CY 2023 BIR Priority Programs and Projects

March 10, 2023 REVENUE MEMORANDUM CIRCULAR NO. 38-2023 SUBJECT : CY 2023 BIR Priority Programs and Projects TO : All Internal Revenue Officials, Employees and Others Concerned This Circular is being issued to publish and disseminate the Bureau of Internal Revenue's Priority Programs and Projects for CY 2023. These Priority Programs and Projects for CY 2023, which intend to ensure efficiency and organization of the BIR's effort to improve tax administration and generate revenues; are clustered into the following focus areas: I. Taxpayer Service Program; II. Audit and Enforcement Program; III. Administration and Support Services Program; IV. Transparency and Integrity Program; and V. BIR Digital Transformation (DX) Program. The details of the CY 2023 Priority Programs and Projects are provided in Annex A of this Revenue Memorandum Circular. All Bureau offices are therefore enjoined to align their operational plans and activities with the CY 2023 BIR Priority Programs and Projects. (SGD.) ROMEO D. LUMAGUI, JR. Commissioner of Internal Revenue ANNEX A CY 2023 BIR Priority Programs and Projects PRIORITY PROGRAM OBJECTIVES/DESCRIPTION LEAD OFFICE I. Taxpayer Service Program Deliver efficient, courteous and timely services to encourage taxpayers to file tax returns and pay correct taxes on time. 1. Taxpayer Awareness Program Make tax information easily available to taxpayers through: o Dissemination of Information, Education and Communication (IEC) materials to taxpayers using the following media: a. Tri-media (TV/Radio interviews, publication in newspapers); b. Electronic media (BIR Website, email, and electronic billboards); and c. Social media (FaceBook, YouTube and Twitter). o Conduct of seminars, dialogues, public hearings, and consultations with internal and external stakeholders; and o External linkages with other government agencies and private institutions relative to the conduct of tax information and awareness campaigns. Client Support Service 2. Process Improvement Review, streamline and standardize processes for: o Taxpayer Service; o Compliance on Reportorial Requirements; o Update of Zonal Values; o VAT Refund; and o Taxpayer Segmentation. Concerned Revenue Service II. Audit and Enforcement Program Utilize a full range of audit and enforcement activities to ensure taxpayers, who deliberately evade or avoid paying tax, will meet their obligations. 1. Run After Tax Evaders (RATE) Emphasize the criminal nature of tax evasion, in order to have a maximum deterrent effect on taxpayers, thereby enhancing voluntary compliance and promoting public confidence in the tax system. Enforcement and Advocacy Service 2. Oplan Kandado Enhance voluntary compliance and increase revenue collections through the temporary closure of business establishments until compliance requirements are met. Operations Group (Regional Offices) 3. Broadening of the Tax Base Increase the number of active registered business taxpayers by identifying unregistered taxpayers/businesses through the conduct of Tax Compliance Verification Drive (TCVD) and use of Third-Party Information (TPI). Client Support Service 4. Maximum utilization of tax information for audit/investigation Expand/maximize, the use of various sources of tax information, i.e. , TPI, TCVD, Exchange of Information, Tax Treaty, etc. for generation of additional revenue collection. Assessment Service 5. Intensifying Collection of Delinquent Accounts Pursue appropriate actions on the management of delinquent accounts thru the: o Establishment of accurate inventory and profile of delinquent accounts; o Employment of appropriate Summary Remedies; and o Issuance of clear guidelines on Write-off of confirmed/verified uncollectible accounts. Collection Service 6. Strict Monitoring of Reportorial Requirements Ensure compliance by taxpayers/withholding agents on reportorial requirements, such as: o Alpha List; Collection Service o Use of Electronic Filing and Payment System (eFPS) by mandated taxpayers; and Collection Service o Summary Lists of Sales and Purchases (SLSP). Assessment Service 7. Conduct of CRM-POS post evaluation Strengthen enforcement capabilities thru effective monitoring and post validation of the accuracy of sales declaration generated from Point-of-Sale (POS)/Cash Register Machines (CRM)/Special Purpose Machines (SPM)/Other Sales Receipting System Software, Receipting/Invoicing of Computerized Accounting System (CAS), including online sales transactions and from manual invoices/receipts/supplemental commercial documents. Assessment Service 8. Excise Program Safeguard and maximize excise tax collection/revenues by effective and efficient monitoring of establishments engaged in the manufacture/importation/export of excisable products (EEMIEP), through the following: o Internal Revenue Stamps Integrated System (IRSIS) on Alcohol; o Validation of Records of excisable articles subject to Ad Valorem Tax (AVT); o Regular Stocktaking and Reconciliation of Official Register Book and other documents; and o Spot-checking of Revenue Officers on Premises (ROOPs). Large Taxpayers Service 9. Run After Fake Transactions Identify and file civil, criminal and administrative cases against sellers and users of commercial invoices/receipts used to support fake transactions to evade payment of internal revenue taxes. Collect lost revenue from fake transactions. Suspend or cancel the Certificate of Accreditation of Tax Practitioners and initiate administrative complaints for the suspension or revocation of Professional licenses of CPAs involved in fake transactions. Office of the Commissioner III. Administration and Support Services Program Ensure the highest standards of financial integrity, big data technology capabilities, and policies and procedures in the recruitment and promotion processes. 