CY 2017 Priority Programs

December 22, 2016 REVENUE MEMORANDUM CIRCULAR NO. 005-17 SUBJECT : CY 2017 Priority Programs TO : All Internal Revenue Officials, Employees and Others Concerned For the year 2017, the Bureau of Internal Revenue has been tasked to collect P1.829 Trillion, which is equivalent to 79% of the National Government's total projected tax revenues of P2.313 Trillion. The taxes collected by the Bureau contribute significantly to the Government's revenue-generating efforts, and will surely support the President's 10-Point Agenda. In this regard, this Circular is being issued to published the Bureau's CY 2017 Priority Programs (attached as Annex "A"). These Priority Programs shall address the Bureau's three (3) principal objectives: Attain collection targets; Improve taxpayer satisfaction; and, Protect revenues and recapture public trust. Under each objective are the programs to attain the Bureau's collection targets and address the revenue service's tax administration reforms. A supplemental revenue issuance shall be issued to define the offices responsible, as well as the policies and guidelines to be used in monitoring the Priority Programs. All Bureau offices are therefore enjoined to align their respective activities and projects to these Priority Programs, to reduce the opportunities for corruption in the revenue service, and ensure the fulfilment of the Bureau's mandate. All revenue officials and employees are required to give this Circular the most extensive publicity possible. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ANNEX A Bureau of Internal Revenue CY 2017 Priority Programs 1 ATTAIN COLLECTION TARGETS Programs Objective/s 1.1) Comprehensive Taxpayer To implement on a nationwide basis, comprehensive Profiling and industry taxpayers profiling and industry benchmarking activities Benchmarking to cover an expanded list of industries for all type of taxes and to monitor inputs in "Annex F1" of RMO No. 5-2012. 1.2) Oplan Kandado Program To strengthen the Bureau's imposition of prescribed administrative sanctions of suspending the business operations and temporary closing of business establishments for non-compliance with essential requirements of Value- Added Tax (VAT). 1.3) Updating of Schedules of To update/revise the existing schedule of Zonal Valuation Zonal Value to reflect the current real property valuation, taking into account the most recent actual sales/transfers/exchanges of properties. 1.4) Broadening of the Tax To broaden the tax base without increasing the tax rates by Base registering unregistered taxpayers/businesses as a result of tax compliance verification drives (TCVD) and third party information ( e.g ., government-regulated agencies). 1.5) Implementation of To implement the re-engineered processes of arrears Centralized Arrears management in RR 13-Cebu City, RR 16-Cagayan de Oro, Management in Regional and RR 19-Davao City. Offices 1.6) Run After Tax Evaders To review all pending cases with Court of Tax Appeals and (RATE) Program Department of Justice (DOJ) and exert efforts to expedite resolution of these cases. Likewise, fortify the program in terms of competence and quality in handling of these cases. 1.7) Exchange of Information To make the BIR more aware of the benefits of EOI in (EOI)-Foreign Account collecting taxes, particularly, on cross-border transactions. Tax Compliance Act (FATCA) 1.8) Expansion of Compromise To broaden compromise settlement program available to Settlement Program (LTS taxpayers even during the pendency of the assessment audit cases) process. 2 IMPROVE TAXPAYER SATISFACTION Programs Objective/s 2.1) Review of Revenue To review and recall, if warranted, revenue issuances which Issuances impose unnecessary burden on taxpayers (improve TP satisfaction) and to adhere with the commitment to Ease of Doing Business. 2.2) Review of Tax Rulings To review and revoke tax rulings which hinder business transactions. 2.3) TP Segmentation To revisit the criteria for classification of taxpayers according (Large, Medium, Small) to the business size (large/medium/small/micro) to properly address their tax concerns in order to: Strengthen the Large Taxpayers Service by expanding its coverage. Create a special unit in each Regional Office which will closely monitor the compliance of Medium Taxpayers. Focus on catering to the needs of Small/Micro Taxpayers. 2.4) Simplification of Tax To simplify tax forms, including filing frequency, according Forms to taxpayer's business size (large/medium/small/micro). 2.5) Expansion of e-FPS To expand the coverage of the electronic Filing Facilities to Facilities thru eBIR Forms include other non-large taxpayers. 2.6) Additional Options/ To provide taxpayers additional options or facilities to pay Facilities for Payment taxes using Credit/Debit/Prepaid Cards and mobile payments. of Taxes 2.7) Development of Tax To provide convenience to applicants securing tax clearances Clearance Processing for various purposes, as well as facilitate processing thereof, System thru online application and processing of tax clearances. 2.8) Enhancement of Electronic To strengthen registration database in order to allow Registration System taxpayers to register and update their registration data online. This shall be a means for the BIR to capture additional business line which was put up by taxpayers. 2.9) Electronic Tax Information To optimize the initial eTIS modules developed: Taxpayer System (eTIS) Registration System (TRS), Returns Filing and Processing (RFP), Audit/Case Management System (CMS), Collection and Remittance Reconciliation (CRR). 2.10) In-house enhancement of To automatically assign and validate Accountable Form Electronic Certificate Serial Numbers to each RDO. Authorizing Registration (eCAR) System To do offline encoding as an alternative in case the system is down due to poor or intermittent connection. 2.11) Geographical Information To provide a system designed to allow users to collect, Systems (GIS) manage and analyze large volume of spatially referenced and associated attribute data using a web-based geographic data visualization and information system. 2.12) Enhancement of Electronic To enhance the existing eORB System on tobacco products Official Registry Book and the expansion of the system for alcohol products. (eORB) 2.13) Internal Revenue Stamps To ensure the collection of correct excise taxes on distilled Integrated System (IRSIS) spirits and wines as well as to curb illicit trade of alcohol for Alcohol Products- products in the country. Distilled Spirits 3 PROTECT REVENUES AND RECAPTURE PUBLIC TRUST Programs Objective/s 3.1) Integrity Management To install a standard but flexible approach at the Agency and Program (IMP) Program levels in ensuring that standard norms of conduct for public officials are consistently applied, through: Removal of corrupt and erring revenue personnel (Revenue Integrity Protection Service/Ombudsman/BIR Internal Affairs Service) and to relieve/transfer personnel with unsatisfactory records of collection performance; and Strengthening the Internal Affairs Service to swift action of administrative cases filed against BIR personnel. 3.2) Revalidation/Audit of tax To revalidate/audit tax assessments. assessment 3.3) Salary Standardization To propose legislation removing BIR from the Salary Law Standardization Law (SSL). 3.4) Expedite recruitment of To fast-track the target recruitment of nine hundred ninety- personnel six (996) new staff for all offices/units. 3.5) Use of Case Monitoring To utilize a Case Monitoring System/eLAMS to regularly System (CMS)/eLAMS monitor outstanding Letters of Authority in order to require mandatory observance of the period to audit and to track progress of audit cases.