Organization and Functions of the Large Taxpayers Service Including the Divisions Under it Down to Section Level

February 9, 2009 REVENUE ADMINISTRATIVE ORDER NO. 008-09 SUBJECT : Organization and Functions of the Large Taxpayers Service Including the Divisions Under it Down to Section Level TO : All Internal Revenue Officers and Others Concerned I. OBJECTIVE: This Order defines the organization and functions of the Large Taxpayers Service including its divisions and their sections pursuant to the Rationalization Plan of the Bureau. aCITEH II. ORGANIZATION: The Large Taxpayers Service (LTS) shall be directly under the Office of the Commissioner. It shall be headed by an Assistant Commissioner and shall be composed of the following divisions with their respective sections: A. Manufacturing Division B. Banks and Other Financial Services Division C. Insurance Division D. Real Estate and Trading Division E. Utilities and Transportation Division F. Other Services Division The abovementioned divisions shall have the following sections: 1. Assistance Section 2. Compliance and Document Processing Section 3. Collection Section 4. Audit and Investigation Section G. Large Taxpayers Programs Division 1. Programs Development Section 2. Performance Monitoring and Evaluation Section 3. Research and Data Analysis Section H. Large Taxpayers District Office in Regional Offices with identified LTs 1. Large Taxpayers Assistance Section 2. Large Taxpayers Collection and Enforcement Section 3. Large Taxpayers Assessment Section 4. Large Taxpayers Document Processing and Quality Assurance Section SHECcT III. FUNCTIONS: LARGE TAXPAYERS SERVICE (LTS) 1. Performs staff, advisory and consultative functions relative to taxpayers assistance, collection, assessment and monitoring activities on large taxpayers (LTs) including computerized and non-computerized processing and analysis of data; 2. Develops and administers policies, work programs, standards, guidelines and procedures including forms relative to the abovementioned functions; 3. Provides policy guidance and operational directions to all divisions under LTS relative to the abovementioned functions; 4. Administers and enforces internal revenue laws and regulations including the assessment and collection of all internal revenue taxes, charges and fees of LTs; 5. Undertakes intelligence networking on the business activities of the LTs and prepares report of this undertaking for inclusion in the LTS profile; 6. Administers collection and enforcement programs, including the enforcement of summary remedies in the collection of delinquent accounts and dishonored checks of LTs; 7. Evaluates, approves and signs assessment notices and other documents after the reports of investigation have been approved by authorized official; 8. Evaluates and approves LTs' requests to use loose-leaf invoices, to adopt computerized accounting system/records/receipts, to change its accounting period and to use Point-of-Sale/Cash Register Machines (POS/CRM); as well as conduct post evaluation; cISDHE 9. Approves/disapproves applications of LTs for tax credit/refund and tax exemptions and issues Tax Credit Certificates (TCCs) and Tax Exemption Certificates (TEC); 10. Reviews audit plans of tax cases on LTs prior to actual audit/investigation; 11. Approves reports of investigation submitted by the different divisions/LTDOs under the Service; 12. Prepares, approves and issues Termination Letters; 13. Acts on all letters of protests involving resolution of factual issues on Final Assessment Notice (FAN) issued; 14. Approves Authority to Cancel Assessment (ATCA) whenever an assessment is cancelled or when a previously assessed deficiency tax is reduced; 15. Coordinates with appropriate office implementing regulations, tax laws and amendments to existing tax laws governing the administration of taxes of LTs; 16. Evaluates the effects of newly approved legislative and administrative tax measures for LTs; 17. Performs selective post-audit/review of recently closed cases to evaluate quality and effectiveness of audit conducted by concerned divisions/offices and undertakes remedial action on detected problems; 18. Prepares and updates LTS Operations Manual; 19. Monitors and evaluates the performance of the divisions vis--vis their performance targets and work programs; cITAaD 20. Monitors, evaluates and improves programs and activities under the responsibility of the Service; 21. Reviews, recommends and/or approves all reports and other actions of the divisions under the Service; 22. Consolidates and/or prepares prescribed reports for submission to offices concerned; 23. Coordinates with proper offices in the implementation of the abovementioned functions; and 24. Performs such other related functions as may be assigned. A. Manufacturing Division; B. Banks and Other Financial Services Division; C. Insurance Division; D. Real Estate and Trading Division; E. Utilities and Transportation Division; and F. Others Services Division 1. Implements policies, programs, standards, guidelines and procedures including forms relative to taxpayer assistance, collection, assessment and document processing including processing of claims for tax credit/refund relative to LTs within its area of jurisdiction; DaESIC 2. Sustains a year-round taxpayer awareness and tax information dissemination and education campaign; 3. Prepares and submits report of audit/investigation of tax cases to the Service; 4. Coordinates with the proper offices in the implementation of the abovementioned functions; 5. Prepares prescribed reports for submission to offices concerned; 6. Prepares revenue issuances relative to the abovementioned functions; and 7. Performs such other related functions as may be assigned. 1. Assistance Section 1.1 Provides frontline assistance and information and undertakes tax information dissemination and education campaign for LTs falling under its jurisdiction; 1.2 Provides assistance to LTs under its jurisdiction and ensures delivery of fast, efficient and courteous service; 1.3 Receives and undertakes initial processing of registration application forms filed by said LTs to ensure completeness and correctness of required data/information; HCacDE 1.4 Pre-processes tax documents as to readability, completeness and accuracy of information; 1.5 Receives/pre-screens applications for VAT zero-rating, tax exemptions, tax credit/refund together with all the required attachments and refer the same for processing by the Audit and Investigation Section; 1.6 Receives/pre-screens/processes and recommends approval/disapproval of the following applications/requests for issuance of authorities/permits filed by LTs; Authority to use loose-leaf sales invoices and receipts; Permit to use Point of Sale (POS)/Cash Register Machine (CRM); Authority to use computer generated receipts and invoices; SEHTAC Authority to use Computerized Accounting System (CAS); Authority to use Computerized Books of Accounts (CBA); Authority to Print Receipts and Invoices; Taxpayer record update, modification of taxpayer information and cancellation of registration; Registration and stamping of books of accounts and other accounting records; and All other registration-related applications; 1.7 Conducts ocular inspection of POS/CRM and CAS of LTs under its jurisdiction; EaHcDS 1.8 Resolves ITS registration-related suspense files referred by Compliance and Document Processing Section; 1.9 Generates and issues ITS-generated correspondence to LTs, such as but not limited to Certificate of Registration (CoR), ATP and Tax Clearance Certificates (TCLs); cDTIAC 1.10 Evaluates requests and recommends for approval/disapproval of extension with compliance on registration-related activities or requirements; 1.11 Monitors and evaluates compliance by LTs as regards to filing of required diskettes, documents, information, etc.; 1.12 Receives request for certification and tax clearance together with all the required attachments and refer letters of request to concerned offices; 1.13 Receives diskettes, CDs or other digital media containing information required to be submitted by LTs, scan and screen as to proper compliance with prescribed format and perform File Transfer Protocol [(FTP) (uploading data)]; 1.14 Receives List of Regular Suppliers of Goods and List of Unused or Unissued Receipts and Invoices; Inventory List, Alpha List of Employees/Income Payees (BIR Form 1604 CF/E); 1.15 Receives, processes and recommends approval/disapproval of requests for extension of time for filing inventory list, Summary List of Sales and Purchases (SLSP), and/or Alpha List of Employees/Income payees (BIR Form 1604-CF/E); 1.16 Distributes/releases to LTs certificates/authorities and permits such as Certificate for VAT Zero-Rating, TEC, CAR and TCLs and TCCs; cCTESa 1.17 Pre-screens tax returns manually filed by LTs before the same are actually filed and taxes due thereon are paid (check completeness, correctness and validity of accomplished tax returns, before filing and payment is made with AABs by LTs); 1.18 Attends to queries/problems of said LTs; 1.19 Coordinates with Large Taxpayers Programs Division (LTPD) on the conduct of survey on taxpayer perception and on particular areas of concern of above LTs for the improvement of taxpayer service; 1.20 Processes applications for secondary registration, updating of LTs' information and other applications and registration requirements prescribed by regulations; 1.21 Schedules courtesy visits by revenue officials to LTs; and 1.22 Performs such other related functions as may be assigned. 2. Compliance and Document Processing Section 2.1. Sends reminder letters to LTs under the particular industry regarding tax payment deadlines; 2.2. Monitors compliance of said LTs on filing and payment requirements of the Bureau; EcDATH 2.3. Validates, monitors and resolves the list of LTs ascertained to be stop-filers/non-filers and system-generated notices received from ISOS-DC; 2.4. Sends reminder letters to stop-filers/non-filers; 2.5. Recommends imposition of necessary penalties for late filing/payment and filing at wrong venue by LTs; 2.6. Pursues contact with LTs who have not complied with Returns Processing System reminder letter/assessment notices until compliance is effected; 2.7. Monitors compliance of LTs on the filing of required returns & other documents and payment of taxes through the Stop-Filer Capability Systems (SFCS) and the Electronic Filing and Payment System (EFPS); 2.8. Sorts and establishes batch control for tax documents received based on parameters set by ITS and assign Document Locator Number (DLN); 2.9. Encodes data from source documents into computer acceptable media in accordance with prescribed guidelines; IcSEAH 2.10. Coordinates with ISOS-DC, AABs and other offices regarding data processing requirement of said LTs; 2.11. Safe keeps diskettes, CDs or other digital media containing information required to be submitted by LTs, scan and screen as to proper compliance with prescribed format and perform File Transfer Protocol FTP (uploading data); 2.12. Supervises/witnesses inventory destruction by said LTs and prepares required reports; 2.13. Receives, safe keeps and stores inventory list and list of regular suppliers of goods and services; 2.14. Processes and recommends for approval/disapproval applications/requests for issuance of the following: Effectively VAT zero-rating; Computer-generated Assessment Notice/RPS Assessment ( i.e. , involving computer error); 2.15. Evaluates recommendation of LT Assessment Section for approval of: Authority to use loose-leaf sales receipts and invoices, and to use CAS; Permit to use POS/CRM; 2.16. Issues certified true copies of tax returns requested by said LTs; 2.17. Analyzes and resolves errors which the Data Capture System (DCS) has not successfully processed; CIScaA 2.18. Communicates with LTs and offices concerned to clarify and obtain missing information necessary to perfect tax returns/reports; 2.19. Analyzes suspense problems encountered in the various stages of operations regarding the processing of returns and payments; 2.20. Monitors, validates and collates tax returns filed thru EFPS; 2.21. Undertakes clean-up of taxpayers' ledgers in ITS database; and 2.22. Performs such other related functions as may be assigned. 3. Collection Section 3.1. Implements collection enforcement procedures on unpaid assessments, delinquent accounts and other collectible accounts from LTs; 3.2. Monitors the timeliness and accuracy of collection information and documents submitted by AABs and other authorized collection agents under ITS implementation; 3.3. Monitors the performance of AABs based on submitted reports and prepare call-up letters on the exceptions and discrepancies noted; 3.4. Prepares and issues Certification of No Outstanding Tax Liabilities in relation to the issuance of tax clearance and processing of TCC utilization; 3.5. Reconciles collection reports of AABs with report on remittances from the Bureau of Treasury (BTr) through RAD and with data from validated tax returns/payment forms; 3.6. Converts manually issued TCC into ITS and issues Tax Debit Memo (TDM) for utilization as requested by the LTs; 3.7. Maintains records of accounts receivable of said LTs; 3.8. Prepares and issues preliminary collection letters and enforces the collection of dishonored checks from said delinquent LTs; AIECSD 3.9. Prepares BIR Form 40; process and recommend issuance of ATCA whenever an assessment is cancelled or when a previously assessed deficiency tax is reduced as a result of reinvestigation of tax cases of LTs; 3.10. Coordinates with pertinent government offices in gathering information on assets/properties of delinquent LTs; 3.11. Prepares, serves and executes Notice of Tax Lien (NTL), Warrant of Distraint (WD) and Levy and Warrant of Garnishment to delinquent LTs, banking institutions and concerned government agencies, such as Register of Deeds or Land Transportation Office, to enforce collection of delinquent accounts; 3.12. Recommends cancellation or lifting of the NTL and WD after settlement of delinquent accounts by said LTs; 3.13. Maintains records of summary remedies and execute summary processes within the period prescribed by NIRC; 3.14. Serves and executes writs of execution issued by CTA and other courts to LTs and submits corresponding report on action taken thereon to the Legal Service; 3.15. Processes requests for compromise settlement/abatement of delinquent accounts for approval by authorized official; 3.16. Conducts periodic inventory and maintains an updated record of all seized and forfeited properties of LTs and prepare prescribed reports for submission to the service; 3.17. Prepares Monthly Consolidated Statistical Report of Collection (BIR Form 12.09) and submits to the Service; SDHITE 3.18. Conducts public auction of seized/forfeited properties of said LTs; and 3.19. Performs such other related functions as may be assigned. 4. Audit and Investigation Section 4.1. Identifies LTs for issuance of LAs under its jurisdiction in accordance with the audit program of the LTS; 4.2. Conducts quality audit of tax cases within its jurisdiction and submits reports of investigation; 4.3. Processes and recommends approval of all claims for tax credit/refund of said LTs except those processed by the Legal Service and forwards the same for approval by authorized official; 4.4. Processes applications for tax exemption of said LTs and forwards same to the Legal Service for appropriate and final action; 4.5. Processes capital gains tax transactions on shares of stocks; 4.6. Acts on all letters of protest, requests for re-investigation and similar communications of LTs; 4.7. Evaluates Notice/Declaration of Loss sustained from casualty or from robbery, theft or embezzlement submitted by said LTs and prepare reports thereon; EaCDAT 4.8. Conducts investigation of all internal revenue taxes of said LTs applying for dissolution/retirement, merger or consolidation and prepares report of investigation for review and for approval by authorized official; 4.9. Processes and recommends for approval/disapproval applications/requests for issuance of the following: Waiver of penalties due to minor violations of the NIRC; Change of accounting period from calendar year to fiscal year or vice-versa; Change of inventory costing method and/or depreciation method; Waiver of the Statute of Limitations duly signed by the taxpayer or duly authorized representative; and 4.10. Imposes necessary penalties for late filing/payment and filing at wrong venue and issue the corresponding reminder letter/assessment notice to said LTs; and 4.11. Performs such other related functions as may be assigned. G. Large Taxpayers Programs Division (LTPD) 1. Recommends programs, standards, guidelines and procedures including forms relative to LTS administration on taxpayers assistance, education and information, collection, assessment and processing of data of LTs; 2. Finalizes drafts of revenue issuances submitted by the different LT Divisions relative to their respective functions; 3. Prepares prescribed reports for submission to the offices concerned; 4. Coordinates with proper offices in the implementation of the abovementioned functions; 5. Prepares revenue issuances relative to abovementioned functions; and 6. Performs such other related functions as may be assigned. 1. Programs Development Section 1.1 Formulates work programs, standards, guidelines and procedures on taxpayers assistance, education and information, collection, assessment and processing of data on LTs; cTaDHS 1.2 Establishes criteria, devises techniques, monitors and evaluates performance of all offices under the LTS and prepares evaluation reports for appropriate action by authorized official; 1.3 Determines selection criteria for LTs and periodically updates the same to conform with current economic trends in coordination with concerned offices; 1.4 Develops audit selection criteria for LTs and prepares the annual audit program of the LTS; 1.5 Coordinates with offices concerned to ensure that programs on LTs on taxpayer assistance, information and education, collection, assessment and data processing are consistent with the overall programs of the Bureau; DTAHSI 1.6 Prepares legislative history of issuances affecting LTs and determines areas of amendment; 1.7 Recommends amendments to tax laws and revenue issuances with regard to the modification of criteria for determining LTs, and the expansion of the coverage of existing laws and issuances and other matters concerning LTs; and 1.8 Performs such other related functions as may be assigned. 2. Performance Monitoring and Evaluation Section 2.1 Reviews projects and programs on LTs to ascertain whether or not results are consistent with established objectives and goals and whether or not such projects/programs are being carried out as planned; CaDSHE 2.2 Coordinates all offices concerned on the notification of new LTs; 2.3 Prepares reports relative to LTs administration for submission to Congress, DOF and other agencies & organizations; 2.4 Issues notification letters to concerned taxpayers on their inclusion/exclusion from the list of LTs; 2.5 Consolidates and updates LTS Work Programs, and monitors compliance and accomplishments thereof; and 2.6 Performs such other related functions as may be assigned. 3. Research and Data Analysis Section 3.1 Formulates and administers guidelines, methods and procedures in gathering, maintaining and analyzing data or information for purposes of introducing or amending tax laws, rules and regulations as well as analyzing trends affecting the different industries under the jurisdiction of the Service; IcADSE 3.2 Conducts study/research on current domestic/global trends and development affecting the different industries under LTS for the improvement/enhancement of existing tax system and administration; 3.3 Conducts researches to identify all potential taxpayers that will fall under the jurisdiction of the Service; 3.4 Develops, conducts and analyzes surveys on taxpayers' needs, perception, level of awareness, satisfaction and profiling on LTs, in coordination with other offices; 3.5 Conducts studies on strategies to increase taxpayer awareness on projects/programs affecting LTs; 3.6 Develops strategies to improve the quality of service to LTs based on the results of surveys conducted by the Assistance Section and consultation meetings with public/private sector; 3.7 Conducts studies to gather baseline information needed in the improvement of existing services to covered LTs; 3.8 Prepares updated statistical tables and trends of collection of different taxes from LTs for industry profiling, monitoring and reference purposes; 3.9 Monitors and analyzes data and statistical reports on collection of all internal revenue taxes arising from voluntary payments/assessments; 3.10 Establishes industry benchmark for all industries falling under the jurisdiction of LTS; 3.11 Ensures the systematic collation and storage of all types of information per industry; 3.12 Develops and maintains updated database/masterlist of all registration information of LTs for industry profiling, monitoring and reference purposes; 3.13 Coordinates with Business Statistics and Analysis Division on the allocation of collection goals for LTS, as well as adjustments to the goal as a result of changes in LTs coverage and/or changes in the overall goal of the Bureau, and prepare goal allocation; 3.14 Reconciles and validates figures reflected from BIR 12.09 Collection Reports and ITS generated daily collection reports, in coordination with concerned Divisions/Offices; CIAcSa 3.15 Coordinates with the proper offices in the implementation of the aforementioned functions; 3.16 Prepares prescribed reports for submission to the offices concerned; and 3.17 Performs such other related functions as may be assigned. H. Large Taxpayers District Offices (LTDO) in Regional Offices with identified LTs 1. Receives direct operational supervision from the ACIR-LTS; 2. Implements policies, programs, standards, guidelines and procedures relative to taxpayer assistance, collection, assessment and document processing including processing of claims for tax credit/refund relative to LTs within its area of jurisdiction; 3. Reviews and submits report of audit/investigation of tax cases to the Service; 4. Coordinates with the proper offices in the implementation of the abovementioned functions; 5. Prepares prescribed reports for submission to offices concerned; and 6. Performs such other related functions as may be assigned. 1. Large Taxpayers Assistance Section 1.1 Provides frontline assistance and information and undertake tax information dissemination and education campaign for LTs failing under its jurisdiction; 1.2 Provides assistance to LTs under its jurisdiction and ensures delivery of fast, efficient and courteous service; ETDSAc 1.3 Conducts taxpayer awareness and tax information dissemination and education campaign; 1.4 Receives and undertakes initial processing of registration application forms filed by said LTs to ensure completeness and correctness of required data/information; 1.5 Pre-processes tax documents as to readability, completeness and accuracy of information; 1.6 Receives applications for VAT zero-rating, tax exemptions, tax credit/refund together with all the required attachments and refer the same for processing by the LTAs; 1.7 Receives/pre-screens the following applications/requests for issuance of authorities/permits filed by LTs for further processing, approval/disapproval and release: Authority to use loose-leaf sales invoices and receipts; Permit to use Point of Sale/Cash Register Machine (POS/CRM); Authority to use computer generated receipts and invoices; Authority to use Computerized Accounting System (CAS); Authority to use Computerized Books of Accounts (CBA); Authority to Print Receipts and Invoices; Taxpayer record update, modification of taxpayer information and cancellation of registration; Registration and stamping of books of accounts and other accounting records; and LibLex All other registration-related applications; 1.8 Conducts ocular inspection of POS/CRM and CAS of LTs under its jurisdiction; 1.9 Resolves ITS registration-related suspense files referred by LTDPQAS; 1.10 Generates and issues ITS-generated correspondence to LTs, such as but not limited to Certificate of Registration (CoR), ATPRI and Tax Clearance Certificates (TCLs); 1.11 Evaluates requests and recommends for approval/disapproval of extension with compliance on registration-related activities or requirements; 1.12 Monitors and evaluates compliance by LTs as regards to filing of required diskettes, documents, information, etc.; 1.13 Receives request for certification and tax clearance together with all the required attachments and refers letters of request to the office of the LTDO; 1.14 Receives diskettes of Summary List of Sales and Purchases (SLSP) from LTs, scans and screens as to proper compliance with prescribed format and performs File Transfer Protocol FTP (uploading data); 1.15 Receives List of Regular Suppliers of Goods and List of Unused or Unissued Receipts and Invoices; 1.16 Receives, processes and recommends approval/disapproval of requests for extension of time for filing inventory list, SLSP, and/or Alpha List of Employees/Income payees (BIR Form 1604-CF/E); 1.17 Distributes/releases to LTs certificates/authorities and permits such as Certificate for VAT Zero-Rating, TEC, CAR and TCLs and TCCs; 1.18 Pre-screens tax returns manually filed by LTs before the same are actually filed and taxes due thereon are paid (check the completeness, correctness and validity of accomplished tax returns before filing and payment is made with AABs by LTs); 1.19 Attends to queries/problems of said LTs; 1.20 Coordinates with LTPD on the conduct of survey on taxpayer perception and on particular areas of concern of above LTs for the improvement of taxpayer service; and 1.21 Performs such other related functions as may be assigned. 2. Large Taxpayers Collection and Enforcement Section 2.1 Sends reminder letters to LTs under the LTDO regarding tax payment deadlines; 2.2 Monitors compliance of said LTs on filing and payment requirements of the Bureau; DSacAE 2.3 Validates, monitors and resolves the list of LTs ascertained to be stop-filers/non-filers and system-generated notices received from ISOS-DC; 2.4 Sends reminder letters to stop-filers/non-filers; 2.5 Recommends imposition of necessary penalties for late filing/payment and filing at wrong venue by LTs; 2.6 Implements collection enforcement procedures on unpaid assessments, delinquent accounts and other collectible accounts from LTs; 2.7 Monitors the timeliness and accuracy of collection information and documents submitted by AABs and other authorized collection agents under ITS implementation; 2.8 Monitors the performance of AABs based on submitted reports and prepares call-up letters on the exceptions and discrepancies noted; 2.9 Pursues contact with LTs who have not complied with the reminder letter/assessment notices until compliance is effected; 2.10 Monitors compliance of LTs on the filing of required returns & other documents and payment of taxes through the Stop-Filer Capability Systems (SFCS) and the Electronic Filing and Payment System (EFPS); 2.11 Prepares and issues Certification of No Outstanding Tax Liabilities in relation to the issuance of tax clearance and processing of TCC utilization; 2.12 Reconciles collection reports of AABs with report on remittances from the Bureau of Treasury (BTr) through RAD and with data from validated tax returns/payment forms; 2.13 Converts manually issued TCC into ITS and issues Tax Debit Memo (TDM) for utilization as requested by the LTs under the LTDO; 2.14 Maintains records of accounts receivable of said LTs under the LTDO; 2.15 Prepares and issues preliminary collection letters and enforces the collection of dishonored checks from said delinquent LTs under the LTDO; 2.16 Prepares BIR Form 40; processes and recommends issuance of ATCA whenever an assessment is cancelled or when a previously assessed deficiency tax is reduced as a result of reinvestigation of tax cases of LTs under the LTDO; caTESD 2.17 Coordinates with pertinent government offices in gathering information on assets/properties of delinquent LTs under the LTDO; 2.18 Prepares, serves and executes NTL, WDL and WG to delinquent LTs under the LTDO, banking institutions and concerned government agencies, such as Register of Deeds or Land Transportation Office, to enforce collection of delinquent accounts; 2.19 Recommends cancellation or lifting of the NTL and WG after settlement of delinquent accounts by said LTs under the LTDO; AcTHCE 2.20 Maintains records of summary remedies and executes summary processes within the period prescribed by NIRC; 2.21 Serves and executes writs of execution issued by CTA and other courts to LTs under the LTDO and submits corresponding report on action taken thereon to the Legal Service; 2.22 Processes requests for compromise settlement/abatement of delinquent accounts and forwards it to LTCED for approval by authorized official; 2.23 Conducts periodic inventory and maintains an updated record of all seized and forfeited properties of LTs under the LTDO and prepares prescribed reports for submission to CS; 2.24 Conducts public auction of seized/forfeited properties of said LTs; and 2.25 Performs such other related functions as may be assigned. 3. Large Taxpayers Assessment Section 3.1 Identifies LTs for issuance of LAs under its jurisdiction in accordance with the audit program of the LTS; 3.2 Conducts quality audit of tax cases within its jurisdiction and submit reports of investigation; 3.3 Processes and recommends approval of all claims for tax credit/refund of said LTs except those processed by the Legal Service and forwards the same for approval by authorized official; 3.4 Processes applications for tax exemption of said LTs under the LTDO and forwards same to the Legal Service for appropriate and final action; 3.5 Processes capital gains tax transactions on shares of stocks and real property, in case LT is allowed by the CIR to file the return with the LTDO, and issue TCL and CAR; 3.6 Acts on all letters of protest, requests for re-investigation and similar communications of LTs under the LTDO; 3.7 Supervises/witnesses inventory destruction by said LTs and prepare required reports; 3.8 Evaluates Notice/Declaration of Loss sustained from casualty or from robbery, theft or embezzlement submitted by said LTs and prepares reports thereon; HEScID 3.9 Conducts investigation of all internal revenue taxes of said LTs applying for dissolution/retirement, merger or consolidation and prepares report of investigation for review and approval by authorized official; 3.10 Processes and recommends for approval/disapproval applications/requests for issuance of the following: Effectively VAT zero-rating; Waiver of penalties due to minor violations of the NIRC; Change of accounting period from calendar year to fiscal year or vice versa; Change of inventory costing method and/or depreciation method; Authority to use loose-leaf sales receipts and invoices, and to use CAS; Applications for permit to use POS/CRM; Computer-generated Assessment Notice/RPS Assessment ( i.e. , involving computer error); Waiver of the Statute of Limitations duly signed by the taxpayer or duly authorized representative; and SEIcAD CAR for transactions involving shares of stock and real property where taxpayer is allowed by the CIR to file the return with the LTDO; 3.11 Processes applications for secondary registration, updating of LTs' information and other applications and registration requirements prescribed by regulations; 3.12 Imposes necessary penalties for late filing/payment and filing at wrong venue and issues the corresponding reminder letter/assessment notice to said LTs; and 3.13 Performs such other related functions as may be assigned. cECTaD 4. Large Taxpayers Document Processing and Quality Assurance Section 4.1 Receives from designated AABs the required original and duplicate copies of Batch Control Sheets (BCSs) of LTs under the LTDOs jurisdiction together with the corresponding tax returns/payment forms and attachments; 4.2 Sorts and establishes batch control for tax documents received based on parameters set by ITS and assigns Document Locator Number (DLN); 4.3 Analyzes tax documents for bank procedural errors and prepares Bank Branch Performance Statistics reflecting therein the errors committed by AAB Branches; 4.4 Encodes data from source documents into computer acceptable media in accordance with prescribed guidelines; 4.5 Coordinates with ISOS-DC, AABs and other offices regarding data processing requirement of said LTs; 4.6 Safekeeps and stores diskettes of SLSP received from LT Assistance Section and issues certification relative to the contents and details therein; 4.7 Safekeeps tax returns and other attachments filed by LTs under the LTDO; 4.8 Receives, safekeeps and stores inventory list and list of regular suppliers of goods and services; ACETSa 4.9 Issues certified true copies of tax returns requested by said LTs; 4.10 Analyzes and resolves errors which the Data Capture System (DCS) has not successfully processed; 4.11 Communicates with LTs under the LTDO and offices concerned to clarify and obtain missing information necessary to perfect tax returns/reports; 4.12 Analyzes suspense problems encountered in the various stages of operations regarding the processing of returns and payments; 4.13 Issues preliminary notice for violations related to timeliness and accuracy of collection information and documents submitted by AABs, including those under Electronic Data Transmission System (EDTS), as well as preliminary demand letters for payment of penalties for said violations and refers to Collection Programs Division (CPD) if the AABs concerned fail to comply; TcICEA 4.14 Evaluates/analyzes AABs responses to issued preliminary notices of violations; 4.15 Monitors, validates and collates tax returns filed thru EFPS; 4.16 Undertakes clean-up of taxpayers' ledgers in ITS database; 4.17 Prepares and submits monthly performance statistics of AABs to LTS; and 4.18 Performs such other related functions as may be assigned. IV. REPEALING CLAUSE: All issuances or portions thereof inconsistent with the provisions of this Order are hereby repealed or amended accordingly. V. EFFECTIVITY: This Order shall take effect immediately. (SGD.) SIXTO S. ESQUIVIAS IV Commissioner of Internal Revenue Approved: (SGD.) MARGARITO B. TEVES Secretary of Finance