CY 2016 Priority Programs

February 15, 2016 REVENUE MEMORANDUM CIRCULAR NO. 014-16 SUBJECT : CY 2016 Priority Programs TO : All Internal Revenue Officials and Employees The implementation of the Bureau of Internal Revenue's Priority Programs contributes significantly to the attainment of our annual revenue targets and the success of our efforts to generate revenues for the Government. For CY 2016, twenty-six (26) programs are included in the priority list, attached as Annex "A" of this Circular. These are continuing priority programs which are aligned with the BIR High-Level Strategic Plan for 2016-2020. In this regard, all Bureau offices are enjoined to align their individual activities, projects and endeavors to the CY 2016 Priority Programs, to further propel the upward momentum of collection efficiency that the Bureau has been able to sustain over the past years. All revenue officials and employees are required to give this Circular the most extensive publicity possible. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ANNEX A Bureau of Internal Revenue CY 2016 Priority Programs Name of Program/Project Objective for 2016 Lead Office/Office Concerned 1. RATE Program a) Generate maximum deterrent effect on the taxpaying Legal Group (LG) public by impressing the fact that tax evasion is a Enforcement and Advocacy crime and violators will be caught and punished; Service (EAS) b) Enhance voluntary compliance among taxpayers; and National Investigation Division c) Promote the confidence of the public in the tax system. (NID) Prosecution Division (PD) Revenue Regions (RRs) 2. Oplan Kandado Program Strengthening of the Bureau's imposition of prescribed Operations Group (OG) administrative sanctions of suspending the business operations and temporarily closing of business establishments for non-compliance with essential requirements of value- added tax (VAT). 3. Electronic Tax Information A major Information and Communication Technology (ICT) OG System-1 (eTIS-1) undertaking intended to enhance/improve the BIR core Tax Information Systems Group (ISG) Administration System, providing a single, web-based Information Systems Project automated solution. Management Service (ISPMS) Nationwide rollout. 4. Exchange of Information This project aims to comply with the Intergovernmental LG (EOI) Program Agreement in implementing FATCA requirements and to Legal Service (LS) - Implementation of the enable/automate the exchange of information with other International Tax Affairs Division Foreign Account Tax countries in determining cross-border tax fraud and (ITAD) Compliance Act evasion. ISG Intergovernmental ISPMS Agreement Model 1 Information Systems Development (FATCA-lGA 1) & Operations Service (ISDOS) Data Warehousing & Systems Operations Division (DWSOD) Security Management Division (SMD) Business Intelligence Division (BID) 5. VAT Audit Program To maximize the effectiveness of the VAT Audit Program OG through its institutionalization in the regional offices. Assessment Service (AS) Assessment Programs Division 6. Enhancement of Electronic eCAR System is a web-based application that process OG Certificate Authorizing transfer of ownership of real and/or personal properties. AS Registration (eCAR) Details of transaction are encoded into the system and ISG System [formerly On-line electronic CAR with barcode is then generated and issued ISPMS System for Transfers Tax to the taxpayer. The system also has al n linkage with Land Transactions (OST3)] Registration Authority (LRA) for accurate and secured exchange of information between BIR and LRA. The generation of electronic CAR is the end product on one-time transaction process. The front-end process is still manual which includes the following: - Submission of documentary requirements by taxpayers to RDO - Checking of completeness of documentary requirements - Preparation and approval of computation sheet - Encoding of transaction details to eCAR BIR aims to convert these remaining manual processes to electronic processes to complete the whole cycle of one-time transaction activities. 7. Site Expansion of eCAR Following the implementation of the eCAR Project to Regional OG System Offices in Metro Manila and Revenue Regions No. 1-Calasiao, AS Pangasinan, this project aims to monitor and supervise the ISG implementation of the eCAR System to other Regional Offices. ISDOS 8. Taxpayer Registration To update and clean up the BIR registration database and to OG Information Update allow the taxpayers to register and update their registration Client Support Service (CSS) (TRIU) Program data online anywhere and anytime (24/7) and have a real time ISG access of registration record. ISPMS - Enhanced Taxpayer It aims to replace paper TIN Card to a Polyvinyl Choloride Identification Number (PVC) type card and issue Near Field Communication (NFC) (TIN) Card TIN card for senior citizens as a requirement for VAT exemption. - Securitized Certificate Issuance of Certificate of Registration using a more durable of Registration materials. 9. Online Application and This project pertains to the development of an automated OG Processing of Tax system that will facilitate processing of Tax Clearance for Collection Service (CS) Clearance for Bidding Bidding Purposes and will provide convenience for taxpayers Accounts Receivable Monitoring Purposes entering contracts with government agencies. Division (ARMS) ISG ISPMS 10. Geographical Information This system will provide data and location intelligence to OG System (GIS) valuation and taxation functions as well as the visualization CS of information gathered from Registration, eSales, zonal AS valuation and collection. CSS Roll-out to Metro Manila Regions (RRs 5, 6, 7 and 8). ISG ISPMS 11. Asset Information Phase 2 To include the build-up of taxpayers' database OG Management Program management system of asset-related and other relevant AS (AIM-P) Phase 2 information from processed Tax Amnesty Returns (TARs), ISG Statement of Assets, Liabilities and Networths (SALNs), Third ISPMS Party Information (TPI) and other existing internal information within the BIR. It also covers the development of BI solutions for revenue administration and decision. 12. Workflow Management To immediately track and monitor documents through paperless OG System environment. CSS Resource Management Group Included in this project is the establishment of a centralized (RMG) receiving office/unit from the National, Regional and Administrative Service District Offices. Large Taxpayers Service (LTS) ISG ISPMS 13. Centralized Arrears and OG Forfeited Asset CS Management Project 1. Arrears Management Collection Performance and Project (AMP) Monitoring Division (CPMD) Component 1 Pilot - Centralized management and handling of Accounts ISG Implementation Receivable/Delinquent Accounts (AR/DAs) with ISDOS streamlined processed focused on specialized skills and competence of Seizure Agents. Component 2 - Institutionalization of AMT's functions in the Regional Institutionalization Offices. 2. Forfeited Asset Management Project (FAMP) Component 1 Centralization - Centralized approach in management and disposition of seized/forfeited assets, initially for properties that were seized/forfeited from taxpayers under the jurisdiction of regional offices in Metro Manila. Component 2 Automated System - Development of web-based application in the management and disposition of seized/forfeited assets of the Bureau, including creation, maintenance and updating of database of seized/forfeited properties and automatic publication of relevant information on acquired assets to the BIR Website for dissemination to all interested internal and external parties. 14. Automated Internal The development of the Automated Internal Revenue Allotment OG Revenue Allotment (IRA) Computation System (AIRACS) is intended to automate the CS Computation computations of the shares of the Local Government Unit (LGUs) Revenue Accounting Division and other government agencies-beneficiaries from the internal ISG revenue tax collections on a per office, barangay, municipality/city ISPMS and/or province basis, as the case may be. The system shall allow the electronic generation of the required certificate/s and the electronic transmission of the said computed internal revenue allotments to the Department of Budget and Management (DBM), Bureau of Treasury (BTr), and Department of Finance (DOF). 15. Enhanced Mobile Revenue The existing downloadable mobile application system will be OG Collection Officers enhanced to maximize the features of MRCOS in order to cater to CS System (MRCOS) V.2 a broad range of mobile devices. ISG ISPMS 16. Collection Reconciliation This web-based system will facilitate the reconciliation of tax OG System (CRS) collection data from BIR, OG AABs, Bangko Sentral ng Pilipinas CS and Bureau of Treasury, and to improve the reporting ISG requirements of BIR for policy making purposes. ISDOS Nationwide implementation of CRS. 17. Use of Credit/Debit and Implementation of credit/debit and prepaid cards as alternative OG Prepaid Cards as an mode of payment of taxes in order to provide ease and CS Alternative Mode of convenience to taxpayers in paying their tax liabilities. ISG Payment of Taxes ISPMS 18. Expansion of Satellite The project aims to institutionalize computerized audit tools and OG CAATS Offices in techniques as an indispensable tool in investigating taxpayers AS Regional Offices utilizing computerized books of accounts or computer aided ISG financial records on a nationwide level. Satellite CAATs Offices ISDOS will be created in selected Regional Offices to provide revenue officers access to the system for use in. n It further aims to improve collections efforts arising from investigation through a more comprehensive audit of transactions and faster turnover of cases. The project also involves training