Statement of Functions of the Assessment Service Including the Divisions Under it Down to Section Level

June 30, 1995 REVENUE ADMINISTRATIVE ORDER NO. 5-95 SUBJECT : Statement of Functions of the Assessment Service Including the Divisions Under it Down to Section Level TO : All Internal Revenue Officers and Others Concerned I. Objective : This Order defines the organizational structure and functions of the Assessment Service pursuant to the streamlining of the BIR set forth in Executive Order No. 132 as implemented under RAO No. 4-93 dated December 1, 1993. II. Organization : The Assessment Service shall have the following Divisions and respective Sections: A. Assessment Programs Division 1. Planning and Research Section 2. Programs Review and Evaluation Section 3. Audit Procedures and Techniques Section 4. Reports Monitoring and Analysis Section B. Asset Valuation Division 1. Planning and Research Section 2. Data Analysis and Monitoring Section 3. Asset Valuation and Appraisal Section C. Audit Data Bank Division 1. Planning and Research Section 2. Direct Access Section 3. Data Bank Section 4. Information, Evaluation and Monitoring Section III. Functions : The Assessment Service shall have the following functions: 1. Perform staff, advisory and consultative functions relative to tax assessment activities of the Bureau; 2. Plan, develop and recommend policies and work programs and prescribe standards, guidelines and procedures relative to assessment activities, asset valuation and data gathering and compilation; 3. Conduct study, research and analysis for development of new procedures and audit techniques for improving the quality of the audit programs; 4. Develop and prepare a selective audit program and joint and coordinated examination program; 5. Prepare, maintain and update Handbook/Instruction Manuals for revenue officers performing audit and assessment activities; 6. Develop data gathering and compilation systems involving asset valuation and other assessment activities; 7. Develop and recommend policies and work programs on the review of audit reports from the district offices; 8. Exercise technical supervision over field offices in the implementation of prescribed assessment programs; 9. Gather data and information from government and non-government sources that will identify person/business establishments with significant income and assets for referral to the Revenue District Office for audit; 10. Coordinate and participate with the Performance Monitoring Service and Collection Service in the management evaluation and review of assessment activities; and 11. Perform such other related functions as may be assigned. A. Assessment Programs Division shall : 1. Plan, develop and recommend policies, work programs, standards, guidelines and procedures relative to assessment activities; 2. Conduct study, research and analysis for the development of audit procedures and techniques for improving the quality of tax audit programs; 3. Develop and prepare: a. a selective audit program; b. a joint and coordinated examination program; c. a quality assurance program; and d. such other programs related to assessment activities; 4. Develop, review and revise, if necessary, the management reporting system of field offices relative to the implementation of assessment programs and activities; 5. Monitor, evaluate and consolidate management reports on assessment programs and activities from field offices for submission to top management; 6. Develop and recommend policies and work programs on the review of audit reports emanating from the district offices; 7. Provide top management with timely analysis of overall assessment program accomplishments; 8. Provide assistance to field offices in the proper implementation of assessment guidelines, procedures, standards and techniques; 9. Prepare, maintain and update, if necessary, the assessment manuals and handbooks; and 10. Perform such other related functions as may be assigned. A.1. Planning and Research Section shall : 1. Prepare quality plans, programs and procedures on assessment activities and operations through proper identification, gathering and collating of information and statistical data; 2. Develop selection criteria and prepare the annual selective audit program on audit policies and workload standards for the examination and review functions of the field offices; 3. Conduct continuing study of existing revenue issuances on assessment matters and recommend necessary amendments revisions or revocations thereof; 4. Prepare revenue issuances on assessment matters based on new laws or results of study/survey conducted; 5. Coordinate and participate with the Audit Data Bank Division in developing an industry profile as an aid in the formulation of plans, programs and procedures on assessment activities; 6. Develop, update and maintain a reference information system on implementation of laws, rules and regulations pertinent to assessment matters; and 7. Perform such other related functions as may be assigned. A.2. Programs Review and Evaluation Section shall : 1. Review and evaluate the field offices' implementation of assessment programs and procedures; 2. Conduct field visitations to inform and update field officers on prescribed assessment programs and procedures and check the extent of their compliance; 3. Provide assistance to field offices to address problems on assessment activities discovered during field visitations; 4. Recommend actions to be taken as a result of the evaluation of field offices' compliance on assessment programs and procedures; 5. Provide inputs to the Audit Procedures and Techniques Section for the improvement of audit procedures and techniques based on its evaluation of field offices; 6. Initiate and develop in coordination with the Training Division an audit/technical training programs designed to improve the quality of the assessment function; and 7. Perform such other related functions as may be assigned. A.3. Audit Procedures and Techniques Section shall : 1. Prepare, maintain and update, when necessary, the Handbook on Audit Procedures and Techniques for use of revenue field officers; 2. Develop and prepare a joint and coordinated examination program, quality audit assurance program and other related audit programs; 3. Devise audit procedures and techniques for specialized industries, interrelated taxpayers and new trends in recording business transactions; 4. Set-up audit policies and standards for the performance measurement of revenue field officers; 5. Prepare revenue issuances, amendments and/or revisions in keeping with new audit trends and techniques; and 6. Perform such other related functions as may be assigned. A.4. Reports Monitoring and Analysis Section shall : 1. Monitor the performance of regional and district offices in relation to assessment-related TASP action plans; 2. Consolidate, analyze and evaluate workplans and assessment reports submitted by field offices to determine compliance with and to measure performance with set programs; 3. Provide top management with periodic analytical reports as a result of the monitoring functions; 4. Prepare comparative data in trends of assessment for submission to top management; 5. Provide the Programs and Evaluation Section and the Planning and Research Section with statistical data and analytical reports based on the results of its monitoring activities; and 6. Perform such other related function as may be assigned. B. Asset Valuation Division shall : 1. Plan, develop, formulate and recommend policies and work programs; prescribe standards, guidelines and procedures on the valuation and appraisal of value of real and personal properties (tangible and intangible) for purposes of computing internal revenue taxes; 2. Consolidate, reviews and validate data and schedules of recommended values of real properties submitted by Revenue District Offices; 3. Conduct study and research on matters pertaining to asset valuation to approximate the realistic fair market value or real and personal property; 4. Recommend amendments to existing issuances to enhance implementation and implementation and enforcement of asset valuation laws, rules and regulations; 5. Recommend establishment and updating zonal of real properties as the need arises; 6. Coordinate and assist with TCRPV in the resolution of appealed cases involving approved zonal values and controversies as to valuation issues in the Regional and District Offices; and 7. Perform such other related functions as may be assigned. B.1. Planning and Research Section shall : 1. Develop, formulate and establish work plans and programs on valuation of assets, both real and personal (tangible and intangible), for purposes of computing internal revenue taxes; 2. Identify, gather and collate information and statistical data on valuation of assets which shall serve as inputs in the development of plans, programs and procedures on asset valuation; 3. Develop, maintain, and update a technical reference information system on implementation of laws, rules and regulations pertinent to property valuation, appraisal and taxation; 4. Develop methods and procedures in monitoring compliance with the implementation of various memoranda of agreement on real and personal properties between the Bureau of Internal Revenue and other public and private offices; 5. Prepare revenue issuances and recommend amendments on existing issuances relating to asset valuation to enhance the administration and enforcement of revenue laws, rules and regulations relative to asset valuation; 6. Coordinate with the Performance Monitoring Service and Collection Service in the management, evaluation and review of matters relating to real estate and other asset transactions; and 7. Perform such other related functions as may be assigned. B.2. Data Analysis and Monitoring Section shall : 1. Develop and maintain a systematic compilation of valuation of assets, both real and personal (tangible and intangible), for purposes of computing internal revenue taxes; 2. Monitor reports on Certificates Authorizing Registration submitted by Regional and District Offices to determine adherence to the guidelines and procedures in the implementation of approved asset/zonal valuation; 3. Gather and evaluate data and information and coordinate internally and externally with other offices for purposes of evaluating asset valuation; 4. Monitor, evaluate and consolidate reports of RDOs on capital gains, documentary stamps and other taxes derived from real property, shares of stocks and other asset transactions and its corresponding Certificate Authorizing Registration for submission to top management; 5. Initiate, in coordination with the Training Division, technical and training programs in asset valuation and appraisal and internal revenue taxes on sales, exchange or other disposition of real properties; and 6. Perform such other related functions as may be assigned. B.3. Asset Valuation and Appraisal Section shall : 1. Review the proposed schedule of zonal values submitted by the Sub-Technical Committee on Real Property Valuation (STCRPV) before deliberation and evaluation by the Technical Committee on Real Property Valuation (TCRPV); 2. Coordinate and assist the STCRPV and TCRPV on Real Property Valuation in the conduct of Public Hearings on zonal values of real property under the jurisdiction of Revenue District Offices; 3. Review, evaluate and recommend actions on protested cases regarding zonal valuation established; 4. Act as Secretariat to the Executive Committee on Real Property Valuation (ECRPV) and Technical Committee on Real Property Valuation (TCRPV;) 5. Develop, review and revise if necessary the reporting system of RDOs relative to the implementation of sales and regulations on asset valuation and appraisal and internal revenue tax collections on real property transactions; and 6. Perform such other related functions as may be assigned. C. Audit Data Bank Division shall : 1. Develop and recommend policies, work programs, guidelines and procedures in the establishment and maintenance of Automated Data Bank System particularly in the storage, retrieval and issuance of third party information from government and non-government sources for audit purposes; 2. Conduct research, analysis and evaluation of third party information and recommend potential taxpayers for selective audit; 3. Consult and coordinate with other offices of the Bureau and other government and non-government agencies relative to the feasibility of exploring untapped sources and other potential areas of industries that can contribute to increased tax collection; 4. Gather, collate, analyze and tabulate statistical data of taxpayers from various sources for assessment purposes; 5. Establish, develop and update an Automated Data Bank and industry profile to be used as a vital audit reference by the investigating units of the Bureau; 6. Recommend parties from whom pertinent records will be accessed to obtain information for selective audit; 7. Recommend appropriate forms for reporting purposes to be accomplished by the Revenue Regional Offices and Revenue District Offices; 8. Process and check the accuracy and completeness of Revenue Officers Audit Reports (BIR Form No. 1717 series) and the appropriate accomplishment of feedback documents; and 9. Perform such other related functions as may be assigned. C.1. Planning and Research Section shall : 1. Recommend policies, guidelines and procedures in obtaining third party information; 2. Plan, research and develop programs to establish an industry profile to highlight untapped sources of taxes; 3. Identify and recommend the parties to whom the Access to Records Letters (ARL) will be served and set a systematic method of issuance of access to records letters; and 4. Perform such other related functions as may be assigned. C.2. Direct Access Section shall : 1. Prepare and serve the Access to Records Letter (ARL) to third parties; 2. Follow-up, collate and check whether the third party information submitted conforms with the requirements; 3. Process for accuracy and completeness the Revenue Officers Audit Reports (BIR Form No. 1717 series); and 4. Perform such other related functions as may be assigned. C.3. Data Bank Section shall : 1. Encode the third party information and the Revenue Officers' Audit Report (BIR Form 1717 series) gathered; 2. Maintain a centralized Data Bank of third party information and the Revenue Officers' Audit Report (BIR Form 1717 series) in an automated system and extract the needed information when requested; 3. Maintain the actual storage of data in magnetic media for the retrieval and issuance of third party information to the Revenue District Offices for further appropriate action; and 4. Perform such other related functions as may be assigned. C.4 Information, Evaluation and Monitoring Section shall : 1. Evaluate all Third Party Information data that are encoded and stored in the Automated Data Bank; 2. Recommend appropriate forms for reporting purposes to be accomplished by the Revenue Regional Offices and Revenue District Offices; 3. Evaluate and monitor the Revenue Officers' Audit Reports (BIR Form No. 1717 series) and the related utilization of third party information; and 4. Perform such other related functions as may be assigned. IV. REPEALING CLAUSE : This Order supersedes all revenue issuances or portions thereof inconsistent herewith. V. EFFECTIVITY : This Order shall take effect immediately. RENE G. BAEZ Acting Commissioner