Allocation of the BIR Collection Goal for CY 2001

March 29, 2001 REVENUE MEMORANDUM ORDER NO. 09-01 SUBJECT : Allocation of the BIR Collection Goal for CY 2001 TO : All Assistant Commissioners, Regional Directors and Other Officers Concerned I . CY2001 Overall Collection Goal The revenue target of the Bureau for CY 2001 as of March 8, 2001 is P408,058 M broken down as follows: P226,006 M for Net Income and Profits, P64,677 M for Excise Tax, P65,172 M for Value Added Taxes, P33,728 M for Other Percentage Taxes and P19,475 M for Other Domestic Taxes. (Table 1) II . Data Used The goal allocation used the following data : a) Allocation of Total BIR Collection Goal 1. Collection growth rate, CY 1991 CY 2000 2. Gross Regional Domestic Product (GRDP) growth rate, CY 1991 CY 2000 (based on the 1999 Philippine Statistical Yearbook, CY 1994 CY 1996 and NSCB Publication as of July 2000, CY 1997 CY 1999) 3. Total CY 2000 Revenue Regional (RR) collections furnished by the Collection Service 4. Total CY 2000 collection from Large Taxpayers and Excise Taxpayers furnished by the Large Taxpayers Service (LTS) b) Allocation of Total Monthly Collection Goal by Major Source 1. Actual collection by GFS Classification, January November, 2000 2. Estimated collection by GFS Classification, December, 2000 c) Allocation of BIR Collection Goal by Major Source 1. Revenue Region collections for CY 2000 on Income taxes, VAT, Other Percentage taxes and Other taxes were gathered from BIR Form No. 1209 as of March 01, 2001 2. Collection data on T-Bills and Travel Tax were directly sourced from the Office of the Regional Director RR 6 Manila and BIR Form No. 1209, respectively 3. Collection from Stock Transaction was furnished by the Collection Division of Revenue Region 7 Quezon City 4. Collection data on 200 Large Taxpayers from Large Taxpayers District Office (LTDO) were furnished by the Large Taxpayers Service III . Allocation by Implementing Group The BIR goal was allocated to the two implementing groups: a) Large Taxpayers Service (LTS) with the integrated function of the revenue generation from Excise Taxpayers pursuant to EO No. 306 (Further Streamlining the Bureau of Internal Revenue to Improve Administrative Control Over Certain Categories of Taxpayers and Enhance Effectiveness of its Computerized Integrated Tax System by Amending Certain Provisions of Executive Order No. 175) and b) the Revenue Regions (RRs). IV . Methodology for Goal Allocation by Implementing Group 1. Allocation of the Total CY 2001 Goal for Revenue Regions (RRs) and Large Taxpayers Service (LTS), Table 2 To compute for the total CY 2001 goal for RRs and LTS the following formula was used: Goal 2001 = Coll. 2000 + (Coll. 2000 x Est. GRDP g.r. x Buoyancy rate) + S where: GRDP = Gross Regional Domestic Product Estimated GRDP Growth Rate = GRDP 2001 - GRDP 2000 GRDP 2000 Buoyancy rate = Collection growth rate GRDP growth rate S = adjustment to maintain the total goal set by the Department of Finance 2. Computation of total monthly collection goal by implementing group The computation of the total monthly collection goal by implementing group was done using the following procedure: i. Using the monthly internal revenue collections (Annex A), allocate the total monthly goal by applying the ratio and proportion technique. ii. The Large Taxpayers Service and the Revenue Regions will allocate their monthly goal for the four major types of taxes following Table 5. Statistics Division will consolidate their goal allocations to come up with Tables 3A and 3B. iii. The result of Tables 3A and 3B will be added to come up with the monthly collection goal by major source. Table 3 will represent the CY 2001 total monthly collection goal by major source. 3. Allocation of Goal for Implementing Group by Major Source To compute for the CY 2001 goal by major source, the following is the methodology: a. Refine the Collections by Major Source (Annex B) The CY 2000 collections have been refined by deducting the following: i. Excise Taxes collection from the Large Taxpayers Service ii. T-Bills collection from Revenue Region No. 6 - Manila iii. Stock Transaction Tax collection from Revenue Region No. 7 Quezon City iv. Travel Tax collection from Revenue Region No. 6 - Manila v. Large Taxpayers District Office (LTDO) collection from Revenue Region No. 8 - Makati b. Compute the goal for Implementing Group by major source (Table 4) i. Using the refined collection figures (Annex B), allocate the goal for RRs for each major type, applying the ratio and proportion technique to CY 2000 collection. ii. Add the goal for the special taxes to the respective RRs collecting from those sources. iii. Add up the goals by major sources for RRs. Any adjustment shall be absorbed by Income Taxes and Value-Added Taxes to maintain the result in Table 2. 4. Treatment of Goal on Special Taxes a) Excise Taxes The goal on Excise Tax of P64,677 M is solely allocated to the Large Taxpayers Service in consonance with Executive Order No. 306. b) Treasury Bills The goal on tax on collections from T-Bills of P21,245 M is allocated to RR6 - Manila, since it has jurisdiction over Bangko Sentral ng Pilipinas (BSP) which collects such tax for the BIR. c) Stock Transaction Tax The goal on Stock Transaction Tax under the "Other Percentage Tax" type in the amount of P1,115 M is allocated to RR7 - Quezon City since the Philippine Stock Exchange is located in RDO No. 43 - Pasig City. d) Travel Tax The goal on Travel Tax in the amount of P373 M is allocated to RR6 - Manila since the Philippine Tourism Authority which collects the said tax for the BIR is located in Manila. V . Revenue District Goal Allocation The procedure and methodology of the district goal allocation shall be at the discretion of the regional offices concerned following Tables 3B and 5. The Regional Directors are hereby required to submit or e-mail ([emailprotected]) to the Chief, Statistics Division at on or before April 18, 2001 the Distribution of Regional Goals by RDO, by month and by type of taxes. VI . List of Tables and Annexes Table 1 BIR Collection Goal By Type of Tax, CY 2001 Table 2 Total BIR Collection Goal, CY 2001 Table 3 Monthly Collection Goal by Major Source, CY 2001 Table 3A Monthly Goal Allocation By Major Source for Large Taxpayers Service, CY 2001 Table 3B Monthly Goal Allocation By Major Source for Revenue Regions, CY 2001 Table 4 BIR Collection Goal By Major Source By Implementing Group, CY 2001 Table 5 Total Monthly Goal Allocation By Implementing Group/Regions, CY 2001 Annex A Monthly Internal Revenue Collection, CY 2000 Annex B Refined Collection by Type of Tax Per Revenue Region, CY 2000 Annex C Total Monthly Collection by Implementing Group, CY 2000 VII . Periodic Review of the Goal The implementing groups are hereby required to submit to the Policy and Planning Service, Attention: Statistics Division any significant behavior in collections and other related data which shall be utilized as basis for the review of the set targets. The review shall be done semi-annually or as the need arises. III . Effectivity This Revenue Memorandum Order shall take effect immediately. (SGD.) RENE G. BAEZ Commissioner of Internal Revenue ATTACHMENT Table 1 - BIR Collection Goal by Type of Tax, CY 2001 Table 2 - Total BIR Collection Goal, CY 2001 Table 3 - Monthly Collection Goal by Major Source, CY 2001 Table 3A - Monthly Goal Allocation by Major Source for Large Taxpayers Service, CY 2001 Table 3B - Monthly Goal Allocation by Major Source for Revenue Regions, CY 2001 Table 4 - BIR Collection Goal by Major Source by Implementing Group, CY 2001 Table 5 - Total Monthly Collection by Implementing Group, CY 2001 ANNEX A Monthly Internal Revenue Collection, CY 2000 ANNEX B Refined Collection by Type of Tax per Revenue Region ANNEX C Total Monthly Collection by Implementing Group, CY 2000