Attrition of Officials and Employees of the Bureau of Internal Revenue under Republic Act No. 9335

August 11, 2017 REVENUE MEMORANDUM ORDER NO. 020-17 SUBJECT : Amending RMO 82-2010 on the Criteria and Procedures for Attrition of Officials and Employees of the Bureau of Internal Revenue Under Republic Act No. 9335, or the "Attrition Act of 2005" and Its Implementing Rules and Regulations TO : All Revenue Officials and Employees SECTION I. Background . Republic Act (RA) No. 9335, or the "Attrition Act of 2005" took effect on February 11, 2005. Its Implementing Rules and Regulations (IRR) were promulgated on May 22, 2006, and became effective on June 15, 2006. The above-stated law and its implementing rules and regulations mandated the setting of criteria and procedures for removing from the service Officials and Employees whose revenue collections fall short of the target by at least seven and a half percent (7.5%) and thus, Revenue Memorandum Order (RMO) No. 82-2010 was issued to reflect the set criteria and procedures. However, there are certain items of the said RMO that require amendment thus this Order is hereby issued to amend those items. SECTION II. Amendments . 1. Item III-6 shall be read as follows: "6. Notwithstanding assignment or reassignment, an Official or Employee shall remain to be subject to attrition for as long as he has a collection target and directly performs audit, assessment or collection function. His/her total monthly goals for the position he/she occupied shall be compared with his/her total actual monthly collection, and this shall be used for the purpose of determining his/her performance hereunder. Other relevant factors/key performance indicators (KPIs) shall also be considered by the Commissioner in the evaluation of the performance of officials/employees whose collections fall short of the target ." 2. Item IV-2 is hereby amended to read as follows: "2. List of Personnel Subject to Attrition a. xxx b. The Assistant Commissioner and Head Revenue Executive Assistants (HREAs) of Large Taxpayers Service (LTS), as well as the following personnel of Large Taxpayers Regular Audit Divisions 1-3 (LTRAD 1-3), Large Taxpayers Excise Audit Divisions 1-2 (LTEAD 1-2) and Large Taxpayers District Office (LTDO) Cebu and Davao , Large Taxpayers Collection and Enforcement Division (LTCED) and Large Taxpayers Field Operation Divisions (LTFOD) shall likewise be subject to attrition: i.) Division Chief ii.) Assistant Division Chief iii.) Section Chief iv.) Group Supervisor v.) Revenue Officer, Assessment vi.) Revenue Officer, Excise (assigned in taxpayer's premises) vii.) Revenue Officer (Collection Seizure Agent, LTCED)" 3. Item IV-4 shall be renumbered as IV-3; and IV-5 shall be IV-4. 4. Item IV-3 (d), as renumbered above, shall be read as follows: "3. Performance Evaluation xxx xxx xxx d. The following relevant factors shall also be considered in evaluating the performance of Officials or Employees: xxx xxx xxx iv.) Other relevant operational factors/KPIs (for Heads/Assistants of Offices, please refer to attached Annex A; while separate issuance/s will be done for other attributable personnel )" SECTION III. Repealing Clause . All existing revenue memorandum circulars, orders and other issuances inconsistent herewith are hereby repealed, modified or amended accordingly. SECTION IV. Effectivity . This Order shall take effect immediately. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ANNEX A Relevant Operational Key Performance Indicators (KPIs) KPI Formula Target Weight LTS RR RDO Monitoring Office Collection Performance Actual Collection as a percentage of collection goal Actual Collections Assigned Collection Goal x 100 100% attainment of goal 40 40 40 40 CS/LTS Collection Growth Current year collection as percentage of previous year collection (Collection this year - Collection last year) Collection last year x 100 110% of previous year's actual collection 25 25 25 25 CS/LTS Filing of RATE cases Number of cases approved by CIR or RD and referred to DOJ or provincial/city prosecutor for preliminary investigation Number of cases filed Target for the period x 100 Per district classification - A & B = 2 per year Others = 1 per year 05 n/a 05 05 ODCIR-OG Closure of establishments under Oplan Kandado Number of cases approved by CIR for closure Number of establishments approved for closure under Oplan Kandado Target for the period x 100 Per district classification - A to D = 1 per quarter E to H = 1 per semester 05 n/a 05 05 ODCIR-OG Audit Effort Deficiency tax collections from audit of cases/enforcement activities covered by eLAs/TVNs/LNs/Mission Orders as a percentage of adjusted assigned goal Collection from audit/enforcement (eLAs, TVNs, LNs, Oplan Kandado, TCVD) Adjusted assigned collection goal x 100 3% of adjusted assigned collection goal; for VATAG - increase of 5% of the prior year's collection 05 05 05 05 AS/LTS Audit Efficiency Number of reported cases with eLAs as a percentage of eLAs handled No. of reported cases covered by eLAs transmitted by the investigating office and acknowledged by the reviewing office Total no. of cases covered by eLAs handled by the investigating office x 100 At least 75% of eLAs handled were transmitted by the investigating office and acknowledged by the reviewing office 04 04 04 04 AS/LTS Collection of Arrears * Collection from delinquent accounts as a percentage of total collectible arrears Total amount of collected arrears Total amount of collectible arrears x 100 For LTS, 6% of collectibles are collected; For RRs/RDOs (no RR-AMS), 5% of collectibles are collected 05 05 05 05 * (With no AMS) CS/LTS Reduction in number of Stop-Filer cases Percentage reduction in the number of stop-filer cases for each form type being monitored (TAMP) Number of valid stop filer cases closed Total number of valid stop filer cases handled x 100 For LTS = 100% For RDOs = 80% (TAMP) 03 03 03 03 CS/LTS Payment compliance by tax types Actual number of filers with tax due as a percentage of the total number of payments received Number of tax payments received Number of tax returns filed with tax due x 100 80% of total number of payments due are collected 03 03 03 03 CS/LTS Increase in number of business registration Increase in the number of registered businesses this year compared with previous year (Total number of business registrants as of current year - Total number of active business registrants of prior year) Total number of active business registrants of prior year x 100 5% increase in the number of registered business taxpayers 05 n/a n/a 05 CSS SUPPORT FUNCTIONS Posting of procurement and award to PhilGeps Actual Posting Required Posting x 100 Quantity : 100% of items above P50,000 procured as required by law are posted Quality : 100% compliance Timeliness : Posted within 3 working days after approval of request and issuance of Notice of Award 01 n/a 01 n/a Admin Service Budget Utilization Rate (BUR) Obligation BUR Total Obligations Total Allotment x 100 100% budget utilized-obligation 0.5 n/a 01 n/a Finance Service Disbursement BUR Total Disbursement Total Obligations x 100 100% budget utilized-disbursement 0.5 Submission of Financial Statements to the Commission on Audit (COA) Quality : In conformity with the Generally Accepted State Accounting Principles Timeliness : Not later than January 31st of the succeeding year 01 n/a 01 n/a Finance Service/CS Liquidation of Cash Advances granted to officials/employees Number of personnel with cash advance due for liquidation who submitted Liquidation Report Number of personnel granted with cash advance x 100 Quantity : 100% of personnel granted with cash advance due for liquidation submitted liquidation report Quality : 100% correctness of supporting documents submitted Timeliness : Within the period prescribed under existing accounting and auditing rules and regulations 01 n/a 01 n/a Finance Service Expedite Recruitment Number of applicants with processed appointments Number of target for recruitment x 100 100% of target for recruitment with processed appointment 01 n/a 01 n/a HRDS TOTAL* 105/105 = 100 85/85 = 100 100/100 100/100 * * Note : Total = 105/105 = 1 x 100 = 100 For LTS : 85/85 = 1 x 100 = 100; For RRs : with or without Arrears Management Section (AMS) = 100; For RDOs : with no RR-AMS = 100, with RR-AMS 95/95 = 1 x 100 = 100