Consolidated Statement of the Collection Functions, Duties and Responsibilities of Regional and District Officials and Employees Including Pertinent Law Provisions and National Issuances Prescribing the Same

February 5, 1979 REVENUE MEMORANDUM ORDER NO. 14-79 SUBJECT : Consolidated Statement of the Collection Functions, Duties and Responsibilities of Regional and District Officials and Employees Including Pertinent Law Provisions and National Issuances Prescribing the Same TO : All Revenue Regional Directors, Chiefs of Collection Branches, Revenue District Officers, District Collection Supervisors, Revenue Collecting Officers and Others Concerned The various collection functions, duties and responsibilities of regional and district officials and employees have been provided for in several statutory provisions and national issuances issued over time. In order to provide a compendium that can serve as a ready reference and guide to all concerned, and with the view to achieving sustained and improved compliance and performance in collection work, this Memorandum Order is therefore prescribed. cdt As consolidated in summary form, the following are the functions, duties and responsibilities of all concerned and the pertinent law provisions and issuances prescribing the same, to wit: I. The Revenue Regional Director and his Assistant shall: 1. Under rules and regulations, policies and standards formulated by the Commissioner of Internal Revenue within the region and district offices under his jurisdiction, among others, administer and enforce internal revenue laws and regulations including the assessment and collection of all internal revenue taxes, charges and fees; and exercise control and supervision over the officers and employees within the region (Sec. 9(2) and (6) Tax Code of 1977); 2. Enforce the collection of a delinquent tax or charge by means of warrant of distraint of personal property and/or warrant of levy on real estate not earlier than three months nor later than six months from receipt by the delinquent taxpayer of the assessment notice and/or letter of demand, in accordance with sections 304 and 310, and other sections (301-317) of chapter II, Title IX of the Tax Code of 1977; 3. Direct and supervise the collection activities of the Collection Branch, other branches, and all the revenue district offices within his region (Revenue Administrative Order No. 1-67 dated January 3, 1967, as amended); 4. Closely supervise through the Chief, Collection Branch, Revenue District Officers and District Collection Supervisors, all accountable officers in order to minimize, if not totally eradicate the defalcation by accountable officers; be equally responsible as overall supervisor for any failure or delinquency of BIR collecting officers in the submission of collection reports, or non-compliance with any of the provisions of Finance Memorandum Circular No. 3, dated August 15, 1960; and be liable for administrative action under his jurisdiction by reason of which a shortage or defalcation was committed (Revenue Memorandum Order No. 12-62 dated March 15, 1962 and Revenue Memorandum Order No. 51-62 dated September 20, 1962); 5. Cause the establishment of a check list of reports of collections (BIR Forms Nos. 12.31 and 12.01), scrutinize the check list to personally know the BIR collecting officers who have not submitted their reports; and direct the Chief, Collection Branch to make a follow-up action on such reports (Revenue Memorandum Circular No. 60-72 dated October 23, 1972); 6. Accomplish the Regional Consolidated WDL Monthly Status Report (WER Form No. 4) and submit the same together with the original copies of WER Forms No. 4 of District Officers and the Chief, Collection Branch to the Revenue Service Chief (Collection) within fifteen (15) days after the end of each month (Revenue Memorandum Order 35-73 dated September 27, 1973); 7. Conduct monthly inspection or audit of the district collection supervisors, and submit to national offices concerned inspection reports on the forms prescribed for the purpose within the fifth (5th) day after the close of each month, with copies furnished the Revenue Service Chief (Collection). In case of inability, the Chief, Collection Branch or his Assistant should be required to conduct the monthly inspection or audit (Revenue Memorandum Order No. 6-77 dated January 20, 1977, in relation to Revenue Administrative Order No. 2-65 dated March 5, 1965 and Revenue Memorandum Order No. 32-74 dated July 10, 1974); 8. Administer and enforce the provisions of Revenue Memorandum Order No. 21-77 dated May 28, 1977 on the subject; Control of Accounts listed in the DPS lists of receivables and other prescribed control lists of receivables; 9. Administer and enforce the provisions of Revenue Memorandum Order No. 55-77 dated November 16, 1977 on the subject: Handling, custody and disposition of the cashbook of accountable officers; 10. Administer and enforce the pertinent provisions of Revenue Memorandum Order No. 30-78 dated October 25, 1978 on the subject: Revised procedures in the receipt of tax returns/documents and issuance of revenue tax receipts for payment of internal revenue taxes through authorized agent banks (otherwise called the revised system of payment thru authorized agent banks). II. The Chief, Collection Branch shall: 1. Perform line functions and assume responsibility for the collection, control and reporting of the status of regional accounts, and exercise staff functions and supervision over the collection of district accounts and all other collection activities of the region (Revenue Administrative Order No. 1-67 dated January 3, 1967, as amended); 2. Coordinate and supervise the collection activities of district officers and employees and be liable for administrative action for failure to closely supervise any accountable officer under his jurisdiction by reason of which a shortage or defalcation was committed (Revenue Memorandum Order No. 51-62 dated September 20, 1962); 3. Establish a check list of reports of collection (BIR Forms 12.31 and 12.01) and prepare call-up letters to the Revenue District Officers concerned stating the BIR collecting officers whose reports are in arrears (Revenue Memorandum Circular No. 60-72 dated October 23, 1972); 4. Conduct monthly inspection or audit of the district collection supervisors in case of inability of the Regional Director and Assistant Regional Director (see 1(7) above), (Revenue Memorandum Order No. 6-77 dated January 20, 1977); 5. Consolidate the WER Forms Nos. 1, 2 and 3 of Revenue Seizure Agents assigned in the Collection Branch and submit the Consolidated WDL Monthly Status Report (WER Form No. 4) for the Collection Branch to the Regional Director within ten (10) days, after the end of the month (Revenue Memorandum Order No. 35-73 dated September 27, 1973), prepare for the Regional Director the Regional WER Form No. 4 (see No. I(6) above); 6. Enforce the provisions of Revenue Memorandum Order No. 21-77 dated May 28, 1977 on the subject: Control of accounts listed in the DPS lists of receivables and other control lists of receivables prescribed; maintain and update the general control ledgers for each revenue districts for the district accounts, the general control ledger for regional accounts and the general control ledger for both regional and district accounts combined; 7. Enforce the provisions of Revenue Memorandum Order No. 55-77 dated November 16, 1977 on the subject: Handling, custody and disposition of the cashbook of the accountable officers; 8. Maintain systematic files of the lists, reports and documents coming under his authority pursuant to Revenue Memorandum Order No. 30-78; control and update all unpaid RTR's issued, and follow-up and collect delinquent accounts arising from non-payment of RTR's; and collate all monthly reports on unpaid RTRS, and accomplish a Regional consolidated report on unpaid RTRs and distribute copies thereof as prescribed in said Revenue Memorandum Order, within twenty (20) days after the end of each month. III. The Revenue District Officer shall: 1. See that all laws and regulations affecting national internal revenue are faithfully executed and complied with; examine into the efficiency of all officers and employees under his supervision, and report in writing to the Commissioner, through the Regional Director, any neglect of duty, incompetency, delinquency, or malfeasance in office of any internal revenue officer of which he may obtain knowledge, with a statement of all the facts and any evidence sustaining each case (sec. 10, Tax Code of 1977); 2. Direct and assume responsibility for the collection of all accounts covered by assessment notices and/or letters of demand within the revenue district; exercise powers and duties incident to collection activities through the district collection supervisor, collection agents and cash clerks (Revenue Administrative Order No. 1-67 dated January 3, 1967, as amended); 3. Enforce the collection of a delinquent tax not exceeding P5,000.00 by means of warrant of distraint of personal property and/or warrant of levy on real estate not earlier than three months nor later than six months from receipt by the delinquent taxpayer of the assessment notice and/or letter of demand [secs. 304 and 310, and other sections (301-317) of Chapter II, Title IX, Tax Code of 1977]; 4. Enforce the provisions of Department of Finance Memorandum Circular No. 3, dated August 15, 1961, and if for any reason he does not take steps towards the submission of the collection reports by the collection agents on time, he shall be equally responsible and may be proceeded against administratively (Revenue Memorandum Order No. 51-62 dated September 20, 1962 quoting provisions of Revenue Memorandum Order No. 12-62 dated March 15, 1962 and Department of Finance Memorandum Circular No. 3, dated August 15, 1961); 5. Under Revenue Memorandum Order No. 12-66 dated February 2, 1966, be considered equally responsible with the BIR collecting officer under his jurisdiction for the delay in the submission of his report of collection which shall be a cause for the suspension of payment of their salaries and other allowances; 6. Accomplish the consolidated warrant of distraint and levy (WDL) Monthly status report (WER Form No. 4) to consolidate the WER Forms Nos. 1, 2 and 3 monthly reports of his fieldmen performing collection work, and submit the same to the regional office within ten (10) days after the end of the month (Revenue Memorandum Order No. 35-73 dated September 23, 1973); 7. Create teams to conduct random check of RORs issued to the taxpayers compared with the copies thereof and or the monthly report of collections on BIR Form No. 12.31 and submit the report of activities to the Revenue Service Chief (Collection) thru the Regional Director within fifteen (15) days of the following month (Revenue Memorandum Order No. 45-76 dated November 9, 1976); 8. Inspect and audit the Collection Agents and Cash Clerks under him and in case of his inability to do so to direct the Asst. Revenue District Officer or the District Collection Supervisor to conduct inspection and audit (Revenue Memorandum Order No. 6-77 dated January 20, 1977); 9. Supervise and observe compliance with the provisions of Revenue Memorandum Order No. 21-77 dated May 28, 1977 on the subject: Control of accounts listed in the DPS lists and other prescribed control lists of receivables; maintain and update the general control ledger for accounts falling under the jurisdiction of his district; and accomplish the monthly reports required under said Revenue Memorandum Order and submit the same to the offices concerned within ten (10) days after the end of each month; 10. Supervise directly and thru his Assistant Revenue District Officer and the District Collection Supervisor, the collection work and activities of all district personnel assigned to the payment of taxes through the banking system; and submit the monthly summary of Revenue Collections by kind of tax on BIR Form No. 12.33-A to the Office of the