Policy Directive for the CY 2014 Performance Evaluation of Revenue Regions (RRs) and Revenue District Offices (RDOs) and Amending Certain Provisions of Annex A as Prescribed in Revenue Memorandum Order (RMO) No. 36-2014

February 24, 2015 REVENUE MEMORANDUM ORDER NO. 006-15 TO : All Deputy Commissioners, Assistant Commissioners, Regional Directors, Revenue District Officers and Others Concerned SUBJECT : Policy Directive for the CY 2014 Performance Evaluation of Revenue Regions (RRs) and Revenue District Offices (RDOs) and Amending Certain Provisions of Annex A as Prescribed in Revenue Memorandum Order (RMO) No. 36-2014 I. Objective This Order is issued to: 1. Amend certain portions in Annex A of RMO No. 36-2014 dated September 29, 2014 relative to the CY 2014 Operational Level Key Performance Indicators (KPIs) for Revenue Regions, Regional Divisions, and Revenue District Offices; and 2. Prescribe the new policy directive in the computation of rating relative to the performance evaluation of RRs and RDOs pursuant to the implementation of RMO No. 36-2014. The new policy directive was announced during the Last Quarter Command Conference held on November 13, 2014. II. Amending Provisions The following items in Annex A of RMO No. 36-2014 are hereby amended: TCIEcH KPI No. 12 (Audit Effort) Page 3 KPI No. 22 (Returns Encoding) Page 5 The amended pages, containing the concerned KPIs and their details, are attached to this Order. III. Additional Policies The following shall be considered as additional policies in the computation of the CY 2014 Performance Evaluation for RRs and RDOs prescribed in RMO No. 36-2014: 1. The KPIs on Collection Performance and Collection Growth shall comprise the 50% overall rating of an Office. The remaining KPIs included in Annex A of RMO No. 36-2014 shall comprise the other 50%. (Please refer to Sample Computation). 2. All performance evaluations on the 2014 KPIs shall be premised on actual performance data from the Integrated Tax System (ITS). Verbal feedback, reports, and similar narratives shall not be considered as a factor in any performance evaluation. Due care and conscientiousness should therefore be exercised in the encoding and/or uploading of data in the ITS. IV. Repealing Clause All revenue issuances or portions thereof inconsistent herewith are hereby repealed or amended accordingly. V. Effectivity This Order takes effect immediately. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ATTACHMENT CY 2014 Performance Evaluation for Revenue Regions and Revenue District Offices (Sample Computation) Strategic Operational Level KPIs KPI Weight Score Weighted Score Overall Score Objectives (a) (b) Score Weight e=(c*d) c=(b/a) (d) Attained collection target Collection Performance 30 25 and sustained collection Collection Growth 10 7 growth Sub-Total 40 32 0.80 50% 40.00% Attained collection target Timely and accurate recording of internal 3 2 and sustained collection revenue tax collections growth (1209 reports of RDOs = BTr figures) Improved taxpayer Registration: Percent increase in number 4 3 satisfaction and of registered business taxpayers (for compliance corporate and non-corporate) Volume of Applications Processed for 2 2 Primary and Secondary Registration Reduction in processing time of 2 1 applications for registration: a) Primary Registration (includes TIN and COR issuance) b) Secondary Registration (includes the * Stopfilers: Percent reduction in number 5 4 of stopfiler cases (for TAMP) Full Utilization of MRCOS in the Issuance 4 4 of Receipts eSubmission: 4 2 a) Annual Alphabetical List of Payees from whom Final and Creditable Taxes were Withheld b) Annual Alphabetical List of Employees Improved efficiency in the processing 3 4 of tax credit/refund (TCR) claims: Percentage of TCR claims processed as against total TCR claims handled (for VAT only) Improve assistance, Audit Efficiency: 3 2 compliance, and For RDOs: Percentage of reported enforcement process cases to AD as against cases handled Audit Effort: 5 2 Collection performance from audit as against collection goal wherein "total collection goal" should refer only to the goal assigned to the RRs/RDOs Arrears Collection: Arrears collected 5 3 as % of potentially recoverable arrears OPLAN KANDADO: Number of actual 3 3 closures eFPS Full Implementation to all BOI/PEZA 2 2 and other TPs enjoying tax incentives: Percentage of eFPS BOI/PEZA filer as against required to file LN Discrepancy and other Notices 3 2 Acted Upon within the prescribed period: Percentage of LN Discrepancy and other Notices acted upon within the prescribed period over LN and other notices Uploaded Quarterly Summary List of 4 2 Sales and Purchases received by the RDO Filing of RATE cases 4 4 Litigation of assessment and refund 2 2 cases Tax Rulings: Percentage of outstanding 2 2 applications for which rulings have been acted upon Percent of response to Exchange of 2 2 Information (EOI) request Improve integrity and Returns Encoding : Percent of priority accuracy of taxpayer returns captured into system Database I. RDOs with no DPD 2 2 a. TAMP b. Non-TAMP 2 1 II. DPD 2 1 (TAMP and Non-TAMP) - All Taxpayers Clean up of Registration Data: 2 2 Percent of registration records cleaned-up relative to Resolution of multiple/Identical TINs Improve integrity, Number of Administrative Cases 2 2 professionalism, involving violation of the Revised Code consistency, and of Conduct, RA 3019, RA 6713 and satisfaction of human other allied laws Case Related Action Taken 2 2 (preliminary study undertaken on the cases received with formal charges) Capability Building Programs for all BIR 2 2 employees: Conduct of Training Programs (Regular Trainings) Rewards and Recognition Program 2 2 Optimize management of Posting of procurement and award to 2 2 resource PhilGeps Budget Utilization Rate (BUR) 3 2 Expedite Processing and Payment of 3 2 Disbursement Vouchers (DVs) Submission of Financial Statements 2 2 to the Commission on Audit (COA) Liquidation of Cash Advances granted 2 2 to officials/employees Sub-Total 90 72 0.80 50% 40.00% Total Overall Score 80.00% ======= ANNEX A CY 2014 Operational Level Key Performance Indicators (KPIs) for RRS/RDOs/Regional Divisions