Prescribing Policies and Procedures in Monitoring Compliance of Top Taxpayers in Revenue Regions

July 17, 2017 REVENUE MEMORANDUM ORDER NO. 017-17 SUBJECT : Prescribing Policies and Procedures in Monitoring Compliance of Top Taxpayers in Revenue Regions TO : All Internal Revenue Officers and Others Concerned I. OBJECTIVES: This Order is issued to: A. Establish a system to monitor and improve compliance of top taxpayers in the Revenue Regions with filing of internal revenue tax returns and payments/remittances and other compliance requirements; B. Define the scope and coverage of the initial implementation of such monitoring system in terms of taxpayers and Revenue Regions covered; and C. Create and activate regional teams who shall analyse taxpayers' compliance and recommend measures to be implemented by concerned Revenue District Offices (RDOs), including monitoring of performance of concerned offices as regards the implementation of compliance improvement procedures for their identified top taxpayers. II. SCOPE AND COVERAGE: For purposes of the initial implementation of this Order the following shall be covered: CAIHTE A. The twelve (12) Revenue Regions which contribute the largest share in the total BIR collection shall comprise the offices which shall adopt the prescribed monitoring procedures, to wit: 1. Revenue Region No. 1-Calasiao, Pangasinan 2. Revenue Region No. 4-San Fernando, Pampanga 3. Revenue Region No. 5-Caloocan City 4. Revenue Region No. 6-Manila 5. Revenue Region No. 7-Quezon City 6. Revenue Region No. 8-Makati City 7. Revenue Region No. 9A-CaBaMiRo 8. Revenue Region No. 9B-LaQueMar 9. Revenue Region No. 12-Negros Island Region 10. Revenue Region No. 13-Cebu City 11. Revenue Region No. 16-Cagayan de Oro 12. Revenue Region No. 19-Davao City B. The Top 500 non-individual taxpayers of the above Revenue Regions who satisfy the criteria for Large Taxpayers under Revenue Regulations No. 17-2010, but have not been notified by the Commissioner of Internal Revenue as such shall be considered, except the following: aScITE 1. National Government Agencies (NGAs); 2. Local Government Units (LGUs); 3. Government Owned and Controlled Corporations (GOCCs); and 4. State Universities and Colleges (SUCs). C. Said top taxpayers who shall be monitored by their respective Regional Offices shall comprise the Medium Taxpayers segment of the Bureau. III. NATIONAL AND REGIONAL MONITORING TEAMS: A. A Regional Monitoring Team, which shall be directly under the supervision of the Regional Director, shall be created and perform the following functions: 1. Monitor tax compliance and analyze drastic changes in the monthly tax payments of taxpayers; 2. Undertake Profiling of taxpayers by sector/industry for Benchmarking; 3. Act on pre-processed data (RELIEF, TRS and BIR-BOC), if available; 4. Analyze tax compliance report card; 5. Provide inputs to be used in formulating strategies to maximize taxpayer compliance; 6. Based on analysis of tax compliance, recommend the conduct of audit and investigation of taxpayers by the concerned RDOs; and 7. Submit monthly status reports to the National Monitoring Team. B. A National Monitoring Team shall be created to oversee the performance of Regional Monitoring Teams, undertake a national analysis of taxpayer compliance, and provide specific guidelines on the operations of the regional teams. C. The National and Regional Monitoring Teams shall be created through the issuance of a Revenue Special Order. IV. EFFECTIVITY: This Order shall take effect immediately. DETACa (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue