Mandating the Submission of Necessary and Relevant Asset-Related Information by the Attached Agencies of the Department of Finance (DOF) Namely the Bureau of Internal Revenue (BIR), Bureau of Customs (BOC), Securities and Exchange Commission (SEC), Bureau of Local Government Finance (BLGF), Insurance Commission (IC) and Cooperative Development Authority (CDA), Pursuant to Section 12 of Republic Act No. 9480

April 28, 2014 DOF DEPARTMENT ORDER NO. 031-14 SUBJECT : Mandating the Submission of Necessary and Relevant Asset-Related Information by the Attached Agencies of the Department of Finance (DOF) Namely the Bureau of Internal Revenue (BIR), Bureau of Customs (BOC), Securities and Exchange Commission (SEC), Bureau of Local Government Finance (BLGF), Insurance Commission (IC) and Cooperative Development Authority (CDA), Pursuant to Section 12 of Republic Act No. 9480 In accordance with Section 12 of Republic Act No. 9480 entitled "An Act Enhancing Revenue Administration and Collection by Granting an Amnesty on all Unpaid Internal Revenue Taxes Imposed by the National Government for Taxable Year 2005 and Prior Years" which authorizes the DOF, in coordination with the BIR, Land Registration Authority (LRA), Department of Trade and Industry (DTI), SEC, Land Transportation Office (LTO) and other concerned agencies to institute an Information Management Program for the effective use of information declared or obtainable from the Tax Amnesty Returns and the Statements of Assets, Liabilities and Net Worth (SALNs) required to be filed under the Act, for purposes of enhancing revenue administration, revenue collection and policy formulation, the following order is hereby issued. SECTION 1. Rationale. The DOF is the national government agency responsible for the formulation, institutionalization and administration of the country's fiscal policies with the assistance of other concerned subdivisions, agencies and instrumentalities of government. In recognition of the DOF's mandate, the legislature, through Republic Act No. 9480, authorized the DOF to institute, in coordination with other concerned agencies, an Information Management Program (IMP) for the effective use of information declared in or obtainable from Tax Amnesty Returns (TAR) and Statements of Assets, Liabilities and Net Worth (SALNs) filed with the BIR. The DOF and the BIR are in relentless pursuit of ways and innovations to boost revenue generation and one aspect that raises a lot of potential for revenue collection is assets-related transactions. These transactions contain assets related information, such as aggregate amount of assets collected from the Amnesty ( assets related information may also be found in income tax return or tax audit reports ), which may be correlated or matched, in order to come up with useful analysis that could benefit tax collection and fiscal policy formulation efforts. The current lack of data related to these transactions hampers effective tax policymaking and analysis. Hence, pursuant to Section 12 of RA 9480, the IMP, renamed as Assets Information Management Program or the AIMP, presents the opportunity to strengthen the capability of the BIR and the DOF to address the weaknesses and gaps involving assets-related types of transactions. EICSDT AIMP shall initially start building its database from the TARs and SALNs, as baseline information. However, these data are not enough to support the main objectives of the AIMP. It is for this reason that third-party sources of asset-related information need to be tapped and linked to the baseline data of TAR and SALN in order to create a stronger revenue management mechanism. Therefore, linkages with third-party sources must be set in place to enable and enrich the database with other types of assets information available from respective DOF attached agencies. Building on these information using Third Party Information (TPI) sources would make the database of asset-based transactions a potent tool relevant for revenue enhancement activities of both DOF and BIR. SECTION 2. Scope. This Order shall cover asset-related information needed from the DOF-attached agencies as third-party sources of such information to develop and strengthen the baseline information from TAR and SALNs. SECTION 3. Objectives. The exchange of information among DOF-attached agencies as third party sources of asset-related information shall have the following objectives: 1. To build a taxpayer database management system, to be shared by both the DOF and BIR, of asset-related information and transactions from processed tax amnesty returns, third-party information and other existing, internal information within the BIR ( e.g. , registrations, declarations, collections, audits) that can be added-on to complete the AIMP database; 2. To develop necessary business intelligence solutions for revenue administration and decision-making process at the BIR which include applications and capabilities to enable data-matching and data-cleansing, and analytical tools for developing assessment, audit cases and revenue projection skills; and 3. To develop necessary business intelligence solutions for tax policy analysis at the DOF that will involve the use of analytical tools and simulation models to study and evaluate various policy scenarios including estimating potential revenue collections from asset-based transactions, and to develop a tax policy analysis framework using the assets database management system, analytical tools and simulation models to make possible well-rounded and in-depth policy work contributing to structural and administrative reforms, and eventually a more robust tax system. acEHCD SECTION 4. Data Requirements from DOF-Attached Agencies as Third Party Information Sources. Identified in the attached Annex A are the data needed from DOF-attached agencies to broaden existing linkages and create new linkages with identified third party information sources and facilitate necessary data interrelation to enrich the baseline database of asset-related information. SECTION 5. Submission of Data. To ensure the efficiency and accuracy of the information to be gathered as a result of the implementation of the AIMP, which has for its purpose the enhancement of revenue administration, revenue collection and policy formulation under Republic Act No. 9480, the DOF-attached agencies are required to share and submit, on the 3rd week of January of each year, the data listed in Annex A hereof and other related information/data pertaining to the immediately preceding year, to the Research and Information Office (RIO), Domestic Finance Group (DFG) of the DOF. The data so submitted shall be subject to periodic updates ( e.g. , monthly or semi-annually) as may be deemed necessary by the DOF. SECTION 6. Non-Disclosure Provision. Any information obtained under the AIMP shall strictly be for the internal use of DOF and BIR to achieve the purpose set out by relevant laws and rules and regulations. The users are enumerated as follows: 1. Office of the DOF Secretary; 2. Office of the BIR Commissioner; 3. Office of the Undersecretary, Domestic Finance Group (DFG); 4. Research and Information Office (RIO), DOF-DFG; 5. Fiscal Policy and Planning Office (FPPO), DOF-DFG; 6. Management Information System (MIS) Database Administrator of the DOF who shall be designated by the DOF Secretary; 7. Operation Group of the BIR; 8. MIS Database Administrator of the BIR who shall be designated by the BIR Commissioner. Requests for user access to the AIMP and requests from third parties, including the Third Party Information (TPI) sources, for information obtainable from the AIMP, shall be subject to the prior concurrent approval of the DOF Secretary and the BIR Commissioner. Duly-authorized users of the AIMP shall handle the information from the AIMP with strict confidentiality. Any person found to have disclosed, without the prior concurrent approval of the DOF Secretary and the BIR Commissioner, and/or have misused such information shall be subjected to the appropriate penalties under Republic Act No. 6713. TcIHDa SECTION 7. Separability Clause. If for any reason, any provision of this Order is declared unconstitutional or invalid, such parts thereof not affected shall remain in full force and effect. SECTION 8. Repealing Clause. All orders, circulars, memoranda, and other issuances or parts thereof, which are inconsistent with this Department Order, are hereby repealed or modified accordingly. SECTION 9. Effectivity. This Department Order shall take effect immediately after its publication in a newspaper of general circulation. (SGD.) CESAR V. PURISIMA Secretary