CY 2013 Operational Key Performance Indicators and Accomplishment Reporting for the Large Taxpayers Service (LTS)

May 23, 2013 REVENUE MEMORANDUM ORDER NO. 015-13 TO : All Deputy Commissioners (DCIRs), Assistant Commissioners (ACIRs), LT National Office Division Chiefs, LT Division Chiefs-Makati & Cebu and Others Concerned SUBJECT : CY 2013 Operational Key Performance Indicators and Accomplishment Reporting for the Large Taxpayers Service (LTS) I. Background In order to attain the revenue goal for CY 2013, the Bureau of Internal Revenue (BIR) has identified the Agency Priority Programs as prescribed in Revenue Memorandum Circular (RMC) No. 11-2013 which shall be implemented nationwide. Accordingly, corresponding Operational Key Performance Indicators (KPIs) have been established and aligned with the BIR's Strategic Statements. STIHaE II. Objective This Order is being issued to prescribe the 2013 Operational KPIs and Accomplishment Monitoring for the Large Taxpayers Service (LTS), LT National Office Divisions (LTNODs) and LT Divisions (LTDs)-Makati & Cebu. III. General Policies 1. The Operational KPIs, and the details thereon, for the LTS, LTNODs and LTDs-Makati & Cebu are hereby prescribed, and enumerated in Annex A of this Order. 2. Concerned BIR offices shall be responsible for monitoring and preparation of accomplishment reports for submission to MANCOM using the prescribed format. 3. An interim performance rating may be administered depending on the exigencies of service as determined by MANCOM. 4. The set of Operational KPIs shall be revisited annually and updated, if needed. IV. Guidelines and Procedures 1. LTNODs/LTDs-Makati and Cebu shall prepare and submit report on the accomplishment on performance measures/KPIs prescribed in this Order. 2. The Assistant Commissioner (ACIR), LTS thru the concerned Head Revenue Executive Assistant (HREA) shall monitor compliance of respective Offices and the Chief, LT Performance Monitoring and Programs Division (LTPMPD) shall prepare a Consolidated Accomplishment Report for submission to the respective Assistant Commissioners/Measure Owners. 3. The Assistant Commissioners/Measure Owners shall monitor submission of Accomplishment Reports of the LTS and submit consolidated report by KPI to the MANCOM. 4. The Accomplishment Reports for the monitoring of performance vis--vis the Operational KPIs shall be submitted in accordance with the following schedules: A. Semestral Accomplishment Report Report Office/Person Submitted to Due Date Responsible A.1 LT NO Divisions/LTDs- LT NO Division ACIR LTS Not later than Makati & Cebu Chief/LTD Chief- Thru: Concerned the 12th day of Accomplishment on KPIs Makati & Cebu HREA the month (using the format in (LT Performance following the Annex B1) Monitoring and semester Programs Division- consolidation) A.2 Consolidated Semestral ACIR, LTS Assistant Not later than Accomplishment of LTS, (LT Performance Commissioner the 15th day of LT NO Divisions and Monitoring and monitoring the KPI/ the month LTDs (using the format Programs Division) Commissioner following the in Annex B2) semester B. Annual Accomplishment Report Report Office/Person Submitted to Due Date Responsible B.1 LT NO Divisions/LTDs- LT NO Division ACIR LTS Not later than Makati & Cebu Chief/LTD Chief- Thru: Concerned the 15th day of Accomplishment on KPIs Makati & Cebu HREA the month (using the format in (LT Performance following the Annex C1) Monitoring and end of the Programs Division- year consolidation) B.2 Consolidated Annual ACIR, LTS Assistant Not later than Accomplishment of LTS, (LT Performance Commissioner the 20th day of LT NO Divisions and Monitoring and monitoring the KPI/ the month LTDs (using the format Programs Division) Commissioner following the in Annex C2) end of the year C. Consolidated Annual Accomplishment Report with Office Performance Evaluation DCcSHE Report Office/Person Submitted to Due Date Responsible C.1 Consolidated Annual Assistant MANCOM/ Not later than Accomplishment with Commissioner Commissioner the 28th day of Office Performance monitoring the KPI Cc: ACIR, Planning the month Evaluation of LTS and Management following the (using the format in Service end of the Annex D) year 5. The submitted accomplishment reports shall serve as a means of validation in the preparation of the Office Annual Performance Evaluation for the concerned Bureau Offices, and will be used as basis/input for next year's office performance measures to be recommended to MANCOM/Commissioner. V. Repealing Clause This Order supersedes Revenue Memorandum Order No. 24-2012 and all other issuances or portions thereof inconsistent herewith. VI. Effectivity This Order takes effect immediately. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ANNEX A CY 2013 Operational Level Key Performance Indicators (KPIs) for Large Taxpayers Service Measure Owner Strategic Operational Level KPIs KPI Formula KPI Target Group Service Responsible Objective Weight Level Level Office Attained collection 1 Collection Performance 30 Actual Collection 100% attainment Office of the ACIR, Regular LT Audit target and x 100 of assigned goal Commissioner Collection Division (RLTAD) sustained Assigned Goal Service 1-3/Excise LT collection growth Audit Division (ELTAD) 1-2/LT Divisions (LTDs)- Makati & Cebu)/ Excise LT Field Operations Division (ELTFOD) 2 Collection Growth 20 Collection This Year- 15.00% of Office of the ACIR, RLTAD 1-3/ELTAD Collection Last Year previous year's Commissioner Collection 1-2/LTDs/ x 100 actual collection Service ELTFOD Collection Last Year Improved taxpayer 3 Filing/Submission 2 satisfaction and Compliance Actual Number of Filers 100% of the Office of the ACIR, LT Document compliance Percentage for: x 100 expected number Commissioner Collection Processing & 1. Tax Types: Expected Number of filers Service Quality Assurance a. Value Added Tax of Filers Division b. Corporate Income Tax (LTDPQAD)/LTDs c. Percentage Tax 2. Information Schedules: a. Summary Lists of Sales and Purchases (SLSP) & Importations: Percentage of 3 Actual Number of 100% of identified Office of the ACIR, LT Assistance Compliance for Non Compliant non compliant Commissioner Assessment Division (LTAD)/ submission of Taxpayers Notified taxpayers Service Excise LT information x 100 Regulatory Division attachments/ Total Number of (ELTRD)/LTDs schedules: Non-Compliant a.1 SLS-Summary Taxpayers Identified List of Sales a.2 SLP-Summary List of Purchases a.3 SLI-Summary List of Importations Improved taxpayer b. Summary of 1 Actual Number of 100% of identified Office of the ACIR, LT DPQAD/LTDs satisfaction and Alphalist of Withholding Non-Compliant non-compliant Commissioner Assessment compliance Agents of Income Taxpayers Notified taxpayers Service Payments subject to x 100 Withholding Taxes Total Number of (SAWT) Non-Compliant c. Monthly Alphalist 1 Taxpayers of Payees (MAP) d. Alphalist of 1 Employees e. Inventory List 1 f. List of Regular 1 Suppliers g. Official Register 1 Actual Number of 100% of required Office of the ACIR, LT Performance Books (ORBs)- Non-Compliant filings Commissioner Assessment Monitoring Excise Taxpayers Taxpayers Notified Service & Programs x 100 Division (LTPMPD) Total Number of Non-Compliant Taxpayers 4 Stopfilers : Percent 2 Number of stopfiler 80% of stopfiler Office of the ACIR, LT Collection reduction in number cases closed cases closed Commissioner Collection Enforcement of valid stopfiler x 100 Service Division cases (for TAMP) Number of stopfiler (LTCED)/LTDPQAD/ cases handled LTDs (beginning plus current) 5 Processing and 2 Total number of claims 75% of claims Office of the ACIR, RLTAD 1-3/ issuance of processed and handled Commissioner Assessment ELTAD 1-2/ tax credit/refund submitted Service LTDs (TCR) claims x 100 efficiency Total number of claims > Percentage of handled claims processed (Beginning inventory + and submitted/ issued LAs on total claims TCR claims) handled Improve assistance, 6 Audit Efficiency : 4 Number of reported 75% of cases Office of the ACIR, RLTAD 1-3/ELTAD compliance, and for RDOs : cases handled Commissioner Assessment 1-2/LTDs enforcement > Percentage of x 100 Service process Reported cases to Number of cases handled ACIR as against cases handled Improve assistance, For VAT Audit Team : 4 Number of reported 75% of cases Office of the ACIR, LT VAT Audit compliance, and a. Percentage of cases handled Commissioner Assessment Teams enforcement reported VAT cases x 100% Service process as against cases Number of cases handled handled 7 Audit Effort 6 Collection from LAs 2% of total Office of the ACIR, RLTAD 1-3/ELTAD Collection performance and LNs collection Goal per Commissioner Assessment 1-2/LTDs from audit as against x 100 RDO Service collection goal wherein Total collection goal total collection goal should refer only to the goal assigned to the RRs/RDOs 8 Accounts Receivable 2 Number of AR/DA 20% of AR/DA Office of the ACIR, LTCED/LTDs (AR) cases closed handled Commissioner Collection Collection Efficiency : x 100 Service Percentage of Accounts Total Number of AR/ Receivable (AR)/ DA cases handled Delinquent Account (DA) cases closed as against total AR/ DA cases handled 9 Percentage of 2 Amount of collection 6% arrears Office of the ACIR, LTCED/LTDs collection from AR/DA from AR/DA collected Commissioner Collection as against total x 100 Service AR/DAs handled Total AR/DAs Handled (potentially collectible) 10 Percentage of Warrant 2 Number of WDL issued 100% of total Office of the ACIR, LTCED/LTD of Distraint and Levy x 100 ARs/DA due for Commissioner Collection (WDL) issued as Total AR/DA issuance of WDL Service against total AR/DA cases due for cases due for issuance issuance of WDL of WDL Improve 11 Compromise Settlement 2 Number of applications 80% of total Office of the ACIR, LTCED/LTDs assistance, application processing processed number Commissioner Collection compliance, and efficiency : Percentage of x 100 of applications Service enforcement Application for Total number of handled process compromise settlement applications handled processed as against total number of applications handled 12 Abatement Application 1 Number of applications 80% of total Office of the ACIR, LTCED/LTDs Processing Efficiency : processed number Commissioner Collection Percentage of Application x 100 of applications Service for abatement Total number of handled processed as against applications handled total number of applications handled 13 Efficiency in the 1 Number of applications 80% of total Office of the ACIR, LTCED/LTAD/ Processing of Tax processed number of Commissioner Collection ELTRD/LTDPQ Clearance/Delinquency x 100 applications Service AD/LTDs Verification : Percentage Total number of handled of Applications processed applications handled as against total number of applications handled 14 Stocktaking Activity : 4 Number of Actual 100% of planned Office of the ACIR, RLTAD 1-3/ELTAD Number of Actual Stocktaking Conducted Commissioner Assessment 1-2/LTDs/ Stocktaking x 100 Service ELTFOD/LTPMPD Conducted as against Number of Stocktaking Number of Stocktaking Planned Planned 15 Timely Validation of 2 Date of conduct of On or before Office of the ACIR, Large ELTFOD/ Net Retail Price (NRP) price survey September 2013 Commissioner Taxpayers ELTRD/LTPMPD of Alcohol & Tobacco Service Products ("Sin Tax Law") 16 Taxpayer Education 2 Number of Seminars/ 100% of planned Office of the ACIR, Client LTAD/LTDs/ and Information : Briefings/Tax Commissioner Support ELTRD Number of Seminars/ Dialogues conducted Service Briefings/Dialogues x 100 Conducted as Total number of seminars/ against number of dialogues planned planned (one per quarter) Improve integrity, 17 Capability Building 1 Number of Training 80% of the Office of the ACIR, Human ALL LT professionalism, Programs for all LTS Programs conducted/ proposed Commissioner Resource DIVISIONS/ consistency, and personnel : Conduct of coordinated Trainings in the Development LTPMPD- satisfaction of Training Programs x 100 Training Calendar Service Coordinator human resources. (Regular Trainings) Number of Training Programs Proposed in the Training Calendar 1 Number of actual 80% of the ALL LT employees trained targetted DIVISIONS/ x 100 employees to be LTPMPD- Number of targetted trained Coordinator employees to be trained Optimize 18 Rewards and 1 Number of employees 80% of Office of the ACIR, Human ALL LT management Recognition awarded employees Commissioner Resource DIVISIONS/ of resource Program x 100 entitled to the BIR Development LTPMPD- Number of employees Allegiance Service Coordinator recommended Award Total 100 === ANNEX B1 Accomplishment Report for the _________ Semester, 2013 Office (LT NO Divisions/LTDs Makati & Cebu) ANNEX B2 Consolidated Accomplishment Report for the _________ Semester, 2013 Large Taxpayer Service (LTS) ANNEX C1 Accomplishment Report for the Year, 2013 Office (LT NO Division/LTDs Makati & Cebu) ANNEX C2 Consolidated Accomplishment Report for the Year, 2013 Large Taxpayer Service (LTS) ANNEX D Consolidated Annual Accomplishment Report/ Office Performance Evaluation for CY 2013