CY 2021 BIR Priority Programs and Projects

January 26, 2021 REVENUE MEMORANDUM CIRCULAR NO. 023-21 SUBJECT : CY 2021 BIR Priority Programs and Projects TO : All Internal Revenue Officials, Employees and Others Concerned In view of the "new normal" due to COVID-19, the Bureau of Internal Revenue shall implement the CY 2021 Priority Programs and Projects in order to generate revenues essential for the government to accelerate the recovery and bolster the resiliency of the Philippine economy, as embodied in Republic Act No. 11494. The CY 2021 Priority Programs and Projects, as provided in Annex "A", shall contribute to the achievement of the Bureau's revenue target for CY 2021 and essentially support the government's economic development programs. All Bureau offices are therefore enjoined to align their activities and endeavors to the CY 2021 BIR Priority Programs and Projects. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ANNEX A CY 2021 BIR Priority Programs and Projects Programs and Projects Objectives Lead Office A. Enforcement Program 1. Run After Tax Evaders (RATE) Program > To have a maximum deterrent effect on the taxpayers by impressing the fact that tax evasion is a crime and violators will be caught and punished. To increase taxpayer awareness of actions that amount to tax evasion and the certainty of their punishment. To modify taxpayer behavior with the idea that the likely punishment outweighs the gain or benefit of getting away with the crime. To discourage potential offenders from committing tax evasion in the future. > To enhance voluntary compliance among taxpayers and promote the confidence of the public in the tax system. To encourage taxpayer cooperation with the tax system by filing honest and accurate returns. To assure the taxpayers that cooperation through voluntary compliance will reduce the probability of enforcement activities conducted against them. Enforcement and Advocacy Service 2. Oplan Kandado > To enhance voluntary compliance and increase revenue collections through an intensified enforcement action involving the closure of business establishments. Operations Group 3. Broadening of the Tax Base > To simplify taxpayers' compliance in order to increase the number of active business registered taxpayers by five percent (5%) annually. > To uncover unregistered taxpayers/businesses as a result of Tax Compliance Verification Drive (TCVD) and Third-Party Information (TPI). Client Support Service 4. Intensified Audit and Investigations > To intensify the investigation of taxpayers' compliance and collect the right taxes, through maximized utilization of the Computer Assisted Audit Tools and Techniques (CAATTs). > 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 B. Tax Compliance Monitoring Program 5. Tax Education Campaign/Public Awareness Program/Consultation/Information Dissemination > To have massive information dissemination on tax laws and policies thru conduct of seminars, dialogue, public hearings, consultations to internal and external stakeholders. > To establish/maintain external linkages with other government agencies and private institutions relative to the conduct of tax information and awareness campaign. > To have Information, Education and Communication (IEC) materials readily available for printing, distribution and dissemination to taxpayer and tri-media (TV, Radio and newspaper). > To publish/disseminate IEC materials via BIR Website, email facility and BIR Social Media pages (Facebook, Twitter, Youtube, Electronic Billboard, and other available electronic channels). Client Support Service 6. Innovating TP Experience and BIR Service Process a. Automation of Withholding Tax BIR Form 2307 and Issuance of Withholding Tax Certificate > To automate the withholding tax business process and the issuance of withholding tax certificates to collect income tax through voluntary compliance instead of tax audits. > To ensure that withholding tax certificates are authentic and the corresponding withholding tax was indeed remitted by the payor. > To increase compliance of submission of alphalist of payees on income payments subject to withholding tax. Collection Service b. Streamlining of Creditable Withholding Tax (EWT) Rates > To adopt unified tax rates across certain business sectors or classes as interim solution to errors in withholding tax rates used by businesses and in selecting correct Alphanumeric Tax Codes (ATCs). Collection Service c. Re-architecture and Enhancement of the Electronic Documentary Stamp (eDST) System > To engage a Consultant for the re-architecture and enhancement of the existing eDST system to address the intermittent technical issues being encountered affecting system performance and accessibility. Collection Service d. Online Registration and Update System (ORUS) > To provide an end-to-end process for registration and updating of taxpayer registration information. > To make available the on-line application and processing of secondary registration. Client Support Service e. TIN Verifier Mobile Application > To establish a no-contact policy with taxpayers vying for TIN verification through a mobile application and self-based chat system for TIN validation inquiry. > To provide efficient taxpayer assistance through prompt validation and verification of TINs. Client Support Service f. Integrated contact center solution and chatbot > To provide efficient delivery of taxpayer service where taxpayers can lodge queries via calls, emails and chat. > To facilitate distribution of calls and emails in an organized manner through a telephony system and a 24/7 chatbox that can respond quickly to Frequently Asked Questions (FAQs) of taxpayers. Client Support Service 7. Development of eFiling System > To provide a new eFiling System that is robust, scalable, high-available, easy to use, ability to use various e-payment options and secured to maintain high level of service to all types of taxpayers and stakeholders. > To utilize new technologies to create comprehensive e-filing system that meets the present needs and requirements of BIR and its stakeholder. > To make eFiling System interoperable across all platform, devices and channels to improve taxpayer digital experience and cope with the evolving technologies. > To complement the functions of the Taxpayer Registration System (TRS) under the Internal Revenue Integrated System (IRIS) by updating the registration information. > To fully shift to Agile software development from standard (old) Waterfall SDLC (Software Development Life Cycle) approach and use of open standard methodologies. Collection Service Information Systems Project Management Service 8. eAppointment > To develop an online or digital medium accessible at BIR website that taxpayers may use to book or request for schedule of meeting/conference with Revenue Officers/Officials regarding matters on taxation. Assessment Service Client Support Service 9. Information and Communications Technology (ICT) Solutions for Improved Taxpayers Services Availment of Commercial Data Center > To improve availability of application systems used by taxpayers and Bureau personnel by improving the current data center and/or availing of a commercial data center and implementing disaster recovery for other systems. Information Systems Group C. Enhancement of Administration and Support Services Program 10. Budget Utilization Rate > To attain compliance on the following: 90% Obligation Budget Utilization Rate (BUR); and 85% Disbursement Budget Utilization Rate (DBUR). Finance Service 11. Effective recruitment, capacity development, career advancement, succession planning and retention strategies > To roll out an alternative pre-employment examination to be conducted remotely through online platform. > To benchmark digital recruitment, selection and placement of applicants/applicant tracing system. > To fill-up vacant entry-level positions through external and internal recruitment of qualified candidates. > To fill-up vacant non-entry-level positions through promotion of qualified employees in accordance with the BIR Merit Promotion Plan and other pertinent CSC rules and regulations. > To ensure continuous growth and progress of BIR employees through the development of new training courses relevant to the Bureau's goals and priority programs and projects. > To enable BIR employees assume leadership roles through the development of training courses that will equip them with the leadership skills relevant to their functions. Human Resource Development Service 12. Aligning Policies to a BIR Digital Workplace a. BIR Integrity Management Program > To ensure that action and disposition on administrative cases are in accordance with the BIR issuances, Civil Service Commission (CSC) rules and other allied laws. > To establish a system that will manage and monitor the BIR administrative cases in a centralized data repository in accordance with the existing RAOs, RMOs and related Revenue Issuances. Internal Affairs Service b. Taxpayer Segmentation > To develop a taxpayer's segmentation model/criteria, classified into Small, Medium and Large. > To establish grouping of taxpayers according to similar assistance needed in order to offer quality service implementation specialized to each segment. Planning and Management Service 13. Enabling the Digital Backbone of BIR a. Optimization/Implementation of Internal Revenue Integrated System (IRIS) > To implement the following five (5) modules of IRIS system (formerly eTIS) by phases/by cluster nationwide: Audit (AUD) Selection System Case Monitoring System (CMS) Audit and Non-Audit Taxpayer Compliance System (TCS) Taxpayer Accounting System (TAS) Tax Credit and Refund System (TCR) Operations Group Information Systems Group b. Cloud Computing Provisioning of all DX System-Driven Projects > To adopt and integrate digital technology in BIR. Information Systems Development and Operations Service Information Systems Project Management Service Note: For projects under Digital Transformation (DX), the Project Management and Implementation Service (PMIS) shall monitor its implementation/execution.