BIR Priority Programs for CY 2013

January 23, 2013 REVENUE MEMORANDUM CIRCULAR NO. 011-13 SUBJECT : BIR Priority Programs for CY 2013 TO : All Internal Revenue Officials and Employees The commendable performance of the Bureau of Internal Revenue in 2012 which saw, for the first time in the history of the revenue service, our collection of revenues in excess of P1 Trillion is an affirmation of the contributions of our Priority programs to the improvement of our operations and the delivery of services. In this regard, and in order to ensure the attainment of our revenue targets for CY 2013, this Circular is being issued to identify agency priority programs, which shall be implemented in CY 2013. A complete list of the twenty-six (26) Priority Programs is provided in Annex A of this Circular. All activities and undertakings must therefore be aligned with, and in support of these programs. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ANNEX A Bureau of Internal Revenue 2013 Major Programs and Projects Programs/Projects Brief Description Lead Office/Other Office Concerned 1 Invigorated Run The RATE program seeks to identify and LIG/ES After Tax Evaders prosecute high profile tax evaders through (RATE) Program investigation of 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. 2 Oplan Kandado This is an initiative involving the strengthening OG of the Bureau's imposition of prescribed administrative sanctions for non-compliance with essential requirements 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. 3 Re-engineering Process re-engineering will cover core processes PMIS/OG/ of other (e.g., registration, filing and payment, audit, LIG/ISG/ Business Processes collection enforcement, legal enforcement, RMG taxpayer service) as well as support processes (e.g., HR, organization). Gap analysis on each process shall be conducted to provide basis for recommending proposed changes to policy, procedures, systems, organization and legislation, as needed. After which, an implementation plan shall be developed and reform activities undertaken. 4 Electronic Official An automated facility on excise products that shall LTS/LTFOD/ Registry Book allow the excise taxpayers to electronically submit ISG/ISPMS (eORB) the ORBs for monitoring and reconciliation purposes to mainly uncover discrepancies on declarations that will increase revenue collection. 5 Implementation of Involves design and printing of secured stamps for LTS-LTFOD/ Internal Revenue cigarettes with a web-based system called Internal ISG-ISPMS Stamps Integrated Revenue Stamps Integrated System (IRSIS). The System (IRSIS) system shall achieve the primary objective of on the use of ensuring the collection of correct excise taxes on Secured Stamps for cigarettes. Cigarettes 6 Electronic Letter of An electronic system used to generate Letter of OG/Assessment Authority Monitoring Authority (LA) and monitor status of all cases Service/ISG/ISPMS System (eLAMS) covered by Letters of Authority, Letter Notices and Tax Verification Notices, at all stages. 7 Electronic Certificate A web-based system that automates the OG/Assessment Authorizing generation of barcoded Certificate Authorizing Service/ISG/ISPMS Registration (eCAR) Registration. This will reduce revenue losses arising from spurious CARs for all kinds of One-Time Transaction. 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. 8 Accounts Receivable A web based system that will enable the OG/Collection Management System establishment of accurate Accounts Receivables/ Service/ISG/ (ARMS) Delinquent Accounts (AR/DA) database of the ISPMS BIR across all offices for easy monitoring/ tracking and timely generation of required correspondences and reports. The system likewise provides functionalities for on-line generation of Tax Clearances required by taxpayers for bidding and other purposes, processing and monitoring of installment agreements, actions on application for compromise settlement/abatement, the enforcement of summary remedies from issuance and execution of WDLs, as well as the disposition/auction of seized real/personal properties for conversion into cash/revenues. 9 Collection A web based system that will provide facility OG/Collection Reconciliation for the automated reconciliation of internal Service/ISG/ISPMS System (CRS) revenue tax collections between records of the BIR with that of the Bureau of Treasury (BTr), as well as the data from the Authorized Agent Banks (AABs) and the Bangko Sentral ng Pilipinas (BSP). The system will likewise enable all the concerned national, regional and district offices to easily identify possible sources and/or causes of discrepancies in the collection data. It also reduces the need for manual reconciliation processes for more speedy and efficient resolution of identified discrepancies, thereby insuring the integrity of the collection data reported by the Bureau and the different implementing offices under it. 10 On-line System for A facility that will enable taxpayers to file their OG/Assessment Transfer Tax transfer tax transactions online. The system has a Service/ISG/ Transactions capability for automated computation of tax due ISPMS (eOSTTT) and generation of tax returns. It 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 also provides for the maintenance and updates of the Zonal Valuation Database. 11 Geographic BIR GIS is a visually displayed geographic OG/Assessment Information System referenced information by integrating information Service/ISG/ (Metro Manila - system with geographic information. The Bureau ISPMS Zonal values and can access and interpret data from sources such eSales) as zonal valuation, eSales and ITS Registration and integrated with GIS spatial data in a spatial database presented through geographic visuals. 12 Electronic Tax A major Information and Communications OG/ISG/ISPMS Information Technology (ICT) undertaking intended to Systems (eTIS) enhance/improve BIR core Tax Administration Project System, providing a single, 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. 13 Enhancement of A web-based system for online accreditation of OG/TAS/ eAccReg and eSales suppliers and their machines and on-line ISG/ISPMS registration of CRMs/POS by the supplier and the taxpayer-user. Implementation of eAccReg and eSales reporting will result to taxpayer compliance on business registration. Sectoral outcome for this project includes improvement of internal revenue collection. 14 Expansion of ISO Implementation of Quality Management System OG/TAS/ Certification to (QMS) as mandated under Executive Order No. ISG/ISDOS other districts 605 (Institutionalizing the Structure, Mechanisms and Standards to Implement the Government Quality Management Program). The main objective of E.O. 605 is the promotion and enhancement of public sector performance through the adoption of International Organization for Standardization (ISO) 9001:2008 QMS in all government agencies. BIR established QMS for the Business registration Process (Individual/Non-Individual). 15 Re-registration of Facility that allows taxpayers to update their OG/TAS/ISG/ISPMS Taxpayers thru taxpayer information. This will include linkages Taxpayer with third parties including National Statistics Registration Office (NSO), Government Service Insurance Information Update System (GSIS), Social Security System (SSS), (TRIU) Project Securities and Exchange Commission (SEC), Land Transportation Office (LTO), Professional Regulation Commission (PRC), Insurance Commission (IC), among others, as sources for the information identification of new registrants and updates of existing taxpayers data. 16 Asset Information A data warehouse facility that will contain OG/AS/AITIED/ Management internal and external data coming from tax ISG/ISPMS (AIM-P) - TPI amnesty returns and corresponding SALNs Matching of and sources from third-party for asset-related Amnesty Returns information which can be obtained through linkages with different government agencies, and continually build said data to come up with an effective database of asset-based transactions. 17 Interactive Forms Data capture of declaration using interactive OG/TAS/ISG/ISPMS forms/tax preparation and filing software to generate electronic BIR Forms to be uploaded/ processed by the BIR Integrated Tax System (ITS) - Returns Processing System (RPS). 18 Centralization of Establishes Data Processing Divisions (DPD) OG/Assessment Data Processing in the Revenue Regions which serve as the Service/ISG/ISDOS to the Regional central processing offices of all returns received Offices by Revenue District Offices (RDOs) and by the Accredited Agent Banks (AABs). The DPD receives the returns from RDOs and retrieve the returns from AABs, then process/scan the documents, and encode the said return information in the Returns Processing System. 19 Increase in This program aims to increase the taxpayer base OG/TAS/ISG Taxpayer Database with minimal expenditure thus, annually increase the number of registered taxpayers that are fully compliant. Increase in the number of registrants can be attained thru different initiatives like: Massive information campaign, Taxpayer education, Improvement in the Registration Processes, etc. 20 Mobile Revenue A web-based system is capable of encoding tax OG/Collection Collection Officers filing and payment information as well as printing Service/ISG/ System (MRCOS) the corresponding Revenue Official Receipt ISPMS (ROR), Official Receipt (OR) and the Acknowledgement Receipt (AR) for no-payment returns through the use of mobile handheld devices. The collection data can be uploaded in the ITS without manual intervention. The system is also capable in generating lists of collections for deposit, Batch Control Sheets (BCS), and other prescribed reports. This system provides a facility for real-time recording of collection data, immediate identification of undeposited/late deposited collection, faster and more accurate reconciliation of collection data, and acknowledging receipt of no-payment returns to immediately detect non-filing of requisite tax returns and/or the filing of spurious returns. 21 e-Linkage with the A new process for the electronic exchange of OG/Collection Bureau of Treasury information/data between the Bureau of Internal Service/ISG/ (BTr) Revenue (BIR), BTR with respect to the ISPMS collections and the remittances of internal revenue taxes across all collection channels. The project aims to ensure that all data on tax payments received by the BIR, thru any of its authorized 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. 22 Electronic Tax A new process of remitting taxes withheld by OG/Collection Remittance Advice National Government Agencies (NGAs) under the Service/ISG/ (eTRA) Electronic Filing and Payment System (eFPS) ISPMS using the Electronic Tax Remittance Advice (eTRA), in lieu of the manual filing of TRA, pursuant to Revenue Regulations No. 1-2013. Under this system which is a sub-system of the eFPS, NGAs are mandated to electronically remit taxes withheld arising from the use of funds coming from the Department of Budget and Management (DBM). The NGAs need not to go to the BIR to secure blank TRA forms, and manually file tax returns and pay the taxes due with the concerned RDOs. In lieu of these manual procedures, NGAs can access the eFPS, file tax return electronically and accomplish the eTRA on-line, provided that the prescribed enrolment to the eFPS has already been complied with. It is expected that transparency and efficiency in revenue collection reporting and reconciliation will be enhanced as all concerned parties can view and record, in real time, the remittances made by the NGAs. 23 Exchange of EOI is a mechanism under income tax treaties LIG/ITAD/RDO Information (EOI) where a Contracting State requests foreseeably Program 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-mention State. 24 Tax Ruling and Case A system that maintains legal and administrative LIG/ISG/ISPMS Management System tax information in a centralized technical (TRCMS) reference system for easier access and monitoring of tax rulings, legal and administrative cases which will provide comprehensive, accurate and timely data on cases and documents for management and operational reporting. 25 Organizational and Pursuant to Executive Order No. 366 dated RMG/HRDS/PMS/ Management October 4, 2004, all government offices were PMIS Development required to conduct a strategic review of the Program/ operations and organizations of their offices Rationalization and come-up with their Rationalization Plan. Plan (RATPLAN) The RATPLAN contains shifts in the functions, programs, projects, activities, organizational units, staffing and personnel of the department/ agency. 26 Procurement, This project will automate and integrate these RMG/Administrative Payment, Inventory processes, for a more efficient and effective Service/ISG/ISPMS and Distribution delivery of services and compliant with existing Monitoring System procurement, budgeting, accounting and auditing laws, rules and regulations. APPROVED BY: (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue