Agency Key Performance Indicators and Targets for CYs 2014-2016

May 13, 2014 REVENUE MEMORANDUM CIRCULAR NO. 041-14 TO : All Revenue Officials and Employees SUBJECT : Agency Key Performance Indicators and Targets for CYs 2014-2016 Revenue Memorandum Order No. 31-2011 (dated 19 July 2011), which prescribes the BIR's Agency Level Key Performance Indicators (KPIs) , provides that: "The set of KPIs shall be revisited annually and updated, if needed." In this regard, these Agency Key Performance Indicators (KPIs) and Targets for CYs 2014 to 2016 have been revisited, in consultation with the concerned Measure Owners and the Deputy Commissioners, in light of the various tax reform initiatives that have been implemented since the said KPIs were formulated, as well as a number of significant intervening developments, whether internal or external, that had an impact on the Bureau's operations. Such reassessment of these KPIs and Targets is likewise intended to: Monitor the progress of the KPIs vis--vis their respective targets; Determine which KPIs should be discontinued, replaced or retained; and, Formulate/Validate the KPIs and Targets for CYs 2014 to 2016. Details of the Revised Agency KPIs and Targets for CYs 2014-2016 are contained in Annex "A" of this Circular. For your information and compliance. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ANNEX A AGENCY PERFORMANCE MEASURES AND TARGETS (CY 2014, 2015, and 2016) Strategic Performance Performance Target Perspective Objectives Measures Formula CY 2014 CY 2015 CY 2016 Revenue Attained Collection Collection 2013 Actual Collection 100% +/- 2% of the +/- 2% of the Targets and Sustained Performance x 100 Agency Goal Agency Goal Collection Growth 2013 Agency Goal Collection Growth 2013 Actual Collection - 19.70% 17.58% 19.57% 2012 Actual Collection (based on (based on (based on x 100 Medium Medium Medium 2012 Actual Collection Term Rev. Term Rev. Term Rev. Program Program Program 12/18/13) 12/18/13) 12/18/13) Taxpayer Improved Taxpayer Registration: 2013 Total Registered Business TPs - 10% 10% 10% Satisfaction and % Increase in 2012 Total Registered TPs Compliance Number of x 100 Registered 2012 Total Registered Business Business TPs TPs (Individual and Non- Individual) Reduction in Processing time last year - Processing Time of Processing time this year Application for: a) Primary 45 mins 45 mins 45 mins Registration (includes TIN and COR issuance) b) Secondary 15 mins 15 mins 15 mins Registration (includes the subsequent request for Authority to Print) Audit of Refund Number of Refunds 20% 30% 40% Claims within BIR: Processed within 120 days Reduction in x 100 Amount of Time Total Number of Refunds Required to Processed complete Audit Refund claims within the BIR Process Improve Assistance, Audit Efficiency: Cases Reported 25% 35% 45% Compliance and Reported Cases x 100 Enforcement Process as Percent of Cases Handled Audit Cases Handled Audit Effort: Collection from 5% 7% 8% Amount Collected Involuntary Effort from Audit of TPs x 100 as Percentage to Total Collection Total Collection Arrears Collection: Amount of Arrears Collected 6% 8% 10% Arrears Collected x 100 as Percentage of Amount of Potentially Potentially Recoverable Arrears Recoverable Arrears Criminal Number of Cases 3 cases filed 3 cases filed 3 cases filed Investigation/Tax Filed per Month per month per month per month Fraud: Frequency (36 cases (36 cases (36 cases of Filing of Cases filed per year) filed per year) filed per year) with the Department of Justice (DOJ) Number of Cases Cases Resolved by DOJ 50% 50% 50% Resolved in Favor in Favor of BIR of BIR as a x 100 Percentage to Total Number of BIR total Number Cases Resolved by DOJ of BIR Cases Resolved by DOJ Improve Integrity and Returns Encoding: Returns Encoded 75% 80% 85% Accuracy of Percent of Tax x 100 Taxpayer Database Returns Captured Returns Expected into the System (TAMP returns) Organization Improve Integrity, Integrity (Implementation of the Integrity IMP cascaded and People Professionalism, Management Management Program IMP) to Regional and Competence and Index District Offices Satisfaction of Human Resources Budget Utilization Total Obligations 90% 90% 90% Rate x 100 Total Budget Optimize Management Expedite DVs processed and paid 86% are 86% are 86% are of Resources Processing and within 24 working days processed and processed and processed and Payment of x 100 paid within paid within paid within Disbursement DVs processed 24 working 24 working 24 working Vouchers (DVs) days upon days upon days upon receipt of DVs receipt of DVs receipt of DVs Approved by: (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue