Prescribing Guidelines to Reactivate and Update Existing Business Taxpayers' Masterfile

March 15, 1989 REVENUE MEMORANDUM ORDER NO. 17-89 SUBJECT : Prescribing Guidelines to Reactivate and Update Existing Business Taxpayers' Masterfile TO : All Regional Directors, Revenue District Officers and All Others Concerned In line with the thrust of the Bureau to improve performance and tap potential taxpayers to increase revenue collections, every revenue district officer shall maintain complete and accurate information on the taxpayers under his area of jurisdiction. Such taxpayers must have been properly identified by now through the computer printouts distributed to all Revenue District Officers on July 25, 1986. A. Guidelines on updating business taxpayers' masterfiles The following guidelines are hereby issued for the continuous updating of the business taxpayers' masterfiles: 1. Matching of business taxpayers per alpha lists distributed to all RDOs in 1986 and alpha lists of VAT and Non-VAT registrants to be generated by the Revenue Computer Center (RCC), the source documents for which are BIR Form Nos. 2550-1 (Application for VAT Registration), 2551-1 (Application for Business Registration for Non-VAT Taxpayers) and 2550 (VAT Return). Unmatched taxpayers should be verified if actually in existence in which case, they should be required to register as VAT or Non-VAT taxpayers. Otherwise, they should be deleted from the list. In any case, the RCC should be notified accordingly. 2. Results from limited survey and regular surveillance to be conducted by every revenue district office to tap and identify potential taxpayers engaged in underground economy should be included in the alpha lists. 3. Data gathering (and matching with existing masterfiles) from other government offices such as the Business Permit Unit of each municipality/city, Bureau of Land Transportation, Bureau of Fisheries and Aquatic Resources, National Food Authority, etc. Also lists of professionals may be obtained from professional organizations such as Integrated Bar of the Philippines, Philippine Institute of Civil Engineers, Nurses', Doctors' or Dentists' Organizations, etc. 4. Memorandum Order No. 219, dated February 13, 1989, issued by the President, requiring the submission of lists of government purchases/contracts to the BIR could be an effective tool in ferreting out potential taxfilers. 5. Business establishments which have closed shop or transferred should be deleted from the district files. B. Reports required 1. In all of the above cases, each RDO is required to send updating data which includes information on deletions to the Revenue Computer Center using the forms/format attached as Annex A (Business Taxpayers' Masterfiles Update Sheet (New Taxpayer)) and Annex B (Business Taxpayers' Masterfiles Update Sheet (Taxpayer to be Deleted)), not later than ten (10) days after the end of each calendar quarter. Transmittal lists using the formats in Annex C-1 (Transmittal List of New Business Taxpayers) and Annex C-2 (Transmittal List of Taxpayers to be Deleted) should accompany the corresponding update forms. At the same time, a copy of the said transmittal should be furnished Assessment Service to facilitate monitoring of the volume of new taxpayers. 2. The Revenue Computer Center shall furnish revenue district offices printouts with the alpha lists of updated business taxpayers not later than the end of February of each year. C. Monitoring proper compliance of updating business taxpayers' masterfiles 1. Assessment Service shall periodically monitor the compliance of updating taxpayers' masterfiles. A report on the compliance by the district offices (based on Annex C-1) shall be submitted to the Commissioner within thirty (30) days after the end of each calendar quarter, copy furnished Planning and Research Service, in a form prescribed in Annex D (Number of New Business Taxpayers by RDO). 2. Management audit shall be performed regularly by Planning and Research Service to monitor the maintenance and ensure the accuracy of the taxpayers' masterfile, among others. REPEALING CLAUSE : This Order supersedes all other existing issuances or portions thereof inconsistent with this Order. EFFECTIVITY : This Order shall take effect immediately upon approval. JOSE U. ONG Commissioner of Internal Revenue TAN: 05220-C-1831-A-9 ANNEX A RDO NO. _______________ DATE _________________ ANNEX B RDO NO. _______________ DATE _________________ ANNEX C-1 TRANSMITTAL LIST OF NEW BUSINESS TAXPAYERS RDO NO. ____________ STATION TOWN ________________ As of ________________ ANNEX C-2 TRANSMITTAL LIST OF TAXPAYERS TO BE DELETED RDO NO. ____________ STATION TOWN ________________ As of ________________ ANNEX D NUMBER OF NEW BUSINESS TAXPAYERS BY RDO REVENUE REGION NO. ___________ As of ________________