Policies, Guidelines, and Processes in the Implementation of the Tax Rulings and Case Management System (TRCMS)

June 20, 2014 OPERATIONS MEMORANDUM NO. 002-14 TO : Assistant Commissioner, Legal Service Assistant Commissioner, Enforcement and Advocacy Service Assistant Commissioner, Internal Affairs Service Chief, Law and Legislative Division Chief, International Tax Affairs Division Chief, Appellate Division Chief, Litigation Division Chief, Prosecution Division Chief, Personnel Adjudication Division Chief, Internal Investigation Division All Others Concerned CC : The Commissioner of Internal Revenue The Deputy Commissioner, Information Systems Group The Deputy Commissioner, Operations Group The Deputy Commissioner, Resource Management Group RE : Policies, Guidelines, and Processes in the Implementation of the Tax Rulings and Case Management System (TRCMS) The Tax Rulings and Case Management System (TRCMS) is a web-based system automating the current workflow and business processes of the BIR's Legal Group. It is a means to monitor and manage the BIR rulings and legal/administrative cases in a centralized data repository. It implements a semi-paperless system where drafts of rulings and cases are sent electronically between concerned offices. It aims to: A. Help organize the BIR's tax rulings and legal/administrative case data and help promote efficiency in responding to stakeholders' requests for information; B. Enhance/automate the workflow system to accurately route documents to users, and ultimately reduce the quantity of paper/documents associated with case management; C. Manage case workloads, reduce docket congestion and case disposition delay; D. Increase case-handling efficiency to provide better service to internal and external clients; HIETAc E. Obtain legal/administrative case documentation from/to internal/external sources, and other affected parties; F. Organize data of different forms, such as written requests, pleadings, memoranda, registered communications, and electronic documents for easy access, search, and coordination/reference of the required information; G. Communicate and make case information available to stakeholders efficiently and completely as possible; and H. Create a central data repository for all stakeholders for obtaining and maintaining documents. The TRCMS has two (2) modules and shall be used by the following offices: A. TAX RULINGS MODULE A sub-module for processing requests for tax rulings and tax treaty relief applications from the BIR: 1. Law and Legislative Division 2. International Tax Affairs Division 3. Office of the Assistant Commissioner for Legal Service 4. Office of the Deputy Commissioner-Legal Group SCHATc 5. Office of the Commissioner B. CASE MANAGEMENT MODULE A sub-module for monitoring legal and administrative cases: 1. Legal Case Management Sub-module 1.1 Litigation Division 1.2 Prosecution Division (including RATE cases) 1.3 Appellate Division 1.4 Office of the Assistant Commissioner for Enforcement and Advocacy Service 1.5 Office of the Assistant Commissioner, Legal Service 1.6 Office of the Deputy Commissioner, Legal Group 1.7 Office of the Commissioner 2. Administrative Case Management Sub-module 1.1 Internal Investigation Division 1.2 Personnel Adjudication Division 1.3 Office of the Assistant Commissioner, Internal Affairs Service CcAIDa 1.4 Office of the Deputy Commissioner, Legal Group 1.5 Office of the Commissioner The following workflow process shall be observed by all concerned: A. The general workflow process for the TAX RULINGS MODULE shall be as follows: 1. A taxpayer or any government office may request for tax rulings or apply for tax treaty reliefs either personally or electronically through the BIR website. If the application is by personal filing, the Receiving Clerk shall: (a) encode all the required information on the taxpayer and the details of the request/application into the system; (b) accept and scan all the documents submitted by the requester into the system; and (c) store the hard copies of the documents submitted in a secured place and is such a manner as to be easily retrievable in case requested by the concerned offices. Until such time that the facility for on-line filing is in place, all requests for tax rulings and applications for tax treaty reliefs shall be filed personally with the BIR. DETACa 2. The Division Chief shall assign the request/application to an action officer to handle the same. 3. The action officer shall use the system to review the request/application and the attachments, to access previous rulings, and to draft the ruling. After the draft ruling is completed, the action officer shall send it to the Section Chief or the Assistant Division Chief, as the case may be, for review. 4. In case there are revisions to be effected, the Section Chief or Assistant Division Chief shall send back the draft ruling to the action officer for rework. Otherwise, the Section Chief shall electronically approve and send the draft ruling to the Assistant Division Chief for review, or the Assistant Division Chief shall send the draft ruling to the Division Chief for review. 5. In case there are still revisions to be effected, the Division Chief shall send back the draft ruling to the action officer for rework. Otherwise, the Division Chief shall electronically approve the draft ruling and send it, through the Releasing Clerk, to the Office of the Assistant Commissioner (ACIR), Legal Service. 6. The Receiving Clerk of the ACIR, Legal Service shall receive the draft rulings sent by the Division Chiefs through the system, and shall forward them to the ACIR, Legal Service. TcSAaH 7. The ACIR, Legal Service shall assign the draft ruling to the Head Revenue Executive Assistant (HREA) and Technical Assistants (TAs) for review. After review, the HREA and TAs shall send the draft to the ACIR, Legal Service for review/approval of the ruling or any comments thereto. 8. In case there are revisions to be effected, the ACIR, Legal Service shall send back the draft to the action officer in the concerned Division or to whomever the ACIR determines as proper. Otherwise, the ACIR shall electronically approve the draft and send it, through the Releasing Clerk, to the Office of the Deputy Commissioner (DCIR), Legal Group. TSaEcH 9. The Receiving Clerk of the DCIR, Legal Group shall receive the draft rulings sent by the ACIR, Legal Service through the system, and shall forward them to the DCIR, Legal Group. 10. The DCIR, Legal Group shall assign the draft rulings to the TAs for review. After review, the TAs shall send the draft to the Chief of Staff of the DCIR, Legal Group for further review. After review, the Chief of Staff shall send the draft to the DCIR, Legal Group for review/approval of the ruling or any comments thereto. 11. In case there are revisions to be effected, the DCIR, Legal Group shall send back the draft to the action officer in the concerned Division or to whomever the DCIR determines as proper. Otherwise, the DCIR shall electronically approve the draft ruling and send it, through the Releasing Clerk, to the Office of the Commissioner of Internal Revenue (OCIR). 12. The Receiving Clerk of the OCIR shall receive the draft rulings sent by the DCIR, Legal Group through the system, and shall forward them to the Chief of Staff of the CIR. After review, the Chief of Staff shall send the draft to the CIR for review/approval of the ruling or any comments thereto. TCSEcI 13. In case there revisions to be effected, the CIR shall send back the draft ruling to the Chief of Staff, and the latter shall send back the draft to the DCIR, Legal Group for appropriate action. Otherwise, the CIR shall electronically approve the draft and release it, through the Releasing Clerk, to the Division Chief concerned for assignment of a ruling number. 14. Once a ruling number is assigned, the Division Chief shall print the ruling and release, through the Division's Releasing Clerk, to the requestor. B. The general workflow process for the LEGAL AND ADMINISTRATIVE CASE MANAGEMENT MODULE shall be as follows. 1. Written complaints, e-complaints, other similar complaints, formal charges, preventive suspension (if applicable); and pleadings, notices, legal processes, orders, decisions, resolutions, and other documents shall be received by the Receiving Clerk of the concerned Divisions. The Receiving Clerk shall: (a) encode all the required information on the taxpayer/personnel/respondent and the relevant details into the system; (b) accept and scan all the documents received into the system; and (c) store the hard copies of the documents submitted in a secured place and is such a manner as to be easily retrievable in case requested by the concerned offices. 2. The Division Chief shall assign the task to an action officer to handle the case. aEcHCD 3. The action officer shall use the system to review the documents received and to draft memoranda, decisions, resolutions, orders, reports, pleadings, subpoena, notices, and other documents. After the required output is completed, the action officer shall send the draft to the Assistant Division Chief for review. 4. In case there are revisions to be effected, the Assistant Division Chief shall send back the draft to the action officer for rework. Otherwise, the Assistant Division Chief shall electronically approve the draft and send the draft to the Division Chief for review. 5. In case there are still revisions to be effected, the Division Chief shall send back the draft to the action officer for rework. Otherwise, the Division Chief shall electronically approve the draft and send it, through the Releasing Clerk, to the Office of the ACIR, Enforcement and Advocacy Service/Internal Affairs Service/Legal Service, as the case may be. 6. The Receiving Clerk of the ACIR, Enforcement and Advocacy Service/Internal Affairs Service/Legal Service, as the case may be, shall receive the draft documents sent by the concerned Division Chief through the system, and shall forward them to the ACIR. CaTcSA 7. The ACIR, Enforcement and Advocacy Service/Internal Affairs Service/Legal Service, as the case may be, shall assign the draft to the HREA and TAs for review. After review, the HREA and TAs shall send the draft to the ACIR for review/approval of the draft document or any comments thereto. 8. In case there are revisions to be effected, the ACIR, Enforcement and Advocacy Service/Internal Affairs Service/Legal Service, as the case may be, shall send the draft back to the action officer in the concerned Division or to whomever the ACIR determines as proper. Otherwise, the ACIR shall electronically approve the draft and return the same, through the Releasing Clerk, to the Division Chief concerned. If the document requires the approval of the DCIR, Legal Group, the ACIR shall electronically approve the draft and send it, through the Releasing Clerk, to the Office of the DCIR, Legal Group. 9. The Receiving Clerk of the DCIR, Legal Group shall receive the draft documents sent by the ACIR, Enforcement and Advocacy Service/Internal Affairs Service/Legal Service, as the case may be, through the system, and shall forward them to the DCIR, Legal Group. 10. The DCIR, Legal Group shall assign the draft documents to the TAs for review. After review, the TAs shall send the draft to the Chief of Staff of the DCIR, Legal Group for further review. After review, the Chief of Staff shall forward the draft to the DCIR, Legal Group for review/approval of the draft document or any comments thereto. HACaSc 11. In case there are revisions to be effected, the DCIR, Legal Group shall send back the draft to the action officer in the concerned Division or to whomever the DCIR determines as proper. Otherwise, the DCIR shall electronically approve the draft ruling and return the same, through the Releasing Clerk, to the ACIR concerned. If the document requires the approval of the CIR, the DCIR, Legal Group shall electronically approve the draft and send it, through the Releasing Clerk, to the Office of the CIR. 12. The Receiving Clerk of the OCIR shall receive the draft documents sent by the DCIR, Legal Group through the system, and shall forward them to the Chief of Staff of the CIR. After review, the Chief of Staff shall send the draft to the CIR for review/approval of the draft document or any comments thereto. 13. In case there are revisions to be effected, the CIR shall send back the draft to the Chief of Staff, and the latter shall send back the draft to the DCIR, Legal Group for appropriate action. Otherwise, the CIR shall electronically approve the draft and release it, through the Releasing Clerk, to the Division Chief concerned for printing and signing of the officials concerned, as may be required. C. Other policies: 1. In cases of leaves of absence of any authorized system user, the concerned Head of Office shall designate a new system user. The Head of Office shall prepare a Request for System Access and endorse it to the Security Management Division for processing and granting of system access. DSAICa 2. Reports on the types of rulings, cases, decisions, orders, and resolutions may be system generated. 3. All documents received shall be scanned and uploaded into the system. The hard copies of the documents submitted shall be housed/stored by the concerned Division handling the matter. The concerned offices may request for such hard copies to the concerned Division. In this transition, each concerned Division shall determine the batches/sequence of their pending inventory that shall be transferred/uploaded into and processed using the TCRMS, taking into consideration the capacity of the system, among others. This Operations Memorandum shall be subject to future review as the need arises and any one of the concerned offices may propose/introduce changes and updates, particularly in the processes herein prescribed, to respond to prevailing circumstances and to sustain efficiency in operations. For your information and strict compliance. (SGD.) ESTELA V. SALES Deputy Commissioner Legal Group