Transfer of the PO/CR Monitoring Division from the Financial Service to the Collection Service

July 7, 1988 REVENUE ADMINISTRATIVE ORDER NO. 18-88 SUBJECT : Transfer of the PO/CR Monitoring Division from the Financial Service to the Collection Service TO : All Internal Revenue Officers and Others Concerned I. Objective : This Order is issued to effect closer supervision of activities relative to the monitoring of Payment Orders (POs) and Confirmation Receipts (CRs) to enhance revenue collections. cd i The following are prescribed in this Order: 1. Creation of a Reports Reconciliation and Administrative Section in the PO/CR Monitoring Division to assume the functions of the Collection Performance Evaluation Division (CPED) on the reconciliation of POs provided for under RAO 14-88. 2. Transfer of the function on the computation of penalties incurred by Accredited Banks (ABs) for delayed submission of collection reports from the Revenue Accounting Division to the PO/CR Monitoring Division. The function of the computation of penalties incurred by ABs for delayed remittance of collections shall remain with the Revenue Accounting Division. II. Organization : For this purpose, the direct supervision of the PO/CR Monitoring Division is hereby transferred from the Financial Service to the Collection Service. Henceforth, the PO/CR Monitoring Division shall have the following sections: A. Receiving Section, CB Complex B. Document Processing and Monitoring Section C. Control Ledgers Section D. Report Reconciliation and Administrative Section Correspondingly, an appropriate number of revenue personnel from CPED shall be shifted to the PO/CR Monitoring Division who shall compose the staff required for the new section to handle the reconciliation of POs. III. Functions : The PO/CR Monitoring Division shall perform the following functions: cdt 1. Formulate plans, standards, procedures and policies in consultation with the Central Bank of the Philippines for an effective, secure and economical method of accepting payments of internal revenue taxes through Accredited Banks (ABs); 2. Perform liaison activities with head offices of ABs; 3. Set up control registers showing the distribution of Confirmation Receipts given to ABs; 4. Account for every Confirmation Receipt (CR) received and issued as reflected in the reports submitted; 5. Prepare or initiate action for the consideration of proper authorities to enforce compliance with the system, standard procedures and policies setforth under Executive Order No. 937 as implemented by Revenue Regulation No. 5-84 and other applicable issuances; acd 6. Check delayed reports of collections by maintaining a general control ledger; 7. Transmit to the Revenue Computer Center (RCC) copies of CRs with the respective Payment Order (PO) issued to taxpayer after the same were posted in the Control Register maintained by the Division; 8. Prepare and submit collection reports needed by top management; 9. Prepare agreement form or contract with accredited agent-banks authorized to accept tax payments; and 10. Monitor the reports received from the field offices on the unreconciled POs and take appropriate action thereof; 11. Reconcile POs submitted by the Accounts Receivable/Billing Division (AR/BD), International Tax Affairs Division (ITAD), and Insurance Commission against reports made under BIR Form 12.56 submitted by the banks; and cd i 12. Perform such other related functions as may be assigned to it. The following shall be the functions of the sections under the PO/CR Monitoring Division: Receiving Section, CB Complex a) Receive daily at the CB Complex the reports (with attached duplicate copy of PO/CR) of the Head Offices of Accredited Banks; b) Determine reports which are received after due date; c) Reconcile reports received (BIR Form 12.56, Consolidated Report of Daily Collection of Internal Revenue Taxes and BIR Form 12.57, Consolidated Abstract of Collection of Internal Revenue Taxes) with those received by the Accounting Department of the Central Bank and by the Bureau of Treasury; d) Transmit to the Document Processing and Monitoring Section of the PO/CR Monitoring Division at the National Office reports received from the head offices of ABs; e) Relay or transmit collection reports and other information and/or instructions to the representative of ABs; and f) Perform such other related functions as may be assigned to it. Document Processing and Monitoring Section a) Maintain CR Control Registers to account for each Confirmation Receipt issued to taxpayers as well as those returned by ABs; b) Check missing CRs and Pos against the report made under BIR Form 12.56; c) Account and/or determine which distributed CRs to the ABs had remained unissued for more than six (6) months and recommend necessary action thereto; d) Prepare action documents requiring ABs to correct discrepancies discovered from reports submitted; cd i e) Compute penalties for the delayed submission of reports; f) Answer queries pertaining to and/or ascertaining the authenticity of CRs; g) Coordinate with the different sections regarding reports on delayed or partial/incomplete collection reports and on discrepancies in the processing/auditing of CRs; h) Act as liaison between the BIR and the ABs to thresh out problems on compliance and discrepancies; i) Prepare transmittal of processed CRs to the Revenue Computer Center (RCC); and j) Perform such other related functions as may be assigned to it. Control Ledgers Section a) Maintain an individual subsidiary control ledger for each AB as reported under BIR Form 12.56 and BIR Form 12.57; b) Ascertain the number of days each daily collection report is delayed and the number of partial reports made daily; c) Prepare notices to ABs for delays and/or partial/incomplete submission of collection reports. d) Monitor/process reports of head offices of ABs on their distribution of CRs to their respective branches and extension offices; and e) Perform such other related functions as may be assigned to it. Report Reconciliation and Administrative Section a) Reconcile POs submitted by Accounts Receivable/Billing Division (AR/BD), International Tax Affairs Division (ITAD), and Insurance Commission against reports made under BIR Form 12.56 submitted by the banks; b) Monitor the number of Revenue Official Receipts (RORs) and/or POs issued by the Revenue Collection Officer assigned in the Collection Station in order to determine the number of personnel needed in each Collection Station; aisa dc c) Prepare and maintain Reports of Collection (BIR Form 12.33) and Abstract of Collections of reconciled POs and Confirmation Receipts (CRs) to be submitted to Accounting Division; d) Reconcile Premium Tax Returns attached to the POs sent by the Insurance Commission, to be forwarded to Regional Office concerned; e) Attend to all general administrative matters of the division such as daily routine clerical activities, periodic reports and efficiency rating of personnel, recording of attendance, requisition, distribution of forms, supplies and equipment, etc.; and f) Perform such other related functions as may be assigned to it. acd IV. Repealing Clause : This Order supersedes the provisions of Revenue Administrative Order Nos. 10-88 dated April 6, 1988 and 14-88 dated April 8, 1988, insofar as it pertains to the abovementioned functions and all other issuances or portions thereof inconsistent with the provisions of this Order. V. Effectivity : This Order shall take effect immediately. BIENVENIDO A. TAN, JR. Commissioner