Statement of the Functions of the Management and Policy Service Including its Divisions Down to the Section Level

July 2, 1986 REVENUE ADMINISTRATIVE ORDER NO. 09-86 SUBJECT : Statement of the Functions of the Management and Policy Service Including its Divisions Down to the Section Level TO : All Internal Revenue Officers and Others Concerned I. Objective : This order aims to implement more effectively the Reorganization of the Bureau by defining, delineating and expanding the functions pertinent to management improvement, statistical analysis, planning, policy and project development. II. Organization : Pursuant to RAO 4-86, which transfers the Management Division and Statistical Analysis Division to the Planning and Policy Service, said service is hereby renamed Management and Policy Service with the following Divisions and respective Sections: A. Management Division 1. Organization & Manpower Section 2. Forms Design & Control Section 3. Report Monitoring & Control Section 4. Methods & Procedures Section B. Statistical Analysis Division 1. Processing & Analysis Section 2. Statistical Research & Report Development Section C. Planning Division 1. Tax Planning Section 2. Data Research Section 3. Monitoring & Evaluation Section D. Policy Division 1. International Tax Policy Section 2. Domestic Tax Policy Section III. Functions : The Management and Policy Service shall perform the following functions: 1. Perform staff, advisory, consultative functions relative to management improvement, statistical analysis, planning, policy and project development; cd 2. Undertake the formulation of plans including project development for the Bureau in coordination with its various units and serve as its representative in the preparation of the national development plan to ensure consistency with overall development objectives; 3. Prepare and recommend the adoption of such rules and regulations required to implement approved internal revenue and other tax laws administered by the Bureau; 4. Conduct research, studies and recommend special projects that can improve tax law enforcement and administration; 5. Assist in the formulation of policies and programs, guidelines, standards, and procedures relating to tax treaty negotiations, tax conventions and similar matters; 6. Direct and supervise the activities of the Divisions under the Service; 7. Undertake the codification of the National Internal Revenue Code and the preparation and printing of the same whenever necessary; 8. Develop and prepare criteria for the Bureau's policy on investigation through selective unit; 9. Develop an industry profile (based on NEDA classification) for use as basis in the preparation of the audit selection criteria; 10. Consult and coordinate with the various units of the bureau and other agencies (government or private) relative to feasibilities of exploring other areas of the industry geared towards increased tax collection; 11. Take charge of the preparation and revision of the Tax Numeric Code; 12. Study and prepare comments and recommendations on proposed tax legislations; 13. Provide assistance to the Commissioner in the formulation of tax policies, guidelines and proposed internal revenue tax legislations for submission to the President and/or to the legislative body; and 14. Perform such other related functions as may be assigned. A. The Management Division shall perform the following functions: 1. Develop policies and work programs and set up standards, guidelines and procedures relative to management improvement in the Bureau; 2. Examine the administrative organization and make recommendation for improvement; 3. Maintain and update the Bureau's manual on organization and functions, procedures and other related manuals; 4. Undertake regular management audit of organizational structure, manpower and operations of all units of the Bureau; 5. Review existing methods, procedures, administration and internal control system and make recommendations for improvements; 7. Develop staffing standards and manpower requirements; 8. Analyze and evaluate the accomplishment reports of national and regional offices for control purposes and management audit of adherence to rules and regulations including efficiency and effectiveness and for improvement programs; 9. Take charge of the design and control of BIR forms including unnumbered forms; 10. Provide assistance to staff and line units on the development of their organization, functions, staffing and methods and procedures; 11. Consolidate the annual work plan and prepare the annual report of the Bureau and such other management reports as may be required; and 12. Perform such other related functions as may be assigned. The following shall be the functions of the Sections under the Management Division: A-1 Organization and Manpower Section a. Plan, develop and improve guidelines on BIR organization and manpower requirements and utilization for central and field offices; b. Examine the administrative organization and make recommendations for improvements; c. Maintain and update the Bureau's manual on organization and functions and other related manuals; d. Undertake management audit of the Bureau's organizational structure and manpower requirements and utilization; e. Review proposed issuances for conformance to Bureau policies and assist in the establishment of standards for style and format of internal management documents; f. Provide technical assistance to staff and line units in the development of their organization, functions and staffing needs; g. Provide top management with data or information on organization and manpower upon request; and h. Perform such other related functions as may be assigned. A-2 Forms Design and Control Section a. Design and/or revise forms whenever necessary for the improvement of controls and efficiency in the Bureau's entire operations and review proposed forms designed by other units of the Bureau; cd i b. Provide technical assistance in line and other staff units in the development of forms that will suit their particular needs; c. Conduct regular review evaluation of existing forms to determine their current applicability and relevance; d. Recommend, through the initiative of the section or from the proposals of other units, the deletion, consolidation or revision of existing forms, whenever necessary; e. Take charge in the numbering and control of forms; f. Maintain a system of stock control, distribution and replenishment of forms; g. Keep and maintain records of all forms issued including the revisions on existing ones; h. Prepare monthly report of activities and accomplishments of the section; and i. Perform such other functions and related tasks as may be assigned. A-3 Report Monitoring and Control System a. Develop work programs, guidelines and procedures relative to the Bureau's operations and annual and/or periodic work plans and accomplishments; b. Monitor the timeliness and accuracy of reporting of national and regional work plans and accomplishment reports used for management audit and improvement programs; c. Evaluate national and regional accomplishment reports giving significance to a) performance vis-a-vis goals and objectives, b) efficiency and c) effectiveness; d. Conduct studies to determine effectiveness of newly installed system of reporting programs, plans and accomplishments, as well as applicability of already existing system; e. Provide assistance to staff and line units on the constraints encountered on work plans submitted; f. Prepare and submit to top management, consolidated national and regional reports on work programs and accomplishment as well as the annual report of the Bureau to the Ministry of Finance; and g. Perform such other functions as may be assigned. A-4 Methods and Procedures Section a. Plan, develop and improve standards, methods and procedures relative to BIR operations; b. Conduct management audit of BIR operations and activities to improve techniques, methods and procedures and recommend solutions to procedural problems; c. Prepare guides and standards relating to the preparation of manual of operations of the different units of the Bureau and initiate updating thereof; d. Conduct a continuing study on the reporting system of the Bureau with a view to simplifying reports and designing and revising forms for the improvement of the Bureau's system and procedures; e. Examine operations involving voluminous paperwork for possibility of integrating the same into the central data processing system of the Bureau; f. Provide technical assistance to staff and line unit in the development of methods and procedures regarding their particular operations; and g. Perform such other related functions as may be assigned. B. The Statistical Analysis Division shall have the following functions: 1. Develop and prescribe the nature and content of statistical reports and information on revenue administration and operation; 2. Collate, analyze and present relevant statistical data in an organized form for an effective management information system; 3. Generate revenue statistics and estimates required by other units of the Bureau and other government agencies; 4. Allocate the annual revenue goal by organizational unit, geographic subdivision, by type of tax and by month; 5. Support management policies, plans and programs with needed statistical data and information; 6. Monitor collection performance and prepare corresponding performance ratings of audit divisions, regions and districts; 7. Develop guidelines and techniques for the operating units to understand and utilize statistical information; 8. Undertake researches to improve collection, presentation, analysis, interpretation and utilization of statistical data; and 9. Perform such other related functions as may be assigned. The following shall be the functions of the Sections under the Statistical Analysis Division: B-1 Processing and Analysis Section a. Develop and maintain a centralized recording and reporting system on revenue statistics; b. Consolidate, tabulate and analyze data on revenue collections by geographic subdivision and by kind of tax, etc.; c. Coordinate with the Revenue Information Services Incorporated (RISSI),Revenue Accounting and Management Divisions, Audit Divisions and Regional Offices in the preparation of relevant statistics needed by the Bureau; d. Generate revenue statistics and estimates required by other units of the Bureau and other government agencies; e. Allocate the annual revenue goal by organizational unit, geographic subdivision by type of tax and by month; f. Monitor collection performance and prepare semestral and annual performance ratings of revenue regions, districts, and audit divisions for management purposes; and g. Perform such other related functions as may be assigned. B-2 Statistical Research and Report Development Section a. Recommend standards and procedures in the proper reporting of revenue data from both national and regional offices for statistical purposes; b. Develop and prescribe the nature and content of statistical reports and information relevant to revenue administration and operations; c. Develop guidelines and techniques for the operating units to understand and utilize statistical information; d. Coordinate with other units of the Bureau for the improvement of reporting collections and other types of data relevant to the needs of top management; e. Undertake studies for the improvement of collection, presentation, analysis, interpretation, and utilization of statistical data; f. Provide data and analysis of revenue collections for the Annual Report; aisa dc g. Prepare, maintain and update statistical charts and graphs on revenue collections; and h. Perform such other related functions as may be assigned. C. The Planning Division shall perform the following functions: 1. Develop long-range plans including the formulation and reformulation of goals, strategies and programs for the improvement of the Bureau's performance; 2. Assist, guide, coordinate, oversee and monitor the preparation of operational and tactical plans and projections of the various operating units of the Bureau in relation to the above long-range plans; 3. Undertake the formulation of plans on internal revenue tax administration including project development for the Bureau in coordination with the various units; 4. Represent the Bureau in the inter-agency committees of the Ministry of Finance, NEDA, and other related agencies in the preparation of fiscal plans, national development plans and other related planning sessions; 5. Acts as Liaison with other government agencies involving long-term planning and research on tax matters; 6. Monitor socio-economic variables domestically and internationally that can affect the Bureau's overall performance; 7. Undertake the codification of the NIRC and the preparation and printing of the same whenever necessary in coordination with the Policy Division; 8. Develop and prepare criteria for the Bureau's policy on investigation through selective audit; 9. Develop an industry profile (based on NEDA classification) for use as a basis in the preparation of the audit selection criteria; 10. Consult and coordinate with the various units of the Bureau and other agencies (public or private) relative to feasibilities of exploring other areas of the industry geared towards increased tax collection; and 11. Perform such other related functions as may be assigned. The following shall be the functions of the Sections under the Planning Division: C-1 Tax Planning Section a. Formulate, develop and review tax plans, goals, strategies and programs for the improvement of the Bureau's performance; b. Assist, guide, coordinate, oversee and monitor the preparation of tactical plans and projects of the various operating units of the Bureau in relation with the above; c. Formulate forecasting and projection methodologies and prepare projections; d. Conduct studies on the developments in different sectors and/or industries and evaluate their implications in the Bureau's operations; e. Conduct continuing research and studies on developments in the domestic economy as well as those in other countries and assess their effects on the Philippine tax system; f. Undertake studies on exemption/incentive taxation and recommend such reforms to improve the present tax system; g. Initiate, develop and formulate feasibility studies as basis of tax measures for possible adoption and/or implementation; h. Develop and prepare criteria for the Bureau's policy on investigation through selective audit; i. Develop an industry profile (based on NEDA classification) for use as a basis in the preparation of the audit selection criteria; j. Consult and coordinate with the various units of the Bureau and other agencies (public or private) relative to feasibilities of exploring other areas of the industry geared towards increased tax collection; and k. Perform such other related functions as may be assigned. C-2 Data Research Section a. Design and conduct surveys in coordination with the Tax Planning Section to obtain data and information for use in planning and policy formulation; b. Present relevant statistical data in an organized form in accordance with planning and policy needs and analyze them for use in planning and policy decisions; c. Coordinate with the Statistical Division in the preparation of meaningful statistics by providing the guidelines on the output required to be processed and/or generated; d. Consult and coordinate with other organizational units of the Bureau and outside offices to obtain statistical data and information for use in planning and policy formulation; e. Correlate selected statistics on taxes with the relevant socio-economic parameters for the use of the Tax Planning Section; and f. Perform such other related functions as may be assigned. C-3 Monitoring and Evaluation Section a. Evaluate and report on the socio-economic effects of new tax laws and rules and regulations in the light of the intend objectives; b. Monitor, assess and report the implementation and effects of new tax measures as well as tax plans of the Bureau; c. Estimate the revenue effect of proposed tax measures; d. Liaise with other government agencies in the conduct of their research, census and/or surveys related to taxation; e. Monitor and analyze international, national and regional socio-economic developments in relation to the Bureau's operation; f. Undertake the codification of the NIRC and the preparation and printing of the same whenever necessary in coordination with the Policy Division; and g. Perform such other related functions as may be assigned. D. The Policy Division shall have the following functions: 1. Assist the Commissioner in the formulation and development of internal and the external policies in accordance with the Bureau's tax long-range plans; 2. Provide technical support to the inter-agency projects, public tax hearings, domestic tax conventions and other related undertakings; 3. Prepare and monitor international commitments for the Commissioner; 4. May propose amendments and/or revision to existing tax treaties and implementing issuances; 5. Undertake continuing study and research on various tax treaties including exchange of technical expertise and information which shall be necessary input for subsequent treaty negotiations; 6. Undertake the codification of the NIRC and the preparation and printing of the same whenever necessary in coordination with the Planning Division; 7. Prepare, compile and/or revise the Tax Numeric Code; evaluate and assign codes for new tax measures; 8. Provide assistance to the Commissioner in the formulation of internal revenue tax legislations or amendments to the National Internal Revenue Code for submission to the President and/or to the legislative body; 9. Prepare comments and recommendations on any proposed legislative measure that will affect internal revenue collection and administration or which may have tax implications; 10. Prepare and recommend the adoption of such rules and regulations required to implement approved internal revenue tax laws; 11. Conduct tax research and studies on how to attract foreign investments; and 12. Perform such other related functions as may be assigned. cd The following shall be the functions of the Sections under the Policy Division: D-1 International Tax Policy Section a. Develop, review, assess and monitor Philippine International Tax policies; b. Conduct research and studies on tax treaties, investment agreement and other related matters taking into consideration among others, prevention of double taxation and fiscal evasion; c. Prepare or draft documents for tax conventions, investment agreements and other international tax conferences; d. Review, study and recommend amendments to the country's tax investments and other related treaties; e. Provide technical support to international tax or investment agreement and other related tax conventions; f. Explore and develop the opening of tax treaty negotiations with other countries, and recommend renegotiations on existing treaties when necessary; g. Undertake as secretariat, all activities necessary before the actual negotiation of tax treaties, e.g. preparation of agenda, letters and telex to parties or panel members concerned, drafting instruments of ratification, etc.; h. Provide negotiating countries copies of tax laws and regulations upon their request; i. Liaise with agencies or committees, government or private involved in international tax policy matters; and j. Perform such other related functions as may be assigned. D-2 Domestic Tax Policy Section a. Develop and recommend domestic tax policies; b. Review, assess and monitor domestic tax policies and their effects on revenue collections and administration; c. Undertake the codification of the NIRC and the preparation and printing of the same whenever necessary in coordination with the Planning Division; d. Provide technical support to inter-agency projects, public tax hearings, domestic tax conventions and other related undertakings; e. Undertake in-depth and continuing studies on the effect of tax reforms upon major sectors of the economy; f. Prepare and publish reports reflecting the results of the studies and research undertaken; g. Formulate policy guidelines as practical aids in the preparation of final policy recommendations by the domestic and international tax policy sections; h. Consult and coordinate with the various units of the Bureau and other agencies (government or private) relative to feasibilities of exploring other areas of the industry geared towards increased tax collection in coordination with the Planning Division; i. Prepare drafts of revenue tax legislations for submission to the President and/or the legislative body; j. Study and prepare comments and recommendations on proposed tax legislations; acd k. Study and recommend amendments to the National Internal Revenue Code and all other laws on taxes; l. Prepare and monitor revenue regulations and other administrative issuances including Revenue Memorandum Circulars, Revenue Memorandum Orders, Tax Numeric Codes, required to implement tax laws and oversee their publication and distribution; m. Review, update and classify existing tax regulations for use by various regions and units of the Bureau; and n. Perform such other related functions as may be assigned. IV. Repealing Clause : This Order amends and supersedes the provision of RAO 2-80 dated October 2, 1980, RAO 1-81 dated January 27, 1981, RAO 4-82 dated April 2, 1982 and RAO 5-84 dated February 22, 1984 insofar as they pertain to the above mentioned functions and all revenue issuances or portions thereof inconsistent with the provisions of this Order. V. Effectivity : This Order shall take effect immediately. (SGD.) BIENVENIDO A. TAN, JR. Commissioner