RR No. 4-2005: Prescribes the rules and regulations implementing Bangko Sentral ng Pilipinas Circular No. 472, Series 2005 requiring all bank borrowers and co-makers to submit latest Income Tax Return and Financial Statement received by BIR

Summary

RR No. 4-2005 implements Bangko Sentral ng Pilipinas (BSP) Circular No. 472, Series 2005, which requires bank borrowers and co-makers to submit their latest Income Tax Return stamped as received by the BIR.

Key points

1. Documents from borrowers. Borrowers and co-makers submit a copy of their latest ITR stamped as received by the BIR, in addition to the bank’s usual requirements. Returns filed with Authorized Agent Banks or through eFPS with reference numbers are deemed stamped as received.
2. Financial statements and waiver. A borrower engaged in business also submits its latest financial statements (FS). A waiver of confidentiality of client information and/or an authority for the bank to conduct random verification with the BIR must be submitted too.
3. Bank evaluation. Banks check the consistency of data in the ITR and FS when evaluating the financial capacity and creditworthiness of applicants and co-makers.
4. Verification of returns. eFPS-filed ITRs can be downloaded from the BIR Portal and verified by the bank with the BIR Contact Center or Portal. For non-eFPS returns, a copy is faxed to the BIR Contact Center with a covering letter-request stating the bank, contact person and the applicant’s name and TIN.
5. Verification of financial statements. FS must be presented to a Revenue District Office for stamping after filing. To verify authenticity, banks fax an Authenticity Verification Request with the FS to the BIR Contact Center, stating the bank name, contact person, applicant name and TIN, and total revenues in the FS.

Who is affected

• Bank borrowers and co-makers
• Banks evaluating credit applicants

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.