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

August 24, 2000 REVENUE ADMINISTRATIVE ORDER NO. 04-00 SUBJECT : Organization and Functions of the Information 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 sections pursuant to Executive Order No. 175 dated November 3, 1999 on Organizational Restructuring of the Bureau of Internal Revenue to Improve Administrative Control Over Certain Categories of Taxpayers. II. ORGANIZATION: The Large Taxpayers Service (LTS) shall be under the direct supervision of the Commissioner. It shall be headed by an Assistant Commissioner and shall be composed of the following divisions with their respective sections: A. Large Taxpayers Assistance Division 1. Registration Section 2. Taxpayers Information and Education Section 3. Service Delivery Section EHSIcT B. Large Taxpayers Collection and Enforcement Division 1. Collection Monitoring Section 2. Collection Reporting and Reconciliation Section 3. Collection Enforcement Section C. Large Taxpayers Assessment Division 1. Banking, Financing and Insurance Industry Section 2. Electronics, Information Technology, Communications and Transportation Industry Section 3. Other Large Taxpayer Industry Groups Section D. Large Taxpayers Programs Division 1. Programs Development Section 2. Programs Monitoring and Evaluation Section 3. Research and Data Analysis Section E. Large Taxpayers Document Processing and Quality Assurance Division 1. Document Processing Section 2. Quality Assurance Section 3. Reports, Correspondence and Systems Support Section F. Large Taxpayers Division (in Regional Offices with identified Large Taxpayers) 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 DIHETS In addition, the Large Taxpayers Service shall have the direct/functional supervision over the Audit Review Unit. III. FUNCTIONS: LARGE TAXPAYERS SERVICE shall: 1. Perform staff, advisory and consultative functions relative to assistance, collection and assessment including computerized processing of data of large taxpayers; 2. Recommend and administer policies, work programs, standards, guidelines and procedures relative to the abovementioned functions; 3. Provide policy guidance and operational directions to all divisions under the Service relative to the abovementioned functions; 4. Administer and enforce internal revenue laws and regulations including the assessment and collection of all internal revenue taxes, charges and fees of large taxpayers; 5. Provide one-stop-shop service to large-taxpayers; 6. Implement a taxpayer assistance program that will cater to the needs of large taxpayers; 7. Administer collection and enforcement programs including the enforcement of summary remedies in the collection of delinquent accounts of large taxpayers; 8. Monitor compliance of large taxpayers with the filing and payment requirements of the Bureau; 9. Process tax returns/documents filed by large taxpayers; 10. Evaluate and approve Large Taxpayers' request to use loose-leaf invoices, computerized accounting system, records and receipts, change in accounting period and use of Cash Register Machines (CRM); 11. Process and recommend for approval of the CIR applications for tax refund/credit and tax exemptions; 12. Process and approve applications for effectively VAT zero-rating and waiver of penalties for minor violations of the National Internal Revenue Code (NIRC); 13. Review audit plans of tax cases prior to actual audit/investigation; 14. Conduct quality audit/investigation of large taxpayers; 15. Review reports of audit/investigation and submit them for final review and approval to the Office of the Commissioner; 16. Process and recommend for the abatement/compromise settlement of the delinquent accounts of large taxpayers; 17. Prepare and issue Termination Letter for the signature of the Commissioner; 18. Recommend necessary tax legislations and amendments to tax laws and revenue issuances relative to the administration of large taxpayers; 19. Prepare and recommend Bank Advisory Bulletins relative to the collection and remittance procedures of Authorized Agent Banks (AABs) for large taxpayers; 20. Monitor and evaluate the performance of Divisions within the Service including the Large Taxpayers Division (LTD) vis-a-vis their performance targets and work programs; 21. Prepare taxpayer's profile based on returns filed, audit reports and data from third party information furnished by Assessment Service; 22. Undertake appropriate action on large taxpayers who are late filers or stop filers; 23. Prepare/consolidate reports for submission to Congress/Department of Finance (DOF) and other national agencies; 24. Coordinate with proper offices in the implementation of the abovementioned functions; ScaATD 25. Monitor, evaluate and improve programs and activities under the responsibility of the Service; 26. Review, recommend and/or approve all reports and other actions of the divisions under the Service; 27. Consolidate and/or prepare prescribed reports for submission to the offices concerned; and 28. Perform such other related functions as may be assigned. Audit Review Unit shall: 1. Review audit plan on all tax cases before audit/investigation is commenced as well as during and before audit is terminated; 2. Review all audit reports and assessments submitted by the Large Taxpayers Assessment Division and the Large Taxpayers Division (LTD) and recommend approval thereof before they are issued to the taxpayer, 3. Coordinate/assist in the development of performance standards, operational procedures and standard working papers relative to audit of large taxpayers; 4. Prepare a discrepancy report, if any, on the audit findings vis-a-vis assessments from the audit review made, for submission to the Assistant Commissioner, Large Taxpayers Service; 5. Review and resolve all letters of protests, requests for reinvestigation and similar communications of large taxpayers; 6. Prepare and issue pre-assessment notices (PAN), letters of demand or assessment notices for duly approved reports of investigation; 7. Prepare BIR Form 40.00; 8. Prepare Authority to Cancel Assessment (ATCA) whenever an assessment is cancelled or when a previously assessed deficiency tax is reduced as a result of reinvestigation or a reconsideration requested by a taxpayer; 9. Perform selective re-audit of recently closed cases to evaluate the quality and effectiveness of audit conducted by the Large Taxpayers Assessment Division and Large Taxpayers Division (LTD) and undertake remedial action when problems are detected; and 10. Perform such other related functions as may be assigned; A. Large Taxpayers Assistance Division shall: 1. Provide frontline assistance/information and undertake tax information dissemination and education campaign for large taxpayers; 2. Receive and pre-process applications/requests for VAT zero-rating, tax exemptions, tax credit/refund, together with all required attachments and refer to concerned division/office for further processing; 3. Receive applications/requests for secondary registration, registration related permits, certificates, registration information updates together with the required attachments and all forms of inquiries from large taxpayers; 4. Process applications for secondary registration, updating of taxpayers information and other application and registration requirements prescribed by regulations; 5. Screen tax returns of said taxpayers before filing and payment of tax due thereon; 6. Provide guidance to the abovementioned taxpayers in the resolution of their problems/queries; 7. Supervise the resolution of ITS registration related suspense files; AcTHCE 8. Establish a taxpayer feedback mechanism to determine other areas of concern and improve services to said taxpayers; 9. Coordinate with proper offices in the implementation of the abovementioned functions; 10. Prepare prescribed reports for submission to offices concerned; and 11. Perform such other related functions as may be assigned. 1. Registration Section shall: 1. Receive and process the following registration related applications: 1.1. Applications for registration and stamping of books of accounts; 1.2. Applications for taxpayer record update, modification of taxpayer information and cancellation of registration; and 1.3. Applications for Permit/Authority to Print Receipts and Invoices; 2. Receive and pre-process the following applications filed by large taxpayers to ensure completeness and correctness of the required data/information and refer to division/office concerned for further processing and release corresponding permits on: 2.1. Applications for permit to use loose-leaf sales invoices and receipts; 2.2. Applications for permit to use Point of Sale (POS)/Cash Register Machines(CRM); 2.3. Applications for permit to use computer generated receipts and invoices; 2.4. Applications for permit to use computerized accounting system; and 2.5. Applications for permit to use computerized books of accounts; 3. Generate and issue to taxpayers various ITS-generated correspondence such as but not limited to Certificate of Registration, Authority to Print Receipts and Invoices and Tax Clearance Certificates (TCL); 4. Resolve ITS registration related suspense files; and 5. Perform such other related functions as may be assigned. 2. Taxpayers Information and Education Section shall: 1. Provide information to taxpayers within its jurisdiction relative to laws and issuances affecting them and disseminate information materials; 2. Initiate the conduct of seminars, fora and the like on matters affecting large taxpayers; 3. Coordinate with Taxpayer Assistance Service and other offices concerned for the provision of resource speakers to discuss tax laws, revenue issuances and information relative to the above taxpayers; 4. Conduct survey in coordination with Statistics Division on taxpayer perception and on particular areas of concern of above taxpayers such, as electronic filing, use of computerized accounting systems, POS and CRM and other areas for improvement of taxpayer service; and 5. Perform such other related functions as may be assigned. 3. Service Delivery Section shall: 1. Receive applications for VAT zero-rating, tax exemptions and tax credit/refund, annual information returns, summary list of sales and purchases, inventory lists and list of regular suppliers of goods as required under RR No. 2-98 together with all the required attachments and refer to the division/office concerned for processing; DEcTIS 2. Receive requests for certifications and other tax clearances together with all the required attachments and refer to the division/office concerned for processing; 3. Distribute tax forms to taxpayers within its jurisdiction; 4. Screen tax returns of said taxpayers before filing and payment of taxes due thereon at the designated AABs; 5. Provide assistance and attend to queries/problems of taxpayers under the Large Taxpayers Service; 6. Release certificate for VAT zero-rating, Tax Exemption Certificate and Tax Credit Certificate to the above taxpayers duly signed by authorized official; and 7. Perform such other related functions as may be assigned. B. Large Taxpayers Collection and Enforcement Division shall: 1. Implement policies, programs, standards, guidelines and procedures relative to collection of internal revenue taxes from large taxpayers; 2. Monitor collection of taxes from said taxpayers; 3. Monitor compliance of the above taxpayers with the filing of required returns and other documents and payment of taxes therein and take immediate action on taxpayers who are delinquent in complying with filing and/or payment requirements; 4. Coordinate with AABs and monitor their compliance with prescribed procedures relative to the collection function; 5. Reconcile tax collection reports of AABs for said taxpayers with the report on remittances from the Bureau of Treasury (BTr) thru the Revenue Accounting Division (RAD) and with data from validated tax returns/payment forms; 6. Consolidate data on collections from stop-filer/non-filers and delinquent accounts program for large taxpayers for incorporation in the large taxpayers profile; 7. Conduct the loading, re-loading and sealing of Documentary Stamp Tax (DST).machines of large taxpayers as well as ocular inspection of metering machines within the business premises of such taxpayers; 8. Enforce the collection of dishonored checks and delinquent accounts from large taxpayers; 9. Undertake collection of taxes through summary remedies including issuance of collection letters, service and execution of Warrants of Distraint and Levy (WDL) and/or Garnishment and Notice of Tax Liens from taxpayers within its jurisdiction; 10. Recommend the conduct of public auction of seized/forfeited properties of taxpayers within its jurisdiction; 11. Coordinate with proper offices in the implementation of the abovementioned functions; 12. Prepare prescribed reports for submission to offices concerned; and 13. Perform such other related functions as may be assigned. 1. Collection Monitoring Section shall: 1. Send to taxpayer in advance reminder letters regarding tax payment deadlines; CDAHIT 2. Monitor compliance of large taxpayers on filing and payment requirements of the Bureau; 3. Validate and monitor the stop-filers/non-filers list and system generated notices received from LT Document Processing and Quality Assurance Division; 4. Recommend imposition of necessary penalties for late filing/payment and filing at wrong venue for concerned taxpayers to LT Assessment Division; 5. Send reminder letters to stop-filers/non-filers; 6. Pursue contact to taxpayers who have not complied with the reminder letter/assessment notices until compliance is effected; 7. Refer the above taxpayers who are delinquent in settling their deficiency taxes as a result of monitoring/investigation to the Collection Enforcement Section; and 8. Perform such other related functions as may be assigned. 2. Collection Reporting and Reconciliation Section shall: 1. Consolidate collection data of large taxpayers for profiling purposes; 2. Coordinate with AABs and monitor their compliance with prescribed procedures relative to the collection function; 3. Validate ITS generated collection reports and various correspondences received from LT Document Processing and Quality Assurance Division; 4. Reconcile collection reports of AABs with report on remittances from the BTr thru RAD and with data from validated tax returns/payment forms; 5. Submit reconciled report of collections from large taxpayers to Collection Service and other offices concerned; and 6. Perform such other related functions as may be assigned. 3. Collection Enforcement Section shall: 1. Maintain records of accounts receivable of large taxpayers; 2. Conduct the loading, reloading and sealing of Documentary Stamp Tax (DST) metering machines of large taxpayers; 3. Prepare and issue preliminary collection letters to delinquent taxpayers referred by Collection Monitoring Section; 4. Enforce the collection of dishonored checks from large taxpayers; 5. Coordinate with pertinent government agencies in gathering information on assets/properties of delinquent taxpayers; 6. Prepare and serve Notice of Tax Lien, Warrant of Distraint or Levy (WDL) and/or Warrant of Garnishment to delinquent taxpayers and/or concerned government agencies, such as Register of Deeds or Land Transportation Office, to enforce collection of delinquent accounts of taxpayers; 7. Recommend the lifting/cancellation of Notice of Tax Lien/Warrant of Garnishment in relation to the settlement of delinquent accounts by the above taxpayers; 8. Execute summary processes within the period prescribed by the NIRC to collect taxpayers delinquent accounts and/or dishonored checks; 9. Serve and execute writs of execution issued by Court of Tax Appeals and other courts for taxpayers under its jurisdiction and submit corresponding report on action taken thereon to the Legal Service; 10. Process requests for compromise/abatement in relation to the settlement of delinquent accounts for approval of the CIR; HaEcAC 11. Maintain records of execution of summary remedies; 12. Maintain updated inventory and record of all seized and forfeited properties of taxpayers under its jurisdiction; conduct periodic inventory of these properties and prepare prescribed reports for submission to Collection Service; 13. Conduct public auction of seized/forfeited properties of Large Taxpayers; and 14. Perform such other related functions as may be assigned. C. Large Taxpayers Assessment Division shall: 1. Implement assessment policies, programs, standards, guidelines and procedures for large taxpayers; 2. Conduct quality audit of tax cases within LTS jurisdiction; 3. Prepare and submit report of investigation of tax cases to the Service for review and subsequent endorsement to the Office of the Commissioner; 4. Process and recommend approval of all claims for tax credit/refund of large taxpayers except those processed by the Legal Service; 5. Process applications for tax exemptions from large taxpayers and recommend to the Legal Service for appropriate action; 6. Process capital gains tax transactions on shares of stocks of large taxpayers; 7. Act on all letters of protests, requests for re-investigation and similar communications; 8. Supervise/witness inventory destruction by the taxpayers under its jurisdiction and prepare the necessary reports; 9. Evaluate declaration of loss sustained from theft, robbery and other casualty; 10. Conduct investigation/audit of all internal revenue taxes of large taxpayers applying for dissolution/retirement, merger or consolidation and prepare reports of investigation; 11. Process and recommend for approval of the following applications/requests for: 11.1 Effectively VAT zero-rating; 11.2 Waiver of penalties due to violation of NIRC; 11.3 Change of accounting period from calendar year to fiscal year or vice-versa; 11.4 Authority to use loose-leaf sales receipts and invoices, computerized accounting system/accounting records; and 11.5 Applications for permit to use POS/CRM; 12. Conduct pre-audit of withholding tax returns and income tax returns of said taxpayers subject to Minimum Corporate Income Tax (MCIT); 13. Impose necessary penalties for late filing/payment and filing at wrong venue and issue the corresponding reminder letter/assessment notice to large taxpayers concerned; 14. Coordinate with proper offices in the implementation of the abovementioned functions; 15. Prepare prescribed reports for submission to offices concerned; and TECIHD 16. Perform such other related functions as may be assigned. 1. Banking, Financing and Insurance Industry Section shall: 1. Identify large taxpayers under the banking, financing and insurance industry to be investigated in accordance with the audit program of the Large Taxpayers Service; 2. Conduct quality audit of tax cases of said large taxpayers; 3. Supervise and witness the inventory destruction conducted by taxpayers under the banking, financing and insurance industry and prepare corresponding reports of investigation; 4. Conduct investigation/audit of all internal revenue taxes of said large taxpayers applying for dissolution/retirement, merger or consolidation and prepare corresponding reports of investigation; 5. Identify vital third party information needed and request such information from Assessment Service; 6. Process and audit claims for tax credit/refund of said large taxpayers except those processed by the Legal Service and prepare tax credit certificate/voucher for approval of authorized official; 7. Process the following applications/request of taxpayers under