor

Price shall be the fair market value of the real property as determined by the
Commissioner, or the fair market value (FMV) per latest Tax Declaration of
the Provincial, City, or Municipal Assessors, WHICHEVER IS HIGHER,
pursuant to Section 6(E) of the National Internal Revenue Code of 1997;

9. Anyone could bid except foreign nationals, corporations or otherwise, and

those disqualified under existing rules and regulations. Employees of the
Bureau of Internal Revenue are disqualified from participating in the bidding
process;

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10. Public auction sale of parcels of land shall be in a Sealed Public Bidding and
done parcel by parcel or title by title on a “AS IS WHERE IS BASIS”;

11. Bidders to pre-qualify shall be required to post a bid bond either in cash or
manager’s check at least one (1) working day prior to scheduled date of public
auction unless ABC allows otherwise. The amount of bond shall be equivalent
to ten percent (10%) of floor price/minimum bid price. It shall form part of the
payment, if the sale is awarded to the bidder, subject to Policy Nos. 15 and 16
hereof. Bid bond of the losing bidders, however, shall be returned to them
after Notice of Award has been released to the winning bidder, unless
otherwise allowed by ABC;

12. Only bids equal to or higher than the floor price/minimum bid price shall be
evaluated by the ABC;

13. The registered bidder who submits the highest bid shall, after proper
evaluation, be awarded the auctioned property. In case of tie-bids, a new
sealed bidding shall immediately be conducted among the tie-bidders until
such tie is broken;
14. The winning bidder shall pay the full amount of his bid, either in Cash or
Manager’s Check, to the CIR, thru the ACIR-Collection Service, BIR
National Office Building, for bidding conducted by the National Office, or to
the Regional Director, for bidding conducted in the Regional Office, as the
case may be, within two (2) days after being notified that the awards made by
ABC had been approved by the CIR, through the Deputy Commissioners
(ODCIR), Operations Group and Legal Group, or by the Regional Director,
as the case may be. Check payments shall be for the account of the Bureau of
Internal Revenue;
15. Failure or refusal of the winning bidder to pay the full amount of the bid
within the period aforestated shall render the award void and the bidder’s cash
bond shall be forfeited in favor of the government unless the Commissioner
allows an extension of time to the bidder within which to fully pay the bid
price;
16. Any of the following shall constitute grounds for cancellation of awards
and/or contract:
a. fraudulent acquisition of the property;
b. violation of the terms and conditions of awards;
c. violation of the terms and conditions in the Certificate of Sale;
d. violation of existing laws, rules, regulations, and ordinances;
e. other instances analogous to the above-mentioned grounds.

17. In case of default by the winning bidder and the consequent cancellation of
the award, the second and the third highest bidder, in the following order,
may increase their bid to the amount equal to that of the highest bid and
whoever among them tenders a bid equivalent to the bid of the highest bidder
shall be awarded the auctioned real property in lieu of the defaulting bidder.

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 The defaulting highest bidder shall be disqualified to further bid on the rest of
the auctioned real property;

18. Acquired real property that has been repossessed through cancellation of
award or sale shall be redisposed in accordance with the same procedures in
this RMO;

19. All taxes and expenses relative to the transfer and issuance of certificate of
title and/or tax declaration shall be borne by the winning bidder immediately
upon signing and approval of the Certificate of Sale;

20. All awards made by the ABC (National Office/Regional Office) shall be
subject to the prior clearance by the CIR as reflected in the duly signed “List
of Properties Sold Through Public Auction For Issuance of Certificate of
Sale” (Annex K);

21. The winning bidder shall be responsible at his own expense for the ejectment
of squatters and/or occupants, if any, on the auctioned real property;

22. Unless the Commissioner provides otherwise, for purposes of evaluation of

the bid offers, the Minimum Bid Price/Floor Price for the property shall be the
highest among the following:

i. The latest fair market value as determined by the Commissioner of

Internal Revenue ;
ii. The fair market value (FMV) shown in the latest tax declaration issued
by the provincial, city or municipal assessor;
iii. The proportionate or corresponding amount of deficiency internal
revenue tax/es, including increments, which was given up by the
government/or considered satisfied or collected as a result of the
forfeiture proceedings, including the cost to maintain and cost of
forfeiture; or
iv. The purchase price offered/proposed by the former owner/s or any
party by way of negotiated sale of the acquired real estate;

23. There should at least be three bidders for every property to have a successful
bidding process for the property;

24. Negotiated or private sale of real property shall be resorted to as a

consequence of failed public bidding for two (2) consecutive times subject to
the approval of the Secretary of Finance pursuant to Section 216 of the NIRC
of 1997;

25. All restrictions imposed by law, rules and agreements on the disposition of
agricultural land , pasture land, fish pond and other classification of real
property shall be observed and respected;

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 26. All awards of the region shall be reviewed by the NOTF and confirmed by the
CIR, thru the DCIR-OG, before the Notice of Award/Certificate of Sale be
released to the taxpayer. ROTF shall accomplish Annex “J” while NOTF
shall accomplish Annex “K”.

III. GUIDELINES AND PROCEDURES:

A. Regional Office Task Force (ROTF)

1. Transmit to NOTF “Inventory of Forfeited/Acquired Real Properties” (Annex

A) signed by the Regional Director of the region having custody over the
forfeited real properties registered in the name of the Republic of the
Philippines;
2. Conduct ocular inspection of the real property under its jurisdiction which are
to be disposed in order to obtain a first hand observation of the status and
condition of the property, its marketability or ability to attract prospective
buyers, as the need may arise;
3. Secure a location/vicinity map from the Assessor’s Office and prepare an
updated list of properties registered in the name of the Republic of the
Philippines with the following data:
a. Name of Previous Registered Owner/Taxpayer;
b. Title Number/Year of Issuance of OCT/TCT/CCT;
b. 1. Under the Name of the Republic of the Philippines
b. 2. Under the Name of the Previous Owner
c. Latest Tax Declaration Number/Year of Effectivity;
d. Lot Number;
e. Block Number;
f. Location;
g. Area;
h. Property Classification;
i. Current Fair Market Value as Determined by the BIR;
j. Current Fair Market Value as Determined by the Assessor;
k. Amount of Tax Satisfied/Paid.
4. Determine the floor price of properties for auction sale;
5. Coordinate with COA, and ABC of the Region relative to sale/disposal of
acquired/forfeited real properties under its jurisdiction;
6. Post Notice of Sale at the entrance of the Provincial, City, Municipal
Buildings, Barangay Halls, Revenue District Office and other public and
conspicuous places where the property is located;
7. Post Notice of Sale at the location of the property stating: “THIS PROPERTY
IS FOR SALE. INTERESTED PARTIES MAY CONTACT THE NEAREST
BIR OFFICE”;
8. Supervise the public auction sale of acquired assets located within its
jurisdiction;
9. Consolidate reports on auction conducted by ABC and submit to NOTF
within ten (10) working days from the conduct of the auction sale;

5
10. Prepare and submit to the approving authority the necessary documents (i.e.,
the Certificate of Sale and other pertinent papers) to effect the transfer of
properties to the winning bidders.

B. NOTF
1. Determine which property is to be sold/disposed based on inventory submitted
by the Regional Director or Assistant Commissioner that have custody over
said properties;

2. Recommend to the CIR the conduct of public sale at the National Office of
acquired/forfeited real properties not sold at the Regional Office;

3. Request for authority to publish/advertise the auction sale of all acquired/

forfeited properties nationwide (Annex B) and for the allocation of necessary
funds for the purpose;

4. Prepare Notice of Sale (Annex C) to be signed by the Assistant

Commissioner, Collection Service and attach to the request for authority to
publish (Annex B) and for the allocation of necessary funds;

5. Cause the publication of Notice of Sale of all acquired forfeited real properties
nationwide in leading newspaper of general circulation once a week for two
(2) consecutive weeks, and post in the website in coordination with Tax
Information and Education Division and the Corporate Communication
Division, respectively;

6. Coordinate with COA, Realty Appraisers and Brokers, tri-media and other
external agencies/entities before actual conduct of public auction to ensure
that bids and awards processes undertaken are in accordance with the existing
rules and regulations and that the participation of stakeholders in the bidding
process is maximized;

7. Monitor the sale of acquired/forfeited properties by the ROTF;

8. Provide administrative support to the ABC;

9. Coordinate and submit semi-monthly progress report on the sale of acquired/

forfeited real properties to the CIR, DCIR for Operations Group, and DCIR
for Resource Management Group.

C. AWARDS AND BIDS COMMITTEE (ABC) AT THE NATIONAL

OFFICE AND REGIONAL OFFICE

1. Receive from prospective bidders Application for Bid (Annex D);

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2. Register in the Bid Registry (Annex E) all prospective bidders upon
submission of duly signed Bidders Acknowledgement and
Undertakings (Annex F) and upon presentation of the Official Receipt
(OR) representing the 10% prequalification bond posted, taxpayer’s
Community Tax Certificate (CTC) and Tax Identification Number (TIN);

3. Provide bidder with guidelines on the Public Auction Sale (Annex G);

4. Make arrangements for the bid conferences and opening of bids;

5. Receive and open sealed bids submitted by bidders in the presence of a COA
representative as witness;

6. Accomplish Abstract of Canvass (Annex H) and submit the same to the CIR,
thru DCIR-Operations Group, or to the Regional Director, as the case may be,
within 10 working days from date of sale;

7. Deliberate and resolve issues of tie-bids and/or cancelled bids;

8. Announce and issue to winning bidder Notice of Award after the sale has
been confirmed by the CIR;

9. Recommend final approval of award to the winning bidder;

10. Issue Certificate of Sale as approved by the Commissioner of Internal

Revenue or the Regional Director, as the case may be, to winning bidder
upon confirmation of full payment of bid price by the Collection Service or
Collection Division, respectively, and after confirmation of the sale by the
CIR;

11. Notify defaulting bidder of cancellation of bids and forfeiture of posted bond
with concomitant notification of the 2nd and 3rd highest bidder that they may
increase their bids to the amount equivalent to that of the highest bid;

12. Prepare and submit report on the conduct of public bidding within ten (10)
working days to the Head, NOTF or 2 working days to Head ROTF, from
date of public auction sale.

D. COMMISSIONER OF INTERNAL REVENUE (FOR ACTIVITIES IN

THE NATIONAL OFFICE)/REGIONAL DIRECTOR (FOR
ACTIVITIES IN THE REGIONAL OFFICE):

1. Constitute members of the committee to conduct actual inspection of

forfeited/acquired real properties for sale/disposal, if the need arises;

2. Constitute members of the ABC to conduct actual bidding;

3. Sign Notice of Award to the winning bidder;

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4. Approve Certificate of Sale;

5. Sign cancellation of awards on the grounds stated in policies 15 and 16 of this

RMO;

6. Recommend negotiated or private sale after two (2) failed auction sales.

E. REVENUE DISTRICT OFFICER (RDO):

1. Act as custodian of the forfeited property within its jurisdiction until such time
that they are transferred to the winning bidder;

2. Prepare and submit to ROTF inventory of forfeited real and personal

properties under its custody;

3. Transmit dockets of forfeited real properties to the Chief, Collection Division;

4. Sign formal request for employing the services of a duly licensed private
geodetic engineer or surveyor and/or a geodetic engineer/surveyor provided
by the Bureau of Lands or Land Registration Authority who shall survey
properties that are unregistered, the evidence of ownership of which is only a
tax declaration or even titled but cannot be identified or located;

F. COLLECTION DIVISION

1. Maintain an updated inventory and records of seized properties within the

region;

2. Prepare and submit to ROTF/NOTF Inventory of Forfeited/Acquired Real

Properties titled/registered in the Name of the Republic of the Philippines
(RP) (Annex H) under its custody;

3. Receive and consolidate the following reports for submission to ACIR,

Collection Service and CIR:

a. Inventory of forfeited/acquired properties for sale and disposal;

b. List of properties sold/disposed and
c. Ending inventory of properties.

4. Verify full payment of bid price by the winning bidder.

G. ADMINISTRATIVE DIVISION

1. Serve as repository of dockets and records of acquired/forfeited properties

transferred in the name of RP;

8
2. Act as custodian of titles, tax declarations, other official records and pertinent
documents of forfeited real properties;

3. Keep records of the conduct of the sale, copies of awarded titles and other
related documents on the sale.

H. FINANCE DIVISION (FOR ACTIVITIES IN THE REGIONAL

OFFICE)/GENERAL SERVICES DIVISION (FOR ACTIVITIES IN
THE NATIONAL OFFICE)

1. Receive and issue corresponding OR for pre-qualification bonds (cash /

manager’s check) deposited by prospective bidders;

2. Safekeep bond deposits of prospective buyers until winning bidders is

announced;

3. Return to non-winning bidders their bonds deposit;

4. Receive payment of winning bidder and issue the corresponding official

receipt;

5. Remit to Bureau of Treasury (BTr) through Authorized Government

Depository Banks (AGDB) deposit and payment of winning bidder, and
forfeited deposits of defaulting bidder;

6. Prepare necessary reports to NOTF or ROTF and other offices, i.e., Revenue
Accounting Division, Collection Service, Collection Division, DCIR-OG, and
CIR.

I. REVENUE ACCOUNTING DIVISION:

1. Prepares Journal Entry Voucher (JEV) to record the sale/disposal of

acquired/forfeited properties using the entries prescribed by the Commission
on Audit based on the reports and other documents submitted by the
Collection Enforcement Division and the Finance Division of regional offices;

2. Sends JEV and supporting documents to COA for post audit.

J. CORPORATE COMMUNICATION DIVISION (CCD)/TAXPAYER

INFORMATION & EDUCATION DIVISION (TIED):

1. Arrange for the advertisement/publication of Notice of Sale in coordination

with Collection Service, Financial and Administrative Service (FAS) and
other offices concerned;
2. Coordinate the tri-medial exposure on the sale of forfeited/acquired real
properties;
3. Post the Notice of Sale in the BIR website.

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 K. COLLECTION SERVICE
1. Monitor the management, safekeeping and disposal of acquired/forfeited real
properties.
2. Prepare and submit to the Deputy Commissioner, Operations Group, a
Consolidated Inventory List of forfeited/acquired properties submitted by
custodians of the said properties;
3. Monitor collection from the sale of acquired/forfeited real properties;

4. Review and initial reports relative to acquired/forfeited real properties,

including documents on the sale of said properties;

5. Prepare report to the Department of Finance (DOF) and COA relative to the
sale of acquired/forfeited properties.

L. FINANCIAL AND ADMINISTRATIVE SERVICE:

1. Process request for authority to publish NOS;

2. Allocate necessary funds for publication/advertisement and conduct of the
sale of forfeited/ acquired real properties;

M. DEPUTY COMMISSIONER, OPERATIONS GROUP

1. Reviews and initials the letter of recommendation and other documents
approving the sale of acquired/forfeited real properties;

2. Initial on documents/reports on the sale of forfeited/acquired real properties

for submission to COA and DOF.

N. DEPUTY COMMISSIONER-LEGAL AND INSPECTION GROUP

1. Reviews and initials the letter of recommendation and other documents
approving the sale of acquired/forfeited properties.

IV. REPEALING CLAUSE

All Revenue Memorandum Orders and Circulars inconsistent herewith are hereby
amended/modified accordingly.

V. EFFECTIVITY
This Order shall take effect immediately.
(Original Signed)
GUILLERMO L. PARAYNO, JR.
Commissioner of Internal Revenue

J-

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 Republic of the Philippines
Department of Finance
Bureau of Internal Revenue
Quezon City

November 29, 2002

MEMORANDUM TO: OPM-DCIR-2002-11-06

ALL REGIONAL DIRECTORS

________________________________________________________________

This refers to the public bidding/sale of acquired/forfeited real properties, scheduled

on December 2, 2002, in revenue regional offices nationwide.

Please take note that the following real properties shall be excluded from aforesaid
sealed public bidding:

1. All real properties classified as “Agricultural” and “Pasture lands”, pursuant to

Executive Order (EO) No. 407, as amended by EO 448, and its implementing
administrative orders;

2. All real properties with questionable title of ownership and/or currently with pending
legal issues;

3. All real properties not yet consolidated or transferred in the name of the Republic of
the Philippines;

4. All properties not listed in the Notice of Sale published on the November 2 and 12,
2002, issues of the Philippine Daily Inquirer and those not included in the list
forwarded by the Collection Service to the Revenue Regional Offices.
Notably, no pre-qualification bond and/or application to bid shall be accepted which
includes the aforesaid properties.
Likewise, all prospective bidders shall be duly informed that the floor price on the
property subject to bid shall be subject to further review and evaluation by the NOTF/ROTF
to ensure compliance with the provisions of pertinent revenue issuances.
Announcement and/or notice on the foregoing shall be given to prospective bidders
before the start of the bidding process.

(Original Signed)
LILIAN B. HEFTI
Deputy Commissioner
Operations Group
J-
 Annex "A"

RDO NO. ________-_______________

RR NO. ________-_________________

INVENTORY OF FORFEITED/ACQUIRED REAL & SEIZED PERSONAL

PROPERTIES TITLED/CONSOLIDATED IN THE NAME OF REPUBLIC OF THE PHILIPPINES
as of _____________, 2002

TCT NO. LOCATION AREA CLASSIFICATION IMPROVEMENTS TD NO/ FMV PER FMV PER REMARKS/
WITH WITHOUT TD YEAR LATEST TD BIR RULES RECOMMENDATION

Prepared by:

________________________
(Name of Custodian of Titles,
Position and Place of Assignment)
Attested by:

_________________
Head of Office
 ANNEX “G”
Republic of the Philippines
Department of Finance
BUREAU OF INTERNAL REVENUE
Quezon City
_________________, 200___

GUIDELINES ON THE PUBLIC AUCTION SALE

The following are the guidelines on the public auction sale of acquired/forfeited real
properties in the name of Republic of the Philippines/Government of the Philippines,
scheduled on 200____ for the information and guidance of any or all prospective bidders,
to wit:

1. Prospective bidders may see the detailed description of the said properties
including the brief description of the improvements thereon, at the office of the
Regional Office Task Force (ROTF)/Regional Director, Revenue Region No.
_______- ____________________ where the bid forms and the manner and
conduct of the Bidding and other particulars my be obtained during working days
from 8:00 a.m. to 12:00 noon and 1:00 p.m. to 5:00 p.m.;

2. All bids shall be contained in a BID FORM supplied by the Awards and Bids
Committee (ABC), placed in sealed envelope and submitted on or before
________ of __________, 200____ to the Committee of the Revenue Regional
Office;

3. The Public Auction Sale must be in a SEALED PUBLIC BIDDING, i.e., all Bids
shall be submitted to the Awards and Bids Committee (ABC) in a sealed envelope
and shall be opened only in public during the close of Auction Sale;

4. The auction sale of the parcels of land as published in _____________- shall be

done parcel by parcel or title by title on “AS IS WHERE IS BASIS”;

5. Anyone could bid except foreign nationals, corporations or otherwise, which are
prohibited by the Philippine Constitution and laws to own real estate properties in
the Philippines, and those disqualified under existing rules and regulations;

6. All prospective bidders shall register before the auction sale with the ABC by
presenting the receipt of the cash bond together with their Community Tax
Certificate (CTC) and Taxpayer’s Identification Number (TIN);

7. Each bid must be accompanied by a bidder’s bond in the form of Cash/Manager’s

Check issued by any commercial bank payable to the Bureau of Internal Revenue
in the amount equivalent to ten percent (10%) of the floor price. No other form of
bid bond will be accepted. The bond shall be paid to the General Services
Division, for properties auctioned in the National Office, or to the Finance
Division of the Revenue Region where the auction is to be held. The bond shall

-Page 1-
 form part of the bid or payment if the sale is awarded to the bidder, unless
forfeited by reason of default. The bond of the losing bidder will be returned to
them, without interest, as soon as the Notice of Award has been issued, unless
otherwise allowed by the ABC;

8. The minimum price or floor price for each parcel of land will be indicated on the
BID FORM;

9. Only bids equal to or higher than the floor price/minimum bid price as specified
in the Notice of Sale (NOS), shall be evaluated by the Awards and Bids
Committee (ABC);

10. There should be at least three (3) bidders for every property to have a successful
bidding process for the property;

11. The Registered Bidder who submits the highest bid shall, after proper evaluation,
be awarded the auctioned property. In case of tie-bids, a new sealed bidding shall
immediately be conducted among the tie-bidders until such tie is broken;

12. The highest bidder shall pay the full amount of his bid either in Cash or
Manager’s Check issued in the name of the Commissioner of Internal
Revenue/Bureau of Internal Revenue, to the General Services Division, BIR-
NOB, or to the Regional Finance Division, as the case may be, within two (2)
days after receipt of the Notice of Award unless the CIR, in meritorious cases,
allows an extension of time within which to fully pay the bid price;

13. The winning bidder shall be responsible at his own expense for the ejectment of
squatters and/or occupants, if any, on the property awarded to him;

14. All taxes and expenses relative to the transfer and issuance of certificate of title
and/or tax declaration shall be borne by the winning bidder immediately upon
signing and approval of the Certificate of Sale;

15. In case of default by the winning bidder and the consequent cancellation of the
award, the second and the third highest bidder may increase their bid to the
amount equal to or higher than that of the highest bid and whoever among them
tenders a bid equivalent to or higher than the bid of the defaulting highest bidder
shall be awarded the auctioned real property. The defaulting highest bidder shall
be disqualified to further bid on the rest of the auctioned property;

16. Failure or refusal of the winning bidder to pay the full amount of the bid within
the period afore-stated shall render the award void and the bidder’s cash bond
shall be forfeited in favor of the government;

-Page 2-
 17. In case there is no bidder or if the highest bid for the real properties is less than
the minimum or floor price, or if the floor price is later found to be not the current
fair market value of the property, or if the bid price is found to be
disadvantageous to the government, the bid shall be cancelled;

18. All awards made by the ABC of the National Office shall be subject to the final
approval of the CIR whereas those auctions done in the Revenue Regional Office
shall be reviewed by the NOTF and confirmed by the CIR, thru the DCIR-OG,
before the Notice of Award/Certificate of Sale be released to the taxpayer;

19. Any of the following shall constitute grounds for cancellation of awards and/or
contract:

a. fraudulent acquisition of the property;

b. violation of the terms and conditions of awards;
c. violation of the terms and conditions in the Certificate of Sale;
d. violation of existing laws, rules, regulations, and ordinances;
e. other instances analogous to the above-mentioned grounds.

20. Acquired real property that has been repossessed through cancellation of award or
sale shall be redisposed in accordance with the same procedures as provided
under Revenue Memorandum Order No. 33-2002;

21. Negotiated or private sale of real property shall be resorted to as a consequence of

failed public bidding for two (2) consecutive times subject to the approval of the
Secretary of Finance pursuant to Section 216 of the NIRC of 1997;

22. All restrictions imposed by law, rules and agreements on the disposition of real
properties in the name of the Republic of the Philippines should be observed and
respected;

(THE BUREAU OF INTERNAL REVENUE RESERVES THE RIGHT TO

REJECT OR CANCEL ANY OR ALL BIDS, TO WAIVE ANY FORMALITY
THEREIN, AND TO ACCEPT SUCH BIDS AS MAY BE CONSIDERED MOST
ADVANTAGEOUS TO THE GOVERNMENT, OR TO CALL-OFF THE
BIDDING PRIOR TO ACCEPTANCE OF THE BIDS AND TO CALL FOR A
NEW BID UNDER AMENDED RULES.)

