Tax Mapping Operation

March 27, 1995 REVENUE MEMORANDUM ORDER NO. 12-95 SUBJECT : Tax Mapping Operation TO : All Regional Directors, Revenue District Officers and Others Concerned I. OBJECTIVES This Order is issued to provide the guidelines and procedures relative to the implementation of Oplan: Tax Mapping on a nationwide scale with the following objectives: 1. To maximize tax compliance thereby increasing collections; 2. To bring persons, taxable, or exempt, into the arena of taxation especially those in the under ground economy. 3. To ferret out tax evades; and 4. To enhance the Bureau's data bank in line with the computerization program and build a complete taxpayer's profile by line of industry per street, barangay and district. II. POLICIES, GUIDELINES AND PROCEDURES In order to attain these objectives, it is hereby prescribed that all Revenue Regions shall undertake Tax Mapping Operation" within their jurisdiction in accordance with the following procedures: 1. The Revenue District Officer in coordination with the Regional Director shall divide the Revenue Districts within their jurisdiction into several tax zones. a. The Revenue District Officer shall be given the discretion to divide the area into number of zones depending on the number of taxpayer, the number of personnel to do the work, the area covered, and etc. 2. The Revenue District Officer shall create teams within the District composed of a team head/group head and two (2) or more members. 3. The Revenue District Officer shall assign a team to each tax zone/area (e.g. by street/barangay). 4. The Team/Group shall: a. Conduct "door-to-door" tax verification of all taxable persons and entities to determine unregistered persons and entities within the zone/area assigned to it, following procedures set forth in Annex "B", using the TAX MAPPING SERVICE FORM (TMS) attached as Annex "A". 1.) Each team shall be provide with a pre-numbered sticker which shall be posted in a conspicuous place in the establishment of the taxpayer. This shall serve as control document as to the number of taxpayers already mapped and it shall be accounted by the Revenue Officer to the Team Head. Sample sticker is marked as "Annex C". 2.) Taxable persons and entities found to be unregistered during the tax mapping operation shall be required to accomplish BIR Form 1356-A (Application for Registration) which shall be delivered to them personally together with a letter (Annex D) requiring them to file the same with the Revenue District Office where they are located within three (3) days from date of receipt thereof. In addition, the Revenue Officer concerned shall accomplish the TAXPAYER INFORMATION SHEET (TIS) attached herewith as "Annex E", in duplicate, for unregistered persons and entities. b. Revenue Officer shall submit a weekly report to the Team Head Supervisor using Mapping Operation Transmitted Sheet herewith attached as Annex "F-1" for registered and "F-2" for unregistered taxable entities. c. For purposes of monitoring weekly performance, the team head/supervisor shall accomplish a weekly consolidated report of the number of taxpayers mapped using the attached form marked as Annex G and submit to the Nerve Center referred to in No. 5 below, together with the TMS and TIS. 5. The Revenue District Officer shall create a Nerve Center within his district composed of the Assistant Revenue District Officer as Chairman, and Group Supervisor and Section Chiefs as members, with the following functions. a. Serve as coordinator to ensure smooth performance of the operation. b. Consolidate and analyze the reports submitted by the different groups/teams; c. Receives summary report of all new registrants from the Revenue Regulatory Section (RRS) for proper recording and consolidation. d. Submit a weekly consolidated progress report of taxpayer mapped arranged by barangay, street or district, to the RDO using Annex "F-1 and "F-2. 6. The Revenue Regulatory Section (RRS) of the RDO submit a weekly summary report of all new registrants to the Nerve Center for proper recording and consolidation. 7. The Revenue District Officer shall: a. Obtain data from appropriate government agencies (e.g. Municipal/City Mayor's Office, Municipal/City Treasurer's office Register of Deeds, Assessor's Office and LTO) for purposes of cross-checking against taxpayers mapped. b. The Revenue District Officer shall come up with a complete list of all taxpayers in the District, arranged by street, barangay and district. New Old VAT Registrants _________ _________ Non-VAT Registrants _________ _________ Still Unregistered _________ _________ c. The Revenue District Officer shall match the list of taxpayers based on the results of taxmapping operation against the present list with Information System Operations Service (ISOS). Prepare a separate list of taxpayers listed with ISOS but not found in the actual list of taxpayers mapped, for further verification and for purging (e.g. inactive, retired, transferred) if warranted. 8. The Revenue District Officer shall, from time to time, conduct a seminar for new registration to inform and educate them of their duties and rights as registered taxpayers. On the other hand, for those who failed to register within the required time, the Revenue District Office shall impose the necessary sanctions prescribed under existing revenue laws, rules and regulations (i.e, closure of business, civil and criminal penalties). III. REPORTING REQUIREMENTS 1. The RDO shall submit a monthly progress report to the Director within 5 days after the end of each month. 2. The Regional Director shall submit a monthly report within 10 days after the end of each month to ISOS, and furnish a copy to the Office of the Deputy Commissioner for Operations. 3. After completion of the project, the Regional Director shall prepare a Final Regional Taxpayers Masterfile by District and submit the same to the ISOS, copy furnished the Deputy Commissioner for Operations. 4. The Deputy Commissioner for Operations shall submit a final report on the results of the operation to the Commissioner after completion of the project. IV. TIME FRAME This project shall be completed within four (4) months from the effectivity hereof or for a shorter period as may be directed by the Commissioner. V. REPEALING CLAUSE This Revenue Memorandum Order supersedes all other Revenue Memorandum Orders inconsistent herewith. VI. EFFECTIVITY This Order takes effect upon approval. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue