CY 2020 BIR Priority Programs and Projects

October 1, 2019 REVENUE MEMORANDUM CIRCULAR NO. 123-19 SUBJECT : CY 2020 BIR Priority Programs and Projects TO : All Internal Revenue Officials, Employees and Others Concerned This Circular is being issued to publish and disseminate the CY 2020 Priority Programs and Projects of the Bureau of Internal Revenue. These Priority Programs, which are enumerated in Annex A of this Circular, were selected from the Bureau's Strategic Plan for 2019-2023. They are undertakings that will significantly contribute not only to the attainment of the Bureau's revenue targets, but also to the implementation of the National Government's new policy directions, particular with regard to the ease of doing business and data privacy. All Bureau offices are enjoined to align their major activities/initiatives to these Priority Programs and Projects, to ensure the achievement of the revenue service's CY 2020 Collection Goal, and the fulfillment of the Bureau's mandate. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ANNEX A CY 2020 BIR Priority Programs and Projects Programs and Projects Objectives Lead Office 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 (EAS) 2. Oplan Kandado > To enhance voluntary compliance and increase revenue collections through an intensified enforcement action involving the closure of business establishments. Operations Group (OG) 3. Broadening of the Tax Base > To simplify taxpayers' compliance to increase the number of active business registered taxpayers with five percent (5%) target annually. > To uncover unregistered taxpayers/businesses as a result of Tax Compliance Verification Drive (TCVD) and third-party information. Client Support Service (CSS) 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 (CAATs). > 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 (AS) 5. Enhanced Implementation of the Arrears Management Program in the Regional Offices > To increase by at least 7% from the previous periods of collection of Arrears and cancelled/closed arrears through a wider scope of collection enforcement activities including the efficient management of the total arrears/account handled. Collection Service (CS) 6. Development of Online Registration and Update System (ORUS) > To re-engineer business registration and adopt zero contact policy in compliance with RA No. 11032 Ease of Doing Business and Efficient Government Service Delivery Act of 2018. > To clean up registration database. CSS 7. Tax Education Campaign/Public Awareness Program/Consultation/Information Dissemination > To have massive information dissemination on tax laws and policies thru conduct of seminars, dialogues, 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 printed Information, Education and Communication (IEC) materials readily available for distribution and dissemination to taxpayers and tri-media (TV/Radio guesting, publication in newspapers). > To avail IEC materials in the BIR Website (email) and Social Media (Facebook, Twitter, YouTube and Electronic Billboards). CSS 8. Ease of Doing Business and Efficient Government Service > To simplify application forms and reduce the number of documentary requirements in all BIR frontline services. > To reduce the number of processing time in all BIR frontline services and number of signatories to not more than three (3). > To act promptly on complaints received through Citizens' Complaint Hotline (8888), Contact Center ng Bayan (CCB) and Anti-Red Tape Authority (ARTA). > To update the BIR Citizen's Charter. > To improve the country's ranking in Starting a Business in Ease of Doing Business Report. CSS 9. e-Invoicing/e-Receipting and eSales Reporting > To develop a system for e-Invoicing/e-Receipting and e-Sales Reporting e-Invoicing/e-Receipting System is an Electronic platform capable of processing and storing electronic invoices and receipts issued by taxpayers on real time (or near real time) basis containing tax information, VAT and withholding tax details, among others. e-Sales Reporting System is an electronic platform capable of summarizing the electronic invoices and receipts stored by the e-Invoicing/e-Receipting System. It will also generate reports on VAT information of taxpayers for the processing of VAT refund applications under the enhanced VAT refund system of the BIR and for third-party matching on tax audits/assessments. CSS Information Systems Group (ISG) 10. Fuel Marking and Field Testing Program > To minimize smuggling/misdeclaration and increase the revenue collection of the Bureau of Customs (BOC) and Bureau of Internal Revenue (BIR) from taxable imported and locally refined fuel products. > To establish a National Monitoring and Field Testing System that will enable the BOC and BIR to minimize the illegal entry, manufacturing, refining and distribution of taxable fuel products in the country. > To adopt a transparent standard operating procedure for fuel marking and field testing in the country. > To develop capacity building program for BOC and BIR on fuel marking and testing with the view of increasing taxes for the betterment of nation building. Large Taxpayers Service (LTS) 11. Automation of Withholding Tax BIR Form 2307 and issuance of withholding tax certificates > 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. CS 12. Digital Transformation (DX) > To implement a Digital Transformation Roadmap towards a Client-first and Digital-first Tax Administration. > To study the proposed creation of Data Analytics Unit in the BIR. Project Management and Implementation Service (PMIS) Planning & Management Service (PMS) Resource Mgmt. Group (RMG) 13 . Integrity Management Program > To act on administrative cases filed against erring revenue officials and employees. > To expedite preliminary investigation on complaints/reports against Bureau personnel and disposition of administrative cases for decision or resolution. > To conduct Bureau-wide briefing/awareness on the Revised Code of Conduct, and 2017 Rules on Administrative Cases in the Civil Service (2017 RACCS), and updates on prevailing jurisprudence. > To enhance the technical and working knowledge of Investigators and Hearing Officers relative to administrative justice procedures and legal writing. Internal Affairs Service 14 . 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. > To develop Terms of Reference and other technical documents that define requirements on the modernization of existing data center and identify corresponding budget. ISG 15. Optimization/Implementation of Internal Revenue Integrated System (IRIS) formerly eTIS > To roll-out the following eight (8) modules of IRIS system (formerly eTIS) to pilot sites, Revenue Regions 8A (Makati City), 8B (South NCR) and LTS: Tax Registration System (TRS) Collection Remittance and Reconciliation (CRR) Returns Filing and Processing (RFP) Audit (AUD) Case Monitoring System (CMS) Taxpayer Compliance System (TCS) Taxpayer Accounts System (TAS) Tax Credit and Refund System (TCR) OG and ISG 16. Lease of Contact Center Solution > To have efficient delivery of taxpayer service by facilitating distribution of calls and emails received from taxpayers in an organized manner thru a Telephony and Customer Relationship Management (CRM) system. CSS 17. Subscription of ICT Software (Chatbot) > To avail of 24/7 automated response system to taxpayers for commonly/frequently asked questions. CSS 18. Construction of BIR National Office Building > To upgrade to modern facilities and infrastructure. > To align with other neighboring Asian Tax Authorities. RMG 19. Effective recruitment, capacity development, career advancement, succession planning and retention strategies > To formulate a different type of examination for each different position. > To provide trainings/seminars on recent processes on recruitment, capacity development, career advancement, succession planning and retention strategies. > To benchmark the process of recruitment and promotion (other agencies). Human Resource & Development Service 20. Budget Utilization Program > To attain 100% compliance of the following: Obligation Budget Utilization Rate (BUR); and Disbursement Budget Utilization Rate (DBUR). Finance Service