Restructuring Pertinent Revenue District Offices for the Pilot Implementation of the Integrated Tax System (ITS)

June 24, 1996 REVENUE ADMINISTRATIVE ORDER NO. 3-96 SUBJECT : Restructuring Pertinent Revenue District Offices for the Pilot 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 Offices No. 30 Binondo, No. 32 Quiapo, No. 33 Ermita, No. 52 Paraaque and No. 81 Cebu North which are the pilot sites for the initial implementation of the Integrated Tax System (ITS) as part of the Tax Computerization Program (TCP) of the Bureau. II. ORGANIZATION : The pilot Revenue District Offices (RDOs) shall be restructured. It shall be composed of the following sections: a. Taxpayer's Service Section b. Assessment Section c. Collection Section d. Administrative Section III. FUNCTIONS : The pilot Revenue District Offices shall perform the following functions: 1. Plan and develop programs, methods and procedures necessary for the efficiency and effective assessment and collection of internal revenue taxes in the revenue district, in accordance with the standards and guidelines set by the top management; 2. Administer and implement within the district the assessment, collection, registration and regulatory operations, administrative and taxpayer service programs of the Bureau; 3. Undertake field audit of tax cases, enforcement of collection of delinquent accounts and processing of all kinds of applications/requests for registration, permit, certificate, authority, tax credit/refund, tax exemptions and such other applications prescribed by regulations; 4. Administer and enforce tax lien through seizure, garnishment, distraint or levy of personal and/or real property; 5. Coordinate with local government units, district offices of the government bureaus or agencies and private sector groups regarding assessment, collection and registration and regulatory activities; 6. Sustain a year-round taxpayer awareness and tax information dissemination and education campaign; and 7. Perform such other related functions as may be assigned. A. Taxpayer's Service Section shall: 1. Promote the delivery of fast, efficient and courteous "front-line" service to the taxpayers; 2. Receive all kinds of applications/requests for registration, permit, certificate, authority and required attachments, information updates, documents requirements for tax credit/refund, formal inquiries and other documents from taxpayers; 3. Assign/stamp Document Locator Number (DLN) on all applications/requests received; 4. Process applications for registration/cancellation of registration/transfer of registration and modification of taxpayer's information and generate report on processed registrations; 5. Process applications for permit to engage in business as manufacturer, importer and/or dealer of excisable products 6. Process application to register books of accounts, including the use of computerized accounting systems, receipts and invoices, application to use loose-leaf sales invoices/receipts, installation of Officials Register Books for excise tax, records of receipts and disbursements and such other registration requirements prescribed by regulations; 7. Distribute/issue all kinds of certificates/authorities, all kinds of permits and stickers for cash register, Transfer Confirmation Notice, Tax Refund Notice/Tax Credit Notice and TIN Cards generated by Information System Unit (ISU) to taxpayers; 8. Process request for Tax Clearance Certificate (for no outstanding tax liability); 9. Prepare and issue Tax Debit Memo (TDM) based on Tax Credit Certificate (TCC) submitted by taxpayer; 10. Undertake tax information dissemination and education campaign; 11. Provide assistance to taxpayers in the district such as answering of queries, distributing forms and information materials such as primers, posters, streamers, circular, instruction booklets, etc. and giving free advice in preparing and filing of tax returns; and 12. Perform such other related functions as may be assigned. B. Assessment Section shall: 1. Prepare audit batch request/taxpayer audit request; 2. Conduct field audit investigation of tax case; 3. Inspect taxpayer's premises to determine if it conforms with BIR requirements for purposes of registration and/or issuance of permit to operate; 4. 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; 5. Process capital gains, estate and donor's tax returns for the issuance of corresponding Tax Clearance Certificate; 6. Process availment of tax subsidies under existing rules and regulations; 7. Process applications for tax exemptions, VAT Zero-rating for effectively zero-rated transactions and Tax Compliance Certificate; 8. Verify discrepancy cases arising from tax reconciliation system; 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; 10. Recommend modification of due date on a holiday particular to the district for approval of the National Office; 11. Process applications for issuance of special permits covering excise tax transactions in accordance with the existing revenue laws and regulations; 12. Process all types of bonds required in existing regulations in connection with the manufacture or importation/exportation of articles subject to excise taxes and bonds filed under Sec. 151 (c) of the National Internal Revenue Code (NIRC), including subsequent cancellations; 13. Process applications/requests for issuance of Withdrawal Certificate for excisable products; 14. Process applications for Authority to Release Imported Goods (ATRIG) for VAT and excise taxes including computation of internal revenue tax of all importation 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; 15. 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; 16. 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; 17. Conduct on-the-spot-check/inspection of deliveries/shipments of articles subject to excise tax outside the taxpayer's place of production; 18. Verify and maintain formula of manufacture for excise tax; 19. Review completeness and accuracy of information in the Official Register Books; 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; 21. Verify taxpayers' compliance with all reporting requirements relative to excise taxes; and 22. Perform such other related functions as may be assigned. C. Collection Section shall: 1. Receive tax returns and payments in places where there are no Accredited Agent Banks (AABs); 2. Transmit tax returns and payment forms to Information Systems Unit servicing the RDO; 3. Prepare Payment Form for payment of taxes without a corresponding return and for installment payments; 4. Coordinate with and monitor performance of AABs within the district; 5. Generate and send notices to AABs for collection discrepancy/report deficiency and dishonored checks and to taxpayers for payment information error; 6. Evaluate replies of AABs, RCOs/DMTs, Department of Foreign Affairs-Service Posts on collection discrepancies/report deficiencies; 7. Resolve suspended collection transactions, unresolved imperfect returns referred by ISU; 8. Monitor cash and form accountabilities of Revenue Collection Officers (RCOs)/Deputized Municipal Treasurers (DMTs); 9. Supervise all Revenue Collection Officers assigned in the different municipalities under the district's jurisdiction; 10. Search and ascertain the whereabouts of delinquent taxpayers/stop-filers falling under the district's jurisdiction; conduct ocular inspection of taxpayer's premises; 11. 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; 12. Process request for installment payment of tax liability and maintain installment plan; 13. Monitor tax credit/refund information; 14. Undertake collection of taxes through summary remedies including issuance of collection letters, serving and executing Warrants of Distraint and Levy (WDL) and/or Garnishment and Notices of Tax Liens; 15. Maintain records of distrained and levied properties; and 16. Perform such other related functions as may be assigned; D. Administrative Section shall: 1. Receive, record and refer all official communications to other units in the district office and disseminate all memorandum orders, circulars, regulations, etc.; 2. Maintain and preserve all useful records and files of the district; 3. Take charge of requisition and distribution of accountable and non-accountable forms and other office supplies; 4. Maintain the district's facilities; 5. Attend to all personnel matters of the district; and 6. Perform such other related functions as may be assigned. IV. REPEALING CLAUSE : This Order amends the functions of the affected Revenue Regional Offices (i.e. RR No. 6 Manila and No. 13 Cebu City) with respect to the transactions of pilot RDOs under their jurisdiction. It likewise amends and/or repeals the provisions of Revenue Memorandum Order No. 10-95 not consistent with the provisions hereof relative to the operations of the pilot RDOs. V. EFFECTIVITY : This Order shall take effect on July 1, 1996 for pilot RDOs in Manila and on August 1, 1996 for pilot RDO in Cebu City. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue