BIR Priority Programs for CY 2012

March 2, 2012 REVENUE MEMORANDUM CIRCULAR NO. 013-12 SUBJECT : BIR Priority Programs for CY 2012 TO : All Internal Revenue Officials, Employees, and Others Concerned Revenue Memorandum Order No. 23-2011 dated June 03, 2011 established the Agency Strategic Statements and the Roadmap for the year 2011 through 2016. EaIDAT For this year 2012, programs/projects have been identified and committed in order to achieve our desired outcomes and align all efforts and available resources to further improve our good performance in CY 2011. The following major programs adopted in CY 2011 greatly contributed in the pursuit of our Agency's mandate thus promoting sustainable economic growth for nation-building: 1. OPLAN KANDADO; 2. Invigorated Run After Tax Evaders (RATE) Program; 3. Computer Assisted Audit Tools and Techniques (CAATTS); 4. Premyo sa Resibo (PSR); 5. Public Awareness Campaign (PAC); 6. Tax Rulings and Case Management System (TRCMS); 7. Performance Management System (PMS); 8. Performance Governance System (PGS); 9. Human Resource Information System (HRIS); and 10. Organizational and Management Development Program/Rationalization Plan (RatPlan). As a result, these existing BIR activities shall continue to be vigorously implemented alongside enhanced tax administration processes and the related information systems. For the information and guidance of all concerned, in addition to the above listed programs, attached as Annex "A" is the enumeration of new Priority Programs for CY 2012. All activities/undertakings must be aligned and in support of said programs. IEHSDA All concerned are hereby enjoined to be guided accordingly. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ANNEX A Additional Projects for CY 2012 Bureau of Internal Revenue Project Title Description Centralization of Data Processing This project will establish Data Processing Divisions to the Regional Offices (DPDs) in the Revenue Regions which shall serve as the central processing offices of all returns received by Revenue District Offices (RDOs) and by the Accredited Agent Banks (AABs). DPD shall receive returns from RDOs and retrieve returns from AABs, then process/scan documents, and encode return information in the Returns Processing System. Asset Information Management Implementation of AIM-P will optimize available Project AIM-P (TPI Matching channels and opportunities including mapping and of Amnesty Returns) processing of data from Tax Amnesty Returns and Sworn Statement of Assets, Liabilities and Net Worth. AIM-P will broaden and create linkages with other government agencies and will develop business intelligence solutions for revenue administration, tax policy analysis and framework. Interactive Forms In the advent of the ever-evolving technologies and new solutions by third parties in capturing data on-line, the Bureau considered the possibility of accrediting third parties to meet its hope to increase tax returns data captured and subsequently improve taxpayer service. It is envisioned that the third parties' solution conforms to the existing BIR tax returns' file structures so that the data captured through their interactive forms or tax preparation/filing software can be processed by the Bureau's Integrated Tax System (ITS) Returns Processing System (RPS). Launch of eATRIG The eATRIG system is a system intended to provide an on-line application for Authority to Release Imported Goods (ATRIG) and to automate the processing and issuance thereof. This system shall be interfaced with the National Single Window (NSW) led by the Bureau of Customs (BOC). The NSW was developed in order to provide all importers of goods a one-stop shop on-line filing and processing of import entry declarations under which all concerned regulatory government offices issuing import clearances/permits like the BIR-issued ATRIG are linked. Expansion of ISO Certification The Quality Management System (QMS) is mandated to other districts under Executive Order No. 605 (Institutionalizing the Structure, Mechanisms and Standards to Implement the Government Quality Management Program). The main objective of EO No. 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) of the Bureau of Internal Revenue which was piloted to two (2) Revenue District Offices (RDOs), RDO 40-Cubao and RDO 43B-West Pasig and will be expanded to other sites. Revision of Tax Forms The redesign/revision of certain Tax Forms, i.e., BIR Forms 2550M, 2550Q and 2551M, including quarterly income tax returns (1701Q and 1702Q) is part of the BIR's effort in simplifying the tax forms for easy compliance of the taxpayers. The redesigning of certain forms and the packaging of the Annual Income Tax Return Forms (1700, 1701 and 1702) shall consider the use of technology based designs for data capture, e.g., Optical Character Recognition (OCR), Intelligent Character Recognition (ICR), scanning mechanism. Phil. Business Registration The Philippine Business Registry is a Department of (PBR) Participation Trade and Industry (DTI) project which allows us linkage with said agency for online filing of applications for business registration, permits, licenses and business dissolution using a single data entry facility. This system will also facilitate TIN issuance for taxpayers registering business online through PBR and will have linkage with BIR eREG system. Public Awareness Campaign (PAC) Intended to promote increased compliance with tax rules and regulations, thus, increasing revenue collection. Launch of eCAR and electronic This project involves the development of web-based ONETT system to generate Certificate Authorizing Registration (CAR) with barcode and linkage with Land Registration Authority (LRA). This will also include a facility for taxpayers to lodge transactions; issue CAR for personal properties; auto-processing of transfer tax transactions: and auto-computation of tax dues. Launch of Geographic Information GIS project shall adopt GIS technology as a tool System (GIS) (Metro Manila which will help improve processes by integrating Zonal Value and eSales) system with geographic information for sound decision-making. It will also provide dynamic data and location intelligence to valuation and taxation functions as well as in the visualization of information gathered from revenue sources (e.g., eSales Reporting) which is presented to BIR and taxpayers. It will encourage compliance among taxpayers. In 2012, GIS project will cover four (4) key cities in Metro Manila, with possible expansion to include the functionality of eAccReg and eSales. Fuse on Stamp on Tobacco Products This shall involve the printing of fuse-on stamps that includes software solution that will enable BIR to monitor the ordering and distribution of stamps to tobacco manufacturers. The system shall achieve the primary objective of ensuring the collection of correct excise tax on tobacco products. Expansion of Human Resource To align HRIS with Government HRIS, a component Information System (HRIS) of Government Integrated Financial Management capture all data of personnel Information System (GIFMIS) pursuant to Executive Order No. 55 directing the Integration and Automation of GIFMIS. Launch of eORB (Official Register Development/implementation of an automated facility Book) on excise products on excise products to allow electronic submission of Official Register Book (ORB) by excise taxpayers to the Large Taxpayer Performance Monitoring and Programs Division (LTPMPD) mainly for monitoring and reconciliation purposes to uncover discrepancies on declarations resulting in increased revenue collection. Re-engineer Registration Process On the operation side, this will mean streamlining of processes on registration through consolidated and standardized approach in primary and secondary registration, to align also with forms enhancement and simplification and other reports. Part of this is the provision of a comprehensive Registration Manual that will be made available to frontliners nationwide for consistent and standardized implementation. On the technical side, this will mean enhancements on all current registration systems, i.e., eRegistration System, eAccReg System, eSales Reporting System and all other related systems. Enhancement of CAATTs laboratory Before the implementation of Conglomerate Audit Investigation Project of 2009, Revenue Officers (ROs) use manual audit in investigating erring taxpayers. CAATTs was conceptualized to improve audit process relative to the said project. At present, the Bureau has forty-two (42) Audit Command Language (ACL) licenses being used by Revenue Officers (ROs) for audit purposes, and is housed in the CAATTs Laboratory Room. Said use of audit tools and techniques is expected to be expanded through implementation of the following: Upgrading of the CAATTs Laboratory Development of CAATTs Training Center Development of CAATTs Officers Training Program Equipping CAATTs experts with the proper hardware and software to conduct audit and data analysis within and outside the laboratory Study in the use of credit card Payment of internal revenue taxes is another as alternative mode of payment opportunity for cardholders to experience the convenience and flexibility of using their credit cards. Individual taxpayers can e-file or manually file early, make payments by credit cards and yet delay out-of- pocket expenses. This will provide a collection system that will address long queues, streamline backroom operations and reduce pilferages and risks associated with cash handling activities. Launch of Mobile Revenue Mobile Application System for RCOs that provides Collection Officer System for mobile receipting of tax payments, generation of (MRCOS) collection reports and reconciliation of tax collections and tax returns. Manpower Planning Human A customized and integrated manpower planning Development Strategy system is proposed to be developed, followed by the preparation of a staffing pattern in accordance with such manpower planning system. Tax Ruling and Case Management This system maintains legal and administrative tax System (TRCMS) information in a centralized technical reference system. TRCMS will enable faster and easier access to tax rulings as well as legal and administrative cases. The system will be used to monitor cases and will provide comprehensive, accurate and timely data on cases and documents for management and operational reporting. The system will also log and track all paper- based documents. Fuse on Stamp on other excisable This involves the expansion of the fuse on stamp products project to the alcohol industry to enhance the monitoring of the movements of ethyl alcohol and alcohol products and ensure the collection of correct taxes. eLinkage with Bureau of Treasury Linkage with BTr for the monitoring of the (BTr) submission of journal entry vouchers, etc. This is also in preparation for the submission of payroll reports. Accounts Receivable Conversion It is a web based data entry program that converts System (ARCS) manually created accounts receivable cases and delinquent accounts into a database which shall be uploaded to the Electronic Tax Information System (eTIS) to better handle and monitor delinquent accounts, establish actual delinquent accounts profile of the Bureau, aid in the collection enforcement activities, and be able to generate electronically the tax clearances required by taxpayers/public bidders. Collection Reconciliation System It is a web-based application that will execute the (CRS) reconciliation of tax collections from the Bureau of Internal Revenue (BIR), Authorized Agent Banks (AABs), Bangko Sentral ng Pilipinas (BSP) and Bureau of Treasury (BTr). The CRS reconciliation will facilitate the reporting requirements of BIR for policy making by the Department of Finance, establish the correct/actual collection figures of the different Revenue District Offices versus the collection reflected by BTr and monitor collection efficiency of these offices. Electronic Tax Information Systems Development of enhanced eTIS, to include (eTIS) Project re-engineering of processes as prioritized by top management. eTIS aims to upgrade the current Integrated Tax System (ITS) of the BIR into a multi- tiered, web-based system.