(Original Signed)
GUILLERMO L. PARAYNO, JR.
Commissioner of Internal Revenue

By: ____________________________
(Head, NOTF/ROTF)

-page 3-
 ANNEX “F”

BIDDERS ACKNOWLEDGEMENT & UNDERTAKING

I/We carefully read and fully understood the Guidelines of the Public Auction
Sale and acknowledge that my/our bid for the ___________________________________
_______________________________(PROPERTY)_____________________________
________________________________________________________________________
is submitted with conformity to the conditions as stated in the Guidelines for Public
Auction Sale and I/We agree to abide by vendor’s decision

Bidding Entity ___________________________________________________________

Submitted By ____________________________________________________________
Name Position

Signature _____________________________
Date _________________________________
TIN __________________________________
CTC _________________________________
 ANNEX “C”

Republic of the Philippines

Department of Finance
BUREAU OF INTERNAL REVENUE
________________________________

NOTICE OF SALE
(For Real and Personal Property)

TO WHOM IT MAY CONCERN:

Pursuant to the provisions of Section 216 of the National Internal Revenue Code of 1997 as
amended, the undersigned will sell at public auction for cash to the highest bidder at,
______________________________________________________________________________________
______________________________________________________________________________________
(address)
on the _________ day of ____________________, 200____ beginning at ________ o’clock _________ M
of said day, the following acquired/forfeited real properties of Bureau of Internal Revenue in the name of
the Republic of the Philippines/Government of the Philippines, described as follows;

DESCRIPTION OF THE PROPERTY/IES

(If more space is needed, use reverse side)

______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________

The Bureau of Internal Revenue reserves the right to reject or cancel any or all bids, to waive
any formality therein, and accept such bids as may be considered most advantageous to the
government, or call-off a bidding prior to acceptance of the bids and call for a new bid under
amended rules. The decision of the Awards and Bids Committee (ABC) of the Bureau of Internal
Revenue is final and binding

Done in the City/Municipality of ________________, Province of ____________, Philippines,

this _________ day of _________________, 200____.

COMMISSIONER OF INTERNAL REVENUE

By:

_________________________________
(Head NOTF/ROTF)
Signature over Printed Name of Authorized Revenue Officer

______________________
(Position/Title)
 ANNEX “B”

Republic of the Philippines

Department of Finance
BUREAU OF INTERNAL REVENUE
Quezon City

(National Office Task Force)

_________________________
(Date)

MEMORANDUM FOR:
The Commissioner of Internal Revenue

May I request for an authority to publish the NOTICE OF SALE on the acquired/forfeited real
properties registered in the name of REPUBLIC OF THE PHILIPPINES, situated in:

(SEE: ATTACHED ANNEX “C”)

The same is absolutely needed as the (name of newspaper) in which we intend to publish the
aforesaid NOTICE OF SALE needs a certification/authority as to the availability of funds.

Considering that we intend to publish this the soonest possible time, your immediate approval on
this request is desired.

Respectfully submitted:

_________________________
(Head, NOTF)

A P P R O V E D:

(Original Signed)
GUILLERMO L. PARAYNO, JR.
Commissioner of Internal Revenue
 ANNEX “D”

Republic of the Philippines

Department of Finance
BUREAU OF INTERNAL REVENUE
Quezon City

APPLICATION FOR BID

_________________________
(Date)

Name of Applicant: ______________________________________________________________________

City Address: ______________________________________________________________________
Provincial Address: ______________________________________________________________________
Telephone Number: _____________________________________________________________________
Taxpayer’s Identification Number: __________________________________________________________

FACTS OF THE PROPERTY TO BE BID

A parcel of land situated in the ______________________________________________

___________________________________ under TCT/OCT/CCT NO. ____________________
containing an area of _______________________________ ( ________ ) more or
less, including the improvements thereon owned by the Republic of the Philippines/
Government of the Philippines.

Floor Price: ____________________________

Amount of Bid: _________________________
Kind of Payment:________________________ (Cash or Manager’s Check)

_________________________
(Bid Applicant)

NOTED BY:

__________________________________
(Head, NOTF/ROTF)
:

_________________________________
(Chairman, Awards and Bids Committee)
 Annex "E"
BUREAU OF INTERNAL REVENUE
BID REGISTRY
______________________________________

DATE OF NAME OF BIDDER PROPERTY

NO. SUBMISSION TIN NO. ADDRESS DESCRIPTION
OF BID
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Attested by: Prepared by:

________________________
Head, OfficeTask Force Chairman, Awards & Bids Committee
ABSTRACT OF CANVASS Annex "H"

Republic of the Philippines

Department of Finance
BUREAU OF INTERNAL REVENUE
Quezon City

ABSTRACT OF CANVASS

FACTS OF THE PROPERTY TO BID

(Give a brief description of the property)

Floor Price/Minimum Bid Price: ____________________

Bidders

Name and Address Amount Bid

1.
2.
3.
4.
5.

Awards and Bids Committee (ABC): ____________________

Witnesses : Noted by: _____________________

(Head NOTF/ROTF)
________________ ________________
 Annex "I"
RR NO. _______ - ______________

LIST OF ACQUIRED/FORFEITED REAL & SEIZED

PERSONAL PROPERTIES SOLD
as of ______________, 2002

TCT NO./OCT NO./ TD NO. LOCATION AREA CLASSIFICATION FLOOR BID

CCT NO. (UNTITLED LAND) PRICE PRICE

Submitted by:

____________________
Head, ROTF
 Annex "J"
REVENUE REGION NO. _________ - ______________
LIST OF PROPERTIES SOLD THROUGH PUBLIC AUCTION FOR ISSUANCE OF CERTIFICATE OF SALE
DATE : _____________
FAIR MARKET VALUE/ FLOOR PRICE AMOUNT PREVIOUS TOTAL NAME OF 10% BOND FULL PAYMENT REMARKS
TOTAL
LOCATOR Tax Declaration Zonal Value OF PURCHASE NO. OF TOP THREE BID Indicate name
NO.
TITLE NO. AREA LOCATION CLASSIFICATION AMOUNT
Year of Year of DEFICIENCY PRICE OFFERED BIDDERS BIDDERS PRICE Date Amount OR Date Amount OR of winning
PAID
Effectivity TD No. Amount Effectivity Amount TAX bidder

This is to certify that the foregoing real properties titled in the name of the Republic of the Philippines sold through the Public Auction last December 2, 2002 has passed the evaluation in criteria set forth under exising rules and regulations.
Recommendation for the issuance of the Certificate of Sale to the winning bidder is hereby recommended.

Recommending Approval Reviewed by:

_____________________ ______________________ ____________________ ___________________

Chief, Collection Division Chief, Assessment Division Chief, Finance Division Regional Director NOTF

_____________________ ________________________ ____________________ Witnessed by:

Chief, Legal Division Chief, Administrative Division Asst. Regional Director _______________________
COA Representative
 Annex "K"
BUREAU OF INTERNAL REVENUE
DILIMAN, QUEZON CITY
LIST OF PROPERTIES SOLD THROUGH PUBLIC AUCTIONFOR ISSUANCE OF CERTIFICATE OF SALE
DATE : _____________
FAIR MARKET VALUE/ FLOOR PRICE 10% BOND FULL PAYMENT
TOTAL
LOCATOR NAME OF WINNING Tax Declaration Zonal Value BID REMARKS
TITLE NO. AREA LOCATION CLASSIFICATION AMOUNT
NO. BIDDER Year of Year of PRICE Date Amount OR Date Amount OR
PAID
Effectivity TD No. Amount Effectivity Amount

This is to certify that upon proper review and evaluation, the corresponding Certificate of Sale may now be issued by the ABC of that Regional Office which shall effect the transfer of the property/ies to the winning bidder/s as herein specified.

Recommending Approval Approved:

_____________________ _____________________
NOTF DCIR - Operations Group
Commissioner of Internal Revenue