Addendum to RMO 4-88 re: Monthly Statistical Report of Revenue Collections

June 3, 1988 REVENUE MEMORANDUM ORDER NO. 20-88 SUBJECT : Addendum to R MO 4- 88 re: Monthly Statistical Report of Revenue Collections TO : Revenue District Officers, Revenue Collections Officers, Chiefs of Excise Tax Office and VAT Division and Others Concerned A. Objectives : This Order is issued: 1. To provide supplemental instructions to RMO 4-88 relative to procedures in accomplishing BIR Forms 12.08 and 12.09; 2. To facilitate proper identification, classification, data control, reporting and monitoring of collections as affected by the implementation of EO 273; and 3. To issue additional guidelines and procedures for the initial implementation of a micro-based computerized collection system for selected RDOs. B. Guidelines 1. In order that accurate reporting of revenue collections is insured, the following definition of terms pertinent to Part I - Total Gross Collections of BIR Form Nos. 12.08 and 12.09 are provided: cd a. Collections from Voluntary Payments These are revenue collections based on the returns filed voluntarily by taxpayers which are paid on time as provided for under the National Internal Revenue Code (NIRC). Voluntary payments may either be current or overdue accounts. b. Paid During Investigation These are collections received/generated from the taxpayers during the investigation without waiting for a formal notice of assessment. c. Paid After Notice of Demand These are collections made within the period of 30 days (income tax) or 10 days (business tax) from the date of issuance reflected in the notice of assessment during which time increments for late payments are not imposed. d. Collections from Delinquent Accounts These are collections from deficiency tax assessments which are paid beyond 30 days (income tax) or 10 days (business tax) from the date of issuance as reflected in the notice of assessment. 2. A Supplemental Report to BIR Form Nos. 12.08 and 12.09 is hereby prescribed and attached to said forms to reflect the following: a. Deficiency taxes which have been replaced by the Value-Added Tax (VAT) pursuant to EO 273; b. Unclassified taxes which have not been covered by the Alpha Numeric Tax Code (ATCs) of Revenue Sources (RMOs 24-87 & 7-88), but which are now provided with ATCs; c. Treasury Bills and stock transactions under the Final Withholding Taxes; and d. Energy taxes. 3. The Excise Tax Office and VAT Division are hereby required to submit their collection reports using BIR Form No. 12.09. C. Specific Instructions : 1. All Revenue District Officers with micro-computers shall submit to the Statistical Division the computer printouts - generated by the computerized system in lieu of BIR Form 12.09 report since such printouts follow exactly the format of said form. On the other hand, RDOs without micro-computers are required to accomplish and submit their reports using the prescribed BIR Form 12.09. cdt 2. All Collection Officers shall submit BIR Form No. 12.08 together with the Supplemental Report to their respective Revenue District Officers. All Revenue District Officers shall submit BIR Form No. 12.09 together with the Supplemental Report to the Statistical Division. The Supplemental Report shall reflect the following: a. Deficiency Taxes Replaced by VAT Deficiency taxes for prior years which have been replaced as a result of the implementation of the VAT System, such as Sales Tax, Fixed Tax, Miller's Tax, Contractor's Tax, Broker's Tax, Advance Sales and Compensating Tax are to be included in Part I of the Supplemental Report. b. Unclassified Taxes Pursuant to EO 273, commencing January 1, 1988, collections of forest charges and occupational fees and rentals from mining claims were transferred to the Bureau of Forest Management and to the City or Municipality, respectively, where the mining claim is located. The payment of taxes for these two classifications whether for taxable year 1988 or for prior years are to be properly monitored in Part II of the Supplemental Report. In cases, where payment of these taxes for the year 1988 were receipted/accepted by the Bureau's collection offices, proper reporting should be done so that the corresponding collections can be deducted accordingly in the Bureau of Treasury. c. Collections from Treasury Bills, Stock Transactions and Energy Taxes. 3. All Collection Officers are hereby required to strictly comply with the following instructions in accomplishing Payment Orders/Revenue Official Receipts. a. Reflect the corresponding Alpha Numeric Tax Code (ATC); b. Reflect on the Remarks portion the proper description of the source of tax being paid, to wit: 1) From Voluntary Payments; 2) Paid During Investigation; 3) Paid After Notice and Demand; and 4) Delinquent Tax D. Schedule of Reporting 1. The distribution of BIR Form No. 12.09 as per RMO 4-88, is amended as follows: Original Statistical Division Duplicate Collection Performance Control Division Triplicate Collection Branch 2. As provided for in RMO 4-88 it is hereby reiterated that the duly accomplished BIR Form No. 12.09 or computer printouts thereof with the Supplemental Report Form shall be submitted by the Revenue District Offices, Receivable Accounts/Billing Division, International Operations Division, Value-Added Tax Division and Excise Tax Office to the Statistical Division within ten (10) working days from the end of each month. E. Penalty Every 15th day of each month, the Statistical Division through the Financial Service shall submit to the Commissioner, copy furnished the Collection Service, a list of those who failed to submit their 12.09 reports on time. On the basis of this official list, the Commissioner of Internal Revenue, upon recommendation of the Assistant Commissioner for Collection, shall suspend the salaries of the Revenue District Officers and Division/Office heads for failure to submit their 12.09 reports on time. F. Effectivity This Order shall take effect immediately and any order or provisions thereof which are inconsistent herewith are deemed repealed or modified. (SGD.) BIENVENIDO A. TAN, JR. Commissioner