Conditions for the Grant of Requests for Inclusion and/or Deletion of Taxpayers in the List of Top 20,000 Private Corporations and Top 5,000 Individual Taxpayers

July 15, 2014 OPERATIONS MEMORANDUM NO. 003-14 TO : All Regional Directors, Revenue District Officers and Others Concerned SUBJECT : Conditions for the Grant of Requests for Inclusion and/or Deletion of Taxpayers in the List of Top 20,000 Private Corporations and Top 5,000 Individual Taxpayers It has come to the attention of this Office that several Revenue District Offices (RDOs) are submitting requests for inclusion of additional taxpayers, as withholding tax agents, to their existing list of Top 20,000 private corporations and top 5,000 individuals engaged in business or practice of profession, as well as for the deletion thereof. For purposes of granting their requests and issuance by this Office of the corresponding notices, enumerated below are the terms and conditions that shall be strictly observed by all concerned RDOs, in addition to the criteria prescribed under the existing revenue regulations, subject to further evaluation of the concerned revenue offices in the National Office. A. For Inclusion in the List of Top 20,000 Corporate and 5,000 Individual Taxpayers 1. One hundred percent (100%) compliance to the use of Electronic Filing and Payment System (eFPS) by all existing taxpayers who were duly notified as one of the top 20,000 corporate and 5,000 individual taxpayers. 2. At least eighty percent (80%) of the withholding tax agents under the RDO's existing top corporate and individual taxpayers are compliant with their obligations to withhold the taxes. 3. One hundred percent (100%) of all the withholding tax agents of the RDO are fully compliant to the provisions of Revenue Regulations (RR) No. 1-2014 with respect to the electronic submission of alphabetical list of employees and/or income payees. cEaACD 4. The potential collection arising from the additional top corporate and individual taxpayers will be added as a collection goal, in addition to the current goal allocated to the concerned RDO under the existing Revenue Memorandum Order (RMO). B. For Deletion from the List of Top 20,000 Corporate and 5,000 Individual Taxpayers 1. The concerned taxpayer's business operations became inactive for the last three (3) consecutive years immediately before the date of submission of the request for deletion of the concerned taxpayer from the list of top withholding tax agents. The concerned RDOs shall establish that the said taxpayer has no accumulated stop-filers cases, and has been filing "No Operations" returns or has been granted applications to "End Date" certain tax forms or tax types in its registration information. 2. Closure or cessation of taxpayer's business made in accordance with the requirements of RR No. 7-2012. Accordingly, in cases of dissolved corporations, a certification to this effect shall have been issued by the Securities and Exchange Commission. 3. In case of allegations of "Cannot be Located" taxpayers, the pertinent provisions of RMC No. 98-2010 and RMO No. 41-2011 shall likewise apply herein and shall have been strictly observed by the concerned RDOs. For your reference and strict compliance. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue