Creation of the Large Taxpayers Division and Statement of Its Functions Down to Section Level

May 7, 1993 REVENUE ADMINISTRATIVE ORDER NO. 01-93 SUBJECT : Creation of the Large Taxpayers Division and Statement of Its Functions Down to Section Level TO : All Revenue Officials and Others Concerned I. Objectives : This Order is issued to effectively implement Republic Act No. 7646 which has authorized the Commissioner of Internal Revenue to prescribe the place of payment of internal revenue taxes by Large Taxpayers and to prescribe the organization and define the functions of the Large Taxpayers Division which was created pursuant to Executive Order No. 83. The Large Taxpayers Division shall be primarily responsible for providing management with reports on amount of revenues collected from Large Taxpayers and ensuring that these taxpayers comply with their internal revenue tax obligations promptly and that immediate remedial measures are carried out in cases of delay or non-compliance. II. Organization : The Large Taxpayers Division (LTD) shall be under the supervision of the Financial Service and shall consist of two (2) sections, namely: 1) Monitoring Section and 2) Data Processing and Analysis Section. III. Functions : The Large Taxpayers Division shall perform the following functions: 1. Develop and implement plans, programs and activities relative to the close monitoring of the compliance of Large Taxpayers with the filing of required internal revenue tax returns, papers and statements and payment of taxes thereon; 2. Undertake necessary follow-ups to ensure immediate compliance by Large Taxpayers identified as delayed filers and/or non-fillers; casia 3. Refer Large Taxpayers who are delinquent in complying with filing and/or payment requirements to the proper office for appropriate action; 4. Maintain a system of recording tax data that will provide basic information and other related data on all Large Taxpayers; 5. Establish a system to ensure the integrity and confidentiality of all tax data; 6. Consolidate, tabulate and analyze tax data on Large Taxpayers and submit management and statistical reports on their revenue contribution in proportion to total revenues; 7. Recommend to the Commissioner any modification of the criteria for determining a Large Taxpayer; and 8. Perform such other related functions as may be assigned. A. Monitoring Section 1. Distribute pre-printed color-coded Taxpayer Identification Number (TIN) labels generated by Computer and Information Systems Service (CISS) to Large Taxpayers; 2. Monitor the Large Taxpayers' choices of accredited banks where they shall file their tax returns, papers and statements and pay taxes due thereon and furnish each bank concerned a listing of Large Taxpayers who have signified their choice of said bank to receive their tax returns and/or payment; 3. Pick up the required Batch Control Sheets together with the corresponding tax returns/ATAPs of Large Taxpayers from Accredited Banks; 4. Send reminder letters to Large Taxpayers identified as delayed filers and/or non-filers; 5. Transmit Large Taxpayers' tax returns/ATAPs after processing to appropriate audit or administrative units; 6. Refer delinquent Large Taxpayers to proper office for appropriate action; 7. Monitor compliance of Accredited Banks on the timely submission and completeness and accuracy of required reports and refer to the PD/CR Monitoring Division all delinquent and/or erring Accredited Banks for appropriate action; and 8. Perform such other related functions as may be assigned. B. Data Processing and Analysis Section 1. Encode information relative to tax returns, papers and statements filed and taxes paid by Large Taxpayers including deficiency taxes; 2. Verify encoded data on payments found with questionable amounts or with discrepancies; 3. Consolidate, tabulate and analyze varied tax data on Large Taxpayers; 4. Generate management and statistical reports that will provide relevant information on Large Taxpayers; 5. Coordinate with the Computer and Information Systems Service (CISS) to ensure compatibility of data and reports generated by the Division with the overall computerized system adopted by the CISS. acd 6. Identify areas for improvement of existing information systems on Large Taxpayers; 7. Recommend revision of criteria for identifying Large Taxpayers; and 8. Perform such other related functions as may be assigned. IV. Repealing Clause : This Order supersedes all revenue issuances and/or portions thereof inconsistent herewith . cd i V. Effectivity : This Order shall take effect upon approval. VICTOR A. DEOFERIO, JR. Deputy Commissioner (Officer-in-Charge)