and education of Revenue Officers in the conduct of computerized audit tools in regular investigation, establishment of CAATTs satellite offices to priority Regional Offices in Metro Manila and Cebu City. 19. Online System The development of the electronic Accreditation of Importers and OG Accreditation of Importers Custom Brokers (eAICB) System is intended to make the CS and Custom Brokers accreditation of importers and customs brokers faster, more CPMD efficient, and more convenient for the taxpayers due to improved ISG processes, thereby improving taxpayer satisfaction and compliance. ISPMS 20. Centralization of Document The project aims to continue its existing commitment to: OG Processing to the Regional - Monitor and assist the Regional Offices in establishing AS Offices Project their respective Document Processing Division (DPDs); ISG - Monitor, coordinate and evaluate the operations of the ISDOS DPDs; - Promote efficiency and effectiveness in the processing of Revenue Data Centers (RDCs) tax returns by revisiting existing processes and procedures and by enhancing existing policies and procedures or formulating new issuances. 21. Electronic Official Registry An automated facility on excise products that shall allow the LTS Book (eORB) manufacturers of excisable products to electronically submit the Excise Large Taxpayer Field ORBs. The system shall be able to monitor the submission and Operations Division check entries to uncover discrepancies on declarations of the (ELTFOD) Official Registry Book of business involved in tobacco, and alcohol ISG products. ISPMS Enhancement of the existing eORB System on tobacco products and the expansion of the system for alcohol products. 22. Internal Revenue Stamps A web-based application that will manage the ordering, production, LTS Integrated System distribution, affixing and tracking as well as provisions of security ELTFOD (IRSIS) for Distilled features in the revenue stamps for distilled spirits and wines. Its ISG Spirits and Wines primary objective is to ensure the collection of correct excise ISPMS taxes on alcohol products. Expansion of the IRSIS for distilled spirits and wines. 23. Transfer Pricing Program Transfer Pricing Program seeks to complement Transfer Pricing LTS Guidelines of the BIR issued through Revenue Regulations No. LG 2-2013 dated January 23, 2013. It prescribed the guidelines in (RSO No. 19-2016) determining the appropriate revenues and taxable income of the parties in controlled transactions which is largely based on the Economic Cooperation and Development (OECD) Transfer Pricing Guidelines. The objectives for 2016 are the Commercial Database Subscription for Transfer Pricing Studies (Cdbs-TPS), development pursuit of a Transfer Pricing Test-Case for LTS, and the crafting/finalization of related issuances on Transfer Pricing such as, but not limited to the following: Revenue Regulations on Advance Pricing Agreement, Revenue Memorandum Order on Transfer Pricing Documentations, Revenue Memorandum Order on Transfer Pricing Risk Assessment, among others. 24. Industry Issues The program was introduced by LTS beginning June 2014 following LTS Resolutions Legal the issuance of Revenue Memorandum Order No. 9-2014 setting LG forth the guidelines in the processing of request for rulings with the Law and Legislative Division. LTS Core Group which was composed of LTS officials and representatives from the Legal Group was created to address and tackle any industry issues and concerns of large taxpayers. For 2016 it will continue to address and tackle any industry tax issues and concerns of large taxpayers, specifically on matters declared as "No Ruling Areas", immediate action or resolution on legal issues raised in an ongoing audit investigation and/or crafting of appropriate revenue issuances or amendments to existing issuances. 25. Human Resource The establishment of a modern, fully automated HRIS will allow RMG Information System better utilization and management of BIR staff. The HRIS will Human Resource Development (HRIS)/Comprehensive support the requirements of the Civil Service Commission (CSC) Service (HRDS) Human Resource Program to Institutionalize Meritocracy and Excellence in Human Personnel Division Information System Resource Management (PRIME-HRM) and provide the revenuers ISG (CHRIS) with fast and easy access to comprehensive and integrated human ISPMS resource data. 26. Supporting Capacity a) To increase the efficiency and professionalism of the BIR RMG Development for the BIR through improvement of human resources management and the HRDS (e-Learning Systems) training management system furthermore, to develop a revised Training and Management Division training plan and training courses for new recruits and other BIR ISG employees. ISPMS b) To apply information and communication technology and e-Learning systems in the BIR. c) Creation of computer based training modules for the employees.