Collection Service Chief and other offices concerned, not later than the 20th day of every month (Revenue Memorandum Order No. 5-77 dated January 28, 1977, as amended by Revenue Memorandum Order No. 30-78 dated October 30, 1978); IV. The Revenue District Collection Supervisor shall: 1. Closely supervise all accountable officers within his jurisdiction in order to minimize if not to entirely eradicate the defalcations committed by accountable officers, and for failure to closely supervise any accountable officer under his jurisdiction by reason of which a shortage or defalcation was committed he shall be equally responsible with the collecting officer and may be proceeded against administratively (Revenue Memorandum Order No. 51-62 dated September 20, 1967); 2. Perform and exercise the duties and functions of revenue collection supervisors (coordinators) as prescribed in Revenue Administrative Order No. 2-65 dated March 5, 1965; 3. Under Revenue Memorandum Order No. 21-72 dated July 5, 1972 be considered equally responsible with the BIR collecting officer under his jurisdiction for any violation of the provisions of Department of Finance Circular No. 3, which shall cause the suspension of the payment of their salaries and other allowances; and prepare a check list of reports of collections (BIR Forms Nos. 12.31 and 12.01 to know the collecting officers who have not submitted their reports (Revenue Memorandum Circular No. 60-72 dated October 23, 1972); 4. Supervise personally and observe compliance of subordinates with the provisions of Revenue Memorandum Order No. 5-77 dated January 28, 1977, as amended by Revenue Memorandum Order No. 30-78 dated October 25, 1978 on the revised procedures in the issuance of RTRs, etc., and as specifically directed in said Order to forward to the Collection Branch the summary report of collections and the daily lists of RTRs issued as well as continue the collection of all RTRs issued but unpaid; 5. Perform and supervise his personnel assigned to execute the manual work on the control of delinquent accounts in accordance with Revenue Memorandum Order No. 21-77 dated May 28, 1977, and prepare and submit for the district officer the monthly control reports and the general control ledger for district accounts to the Regional Office, within ten (10) days after the end of each month; V. The BIR Collecting Officer shall: 1. Perform and exercise the duties and functions as prescribed in Revenue Administrative Order No. 3-62 dated May 31, 1962; 2. Accomplish and submit on time his report of collections not later than the 5th day of the succeeding month to the various offices concerned and for repeated delinquency in their submission he shall be dealt with administratively (Revenue Memorandum Order No. 12-62 dated March 15, 1962 and Revenue Memorandum No. 51-62 dated September 20, 1962); 3. Have his salaries and other allowances suspended until and after his report of collection or written explanation shall have been received by the various offices concerned (Revenue Memorandum Order No. 12-66 dated February 2, 1966 and Revenue Memorandum Order No. 21-72 dated July 5, 1977); 4. Under Revenue Memorandum Circular No. 35-71 dated November 12, 1971, be punished by a fine or imprisonment or both at the discretion of the court for any undue delay in the remittance of revenue collections. In addition, it shall entail his dismissal from the service with prejudice to reinstatement and with permanent disqualification for election or appointment to any public office; 5. In case of any reported loss of accountable forms, be rigidly investigated and as accountable officer and/or his supervisor concerned shall be suspended immediately and charged administratively as the circumstances surrounding such loss may warrant. Likewise, in case the accountable forms lost have money value on the face thereof, such accountable officer jointly with the supervisor concerned shall be responsible for such money value (Revenue Memorandum Order No. 50-74 dated October 14, 1974); 6. When making remittance of collections, to ask for and secure from the depository banks, official receipts to acknowledge and evidence his remittances in case the depository bank does not have a validating machine and to attach said official receipts to the copy of the remittance advices forwarded to the Accounting Division (Revenue Memorandum Order No. 35-76 dated August 11, 1976); 7. Follow and observe faithfully the provisions of Revenue Memorandum Order No. 21-77 dated May 28, 1977 on the subject: Control of accounts listed in the DPS lists of receivables and other control lists of receivables prescribed in so far as provisions thereof are applicable to him or as he may be directed by his superior officers; 8. Strictly comply with the provisions of Revenue Memorandum Order No. 55-77 dated November 6, 1977 on the subject: Handling, custody and disposition of the cashbook of the accountable officers in order to insure prompt audit and examination of his cash accountabilities and for his own good to preclude the problem of delayed payment of monetary benefits and enjoyment of other privileges upon retirement, resignation or separation from the service; 9. Strictly comply, and with respect to his subordinates, if any, supervise and observe their strict compliance with the provisions of Revenue Memorandum Order No. 30-78 dated October 25, 1978 on the subject: Revised procedures in the payment of internal revenue taxes thru authorized agent banks, etc., particularly on specific duties and responsibilities assigned to him and to all personnel under his supervision. The above enumeration is not meant to be exclusive as any omission is unintended. Hence, deemed included in this Order are other functions, duties and responsibilities which may have been unintentionally omitted, such omission not affecting in any way their existence and efficacy. All officials and employees concerned are therefore enjoined to be guided accordingly. cd EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-F2828-A-8