CY 2018 Priority Programs

December 18, 2017 REVENUE MEMORANDUM CIRCULAR NO. 006-18 SUBJECT : CY 2018 Priority Programs TO : All Internal Revenue Officials, Employees and Others Concerned This Order is being issued to publish and disseminate the Bureau of Internal Revenue's Priority Programs for CY 2018. These Priority Programs were identified and adopted by the Bureau during the CY 2018 Annual Planning Session held last December 8 to 9, 2017. The CY 2018 Priority Programs, which are enumerated in Annex A of this Order, have taken into account the reforms under the Tax Reform for Acceleration and Inclusion (TRAIN) program, and will address the Bureau's three (3) principal objectives: Attain collection targets; Improve taxpayer satisfaction; and Strengthen good governance. All Bureau offices are therefore enjoined to align their activities and projects to these Programs, to ensure the achievement of these principal objectives, and the fulfilment of the Bureau's mandate. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ANNEX A CY 2018 BIR Priority Programs No. PRIORITY PROGRAM OBJECTIVES Overall Objective 1: Attain Collection Target 1 Expedite Updating of the Schedule of Zonal Values To update/revise the existing Schedule of Zonal Valuations, to reflect current real property valuation, taking into account the most recent actual sales/transfer and exchanges of properties. (This is a year-round activity) 2 Intensified Audit Investigations To intensify the investigation of taxpayer compliance, and collect the right taxes, through the following: o Maximize utilization of Computer Assisted Audit Tools and Techniques (CAATTs) o Joint and coordinated examination of: - Franchisors including franchisees (Small and Medium Enterprises, including distributors); - Base Erosion and Profit Shifting (BEPS)/Transfer Pricing; - National Government Agencies (DPWH); - Small Taxpayers; - Government Owned and Controlled Corporations (GOCCs); and - Other industry issues To collect an amount equal to 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]). 3 Enhanced Implementation of the Arrears Management Program in the Regional Offices To increase collection by 6% of potentially recoverable arrears. 4 Broaden the Taxpayer Base To expand the tax base through a 10% increase of active registered taxpayers' registration, without increasing tax rates, by the registration of non-registered taxpayers, as a result of the Tax Compliance Verification Drive (TCVD) and third-party registration. The program shall focus on the following: o Focused Mapping (Taxpayers who did not renew Authority To Print [ATP]) o Stop Filers (Medium Taxpayers/TAMP) o Cash Register Machine (CRM)/Point of Sale (POS) Post Evaluation-Training o Cannot Be Located (CBL) Taxpayers o Stocktaking Activities o Summary List of Sales (SLS)/Summary List of Purchases (SLP)/Inventory List 5 Run After Tax Evaders (RATE) To review all pending cases with the Court of Tax Appeals and the Department of Justice (DOJ), and strengthen the program by filing a minimum of one (1) significant case per semester, per RDO, to improve voluntary compliance (the "fear factor" approach). To improve the quality of cases being filed. 6 Oplan Kandado To strengthen the BIR's imposition of prescribed administrative sanctions, through enforcement of at least one (1) closure per semester, per RDO. 7 Taxpayer Account Management Program (TAMP) Clean-up To clean up the existing TAMP by 100%. 8 Large Taxpayers Service (LTS) Excise Tax Program To implement the Tax Reform Package in CY 2018 covering the following program: o Sugar-Sweetened Beverages (SSB) Program o Internal Revenue Stamps Integrated System (IRSIS) on Alcohol Program o Electronic Official Registry Book (eORB) Alcohol Program o Fuel Marking Program 9 Electronic Sales Reporting, Invoicing and Receipting To develop and implement the eInvoicing/eReceipting System. Overall Objective No. 2: IMPROVE TAXPAYER'S SATISFACTION AND COMPLIANCE 10 Massive Tax Education Campaign/Public Awareness and Education To increase levels of tax compliance through information dissemination, making use of a tri-media/social media/comprehensive communication strategy. To effectively disseminate information on the Tax Reform Package. 11 Information and Communications Technology (ICT) Solutions for Improved Taxpayer Services To implement ICT Solutions to improve TP Satisfaction through: o Increase in the BIR's Internet access bandwidth o Adequate server and hardware capacity o Licenses and software Overall Objective No. 3: STRENGTHEN GOOD GOVERNANCE (Effective Management and Integrity of Tax Personnel and Collection) 12 Expedite recruitment of new personnel and promotion of qualified employees Recruitment To fill up Entry Level Positions at the rate of: o 100% for twenty (20) or less vacant positions, and, o 80% for more than twenty (20) vacant entry level positions. Promotions To submit the List of Promotable Employees, taking into account the following: o 100% of all next-in-rank employees to the positions to be filled up are duly recommended; and o 100% of all required documentation are submitted -on time - to the Personnel Division. To attain Civil Service Commission (CSC) Accreditation for the Regional Offices, with Maturity Level 2 rating for all core systems. 13 Capacity Building for BIR officials and employees Annual Training Calendar To conduct 100% of all trainings scheduled in the Training Calendar. Taxpayers Service Excellence (TSE) Workshops To train 100% of all employees targeted for attendance at the TSE Workshop. Trainings at the Regional Offices To conduct 100% of all trainings assigned at the Regional Offices. To train 100% of all employees targeted for training. Trainings by the Information Systems Group Continuous Information Security Awareness and Monitoring. Manpower/Technical Training. Trainings by the Legal Group To conduct trainings on Mandatory Continuing Legal Education (MCLE) Updates, particularly at the Regions (in batches). 14 Attendance and Leave Management Program Leave Management To reconcile 100% of all Regional Office records against the National Office records for the following: o CY 2018 Retirees; and o Other Officials and Employees. Attendance Monitoring To attain the following: o 100% of all employees use the Biometric Time Recorder o 100% of all absent employees file - on time - the required Leaves of Absence o 100% of employees observe the allowed working breaks 15 Budget Utilization Program To attain the following: o 100% Obligation Budget Utilization Rate; and o 100% Disbursement Budget Utilization Rate. 16 Building Program At least one (1) Revenue District Office to submit the appropriate budget proposal for the acquisition of a building. 17 Action on administrative cases against erring revenue officials and employees To act upon administrative cases filed against erring revenue officials and employees.