Prescribing a Codes Table for Use in the Implementation of the Integrated Tax System (ITS) and Outlining the Guidelines and Procedures in the Maintenance of the Codes Table

May 15, 1997 REVENUE MEMORANDUM ORDER NO. 27-97 SUBJECT : Prescribing a Codes Table for Use in the Implementation of the Integrated Tax System (ITS) and Outlining the Guidelines and Procedures in the Maintenance of the Codes Table TO : All Assistant Commissioners, Regional Directors, ISU Heads, and Other Internal Revenue Officials and Employees Concerned I. OBJECTIVE This Order is issued for the following purposes: 1. To prescribe the appropriate Codes to be used in the implementation of the various Application Systems of the Integrated Tax System, which Codes shall be embodied in a series of Codes Tables; and 2. To provide the guidelines and procedures to be followed in the maintenance of the Codes Tables. prcd 3. To identify the offices responsible for introducing changes in the various Codes Tables. II. DEFINITION OF TERMS 1. Policy Change . The term "policy change" refers to any new internal revenue legislation (external policy change), or management directive (internal policy change), that shall have a direct effect on the Codes Tables of the various ITS Applications Systems. 2. External Policy (Legislative) Change . The term "legislative change" refers to any policy change brought about by the enactment of any new tax measure by Congress, and implemented through the issuance of Revenue Regulations (RR) approved by the Secretary of Finance. The changes in the coverage or rates of a particular type of tax brought about by such external policy changes require the creation or abolition of certain Alphanumeric Tax Codes, to enable the efficient monitoring of internal revenue collections, as well as to provide management with detailed information on collection by type of tax, by taxpayers classification, etc. 3. Internal Policy (Management) Change . The term "internal policy change" refers to any policy change resulting from the issuance of an official directive by management in the form of a Revenue Memorandum Order (RMO) or a Revenue Audit Memorandum Order (RAMO) to effect changes in operational procedures. Such internal policy changes may result in revised informational requirements, to provide more detailed information for the decision-making process. 4. Operations Change . The term "operations change" shall refer to the requirements of the ITS for additional codes as a consequence of both internal policy (management) changes and external policy (legislative) changes. III. PROCEDURES 1. Requesting Office a. For External Policy (Legislative) Changes If an external policy change necessitates the creation of a new Alphanumeric Tax Code or the abolition of an existing Code, the Legal Service shall provide the Statistics Division of the Management and Planning Service (SD-MPS) with the approved Revenue Regulations, and request the latter Office to effect the necessary changes in the Codes Table. b. For Internal Policy (Management) Changes Upon approval of a new Revenue Memorandum Order and/or Revenue Audit Memorandum Order effecting any changes in existing operational procedures, the Office affected should request the SD-MPS to ascertain the necessary changes (if any) in the appropriate Codes Table. 2. Recommending Office a. For Changes in the Alphanumeric Tax Code Table The SD-MPS shall undertake the creation of any new code or abolition of an existing code, based on the appropriate Revenue Regulations approved by the Secretary of Finance. Such changes in the Codes Table shall then set forth in an RMO, and submitted for the approval of the Commissioner. The approved RMO shall then be transmitted to the Information Systems Group (ISG), for appropriate action. b. For Changes in All Other Codes Tables The SD-MPS shall recommend changes in the appropriate Codes Table through an RMO to be approved by the Commissioner. The approved RMO shall be transmitted to the ISG, for appropriate action. 3. Implementing Office Upon receipt of the approved RMO creating new codes or abolishing existing codes, the Information Systems Group shall embody program changes in the appropriate ITS Application Systems, as a result of such revisions. IV. THE CODES TABLES The following Codes Tables, presented in detail in the attached Annexes (A to Q), are herein prescribed for use in the implementation of the various ITS Application Systems. The same shall serve as references for future changes in the Codes. Application Systems Audit Systems (AS) Annex A (4 pages) Accounts Receivable System (ARS) Annex B (1 page) Case Monitoring System Annex C (9 pages) Collection and Banks Reconciliation Annex D (7 pages) System (CBR) Excise Tax Reconciliation (ETR) Annex E (10 pages) Returns Compliance System (RCS) Annex F (1 page) Returns Processing System (RPS) Annex G (16 pages) Taxpayer Accounting Systems (TAS) Annex H (5 pages) Technical (TEC) Annex I (1 page) Tax Credit Refund System (TCR) Annex J (2 pages) Tax Reconciliation System (TRS) Annex K (1 page) Registration System (RS) Annex L (94 pages) NO-MIS Planning and Control Annex M (273 pages) System (NO-MIS) Other Codes PSIC Annex N PSOC Annex O ATC Annex P Common Codes Annex Q V. EFFECTIVITY This Order shall take effect immediately. llcd (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue