CY 2014 Priority Programs

January 24, 2014 REVENUE MEMORANDUM CIRCULAR NO. 004-14 SUBJECT : CY 2014 Priority Programs TO : All Internal Revenue Officials and Employees Each year, the Bureau of Internal Revenue is tasked to generate revenues to support the country's economic development programs. For CY 2014, the BIR has been assigned a revenue target of P1.456 Trillion, which shall be allocated accordingly to the Large Taxpayers Service and the Revenue Regions. Achieving this target is even more urgent in light of two key considerations: The recent natural disasters that have struck the country and caused widespread damage in certain areas; and The Philippines' good governance commitments relative to the economic development agenda of the Asia-Pacific Economic Conference and other international gatherings where the country's achievements will be presented and sustained in the medium-term. To meet this collection goal, and in support of the Government's thrust towards good governance and fiscal sustainability, the Bureau will implement twenty-one (21) Agency Priority Programs for CY 2014. A complete list of these Priority Programs, as well as salient details for each, are provided in Annex "A" of this Circular. AICHaS All Bureau offices and units are therefore enjoined to align their activities and projects with these Priority Programs. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ANNEX A Bureau of Internal Revenue CY 2014 Priority Projects Programs/Projects Brief Description Lead Office/Other Office Concerned 1 Online System for Transfer Tax A facility that will enable taxpayers to file their Operations Group (Assessment Transactions (OST3) transfer tax transactions online. The system Service)/ Information Systems has a capability for automated computation Group (Information Systems of tax due and generation of tax returns. It Project Management Service) interfaces with eCAR by providing inputs for the generation and issuance of CAR with barcode for transfer of ownership of real and personal properties presented to the Land Registration Authority (LRA)/Registry of Deeds (RD) and other concerned offices. It provides for the maintenance and updates of the Zonal Valuation Database. 2 Electronic Certificate Authorizing A web-based system that automates the Operations Group (Assessment Registration (eCAR) generation of barcoded Certificate Authorizing Service) /Information Systems Registration. This will reduce revenue losses Group (Information Systems arising from spurious CARs for all kinds of Project Management Service) one-time transactions. The database that will be built for the eCAR system will eventually be used by BIR offices in the conduct of pre-and post-audit of said transactions. 3 Electronic Tax Information This is a major Information and Operations Group/Information Systems (eTIS) Project Communications Technology (ICT) undertaking Systems Group (Information intended to enhance/improve BIR core Tax Systems Project Management Administration System, providing a single, Service) web-based automated solution. It is set to replace the existing BIR Integrated Tax System (ITS) the core infrastructure that powers several tax application systems. 4 Implementation of Internal Revenue Involves design and printing of secured stamps Large Taxpayers Service (Large Stamps Integrated System (IRSIS) for cigarettes with a web-based system called Taxpayer Field Operations on the use of Secured Stamps for Internal Revenue Stamps Integrated System Division)/ Information Systems Cigarettes (IRSIS). The system shall achieve the primary Group (Information Systems objective of ensuring the collection of correct Project Management Service) excise taxes on cigarettes. 5 Invigorated Run After Tax Evaders This program seeks to identify and prosecute Legal Group (Enforcement (RATE) Program high profile tax evaders through investigation of Service) large-scale violators of the National Internal Revenue Code (NIRC) of 1997, as amended. Aside from enhancing voluntary compliance among taxpayers and promoting confidence in the tax system, it also aims to generate the maximum deterrent effect by impressing on the public that tax evasion is a criminal offense punishable under the law. 6 Oplan Kandado This is an initiative involving the strengthening Operations Group of the Bureau's imposition of prescribed administrative sanctions of suspending the business operations and temporarily closing of business establishments for non-compliance with essential requirements of VAT taxpayers such as taxpayer's VAT registration, the issuance of sales invoices/receipts, filing of VAT returns, declaration of taxable transactions and paying the correct amount of taxes by persons engaged in transactions subject to value-added tax (VAT) pursuant to Section 115 of the Tax Code, as amended. 7 Integrity Management Program The Integrity Management Program or IMP Legal Group (Internal Affairs (IMP) is a preventive anti-corruption measure of the Service) government. It aims to install a standard but flexible approach at the agency and program level in ensuring that standard norms of conduct for public officials are consistently applied. 8 Re-engineering of other Business Refers to the pilot implementation and Project Management and Processes possible expansion of re-engineered business Implementing Service/ processes thru the following: VAT Audit Operations Group Program, Arrears Management Program and (Assessment and Collection Compliance Improvement Strategy. Services)/Legal Group/ Information Systems Group/ Large Taxpayers Service 9 Electronic Official Registry Book An automated facility on excise products that Large Taxpayers Service (Large (eORB) shall allow the manufacturers of excisable Taxpayer Field Operations products to electronically submit the ORBs. Division)/ Information Systems Initially implemented to the Tobacco Industry Group (Information Systems with the end in view of applying it across all Project Management Service) taxpayers dealing with articles subject to excise tax. Targeted for 2014 is the review and revision of template of eORB forms and preparation of business and technical functionalities and Terms of Reference (TOR) for the expansion of the eORB System to the Alcohol Industry. 10 e-Linkage with the Bureau of A new process for the electronic exchange of Operations Group (Collection Treasury (BTr) information/data between the BIR and the BTr Service)/ Information Systems with respect to collections and the remittances Group (Information Systems of internal revenue taxes across all collection Project Management Service) channels. The project aims to ensure that BTr electronically provides all the data on tax payments received by the BIR, thru any of its authorized collection personnel or deputized collection agents, are captured real-time by the Bureau and the same are accurately and timely remitted to the BTr and subsequently credited as collection performance of the BIR. eLinkage with BTr covers two (2) projects, namely: 1. Collection Reconciliation System (CRS) a web-based application that will execute the reconciliation of tax collections from BIR, authorized agent banks (AAB), Bangko Sentral ng Pilipinas (BSP) and BTr. The CRS reconciliation will facilitate the reporting requirements of BIR for policy making by the Department of Finance (DOF). 2. Treasury Single Account (TSA) A unified structure of government bank accounts enabling consolidation and optimum utilization of government cash resources. 11 Automated Internal Revenue A system that will automatically compute the Operations Group Allotment (IRA) Computation shares of the Local Government Units (LGUs) (Collection Service)/ and other government agencies-beneficiaries Information Systems Group of the internal revenue tax collections on per (Information Systems Project office or barangay , municipality/city and Management Service) province basis, as the case may be. The system will likewise allow the electronic generation of the required certificate and the electronic transmission of the said computed internal revenue allotment to the Department of Budget and Management (DBM) and the Bureau of the Treasury (BTr). 12 Forfeited Asset Management This is a web-based facility that will enable the Operations Group (Collection System BIR to automatically create and updates its Service; Accounts Receivable database of absolutely forfeited properties; Monitoring Division)/ Information monitor the handling of forfeited properties Systems Group (Information from the time of absolute forfeitures up to their Systems Project Management final dispositions; ensure that all civil and Service) natural fruits of forfeited properties are duly accounted for and remitted to the government; and automatically publish the relevant information on acquired assets to the BIR website for dissemination to all interested internal and external parties. 13 Automated Issuance of Tax The project shall cover the development of an Operations Group (Collection Clearance for Bidding Purposes on-line (web-based) that will facilitate the filing Service; Accounts Receivable of the application for issuance of Tax Monitoring Division)/ Information Clearance, as well as the automated processing Systems Group of the same. The system shall have interface (Information Systems Project with the Accounts Receivable Management Management Service) Systems (ARMS). The Tax Clearance shall be released in the Revenue District Office where the taxpayer is registered. 14 Online Accreditation of Importers This is a process of accrediting and registering Operations Group (Collection and Brokers importers and customs brokers. It aims to Performance and Monitoring streamline the registration procedures and Division)/ Information Systems simplifies the requirements necessary for the Group (Information Systems issuance of Certificate of Accreditation. Project Management Service) 15 Online System for Accreditation of This is a sub-system of the enhanced Operations Group (Client Support Printers Part of Taxpayer eRegistration system which aims to establish Service)/ Information Systems Registration Information Update control mechanisms, through advance Group (Information Systems (TRIU) Project technology procedures coherent to the Project Management Service) simplification of online registration. 16 Electronic Bureau of Internal The eBIR Forms Project is an online Operations Group (Client Support Revenue Forms (eBIR Forms) interactive forms that was developed primarily Service) /Information Systems to provide taxpayers with accessible and Group (Information Systems convenience service through easy preparation Project Management Service) of BIR Forms. This is an alternative mode of preparing tax returns which deviates from the conventional manual process of filling up tax returns on pre-printed forms that are highly susceptible to human error. Taxpayers can directly encode data, validate, edit, save and delete, view and print their tax returns. The package has automatic computations and has the capability to validate information inputted by the taxpayers. 17 Strategic Performance The SPMS seeks to link individual performance Resource Management Group Management System (SPMS) with the agency's organizational vision, mission, (Personnel Division)/ Planning and strategic goals. With some adjustments, it and Management Service also makes use of existing performance (Planning & Prog. Div.) evaluation and management systems and links performance management with other human resource (HR) systems. 18 Workflow Management System It is a web-based system that manages the Resource Management Group/ documents received by BIR. Its main features Operations Group (Client Support includes scanning and barcoding for proper Service)/ Information Systems tracking and archiving. Included in this project Group (Information Systems is the establishment of eLounges in the RDOs Project Management Service) which will be site for centralized receiving of documents. 19 Exchange of Information Program The EOI is a mechanism under income tax Legal Group (International Tax (EOI) treaties where a Contracting State requests Affairs Division) foreseeably relevant information from another Contracting State for the purpose of carrying out the provisions of a tax treaty or the administration or enforcement of the domestic tax laws of the first-mentioned state. 20 Procurement , Payment, Inventory This project will automate and integrate, for Resource Management Group and Distribution Monitoring System a more efficient and effective delivery of (Administrative Service; Financial services, the processes pertaining to receipt Service)/Information Systems of purchase requests, allocation of funds, Group (Information Systems procurement of goods/services, Project Management Service) maintenance of inventory and distribution of goods purchased/monitoring of rendition of services contracted, payment of purchases made, while adhering to existing procurement, budgeting, accounting and auditing laws, rules and regulations. 21 Career Pathing This involves making a series of job-person Resource Management Group matches, based on manpower requirements in (Personnel Division) the organization, that enable the person to grow into greater levels of responsibility, thus providing the organization with the talent that it requires to meet goals. This should entail the careful assignment of an individual to positions that provide him or her with opportunities for deploying the competencies needed for a more challenging position. APPROVED BY: (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue <ftp://ftp.bir.gov.ph/webadmin1/pdf/81671RMC%20No%204-2014.pdf> last visited March 4, 2014 .