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

October 10, 1995 REVENUE ADMINISTRATIVE ORDER NO. 8-95 SUBJECT : Statement of Functions of the Collection 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 the detailed statement of functions of the Collection Service pursuant to the streamlining of the Bureau set forth in Executive Order No. 132, as implemented under RAO No. 4-93 dated December 1, 1993. II. ORGANIZATION : The COLLECTION SERVICE shall have the following divisions and respective sections: A. Withholding Agents Monitoring Division 1. Withholding Tax Planning and Research Section 2. Report Monitoring and Compliance Evaluation Section B. Revenue Accounting Division 1. Report Monitoring and Analysis Section 2. Accountabilities Section 3. Verification and Allotment Section 4. Bookkeeping Section C. Large Taxpayers Division 1. Monitoring Section 2. Data Processing and Analysis Section D. Collection Programs Division 1. Collection Officers and Banks Monitoring Section 2. Collection Enforcement Monitoring Section 3. Acquired Assets Monitoring Section III. FUNCTIONS : COLLECTION SERVICE shall : 1. Perform staff, advisory and consultative functions relative to collection matters; 2. Develop and recommend policies, work programs, standards, guidelines and procedures relative to collection of internal revenue taxes through Accredited Agent Banks (AABs), BIR Collection Officers and Withholding Agents; 3. Prepare bureauwide programs for the settlement of certain offers in compromise, analysis and collection of delinquent accounts, disposition of acquired assets and evaluate the reasons for stop-filing non-filing; 4. Prescribe standards, guidelines and procedures for an effective collection operation and activities; 5. Consolidate all reports on tax revenues collected and submit financial reports relative to internal revenue collections to management and other government agencies as required by law and regulations; 6. Certify internal revenue allotments and submit the same to government agencies concerned; 7. Recommend necessary tax legislations and regulations on the basis of its operations and experiences which shall benefit the Bureau in terms of collections; 8. Coordinate the evaluation of collection programs and activities with the Performance Monitoring Service and the Assessment Service; 9. Develop and recommend policies, guidelines and procedures for the effective implementation of the Large Taxpayers Law; and 10. Perform such other related functions as may be assigned. A. WITHHOLDING AGENTS MONITORING DIVISIONS shall : 1. Develop and recommend policies, work programs, standards, guidelines and procedures for the efficient and effective implementation of the withholding tax system on: a. compensation income b. income payments covered by the expanded withholding tax system c. income payments covered by the final withholding tax system d. government payments subject to withholding of percentage tax and value-added tax; 2. Monitor and evaluate in coordination with the Performance Monitoring Service the implementation of the withholding tax system in Regional and District Offices and in other offices/divisions within and outside the Bureau to determine adherence to withholding tax rules and regulations, standards, guidelines, procedures, and to measure efficiency and effectiveness; 3. Evaluate and analyze programs, procedures, standards and problems relative to the feasibility of expanding the coverage of the withholding tax system and recommend necessary tax legislations and regulations; 4. Monitor the receipt, transmittal and processing of withholding tax returns and maintain an updated register of withholding agents by region by kind of withholding tax; 5. Establish linkages with other government agencies to gather information to improve the voluntary compliance of withholding agents; 6. Update primers and prescribe guidelines and procedures for withholding agents, extend assistance in the conduct of seminar/dialogues/workshops to maximize compliance with withholding tax requirements; 7. Recommend to the Forms Committee the design and/or improvement/revision of withholding tax form; 8. Prepare and submit to top management an analysis of the reports submitted by RDOs to monitor the implementation of the withholding tax system in the district offices; and 9. Perform such other related functions as may be assigned. A-1. Withholding Tax Planning and Research Section shall : 1. Conduct planning and research and recommend policies, work programs, standard, guidelines and procedures on: a. compensation income b. income payments covered by the expanded withholding tax system c. income payments covered by the final withholding tax system d. government payments subject to withholding of percentage tax or value-added tax; 2. Review existing procedures and policies on withholding tax and recommend amendments to tax laws and revenue issuances; 3. Update primers on withholding taxes; 4. Establish policies and procedures on linkages with other government agencies to gather information and statistics on withholding agents; 5. Prepare and submit accomplishment report of the division; and 6. Perform such other related function as may be assigned. A-2. Report Monitoring and Compliance Evaluation Section shall : 1. Monitor the reports submitted by the Revenue District Offices (RDOs) regarding the implementation of the different types of withholding taxes; 2. Monitor reports of RDOs on actions taken on stop-filers and send call-up letters when necessary; 3. Evaluate reports submitted by RDOs and recommend appropriate actions on deficiencies identified; 4. Review and revise, if necessary, the management reporting system of filed officers pertaining to withholding taxes; 5. Maintain an updated register of withholding agents by type of withholding tax by district and by region; and 6. Perform such other related functions as may be assigned. B. REVENUE ACCOUNTING DIVISION shall : 1. Develop and recommend policies, work programs, standards, guidelines and procedures relative to the accounting of all income and revenues realized by the Bureau; 2. Design, develop and implement micro-computer-based application systems for revenue accounting operation; 3. Consolidate all reports on internal revenue collections and certify internal revenue allotments and shares of certain government agencies in special funds; 4. Analyze collection reports submitted by AABs, Revenue Attaches and Finance Officers of the Department of Foreign Affairs; 5. Prepare the Bureau's consolidated trial balance, supporting schedules, statements and other collection reports relative to income and revenues for submission to management and other fiscal agencies; 6. Impose penalties due from AABs for delayed submission of reports and remittances of collections; 7. Maintain accurate and updated subsidiary ledgers (SL) of all Collection Officers, including Municipal Treasurers designated as collection agents, Revenue Attaches/Representatives, Finance Officers, Accountable Forms Custodians and other accountable officers to be used as basis for issuance of clearance; 8. Evaluate revenue accounting activities in the Regional and District Offices on matters pertaining to internal revenue collections to determine adherence to guidelines and procedures; 9. Coordinate with the Finance Division and other units of the Bureau on matters pertaining to internal revenue collections; 10. Confirm and certify to the correctness of payments made by taxpayers based on the accounting records and documents; and 11. Perform such other related functions as may be assigned. B-1. Reports Monitoring and Analysis Section shall : 1. Monitor and analyze collection reports covered by the NPS (thru AABs) and payment thru ROR from abroad; 2. Generate and analyze computer outputs on collections through AABs, collection officers and accountable officers; 3. Prepare summary reports by Bank Head Office and collection reports by type of tax based on collection reports including the Consolidated Monthly Statistical Report of Revenue Collection (BIR Form 12.09) received from RDOs; 4. Act as liaison with the AABs, Central Bank, Bureau of Treasury, Department of Foreign Affairs, collection officers and other accountable officers; 5. Prepare summary reports of dishonored checks paid to all collection officers/agents by type of tax; 6. Communicate with the AABs, collection officers and accountable reports and other deficiency; 7. Impose penalties on AABs for delayed submission of collection reports (ARDC and CRDC) and remittance of collections; and 8. Perform such other related functions as may be assigned. B-2. Accountabilities Section shall : 1. Maintain accurate and updated SLs of all AABs' head offices and branches; 2. Maintain accurate and updated SLs of all Collections officers including Municipal Treasurers designated as collection agents, Revenue Attaches/Representatives, Finance Officers and Accountable officers; 3. Reconcile/verify and review entries in the SL of officers and employees mentioned above for the purpose of issuing national clearance; 4. Communicate with officers/employees concerned for the submission of the required reports and documents pertaining to clearances; and 5. Perform such other related functions as may be assigned. B-3. Verification and Allotment Section shall : 1. Prepare statement of the basic income for transmittal to Department of Budget and Management (DBM) as basis for the determination of the Internal Revenue Allotment (IRA) of various Local Government Units (LGUs); 2. Notify the LGUs and other government agencies to submit required documents relative to their claims from Special Funds/Special Accounts; 3. Prepare and issue certification of the shares of LGUs and other government agencies from Special Funds/Special Accounts for transmittal to DBM; 4. Verify and certify to the correctness of payments made by taxpayers based on the accounting records and documents; 5. Coordinate with the Finance Division of Regional Offices and other units of the Bureau on matters pertaining to the correctness of the payments made by taxpayer; and 6. Perform such other related functions as may be assigned. B-4. Bookkeeping Section shall : 1. Maintain revenue accounting records and books of accounts (journal, general ledgers and SLs) to reflect accurate and current financial information agencies under existing accounting and auditing rules and regulations; 2. Prepare the Bureau's consolidated trial balance, supporting schedules, statements and other financial reports relative to income and revenues for submission to management and other fiscal agencies; 3. Reconcile the Bureau of Treasury Accounts Current ledger against the Bureau's records; 4. Analyze transactions and accounts in the revenue accounting books; 5. Maintain a record of dishonored checks paid thru the AABs and thru the Collection Officers and monitor the redemption settlement of the same; 6. Record in the books of accounts all Tax Compliance Certificates/Tax Credit Certificates issued and their applications; prepare and submit reports related thereto; 7. Guide and assist the Regional Offices in the implementation of Decentralized Accounting System; and 8. Perform such other related functions as may be assigned. C. LARGE TAXPAYERS DIVISION shall : 1. Develop and recommend policies, work, programs, standard, guidelines and procedures relative to the laws and issuances on Large Taxpayers; 2. Monitor compliance of Large Taxpayers with the filing of required tax returns and other documents and payments of taxes thereon, as well as actions taken by RDOs on Large Taxpayers who are delinquent in complying with said filing and/or payment requirements; 3. Monitor compliance of AABs on the submission of required collection reports; 4. Maintain a system of recording and analyzing tax data on Large Taxpayers and submit required management and statistical reports; 5. Prepare summary reports of collections from large taxpayers by RDOs; 6. Provide public information/assistance to Large Taxpayers relative to laws and issuances affecting them; 7. Recommend amendments to tax laws and revenue issuances as regards to any modification in the criteria for determining a Large Taxpayer and expansion of the coverage of existing laws and issuances and other matters concerning Large Taxpayers; and 8. Perform such other related functions as may be assigned. C-1. Monitoring Section shall : 1. Monitor Large Taxpayers' choices of AABs and furnish each bank concerned with a listing of Large Taxpayers who have signified their choice of bank of receive their tax returns and/or payment; 2. Monitor the distribution or pre-printed color-coded Taxpayer Identification Number (TIN) labels to Large Taxpayers; 3. Receive the required Batch Control Sheets together with the corresponding tax returns/ATAPs of Large Taxpayers from AABs or from ISOS under the diskette reporting system; 4. Refer Large Taxpayers identified as delayed filers and/or stop filers to proper revenue district offices and monitor actions taken by these offices on said taxpayers; 5. Monitor compliance of AABs on the timely submission, completeness and accuracy of required collection reports on large taxpayers and refer to Collection Programs Division all delinquent and/or erring AABS\s for appropriated action; and 6. Perform such other related functions as may be assigned. C-2. Data Processing and Analysis Section shall : 1. Encode and verify information relative to tax returns and other documents filed and taxes paid by Large Taxpayers including deficiency taxes; 2. Consolidate, tabulate and analyze varied tax data tax on Large Taxpayers; 3. Generate management and statistical reports that will provide relevant information of Large Taxpayers; 4. Coordinate with the ISOS to ensure compatibility of data and reports generated by the Division with the overall computerized output of ISOS; 5. Identify areas for improvement of existing information systems on Large Taxpayers; 6. Recommend revision of criteria for identifying Large Taxpayers; 7. Prepare summary report of collections from Large Taxpayers by RDOs; and 8. Perform such other related functions as may be assigned. D. COLLECTION PROGRAMS DIVISION shall : 1. Develop and recommend policies, work programs, standards, guidelines and procedures relative to collection systems other than withholding of taxes; 2. Conduct evaluation and analysis of programs, procedures, standards and problems on collection operations and activities and recommend amendments to tax laws and revenue issuances relative thereto; 3. Develop techniques of collecting unpaid accounts, preventing accounts from becoming delinquent, measuring the degree of non-filing of tax returns, and the management and disposition of acquired assets; 4. Review and revise, if necessary, the management reporting system of field offices relative to the implementation of collection programs and activities; 5. Monitor, evaluate and consolidate management reports on collection programs and activities; 6. Prepare, maintain and update Collection Manuals on collection operations and activities; 7. Coordinate with the Performance Monitoring Service and Assessment Service on the evaluation of collection operations and activities; and 8. Perform such other related functions as may be assigned. D-1. Collection Officers and Banks Monitoring Section shall : 1. Develop and recommend policies, work programs, standards, guidelines and procedures relative to collections thru Revenue Collection Officers and AABs; 2. Analyze reports from Regional/District Offices to determine compliance with collection procedures, rules and regulations; 3. Analyze collection data/reports submitted by Regional Officers to determine trends in collection; 4. Maintain records of Tax Compliance Certificates (TCCs) issued; 5. Consolidate and evaluate Regional Accomplishment Reports; 6. Analyze reports received from the Information Systems Operations Service, Regional and District Offices to determine compliance with collection procedures, rules and regulations; 7. Evaluate bank applications for accreditation to collect internal revenue taxes and recommend approval or disapproval thereof; 8. Monitor and perform liaison activities with head offices and branches of AABs; 9. Communicate with AABs regarding discrepancies/ inaccuracies in the reports submitted; 10. Impose penalties for inaccurate/incomplete and delayed submission of collection reports by AABs; 11. Assist in the conduct of seminars/training on collection for Revenue Officers; and 12. Perform such other related functions as may be assigned. D-2. Collection Enforcement Monitoring Section shall : 1. Develop and recommend policies, work programs, standards, guidelines and procedures relative to administrative summary remedies; 2. Prescribe procedure for following-up writs of execution issued by the courts and the submission of reports of actions taken to the Legal Service; 3. Assist in the conduct of trainings/seminars on administrative summary remedies; 4. Coordinate with pertinent government offices in gathering information on assets/properties of taxpayers not available from the Audit Data Bank Division; 5. Prepare, maintain and update Collection Manuals on collection operations and activities; 6. Analyze, evaluate and monitor General Control Ledger reports of revenue region and district offices; 7. Monitor and coordinate with field offices relative to the use and operation of Documentary Stamps Metering Machines; and 8. Perform such other related functions as may be assigned. D-3. Acquired Assets Monitoring Section shall : 1. Develop and recommend policies, work programs, standards, guidelines and procedures for the supervision, control and disposition of acquires assets; 2. Maintain an updated inventory of acquired assets and conduct periodic audit of these properties; 3. Monitor and analyze periodic reports on the accounting of usufruct and/or civil fruits of these properties and follow-up those who are not up-to-date in the submission of said reports; 4. Consolidate all reports regarding acquired assets for submission to management and pertinent government agencies; 5. Prescribe the procedures for the final disposition of acquired assets; and 6. Perform such other related functions as may be assigned. IV. REPEALING CLAUSE : This Order supersedes all revenue issuances and/or portions thereof inconsistent herewith. V. EFFECTIVITY : This Order shall take effect immediately. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue