CY 2019 Priority Programs

January 9, 2019 REVENUE MEMORANDUM CIRCULAR NO. 005-19 SUBJECT : CY 2019 Priority Programs TO : All Internal Revenue Officials, Employees and Others Concerned This Circular is being issued to publish and disseminate the Bureau of Internal Revenue's Priority Programs for CY 2019. These Priority Programs (Annex A) are comprised of continuing priority programs from the previous year, and new undertakings, taking into account current developments in tax administration, such as the passage of the next phase of the Tax Reform Acceleration and Inclusion (TRAIN) Program, and the ongoing institutionalization of the various policies and guidelines in support of Republic Act No. 11032 (Ease of Doing Business and Efficient Government Service Delivery Act) and Republic Act No. 10173 (Data Privacy Act), as well as the results of the BIR Strategic Planning Sessions participated in by the Bureau's top officials. All Bureau offices are therefore enjoined to align their activities and projects to the CY 2019 Priority Programs, to ensure the achievement of the BIR's CY 2019 Collection Target and the fulfilment of the Bureau's mandate. Date Issued: January 16, 2019. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ANNEX A CY 2019 BIR Priority Programs Programs/Activities/ Projects Objective Responsible Office 1.Run After Tax Evaders (RATE) To generate maximum deterrent effect on the taxpaying public by impressing the fact that tax evasion is a crime and violators will be caught and punished; enhance voluntary compliance among taxpayers; promote the confidence of the public in the tax system; and to help increase revenue collection, particularly focusing on delinquent accounts. Enforcement and Advocacy Service 2.Oplan Kandado To strengthen the BIR's imposition of prescribed administrative sanctions, through enforcement of at least one (1) closure per semester, per Revenue District Office (RDO). Office of the DCIR-Operations Group 3.Intensified Audit and Investigation To intensify the investigation of taxpayer compliance, and collect the right taxes, through maximize utilization of Computer Assisted Audit Tools and Techniques (CAATS). To collect at least 3% of the Bureau's total collection goal (net of voluntary compliance collection from Withholding Tax on compensation income, Tax Remittance Advice [TRA], Withholding Tax of LGUs, Special Allotment Release Order [SARO], and One-Time Transaction [ONETT]). Assessment Service (AS) 4.Enhanced Implementation of the Arrears Management Program in the Regional Offices To increase by at least 7% from previous periods collection of Arrears and cancelled/closed arrears. Collection Service 5.Broadening of the Tax Base To expand the tax base by 5% increase of active registered business taxpayers' registration as a result of Taxpayer Compliance Verification Drive (TCVD) and Third Party Registration. Client Support Service (CSS) 6.Taxpayer Account Management Program (TAMP) Monitoring To increase by at least 5% tax compliance of taxpayers included in TAMP on the filing of required returns, including TAMP Withholding Agents and VAT taxpayers who are required to file the Monthly Alphalist of Payees (MAP)/Summary Alphalist of Withholding Agents of Income Payments Subjected to Withholding Tax (SAWT)/Annual Alphalists and the Summary List of Sales/Purchases/Importation (SLSP/I). AS 7.Fuel Marking and Field Testing Program To develop implementing guidelines for the implementation of the marking of the locally refined fuels at the refineries and the testing of the presence of these markers on fuels at the fuel retail stations nationwide pursuant to the Fuel Marking and Field Testing Program of the DOF, with Bureau of Customs (BOC) and Bureau of Internal Revenue (BIR) as the implementing agencies. Large Taxpayers Service (LTS) 8.e-Invoicing/e-Receipting and eSales Reporting To develop a system for e-Invoicing/e-Receipting and e-Sales Reporting -e-Invoicing/e-Receipting System is an Electronic platform capable of processing and storing electronic invoices and receipts issued by taxpayers on a real time (or near real time) basis containing tax information, VAT and withholding tax details, among others. CSS -eSales Reporting System is an electronic platform capable of summarizing the electronic invoices and receipts stored by the e-Invoicing/e-Receipting System. It will also generate reports on VAT information of taxpayers for the processing of VAT refund applications under the enhanced VAT refund system of the BIR and for third-party matching on tax audits/assessments. Information Systems Group (ISG) 9.Optimization/Implementation of Internal Revenue Integrated System (IRIS) formerly e-TIS To roll-out the following eight (8) Modules of IRIS system (formerly eTIS) to pilot sites Revenue Region 8 (Makati City) and LTS: -Tax Registration System (TRS) -Collection Remittance and Reconciliation (CRR) Operations Group -Returns Filing and Processing (RFP) -Audit (AUD) ISG -Case Monitoring System (CMS) -Taxpayer Compliance System (TCS) -Taxpayer Accounts System (TAS) -Tax Credit and Refund System (TCR) 10.Tax Reform for Acceleration and Inclusion (TRAIN) Law Implementation Program a.Strict Compliance with new tax policies and tax payments/remittance system To monitor selected Taxpayers on their compliance with the TRAIN Law through: -Pre-audit of Percentage Tax payments by taxpayers that changed Registration from VAT to Non-VAT as a result of the increase in threshold (P3M). CSS b.Tax payments on Quarterly Percentage Tax To clarify certain issues raised in the implementation of the TRAIN Law by issuing the appropriate revenue issuances. 11.Massive Tax Education Campaign/Public Awareness Program To develop standard information materials on the Tax Reform Packages that can easily be understood, which shall be used by the BIR Offices in their information activities such as brochures, pamphlets, PowerPoint presentations, etc. To conduct briefings to be delivered by knowledgeable and competent resource speakers. CSS 12.Implementation of RA 11032 or Ease of Doing Business and Efficient Government Service Delivery Act of 2018 To streamline frontline service of the Bureau. To adopt and monitor the Single Window Policy in processing applications of new business registration at the Revenue District Offices. To monitor the implementation of Agency's Citizens Charter. CSS 13.Information and Communications Technology (ICT) Solutions for Improved Taxpayers Services a.Availment of Commercial Data Center To improve availability of application systems used by taxpayers and Bureau personnel by availing a commercial data center and implementing disaster recovery for other systems ISG b.Implementation of eTSP Cert and Use of PesoNet* and InstaPay* for tax payments To provide taxpayers with additional filing and/or payment channels through eTSP Cert and payment options anchored on PesoNet and InstaPay 14.Sustained Compliance with Data Privacy Act To continue the conduct of: -Employee awareness relative to IT Security and Data Privacy Act -IT Security Compliance Audit/Check of BIR Offices ISG 15.Data Sharing Agreements with other Government Agencies To implement data sharing agreements with selected government agencies and LGUs consistent with the Data Privacy Act to obtain data of registered taxpayers for internal revenue purposes for potential source of collection and for monitoring of unregistered taxpayers. ISG 16.Action on administrative cases against erring revenue officials and employees To act upon administrative cases filed against erring revenue officials and employees. Internal Affairs Service 17.Expedite recruitment of new personnel and promotion of qualified employees To review and revisit the Quality Standard (QS) of entry-level position, specifically requirements on trainings and experience. Revise documentary requirements. To revisit the plantilla of personnel to address the needs of the District Office and National Office. To develop a timeline for the recruitment process, from examinations to appointment. To require all Revenue Regions to undergo the CSC Online Assessment from their respective CSCs to be accredited in order for respective Regional Directors to be entitled to sign appointment of new recruits. Human Resource Development Service (HRDS) 18.Capacity Building Enhancements for BIR officials and employees To conduct in depth and periodic trainings/seminars as scheduled in the Training Calendar. To conduct enhanced version of the Taxpayer Service Excellence Workshop and Seminar on Tax Fraud. HRDS 19.Budget Utilization Program To attain the following: -100% Obligation Budget Utilization Rate; and -100% Disbursement Budget Utilization Rate. Finance Service