the banking, financing and insurance industry for: 7.1 Effectively VAT zero-rating; 7.2 Waiver of penalties due to violation of NIRC; 7.3 Change of accounting period from calendar year to fiscal year or vice versa; 7.4 Authority to use loose-leaf sales receipts and invoices, computerized accounting system/accounting records; and 7.5 Applications for permit to use POS/CRM; 8. Process applications for tax exemptions of said large taxpayers and recommend to the Legal Service for appropriate action; 9. Conduct pre-audit of withholding tax returns and income tax returns of large taxpayers under the banking, financing and insurance industry subject to Minimum Corporate Income Tax (MCIT); 10. Conduct ocular inspection of all CRM or POS of large taxpayers under banking, financing and insurance industry; 11. Process docket of capital gains tax transactions for shares of stocks of large taxpayers under banking, financing and insurance industry for preparation/generation of TCL by Large Taxpayers Assistance Division and approval by authorized official; 12. Act on all letters of protests including factual issues on claims for TCC/refund, requests for reinvestigation and similar communications of large taxpayers under banking, financing and insurance industry; 13. Evaluate Declaration of Loss sustained from casualty or from robbery, theft or embezzlement submitted by the large taxpayers under banking, financing and insurance industry and prepare reports thereon; 14. .Impose necessary penalties for late filing/payment and filing at wrong venue and issue the corresponding reminder letter/assessment notice to large taxpayers concerned; 15. Identify tax issues affecting large taxpayers of above industries for research and further study and coordinate with other offices within the Bureau for resolution thereof; and TcEDHa 16. Perform such other related functions as may be assigned. 2. Electronics, Information Technology, Communications and Transportation Industry Section shall: 1. Identify large taxpayers under the electronics, information technology, communications and transportation industry to be investigated in accordance with the audit program of the Large Taxpayers Service; 2. Conduct quality audit of tax cases of said large taxpayers; 3. Supervise and witness inventory destruction conducted by taxpayers under the electronics, information technology, communications and transportation industry and prepare reports of investigation; 4. Conduct investigation/audit of all internal revenue taxes of said taxpayers applying for dissolution/retirement, merger or consolidation and prepare corresponding reports of investigation; 5. Identify vital third party; information needed and request such information from Assessment Service; 6. Process and audit claims for tax credit/refund of said large taxpayers except those processed by the Legal Service and prepare tax credit certificate/voucher for approval of authorized official; 7. Process docket of capital gains tax transactions for shares of stocks of large taxpayers under the electronics, information technology, communications and transportation industry for preparation/generation of TCL by LT Assistance Division and approval by authorized official; 8. Evaluate Declaration of Loss sustained from casualty or from robbery, theft or embezzlement submitted by large taxpayers under the electronics, information technology, communication and transportation industry and prepare reports thereon; 9. Process the following applications/requests of large taxpayers under the electronics, information technology, communications and transportation industry: 9.1 Effectively VAT zero rating; 9.2 Waiver of penalties due to violation of NIRC; 9.3 Change of accounting period from calendar year to fiscal year or vice versa; 9.4 Authority to use loose leaf sales receipts and invoices, computerized accounting system/accounting records; 9.5 Applications for permit to use POS/CRM; 10. Process applications for tax exemptions of said large taxpayers and recommend to the Legal Service for appropriate action; 11. Conduct ocular inspection of all CRM or POS of large taxpayers under the electronics, information technology, communications and transportation industry; 12. Conduct pre-audit of withholding tax returns and income tax returns of large taxpayers under the electronics, information technology, communications and transportation industry subject to MCIT; 13. Act on all letters of protests including factual issues on claims for TCC/refund, requests for reinvestigation and similar communications of large taxpayers under the electronics, information technology, communications and transportation industry; CTcSIA 14. Impose necessary penalties for late filing/payment and filing at wrong venue and issue the corresponding reminder letter/assessment notice to large taxpayers under the electronics, information technology, communications and transportation industry; 15. Identify tax issues affecting large taxpayers of above industries for research and further study and coordinate with other offices within the Bureau for resolution thereof; and 16. Perform such other related functions as may be assigned. 3. Other Large Taxpayer Industry Groups Section shall: 1. Identify other large taxpayer industry groups to be investigated in accordance with the audit program of the Large Taxpayers Service; 2. Conduct quality audit of tax cases of said large taxpayers; 3. Supervise and witness the inventory destruction conducted by taxpayers under other large taxpayer industry groups and prepare reports of investigation; 4. Conduct investigation/audit of all internal revenue taxes of said large taxpayers applying for dissolution/retirement, merger or consolidation and prepare corresponding report of investigation; 5. Identify vital third party information needed and request such information from Assessment Service; 6. Process and audit claims for tax credit/refund of said large taxpayers except those processed by the Legal Service and prepare tax credit certificate/voucher for approval of authorized official; 7. Process docket of capital gains tax transactions for shares of stocks of taxpayer under the other large taxpayer industry groups for preparation/generation of TCL by LT Assistance Division and approval by authorized official; 8. Evaluate Declaration of Loss sustained from casualty or from robbery, theft or embezzlement robbery submitted by other large taxpayers industry groups and prepare reports thereon; 9. Process the following applications/requests of other large taxpayers industry groups for: 9.6 Effectively VAT zero-rating; 9.7 Waiver of penalties due to violation of NIRC; 9.8 Change of accounting period from calendar year to fiscal year or vice versa; 9.9 Authority to use loose leaf sales receipts and invoices, computerized accounting system/accounting records; and 9.10 Applications for permit to use POS/CRM; 10. Process applications for tax exemptions of said large taxpayers and recommend to the Legal Service for appropriate action; 11. Conduct ocular inspection of all CRM or POS of large taxpayers under the other large taxpayers industry groups; 12. Conduct pre-audit of withholding tax returns and income tax returns of taxpayer under the other large taxpayer industry groups subject to MCIT; 13. Act on all letters of protests including factual issues on claims for TCC/refund, requests for reinvestigation and similar communications of taxpayer under the other large taxpayer industry groups; SCADIT 14. Impose necessary penalties for late filing/payment and filing at wrong: venue and issue the corresponding reminder letter/assessment notice to taxpayer under the other large taxpayer industry groups; 15. Identify tax issues affecting above taxpayers for research and further study and coordinate with other offices within the Bureau for resolution thereof; and 16. Perform such other related functions as may be assigned. D. Large Taxpayers Programs Division shall: 1. Recommend policies, programs, standards, guidelines and procedures relative to Large Taxpayers administration; 2. Monitor and evaluate implementation of the overall programs of the Service; 3. Develop audit selection criteria for large taxpayers; 4. Establish criteria for the evaluation of performance of offices undertaking activities relative to large taxpayers; 5. Monitor and evaluate performance of divisions within the Service vis-a-vis performance targets; 6. Analyze data on collection and other statistical reports on the above taxpayers and prepare the required management reports; 7. Recommend necessary tax legislations on amendments to tax laws and revenue issuances with regard to Large Taxpayers administration; 8. Identify Large Taxpayers and establish profile of large taxpayers; 9. Conduct researches/studies and recommend work process improvement for effective administration of large taxpayers; 10. Coordinate with Services concerned to ensure that programs on large taxpayers are consistent with the overall program of the Bureau; 11. Coordinate with proper offices in the implementation of the abovementioned functions; 12. Prepare prescribed reports for submission to offices concerned; 13. Prepare revenue issuances relative to the abovementioned functions; and 14. Perform such other related functions as may be assigned. 1. Programs Development Section shall: 1. Formulate policies, programs, standards, guidelines and procedures on taxpayers assistance, education and information, collection, assessment and processing of data of large taxpayers; 2. Develop audit selection criteria for large taxpayers and prepare the annual audit program of the Service; 3. Recommend amendments to tax laws and revenue issuances with regard to the modification of the criteria for determining LT and the expansion of the coverage of existing laws and issuances and other matters concerning large taxpayers; 4. Establish criteria and devise techniques for the evaluation of divisions under the Service relative to the implementation of the Service programs; 5. Coordinate with offices concerned to ensure that programs of large taxpayers on taxpayer assistance, information and education, collection, assessment and data processing are consistent with the overall programs of the Bureau; aSIAHC 6. Prepare revenue issuances for the implementation of policies and programs on large taxpayers; and 7. Perform such other related functions as may be assigned. 2. Programs Monitoring and Evaluation Section shall: 1. Review projects/programs on large taxpayers 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; 2. Monitor and evaluate performance of divisions within the Service vis-a-vis performance targets and work programs; 3. Provide top management with periodic reports on the monitoring, review and evaluation of programs/activities on large taxpayers; 4. Recommend trainings designed to improve the quality of work on Large Taxpayers administration in coordination with Human Resource Development Service (HRDS); and 5. Perform such other related functions as may be assigned. 3. Research and Data Analysis Section shall: 1. Conduct study/research on current trends relative to Large Taxpayers administration; 2. Analyze data on tax collections/assessments, statistical reports and other information relative to large taxpayers and prepare the required management reports; 3. Identify Large Taxpayers and establish profile of large taxpayers; 4. Coordinate with Statistics Division regarding adjustments in collection goals as a result of changes in the coverage of large taxpayers; 5. Undertake researches/studies as may be necessary for effective Large Taxpayers administration of large taxpayers; 6. Design survey questionnaires and analyze results relative to particular areas of concern of large taxpayer such as electronic filing, use of computerized accounting systems and improvement of taxpayer service; and 7. Perform such other related functions as may be assigned. E. Large Taxpayers Document Processing and Quality Assurance Division shall: 1. Implement and direct the established document processing system and quality measurement standards to ensure integrity of data of large taxpayers; 2. Recommend policies, work programs, standards and guidelines to improve existing document processing system, quality measurement standards based on operational result and systems review findings, generation of various ITS reports and correspondence and maintenance support on computer equipment; 3. Test and implement procedures and techniques to receive, control, edit, batch and code tax related documents received from internal and external agencies; 4. Coordinate with ISOS on the generation of regular ITS reports and various correspondence on transactions of large taxpayers; 5. Issue certified true copies of tax returns filed as requested by the said taxpayers; EcICSA 6. Issue confirmation letters to said taxpayers as regards their tax payments; 7. Ensure that the collection, storage and dissemination of all types of information are administered in such a way that data become a standardized resource available to all offices in the Large Taxpayer Service and other concerned offices of the Bureau; 8. Prepare ad hoc reports and various correspondence on transactions of large taxpayers; 9. Ensure quality systems operations by implementing comprehensive quality assurance procedures and standards; 10. Coordinate with Revenue Data Centers (RDCs), AABs and other entities regarding data processing requirements of large taxpayers; 11. Act as consultant to educate and assist all personnel under the LTS in the efficient and effective use of hardware and application systems; 12. Provide maximum physical security and disaster protection for computer installations within LTS; 13. Coordinate with ISOS the maintenance support on computer equipment used by all offices in the LTS; 14. Establish a periodic systems review for quality measurement and integrity of inputs/outputs to ensure that prescribed quality production and information controls are in place; 15. Recommend research and development programs to improve productivity in coordination with Large Taxpayers Programs Division; 16. Recommend necessary technical training programs for quality assurance and document processing personnel in coordination with the Large Taxpayers Programs Division, Information Planning and Quality Service and Human Resource Development Service; 17. Prepare and issue certificate of tax payments upon requests of taxpayers; 18. Coordinate with proper offices in the implementation of the abovementioned functions; 19. Prepare prescribed reports for submission to offices concerned; and 20. Perform such other related functions as may be assigned. 1. Document Processing Section shall: 1. Test and implement procedures and techniques to receive, control, edit, batch and code tax related documents received from internal and external agencies; 2. Receive from designated AABs the required original and duplicate copies of Batch Control Sheets (BCSs) for large taxpayers together with the corresponding tax returns/payment forms and attachments and forward the duplicate copies of the tax returns to Large Taxpayers Assessment Division; 3. Receive/pick-up returns of large taxpayers under insurance industry pursuant to existing procedures; 4. Sort and establish batch controls for tax documents received based on parameters set by ITS and assign Document Locator Number (DLN); 5. Take charge of the collation of data which are transmitted electronically; 6. Pre-process tax documents as to readability, completeness and accuracy of information; 7. Analyze tax documents for bank procedural errors and prepare Bank Branch Performance Statistics reflecting therein the errors committed by AAB-Branches and forward it to Quality Assurance Section; 8. Encode data from source documents into computer acceptable media in accordance with prescribed guidelines; DISHEA 9. Monitor all data conversion jobs to ensure prompt action according to set priorities; 10. Issue certified true copies of tax returns filed as requested by the said taxpayers; 11. Coordinate with Revenue Data Centers (RDCs) and other entities regarding data processing requirements of said taxpayers; 12. Prepare and submit prescribed accomplishment reports; and 13. Perform such other related functions as may be assigned. 2. Quality Assurance Section shall: 1. Develop and implement comprehensive quality assurance procedures and standards for the operations of information systems on large taxpayers; 2. Analyze and resolve errors which data capture system has not been able to successfully process; 3. Prepare forms or various correspondence to offices concerned to obtain clarification and/or missing information necessary for the perfection of tax returns/reports; 4. Undertake quality verification of notices, various correspondence and other ITS-generated reports prior to issuance/mailing; 5. Analyze discrepancy/ies and determine document processing problems; 6. Ensure that the collection, storage and dissemination of all types of information are administered in such a way that data become a standardized resource available to all offices in the Large Taxpayers Service and other concerned offices of the Bureau; 7. Act as consultant to educate and assist all personnel under the Large Taxpayers Service in the efficient and effective use of hardware and application systems; 8. Establish a periodic review system for quality measurement and integrity of inputs/outputs, products and processes of the division; 9. Analyze suspense problems encountered in the various stages of operations regarding the processing of returns and payments; 10. Monitor the timeliness and accuracy of collection information and documents submitted by AABs under ITS implementation; 11. Monitor the performance of the Authorized Agent Bank Branches (AAB-Br) and other authorized collection agents based on the submitted documents, Bank Branch Performance Statistics and the system generated reports; 12. Issue preliminary notices of 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 refer to Collection Programs Division (CPD) if the AABs concerned failed to comply; 13. Issue assessment notices for findings as a result of returns processing and clean-up of taxpayer ledgers; 14. Safekeep/store copies of tax returns and other attachments filed by taxpayers under the Large Taxpayers Service; 15. Review compliance of large taxpayers with existing policies and procedures regarding filing of returns; 16. Resolve suspended payments of large taxpayers; 17. Evaluate/analyze AABs responses to issued preliminary notices of violations; HACaSc 18. Recommend research and development programs to improve productivity within the Division; 19. Recommend necessary technical training programs for quality assurance and document processing personnel; 20. Prepare and submit prescribed accomplishment reports; and 21. Perform such other related functions as may be assigned. 3. Reports, Correspondence and Systems Support Section shall: 1. Prepare/generate reports and forward to LT-Quality Assurance Section for validation; 2. Prepare and issue certificate of payments upon request of taxpayers; 3. Issue Confirmation Letters to Large Taxpayers as regards their monthly tax payments; 4. Establish a Help Desk and provide solutions for resolving problems encountered by AABs and LTS personnel; 5. Provide maintenance support on computer equipment used by all offices within LTS; 6. Maintain back-up files stored off-premise; 7. Provide maximum security and disaster protection for computer installations within LTS; 8. Establish a Disaster Recovery Plan for the LTS; 9. Coordinate with the ISOS maintenance support on computer equipment used by all offices in the LTS; 10. Coordinate with ISOS on the generation of regular ITS reports and various correspondence on transactions of said taxpayers; ECcTaH 11. Prepare/consolidate and submit monthly performance statistics of AABs to CPD; 12. Prepare and submit prescribed accomplishment reports; and 13. Perform such other related functions as may be assigned. F. Large Taxpayers Division (in Regional Offices with identified Large Taxpayers) shall: 1. Receive direct operational supervision from the ACIR, LTS and administrative supervision from the Revenue Regional Director; 2. Implement policies, work programs, standards, guidelines and procedures on taxpayer assistance, collection, assessment and processing of data relative to Large Taxpayers identified in their respective Revenue Regions except those identified to be under the jurisdiction of the National Office; 3. Provide assistance to taxpayers under its jurisdiction and ensure delivery of fast, efficient and courteous service; 4. Conduct taxpayer awareness and tax information dissemination and education campaign; 5. Process applications for secondary registration, updating of taxpayer's information and other applications and registration requirements prescribed by regulations; 6. Monitor compliance of taxpayers under its jurisdiction with the filing of required returns and other documents and payment of taxes due thereon; 7. Take immediate action on taxpayers who are delinquent in complying with the returns filing and/or payment requirements; 8. Coordinate with AABs and monitor their compliance with prescribed procedures relative to the collection functions; 9. Implement collection enforcement procedures on unpaid assessments, delinquent accounts and other collectible accounts from taxpayers within its jurisdiction; 10. Conduct quality audit of tax cases within its jurisdiction and submit report of audit/investigation for review of Large Taxpayers Service and final approval by the Office of the Commissioner, 11. Undertake processing of tax documents of taxpayers under its jurisdiction; 12. Coordinate with the proper offices in the implementation of abovementioned functions; 13. Prepare prescribed reports for submission to offices concerned; and 14. Perform such other related functions as may be assigned. 1. Large Taxpayers Assistance Section shall: 1. Provide frontline assistance/information and undertake tax information dissemination and education campaign for Large Taxpayers within its jurisdiction; 2. Receive and undertake initial processing of registration application forms filed by Large Taxpayers within its jurisdiction to ensure completeness and correctness of the required data/information; 3. Receive applications for VAT zero-rating, tax exemptions, tax credit/refund together with all the required attachments and refer to the offices concerned for processing; cDTACE 4. Process applications for registration, stamping of books of accounts, taxpayer record update, modification of taxpayer information and cancellation of registration, applications for permit/Authority to Print Receipts and Invoices and other applications prescribed by regulations of the above taxpayers; 5. Receive and pre-process the following applications filed by Large Taxpayers to ensure completeness and correctness of the required data/information and refer to division/office concerned for further processing and release corresponding permits on: 5.1. Applications to use loose-leaf sales invoices and receipts; 5.2. Applications to use Point of Sale/Cash Register Machines (POS/CRM); 5.3. Applications to use computer generated receipts and invoices; 5.4. Applications to use computerized accounting system; and 5.5. Applications to use computerized book of accounts; 6. Resolve ITS registration related suspense files referred by Large Taxpayers Document Processing and Quality Assurance Section; 7. Generate and issue to taxpayers various ITS-generated correspondence such as but not limited to Certificate of Registration, Authority to Print Receipts and Invoices and Tax Clearance Certificate (TCL); 8. Release certificate for VAT zero-rating/Tax Exemption Certificate/Tax Credit Certificate to the above taxpayers; 9. Distribute tax forms to taxpayers within its jurisdiction; 10. Screen tax returns of Large Taxpayers before filing and payment of taxes due thereon; 11. Attend to queries/problems of taxpayers under its jurisdiction; 12. Conduct survey in coordination with Statistics Division on taxpayer perception and on particular areas of concern of above taxpayers such as electronic filing, use of computerized accounting systems, POS and CRM and other areas for improvement of taxpayer service; and 13. Perform such other related functions as may be assigned. 2. Large Taxpayers Collection and Enforcement Section shall: 1. Send to Large Taxpayers under its jurisdiction reminder letters in advance regarding tax payment deadlines; 2. Monitor compliance of Large Taxpayers on filing and payment requirements of the Bureau; 3. Validate and monitor the stop-filers/non-filers list and system generated notices received from LT Document Processing and Quality Assurance Section; 4. Recommend imposition of necessary penalties for late filing/payment and filing at wrong venue for concerned taxpayers to the LT Assessment Section; 5. Send reminder letters to stop-filers/non-filers; 6. Pursue contact to taxpayers who have not complied with the reminder letter/assessment notices until compliance is effected; 7. Coordinate with AABs and monitor their compliance with prescribed procedures relative to the collection function; 8. Reconcile collection reports of AABs with report on remittances from the Bureau of Treasury (BTr) and Revenue Accounting Division (RAD) and with data from validated tax returns/payment forms; 9. Maintain records of accounts receivable of Large Taxpayers; 10. Prepare and issue preliminary collection letters to delinquent taxpayers; 11. Enforce the collection of dishonored checks from Large Taxpayers; 12. Coordinate with pertinent government offices in gathering information on assets/properties of delinquent taxpayer; IHcTDA 13. Prepare and serve Notice of Tax Lien, Warrant of Distraint/Levy (WDL) and Warrant of Garnishment to delinquent taxpayers and/or concerned government agencies, such as Register of Deeds or Land Transportation Office, to enforce collection of delinquent accounts of taxpayers; 14. Recommend the cancellation/lifting of the Warrant of Garnishment/Notice of Tax Lien in relation to the settlement of delinquent accounts by the large taxpayers; 15. Execute summary processes within the period prescribed by National Internal Revenue Code (NIRC) to satisfy taxpayers delinquent accounts and/or dishonored checks; 16. Serve and execute writs of execution issued by Court of Tax Appeals and other courts for taxpayers under its jurisdiction and submit corresponding report on action taken thereon to the Legal Service; 17. Maintain records of execution of summary remedies; 18. Process requests for compromise/abatement in relation to the settlement of delinquent accounts for approval of the CIR; 19. Maintain updated inventory and record of all seized and forfeited properties of taxpayers under its jurisdiction; conduct periodic inventory of these properties and prepare prescribed reports for submission to Collection Service; 20. Conduct public auction of seized/forfeited properties of Large Taxpayers; 21. Conduct the loading, reloading and sealing of DST metering machines of taxpayers under its jurisdiction; and 22. Perform such other related functions as may be assigned. 3. Large Taxpayers Assessment Section shall: 1. Identify Large Taxpayers under its jurisdiction to be investigated in accordance with the audit program of the Large Taxpayers Service; 2. Conduct quality audit/investigation of large taxpayers under its jurisdiction; 3. Prepare and submit report of investigation of tax cases to the Service for review and subsequent endorsement to the Office of the Commissioner; 4. Process and recommend approval of all claims for tax credit/refund of large taxpayers except those processed by the Legal Service; 5. Process applications for tax exemptions from large taxpayers and recommend to the Legal Service for appropriate action; 6. Process capital gains tax transactions of large taxpayers; 7. Act on all letter of protests, requests for re-investigation and similar communications of large taxpayers falling within its jurisdiction; 9. Supervise/witness inventory destruction by taxpayers under its jurisdiction and prepare the necessary reports; 9. Evaluate Declaration of Loss sustained from the robbery and others; 10. Conduct investigation/audit of all internal revenue taxes of large taxpayers applying for dissolution/retirement, merger or consolidation and prepare reports of investigation; 11. Process and recommend for approval the following Large Taxpayers applications/requests for: 11.1 Effectively VAT zero-rating; 11.2 Waiver of penalties due to violation of NIRC; 11.3 Change of accounting period from calendar year to fiscal year or vice versa; 11.4 Authority to use loose-leaf sales receipts and invoices, computerized accounting system/accounting records; and 11.5 Applications for permit to use POS/CRM; 12. Conduct pre-audit of withholding tax returns and income tax returns of Large Taxpayers subject to MCIT; 13. Impose necessary penalties for late filing/payment and filing at wrong venue and issue the corresponding reminder letter/assessment notice to Large Taxpayers within its jurisdiction; 14. Coordinate with proper office on the implementation of the abovementioned penalties; aEHAIS 15. Prepare prescribed reports for submission to offices concerned; and 16. Perform such other related functions as may be assigned. 4. Large Taxpayers Document Processing and Quality Assurance Section shall: 1. Receive from designated AABs the required original and duplicate copies of Batch Control Sheets (BCSs) for Large Taxpayers together with the corresponding tax returns/payment forms and attachments; 2. Receive/pick-up returns of Large Taxpayers under its jurisdiction pursuant to existing procedures; 3. Sort and establish batch controls for tax documents received based on parameters set by ITS and assign Document Locator Number (DLN); 4. Pre-process tax documents as to readability, completeness and accuracy of information; 5. Analyze tax documents for bank procedural errors and prepare Bank Branch Performance Statistics reflecting therein the errors committed by AAB-Branches; 6. Encode data from source documents into computer acceptable media in accordance with prescribed guidelines; 7. Monitor all data conversion jobs to ensure prompt action according to set priorities; 8. Safekeep/store copies of tax returns and other attachments filed by taxpayers under its jurisdiction; 9. Coordinate with the RDC servicing the Region for maintenance support on computer equipment used by the Division; 10. Analyze and resolve errors which data capture system has not been able to successfully process; 11. Prepare forms or various correspondence to offices concerned to obtain clarification and/or missing information necessary for the perfection of tax returns/reports; 12. Coordinate with the RDC servicing the region on the generation of regular ITS and required ad-hoc reports and various correspondence on taxpayers under its jurisdiction; 13. Undertake quality verification of notices, various correspondence and other ITS-generated reports prior to issuance/mailing; 14. Analyze discrepancy/ies and determine document processing problems; 15. Analyze suspense problems encountered in the various stages of operations regarding the processing of returns and payments; 16. Monitor the timeliness and accuracy of collection information and documents submitted by AABs (head office/branches) and other authorized collection agents under ITS implementation; 17. Monitor the performance of the Authorized Agent Bank Branches (AAB-Br) and other authorized collection agents based on the submitted documents, Bank Branch Performance Statistics and the system generated reports; 18. Coordinate with AABs and other offices with regard to the exceptions and discrepancies noted; 19. Issue preliminary notices of 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 refer to CPD if the AABs concerned failed to comply; 20. Evaluate/analyze AABs responses to issued preliminary notices of violations; EDCTIa 21. Prepare and submit monthly performance statistics of AABs to Large Taxpayers Document Processing and Quality Assurance Division; and 22. Perform such other related functions as may be assigned. IV. REPEALING CLAUSE: All issuances or portions thereof not consistent with the provisions of this Order are hereby repealed or amended accordingly. V. EFFECTIVITY: This Order shall take effect immediately. (SGD.) DAKILA B. FONACIER Commissioner of Internal Revenue Approved: (SGD.) JOSE T. PARDO Secretary of Finance ATTACHMENT BIR Organizational Structure