RMO No. 29-2022: Prescribes the policies and guidelines in the conduct of public auction of distrained personal properties, seized/levied real properties and acquired personal and real assets

Key points

1. Who disposes and how. The office that seized, distrained or levied the property disposes of it through a Bids and Awards Committee. Sales are on an AS IS WHERE IS basis, with sealed bids witnessed by a COA representative, and a sale is still valid if the COA representative does not attend.
2. Notice of Sale. Personal property needs posting in not less than two (2) public places in the place of distraint. Real property needs posting in two such places, one at the Mayor’s office, plus publication once a week for three (3) consecutive weeks in a newspaper of general circulation.
3. Minimum bid and bid bond. Only bids equal to or higher than the floor price are accepted, set by appraisal, book value for shares, or fair market value for real property. Each bidder posts a bid bond of 10% of the minimum bid price, and a lower bond disqualifies the bidder.
4. Payment and escrow. For distrained property, the winning bidder pays in cash or manager’s check, and BIR Form No. 0605 is prepared for the tax payment. For levied real property, the bidder opens an escrow in an Authorized Government Depository Bank, which is not released until the one-year redemption period lapses.
5. Redemption and forfeiture. Sale of personal property is absolute and not redeemable. The delinquent taxpayer may redeem levied real property within one (1) year, and forfeited property within one (1) year from registration of the forfeiture declaration.
6. Acquired assets. Acquired assets are sold through a BAC-Acquired Assets, with the floor price set at the highest of the listed values and payment due within two (2) working days from Notice of Award. Failure to pay voids the award and forfeits the bond, and all awards need the Commissioner’s confirmation.

Who is affected

• Delinquent taxpayers
• Bidders at BIR public auctions
• Concerned BIR offices

Deadlines and effectivity

• Winning bidder pays within two (2) working days from receipt of Notice of Award (acquired assets)
• One-year redemption period for levied real property