Adjustments to RMO 17-2008 on Allocation of CY 2008 BIR Collection Goal by Implementing Office Affected by Data Updates

June 18, 2008 REVENUE MEMORANDUM ORDER NO. 026-08 TO : Deputy Commissioner for Operations, Assistant Commissioners, Head Revenue Executive Assistants Regional Directors, Revenue District Officers, Division Chiefs and Other Officers Concerned SUBJECT : Adjustments to RMO 17-2008 on the Allocation of the CY 2008 BIR Collection Goal by Implementing Office Affected by Data Updates, Among Others I. Objective The purpose of this Memorandum is to adjust the collection goals per RMO 17-2008 affected by the following: A) Update in the change of regional address of delisted large taxpayers; B) Update of collection data of particular delisted taxpayers (mining and mergers); and C) Realignment of goals by period and by implementing office affected by abovementioned update on collection data, taxpayer address and emerging trend of collections. II. Data Used The following data were used in the adjustments of the goal allocation: A) Update in the change of regional address of delisted Large Taxpayers; B) Tax payments data of mining corporations (enlisted to LT Excise Group) with supporting documents received from the implementing offices concerned as of June 18, 2008. Other 2007 data submitted, but without supporting documents ( e.g. returns and official receipts) were not considered in this adjustment; C) CY 2007 and January-April, 2008 collection reports from RAD by implementing office; and D) Revised Excise Tax collection goal allocation provided by the LT-Excise Group III. Goal Allocation Adjustment Methodology A) General Methodology 1. Based on updated data, the procedure in RMO 17-2008 was followed to arrive at the total annual goal of each of the implementing offices. Adjustments of annual collection goals are limited to the following affected implementing offices: LT Regular, LT Excise, LTDOs, Regions 5, 6, 7, 8, 9, 16, 17, 19. 2. Revised quarterly goals of all implementing groups (Large Taxpayers Group and Regions) were based on CY 2007 Refined Collection multiplied by the GDP growth of 10.21% and the remaining goal was proportionately allocated based on emerging trend of collections (2008). 3. Adjustment in collection goal of implementing offices, by major tax type shall be determined by emerging trends based on January to April 2008. Monthly collection data by major tax type and implementing office shall be provided by the Revenue Accounting Division to the Statistics Division. This is to supplement section III.B.2 of this memorandum. B) Goal Allocation By Revenue District Office/Implementing Unit The Regions shall prepare the adjusted breakdown by revenue district office, by period and by tax type in consultation with the collecting offices (RDOs), the result of which shall be subject to review and approval by the Commissioner 1. Total Taxes The Regions shall prepare the adjusted breakdown by revenue district office, by period and by total taxes following the goal allocation in Tables 2 and 3. Other details by period shall be faxed by the Statistics Division to the region. Deadline for submission is June 27, 2008. This breakdown shall be submitted in hard copy to The Assistant Commissioner, Policy and Planning Service, Attention: Chief, Statistics Division for consolidation. An electronic copy of the breakdown by RDO/implementing unit which matches the hard copy submitted shall be forwarded to either of the following: [emailprotected] or [emailprotected] 2. By Major Tax Type The breakdown by tax type shall be provided by the Statistics Division to all implementing offices after receipt of base data from Revenue Accounting Division (RAD) as mentioned in section III.A.3. Deadline for RAD to submit collection data (by tax type and region) to Statistics Division is June 25, 2008. The Statistics Division shall forward the allocation by tax type to the regions on or before June 30, 2008. In light of the above, deadline for submission of goal allocation by district office and by major tax type is on July 4, 2008. This report shall be submitted in hard copy to The Assistant Commissioner, Policy and Planning Service, Attention: Chief, Statistics Division for consolidation. An electronic copy of the breakdown by RDO/implementing unit which matches the hard copy submitted shall be forwarded to either of the following: [emailprotected] or [emailprotected] IV. List of Tables TABLE 1 Revised CY 2007 Collection Refinements for CY 2008 Goal (Annex C, Allocation by Implementing Office RMO 17-2008) TABLE 2 Revised Collection Goal Allocation By Implementing Office, (Annex C-1, CY 2008 RMO 17-2008) TABLE 3 Revised Quarterly Total Collection Goal Allocation By (Annex D-2, Implementing Office, CY 2008 RMO 17-2008) VI. Effectivity This Order takes effect immediately. (SGD.) LILIAN B. HEFTI Commissioner of the Internal Revenue TABLE 1 REVISED CY 2007 COLLECTION REFINEMENTS FOR CY 2008 GOAL ALLOCATION BY IMPLEMENTING OFFICE (In Thousand Pesos) TABLE 2 REVISED COLLECTION GOAL ALLOCATION BY IMPLEMENTING OFFICE, CY 2008 (In Thousand Pesos) TABLE 3 REVISED QUARTERLY TOTAL COLLECTION GOAL, BY IMPLEMENTING OFFICE, CY 2008 (In Thousand Pesos) IMPLEMENTING OFFICE CY 2008 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter GRAND TOTAL 844,950,000 166,001,000 230,334,000 221,641,000 226,974,000 I. BIR OPERATIONS 810,306,000 154,093,000 221,945,000 212,651,000 221,617,000 A. Large Taxpayers 403,046,077 75,787,585 117,330,674 102,504,126 107,423,692 Service 116 REGULAR 193,197,955 33,402,475 55,672,712 51,845,380 52,277,388 121 EXCISE 163,292,879 34,248,685 47,839,650 38,970,113 42,234,431 122/ 123 LTDOs 46,555,243 8,136,425 13,818,312 11,688,633 12,911,873 B. Revenue Regions 407,259,923 78,305,415 104,614,326 110,146,874 114,193,308 1 CALASIAO, 5,206,866 1,104,510 1,363,091 1,447,848 1,291,417 PANGASINAN 2 CORDILLERA 3,690,134 662,388 921,046 861,247 1,245,453 ADMIN. REGION 3 TUGUEGARAO, 2,669,293 538,783 697,717 732,658 700,135 CAGAYAN 4 SAN FERNANDO, 12,745,971 2,527,536 3,522,542 3,312,920 3,382,973 PAMPANGA 5 VALENZUELA, 11,377,440 2,268,691 2,945,745 3,044,417 3,118,587 METRO MANILA 6 MANILA 47,805,749 9,005,124 13,020,756 13,436,049 12,343,820 7 QUEZON CITY 82,267,047 16,845,708 21,478,217 21,100,914 22,842,208 8 MAKATI 147,497,105 27,148,582 36,021,730 41,139,892 43,186,901 9 SAN PABLO CITY 44,051,635 7,941,817 11,549,725 12,093,793 12,466,300 10 LEGASPI CITY 4,525,047 899,553 1,121,710 1,221,088 1,282,696 11 ILOILO CITY 5,914,616 1,212,690 1,590,829 1,519,045 1,592,052 12 BACOLOD CITY 4,189,502 893,908 1,040,361 995,210 1,260,023 13 CEBU CITY 9,915,160 2,153,758 2,623,100 2,575,565 2,562,737 14 TACLOBAN CITY 3,716,024 641,764 928,374 1,022,450 1,123,436 15 ZAMBOANGA 2,609,165 546,818 651,868 693,524 716,955 CITY 16 CAGAYAN DE 5,100,795 1,063,231 1,313,607 1,344,995 1,378,962 ORO CITY 17 BUTUAN CITY 2,363,962 469,412 767,022 590,828 536,700 18 COTABATO 3,565,160 705,033 966,962 876,872 1,016,293 CITY 19 DAVAO CITY 8,049,252 1,676,109 2,089,924 2,137,559 2,145,660 II. NON-BIR 34,644,000 11,908,000 8,389,000 8,990,000 5,357,000 OPERATIONS