1. Matching of BIR Data versus Third Party Information Ensure the utilization of third-party data for audit and enforcement purposes, as a tool for generating additional tax revenue collection. Develop guidelines and procedures for timely recognition of taxpayers deliberately declaring under declared income and/or over claimed purchases, for priority target for audit enforcement and collection of deficiency tax. Assessment Service 2. Comprehensive Taxpayer Profiling and Industry Benchmarking Implement comprehensive taxpayer profiling and industry benchmarking activities on a nationwide basis, to cover an expanded list of industries for all types of taxes following basic guidelines under RMO No. 5-2012. Operations Group Large Taxpayers Service 3. Strengthening Budget Management Improve monitoring and reporting of the utilization of allocated budget. Enhance processes for the timely payment of accounts including contractor payments. Regularly review allocated budgets, per Office/Division, to determine the current budget utilization of BIR. Finance Service 4. Upgrading of the Maturity Level under PRIME HRM Establish a set of defined and documented Standard Operating Procedures (SOPs) responsive to the Bureau's unique needs, which shall include the use, to a certain extent, of automation/digitalization. Human Resource Development Service 5. Expediting recruitment and promotion Review and revisit the Quality Standards (QS) of entry level positions, e.g. , training and experience requirements, and revise documentary requirements for each position, if necessary. Revisit the plantilla of personnel to address the needs of District Offices and the National Office. Establish a turnaround time for the recruitment process, from examinations to appointment. Require all Revenue Regions to undergo the Civil Service Commission (CSC) Online Assessment, so that respective Regional Directors can be authorized to sign appointments for new recruits. Fill up vacant non-entry level positions through the promotion of qualified employees in accordance with the BIR Merit Promotion Plan and other pertinent CSC rules and regulations, as well as to fill up entry-level positions. Human Resource Development Service IV. Transparency and Integrity Program Pursue activities to further enhance transparency and integrity in the revenue service, as well as employee satisfaction, capacity-building and career development in the Bureau. As an institution of public servants, the Bureau is relying on honest, objective and highly motivated workforce as the foundation of the effectiveness of its operations. 1. Integrity Management Program Promote integrity, honesty and transparency throughout the revenue service by expediting preliminary investigations on complaints/reports against Bureau personnel, and completing the disposition of administrative cases submitted for decision. Intensify and Enhance Existing Protocols on Data Security and Physical Security. Conduct mandatory awareness briefing on the BIR Revised Code of Conduct for all BIR personnel. Undertake Educational Capacity Building for Investigators and Hearing Officers. Internal Affairs Service Human Resource and Development Service 2. Enterprise Risk Management (ERM) System Develop an ERM Framework, Structure and Process, which shall be institutionalized and fully implemented throughout the organization. ERM shall consist of a plan-based strategy, methods and processes to be used by the BIR in identifying, assessing and mitigating risks which may interfere and adversely affect its operations and the attainment of its objectives. Planning and Management Service 3. ISO Certification Establish a Quality Management System (QMS) for BIR's Business Registration Process for both individual and non-individual taxpayers through the adoption of International Organization Standard (ISO) 9001:2015 QMS. Client Support Service Monitor establishment of a Quality Management System (QMS) for BIR's Tax Clearance Process for both individual and non-individual taxpayers of Revenue Region No. 8A-Makati City through the adoption of International Organization Standard (ISO) 9001:2015 QMS. Collection Service 4. Competency Based HR Management System Enhance the Bureau's Human Resource and Development Strategy by shifting to Competency-based Human Resource Management through the development of the following tools: o BIR Competency Framework; o Complete BIR Competency Catalogue; o Complete BIR Competency Map; o Top-level Competency-based BIR processes; and o Competency-based Qualification Standards Job Descriptions (CBQSJDs) for approved BIR positions, in order to address personnel training and development needs with competency-based learning intervention. Human Resource Development Service 5. Employee Appreciation Program Standardize Rewards System and create new awards and incentives for BIR employees nationwide. Human Resource Development Service V. BIR Digital Transformation (DX) Program Transform the Bureau of Internal Revenue into a data-driven organization through a digitally empowered and resilient workforce utilizing reliable, scalable, and robust digital technologies and infrastructure to innovate BIR services and elevate taxpayer service. (Note: Projects under the DX Program shall be covered by a separate Revenue Issuance.)