Tentative Allocation of the BIR Collection Goal for CY 2005, By Implementing Office

January 17, 2005 REVENUE MEMORANDUM ORDER NO. 02-05 TO : All Assistant Commissioners, Regional Directors, Revenue District Officers and Other Officers Concerned SUBJECT : Tentative Allocation of the BIR Collection Goal for CY 2005, By Implementing Office I. CY 2005 Overall Collection Goal The overall collection goal of the Bureau for CY 2005 as set by the Department of Finance is P547,499 million, which is 17.12% higher than CY 2004 actual collection of P467,464 million (per latest Bureau of Treasury tentative figure). This year, collection goal for existing measures amounts to P532,194 M, and P10,305 M for legislative measures while P5,000 M accounts for administrative measures. The breakdown by major tax type, is as follows: Tax Type Total Goal Income Taxes P328,920 M Excise Taxes 61,486 Value Added Taxes 94,697 Percentage Taxes 33,041 Other Taxes 29,355 TOTAL P547,499 M II. Data Used The following data were used in the allocation of the total goal among the implementing offices: 1. Collection data for CY 2004 based on the tentative reports submitted by the regions to Planning Division as of January 13, 2005. 2005cdtai 2. The CY 2004 actual collections by implementing office were refined taking into account the following adjustments: i) Collections from Tax Remittance Advice (TRA) by implementing office for January to November 2004 and December 2003, as reported by the Revenue Accounting Division as of January 13, 2005; ii) Collections from GOCCs and LGUs by implementing office CY 2004, as reported by the Large Taxpayers Service (LTS) and Withholding Tax Division; and iii) Collections from special (Excise Taxes, Tax on Treasury Bills, Travel Tax and Stock Transactions Tax), per tentative report of Revenue Regions (RRs), and the LTS as of January 13, 2005. 3. Distribution of CY 2004 refined collection, by month; 4. Excise Tax estimates prepared by the Large Taxpayers Service dated January 13, 2005; 5. Distribution of CY 2004 BIR Collections by GFS Classification per BTr Report for January to November 2004 and goal for the month of December 2004. 6. National Government Revenue Program (NGRP) dated January 12, 2005; III. Regional Goal Allocation Methodology A. Total Goal, By Major Tax Type (Table 1) CY 2005 total goal (existing, legislative and administrative measures) by major tax type was based on the figures in the 2005 National Government Revenue Program of the Department of Finance. aACEID Collection goal on legislative measures is composed of the following: 1) Rationalization of Excise Tax on Motor Vehicles, P191 M; 2) Rationalization of Documentary Stamp Tax with P5,014 M; and 3) Indexation of sin products, P5,100 M. Collection goal for administrative measures amounting to P5,000 M covers additional revenues from Expanded Third Party Information (TPI)-Integrated Tax System Computer Matching, audit of ecozone locators and GOCCs, among others. B. Monthly Collection Goal, by Major Tax Type (Table 2) CY 2004 monthly goal for Excise Taxes was based on the figures given by the Large Taxpayers Service. For the remaining types of taxes, CY 2005 goal was allocated monthly based on the refined monthly collection distribution (Net of Special Taxes) of CY 2004. Thus, for a particular Month M and Tax Type N, the total goal G MN is computed as follows: G MN = D MN x P547,499M where D MN = percent share in CY 2004 collection of Tax Type N for month M C. Total Collection Goal, By Implementing Office (Table 3) Generally, an 18.37% rate of increase was applied on the region's refined average of collection and goal CY 2004, which was net of collections from the following: 1. Tax Remittance Advices (TRAs), GOCCs and LGUs, for which zero growth was assumed; and 2. Special taxes (i.e., taxes on T-Bills, Travel Tax, Stock Transactions Tax and Excise Taxes), goals for which were taken from the NGRP estimates. CEIHcT D. Goal Allocation, By Major Tax Type and By implementing Office (Tables 4 to 9) Using the ratio and proportion technique based on the BIR 12.09 report of 2004 collection, as aligned with the goals computed in items III.A, III.B and III.C above, the monthly goals by tax type were allocated per implementing office. IV. Treatment of Goal on Special Taxes, Tax Remittance Advice and GOCCs/LGUs The following taxes were allocated directly to the implementing offices concerned: a) Excise Taxes The total goal for existing and legislative measures on Excise Taxes amounting to P61,486 M is solely allocated to the Large Taxpayers Service (LTS). b) Tax on Treasury-Bills and Travel Taxes The goals on tax from T-Bills of P38,392 M and Travel Tax of P156 M are allocated to RR 6 Manila since it has jurisdiction over Bangko Sentral ng Pilipinas (BSP) and Department of Tourism. c) Stock Transactions Tax The goal on Stock Transactions Tax of P1,211 M is allocated to RR 7 Quezon City since the Philippine Stock Exchange (PSE) is within the jurisdiction of said Region. d) Tax Remittance Advice (TRA), LGUs/GOCCs CY 2005 collection through TRAs and on taxes withheld by LGUs (for Regions) and GOCCs (for LTS) was assumed to be equal to CY 2004 collection across all implementing offices. V. Revenue District Goal Allocation Allocation of the Regional goals prescribed in this Revenue Memorandum Order among the respective Revenue District Offices (RDOs) and LT Offices/LTDOs shall be done by the Collection Division of each Regional Office and LT-Programs Division for the Large Taxpayers Service based on this approved RMO. A report on the above allocation among RDOs/LT units shall be submitted to the Assistant Commissioner, Policy & Planning Service, Attention: Chief, Statistics Division, via e-mail ( [emailprotected] ) by January 24, 2005. A hard copy of the report, duly signed by the Regional Director/LTS Head, as well as the respective Revenue District Officers or Chiefs of LT Units, to signify their conformance with the allocation, shall also be submitted to the Statistics Division upon their completion of the allocation. VI. List of Tables Table 1 Total Collection Goal By Major Tax Type, CY 2005 Table 2 Monthly Collection Goal By Major Tax Type, CY 2005 Table 3 Total Collection Goal By Implementing Office, CY 2005 Table 4 Collection Goal, By Implementing Office And Major Tax Type, CY 2005 Table 5 Monthly Collection Goal By Implementing Office, CY 2005 Total Taxes Table 6 Monthly Collection Goal By Implementing Office, CY 2005 Income Taxes Table 7 Monthly Collection Goal By Implementing Office, CY 2005 Value Added Taxes Table 8 Monthly Collection Goal By Implementing Office, CY 2005 Percentage Taxes Table 9 Monthly Collection Goal By Implementing Office, CY 2005 Other Taxes For your reference and compliance. (SGD.) GUILLERMO L. PARAYNO, JR. Commissioner of the Internal Revenue Table 1 TOTAL COLLECTION GOAL BY MAJOR TAX TYPE, CY 2005 (In Thousand Pesos) MONTH EXISTING LEGISLATIVE ADMINISTRATIVE TOTAL Automobiles DST Sin Products TOTAL GOAL TOTAL P532,194,000 191,000 5,014,000 5,100,000 10,305,000 5,000,000 547,499,000 I. TAXES ON NET INCOME AND PROFIT 324,220,000 - 4,700,000 328,920.000 II. EXCISE TAXES 56,195,000 191,000 5,100,000 5,291,000 61,486,000 III. VALUE ADDED TAXES 94,397,000 - 300,000 94,697,000 IV. PERCENTAGE TAXES 33,041,000 - 33,041,000 V. OTHER TAXES 24,341,000 5,014,000 5,014,000 29,355,000 Based on NGRP dated January 12, 2005. Table 2 MONTHLY COLLECTION GOAL BY MAJOR TAX TYPE, CY 2005 Table 3 TOTAL COLLECTION GOAL BY IMPLEMENTING OFFICE, CY 2005 Table 4 COLLECTION GOAL BY IMPLEMENTING OFFICE AND MAJOR TAX TYPE, CY 2005 Table 5 MONTHLY COLLECTION GOAL BY MAJOR SOURCES, CY 2005 TOTAL TAXES Table 6 MONTHLY COLLECTION GOAL BY MAJOR SOURCES, CY 2005 INCOME TAXES Table 7 MONTHLY COLLECTION GOAL BY MAJOR SOURCES, CY 2005 VALUE-ADDED TAXES Table 8 MONTHLY COLLECTION GOAL BY MAJOR SOURCES, CY 2005 PERCENTAGE TAXES Table 9 MONTHLY COLLECTION GOAL BY MAJOR SOURCES, CY 2005 OTHER TAXES