Restructuring RDO Nos. 47-East Makati, 48-West Makati, 49-North Makati, 50-South Makati and 51-Pasay City Under RR No. 8-Makati

March 1, 1999 REVENUE ADMINISTRATIVE ORDER NO. 2-99 SUBJECT : Restructuring Revenue District Office Nos. 47-East Makati, 48-West Makati, 49-North Makati, 50-South Makati and 51-Pasay City Under RR No. 8-Makati for the Implementation of the Integrated Tax System (ITS) TO : All Internal Revenue Officers and Others Concerned I. OBJECTIVE: This Order is issued to redefine the organization and functions of Revenue District Office Nos. 47 to 51 under Revenue Region No. 8 Makati following an RDO-based processing of tax returns in the implementation of Integrated Tax System (ITS). II. ORGANIZATION: Revenue District Office (RDO) Nos. 47 to 51 shall be restructured. Each RDO shall be composed of the following sections: 1. Assessment Section 2. Collection Section 3. Taxpayers Service Section 4. Document Processing Section 5. Administrative Section III. FUNCTIONS: The aforementioned Revenue District Offices shall perform the following functions: 1. Plan and develop programs, methods and procedures necessary for the efficient and effective assessment and collection of internal revenue taxes in the Revenue District Office, in accordance with the standards and guidelines set by top management; 2. Administer and implement with the district the assessment, collection, registration except of large taxpayers, administrative and taxpayer service programs of the Bureau; 3. Coordinate with local government units, district offices of the government bureaus or agencies and private sector groups regarding assessment, collection and other activities undertaken by the District; 4. Monitor performance of accredited agent bank branches in terms of compliance with the prescribed procedures on acceptance of tax returns and payments and submission of tax returns/documents and reports; 5. Supervise/undertake audit of tax cases, except Large Taxpayers, in accordance with the audit program developed and prescribed by the National Office; 6. Process, except for Large Taxpayers, all kinds of application/requests for registration, such as registration/permit to engage in business or profession, books of accounts, use of loose-leaf, use of computerized accounting systems and such other registration requirements prescribed by regulations; 7. Prepare and issue Tax Credit Certificate and Tax Clearance Certificate: 8. Enforce collection of dishonored checks and delinquent accounts including collections thru summary remedies; 9. Sustain a year-round taxpayer awareness and tax information dissemination and education campaign; 10. Provide assistance to taxpayers and ensure delivery of fast, efficient and courteous service to taxpayers; 11. Recommend modification of due date on a holiday particular to the district for approval of NO; 12. Encode data from tax documents as per prescribed guidelines; 13. Prepare prescribed reports for submission to the offices concerned; and 14. Perform such other related functions as may be assigned. 1. Assessment Section shall : 1.1. Prepare audit batch request/taxpayer audit request; 1.2. Pre-audit/audit, except for large taxpayers, all types of tax returns in accordance with existing procedures giving priority to refundable tax returns; 1.3. Forward reports of investigation together with the corresponding dockets of taxpayers to Assessment Division of the Regional Office for review and/or issuance of Preliminary Assessment Notice (PAN); 1.4. Process capital gains, estate and donor's tax returns and prepare the corresponding Tax Clearance Certificate to approval of authorized official; 1.5. Process/audit all claims for tax credit and/or refunds, except those processed by the Legal Division and prepare Tax Credit Certificate/Voucher for approval of authorized official; 1.6. Process availment of tax subsidies under existing rules and regulations; 1.7. Process application to use loose leaf and cash register for approval of authorized official; 1.8. Inspect taxpayer's premises to determine if it conforms with BIR requirement for purposes of registration; 1.9. Conduct investigation before effecting retirement of business of taxpayer who filed a Notice of Dissolution/Affidavit of Permanent Closure or those who ceased operations; 1.10. Conduct tax mapping operations within the jurisdiction of the district to identify potential taxpayers and ascertain their compliance with the requirements of internal revenue laws and regulations; 1.11. Recommend modification of due date on a holiday particular to the district for approval of NO; 1.12. Process applications for issuance of special permits covering excise tax transactions in accordance with the existing revenue laws and regulations; 1.13. Process all types of bonds required in existing regulations in connection with the manufacture or importation/exportation of article subject to excise taxes and bonds filed under Sec. 151 (c) of the National Internal Revenue Code (NIRC), including subsequent cancellations; 1.14. Process applications/requests for issuance of Withdrawal Certificate for excisable products; 1.15. Process applications for Authority to Release Imported Goods (ATRIG) for VAT and excise taxes including computation of internal revenue tax of all importations subject to excise tax, importation of raw materials to be used in the production of excisable products and machinery and equipment to be used by the establishment which are not subject to excise tax, prior to their release from Custom's custody; 1.16. Supervise and control the operations of establishment subject to excise tax with respect to disposal of wastes, receipt of raw materials and finished goods, transfer, removal of raw materials and finished goods and calibration of storage tanks including all metering devices; 1.17. Conduct investigation/audit, including periodic stocktaking of establishments subject to excise tax and/or inspection fees to determine their proper tax liabilities and compliance with the existing laws, rules and regulations; 1.18. Conduct on-the-spot-check/inspection of deliveries/shipments of articles subject to excise tax outside the taxpayer's place of production; 1.19. Review completeness and accuracy of information in the Official Register Books; 1.20. Review sworn statements submitted by the different manufacturers/producers of articles subject to excise taxes to determine whether or not the declared tax base is in accordance with the provisions of the NIRC; 1.21. Verify taxpayer's compliance with all reporting requirements relative to excise taxes; and 1.22. Perform such other related functions as may be assigned. 2. Collection Section shall : 2.1. Pick-up batches of original copies of tax returns with corresponding Batch Control Sheet (BCS) from AAB-Branches and other authorized collection agents; 2.2. Check completeness of documents received from AABs and other authorized collection agents under ITS implementation and coordinate with them any discrepancy discovered; 2.3. Perform bank branch performance check on selected returns and prepare Bank Branch Performance Statistics (BIR Form No. 28.41); 2.4. Monitor the performance of 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; 2.5. Undertake quality verification of notices, correspondencies and ITS-generated reports to be issued to AABs; 2.6. 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; 2.7. Evaluate/analyze AABs responses to issued preliminary notices of violations; Refer to Collection Programs Division (CPD), Collection Service AABs concerned failing to comply with preliminary notice of violation; cdt 2.8. Prepare and submit monthly performance statistics of AABs to Collection Service; 2.9. Analyze and resolve suspended payment transactions based on reports thereon received from RDC; 2.10. Enforce and monitor the collection of all internal revenue taxes within the jurisdiction of the revenue district; 2.11. Process request for installment payment of tax liabilities and maintain installment plan; 2.12. Search and ascertain the whereabouts of delinquent taxpayers/stop filers falling under the district's jurisdiction, conduct ocular inspection of taxpayer's premises; 2.13. Enforce the collection of dishonored checks and delinquent accounts; 2.14. Undertake collection of taxes through summary remedies including issuance of collection letters, service and execution of Warrants of Distraints and Levy (WDL) and/or Garnishment involving amount of P100,000 and below and Notice of Tax Liens; 2.15. Prepare and maintain an up-to-date record of district collection reports required by Regional and National Office; 2.16. Maintain records of distrained, levied and seized properties; and 2.17. Perform such other related functions as may be assigned. LLpr 3. Taxpayers Service Section shall : 3.1. Promote the delivery of fast, efficient and courteous "frontline" service to the taxpayers; 3.2. Provide assistance to taxpayers in the district such as answering of queries, distributing forms and information materials such as primers, posters, streamers, circulars, instruction booklets, etc. and in preparing and filing of tax returns; 3.3. Receive all kinds of applications/requests for registration, permit, certificate, tax credit/refund, information updates and TIN together with all required attachments and all formal inquiries and documents from taxpayers; 3.4. Receive applications/requests for tax exemption together with all required attachments and refer to Legal Division for processing and issuance of ruling; 3.5. Assign/stamp Document Locator Number (DLN) on all applications/requests received; 3.6. Distribute/issue to taxpayers all kinds of certificates/authorities and permits including stickers for cash register, Tax Credit Certificates, Transfer Confirmation Notice, TIN Cards generated by ISOS, Tax Clearance Certificate with and without attachments; 3.7. Undertake tax information dissemination and education campaign; 3.8. Process applications for registration/cancellation of registration/transfer of registration and generate corresponding certificate/notice; LLjur 3.9. Process application for taxpayer record update, modification of taxpayers' information, authority to print receipts and invoices, registration of books of accounts, including the use of computerized accounting systems, and other registration requirements prescribed by regulations; 3.10. Process request for Tax Clearance Certificate (for no outstanding liability); 3.11. Process applications/requests for tax exemption required for availment of scholarship and prepare corresponding Tax Exemption Certificate; and 3.12. Perform such other related functions as may be assigned. 4. Document Processing Section shall : 4.1. Sort, classify, batch and assign Document Locator Number (DLN) to the documents received; 4.2. Encode data from tax documents as per prescribed guidelines; 4.3. Distribute tax returns after processing and/or data encoding to the different units/sections of the RDO in accordance with RMO NO. 10-91; 4.4. Prepare required reports out of processed documents/tax returns; 4.5. Gather, collate, analyze statistical data and maintain a complete and accurate information on taxpayers to identify non-filers, stop-filers and those with low tax compliance for referral to Assessment Section for audit; 4.6. Collate, compile and analyze tax data and maintain a district data bank to include taxpayers index and master file for control purposes; 4.7. Provide liaison and coordination with other districts/regions when investigation/audit involves assistance from district offices outside the region; and 4.8. Perform such other related functions as may be assigned. cdlex 5. Administrative Section shall : 5.1. Receive, record and refer all communications to other units in the district office and disseminate all memorandum orders, circulars, regulations, etc..; 5.2. Maintain and preserve all useful records and files of the district; 5.3. Take charge of the requisition and distribution of accountable and non-accountable forms and other office supplies; 5.4. Maintain the district's facilities; 5.5. Attend to all personnel matters of the district; and 5.6. Perform such other related functions as may be assigned. dctai IV. REPEALING CLAUSE : All issuances or portions thereof not consistent with the provisions of this Order are hereby repealed or amended accordingly. VI. EFFECTIVITY : This Order shall take effect on March 1, 1999 for RDO Nos. 47 to 50 and on March 15, 1999 for RDO No. 51. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue APPROVED: (SGD.) EDGARDO B. ESPIRITU Secretary of Finance