Procedures in the Creation of an Automated Preliminary Data Base of Active Business Taxpayers for each Revenue District Office Preparatory to the Full Implementation of the Taxpayer Record Update (TRU) Program, Otherwise Known as TRU-Phase I

November 4, 1996 REVENUE MEMORANDUM ORDER NO. 35-96 SUBJECT : Procedures in the Creation of an Automated Preliminary Data Base of Active Business Taxpayers for each Revenue District Office Preparatory to the Full Implementation of the Taxpayer Record Update (TRU) Program, Otherwise Known as TRU-Phase I TO : All Revenue District Officers of Non-Pilot Revenue District Offices I. OBJECTIVES This Order is issued to: 1. Establish the groundwork for the nationwide implementation of the Taxpayer Record Update (TRU) Program; 2. Create/Establish an Automated Preliminary Database of taxpayers based on 1995 and 1996 taxpayer records available in the Revenue District Office; and 3. Produce an Alphabetical Master List of Taxpayers for each Revenue District Office, which shall provide information on the following taxpayers: 3.1 Individuals 3.1.1. Self-Employed 3.1.2 Professionals 3.1.3 Estates and Trusts 3.2 Non-Individuals 3.2.1 Corporations and Partnerships 3.2.2 Government Owned and Controlled Corporations (GOCCs) 3.2.3 Government Agencies and Local Government Units (LGUs) II. PROCEDURES The following shall be undertaken by the Revenue District Offices in the creation/establishment of an Automated Preliminary Data Base of business taxpayers: STRATEGY 1: DATA GATHERING FROM RECORDS OF THE REVENUE DISTRICT OFFICE Three (3) Teams shall be created to handle data-gathering and encoding activities. 1. Data Capture Team This Team shall be composed of employees assigned at the Registration and Regulatory Section (RRS), Data Processing Section (DPS), and Administrative Section. The Head of the RRS shall act as the Team Leader. It shall be the responsibility of the Data Capture Team to: 1.1 Make the Alphabetical List of taxpayers availlable, based on E-VAT Re-registration, in accordance with the following format: (The information provided in Annex A [Sources of Information] may be used as a guide from where to obtain the needed data.) For Status, indicate For Tax Types, check if: A for Active IT - Income Tax I for Inactive VT - Value Added Tax C for Cancelled PT - Percentage Tax T for Transferred WT - Withholding Tax 1.2 Provide each member of the Data Capture Team with the appropriate Registration Forms (2 copies per taxpayer). 1.3 Transcribe the data taken from the manual records. Black ink shall be used for the initial transcription. Subsequent data shall be transcribed in red ink. The use of abbreviations should be avoided in entering the names of taxpayers . 1.4 In cases where registered dates cannot be determined, refer to Annex B (Sources of Registered Dates) of this Order for the necessary guidelines. 1.5 Indicate the Alphanumeric Tax Codes (ATCs) on the space provided beside the tax types. The Codes are provided in Annex C (Registration System: Tax Types/Form Types/ATCs) of this Order, and in the Common User's Guide. 1.6 Group taxpayers according to zones. 1.7 Prepare accomplished registation forms for transmittal in batches of fifty (50), and the appropriate transmittal lists. 1.8 Transmit the batches of accomplished registration forms to the Team Leader of the Data Validation Team. 2. Data Validation Team This Team shall be composed of all Group Supervisors and Revenue Officers from the Assessment Section. The Revenue District Officer shall have the option of selecting the Team Leader, who may either be the Chief of the Assessment Section or any Group Supervisor. The responsibilities of the members of the Data Validation Team are as follows: 2.1 The Team Leader shall: 2.1.1 Receive the accomplished registration forms that shall be transmitted in batches of fifty (50) by the Data Capture Team. 2.1.2 Assign batches of registration forms to the Group Supervisors for validation. 2.1.3 Monitor the compliance of each Group Supervisor and his/her team of their responsibility to validate the information provided in the accomplished registration forms. 2.1.4 Forward all registration forms (complete and incomplete) to the District Data Encoding Team encoders, for data entry. 2.2. The Group Supervisors shall: 2.2.1 Assign to their respective Revenue Officers accomplished registration forms for validation; and 2.2.2 Prepare a Weekly Report of Compliance for the consideration of the Team Leader. 2.3 The Revenue Officers shall: 2.3.1 Contact taxpayers to complete and validate the registration data contained in accomplished registration forms. 2.3.2 Request the taxpayers concerned to affix their signatures to the validated registration forms. 2.3.3 Give one (1) copy of the validated registration form to the taxpayer with a stamped notice stating "PRESENT THIS COPY WHEN PAYING YOUR TAXES TO THE AUTHORIZED AGENT BANKS UNTIL YOUR TIN CARD IS ISSUED." 2.3.4 Submit all duly signed and validated registration forms to their respective Group Supervisors. 2.3.5 Advise taxpayers to submit Data Capture Forms (Form No. 1925) with the appropriate pictures (for individuals) or logos (for non-individuals) attached. The accomplished Data Capture Forms may be submitted together with the Registration Forms or within one week after submission of the latter. 3. District Data Encoding Team The District Data Encoders shall encode the data contained in accomplished registration forms transmitted by the Data Validation Team Leader, using the TRU Program. 3.1 All Encoders shall input all data as reflected in the registration application forms. 3.2 The entry for "Filing Start Date" shall be left open, as this information shall be based on the scheduled date of the nationwide implementation of the Integrated Tax System. 3.3 All data shall be submitted to the Revenue District Officer in encoded diskettes, with labels stating the following information: a. Revenue District Office No. (RDO No. _____) b. Date Submitted c. Contact Person d. Telephone Number STRATEGY II: DATA GATHERING DIRECT FROM TAXPAYER PAYING THROUGH AUTHORIZED AGENT BANKS (AABs) In addition to the tasks of the Data Validation Team set forth in Strategy I, the following duties and responsibilities shall also be carried out, to facilitate validation efforts. 1. Brief the Authorized Agent Banks (AABs) on their role in assisting the Revenue District Offices in the Taxpayer Record Update (TRU) Program. 2. Request the AABs to require taxpayers to present their validated copy of the Registration Form, duly stamped "RECEIVED" by the Revenue District Office concerned, before accepting their payments. In cases when a taxpayer cannot present such validated form due to failure on his part to undergo the TRU process, the AABs shall be requested to provide him with an appropriate registration form, and to instruct him to accomplish said Form and have it stamped "RECEIVED" by the Revenue District Office having jurisdiction over him. 3. Three (3) days before, and during deadlines for filing, the Data Validation Team shall be assigned at the AABs, based upon the discretion of the Revenue District Officer, to campaign for TRU compliance and assist taxpayers in accomplishing the registration forms. 4. All validated Registration Forms shall be forwarded by the Data Validation Team to the District Data Encoding Team, for appropriate action. III. REPORTING REQUIREMENTS All Revenue District Officers concerned shall submit the TRU data in diskette form to the TRU Team at Rm. 1103, 11th Floor, National Office, not later than March 31, 1997. IV. REPEALING CLAUSE All revenue issuances and/or portion(s) thereof that are inconsistent herewith are hereby revoked and/or amended accordingly. V. EFFECTIVITY This Order shall take effect immediately. (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue ANNEX A SOURCES OF INFORMATION INFORMATION SOURCE(S) 1. Type of Registration Form No. 1556-A Certificate of Registration (CR) 2. TIN Form No. 1556-A Certificate of Registration (CR) Alpha List 3. Registered Name Form No. 1556-A Certificate of Registration (CR) Alpha List 4. Date of Incorporation Income Tax Return (ITR) Registration Requirements 5. Taxpayer Type Registration Requirements 6. Nationality Registration Requirements 7. Primary Industry (PSIC) Certificate of Registration (CR) 8. Taxable Year Income Tax Return (ITR) 9. Business/Trade Name Form No. 1556-A Certificate of Registration (CR) 10. Local Business Address Any Tax Returns 11. Local Business Phone Number Form No. 1556-A PLDT Telephone Directory 12. Foreign Business Address Form No. 1556-A 13. Contact Person Taxpayer 15. Tax Types VT - Value Added Tax VAT Returns PT - Percentage Tax Percentage Tax Returns WT - Withholding Tax* Withholding Tax Returns IT - Income Tax Income Tax Returns * Recipient of Income Payments is important in determining the ATC. Please refer to Annex C for the ATC Codes. ANNEX B SOURCES OF REGISTERED DATES TAXPAYER TYPE REGISTERED DATE Single Proprietors * When the entity commenced business * When the entity registered with the DTI Individuals originally employed but * When the person first got employed turned into single proprietors * When the person first got employed with the current employer Individuals originally single proprietors * When the entity commenced business but turned into employees * When the entity registered All taxpayers with no other sources * January 1, 1997 ANNEX C REGISTRATION SYSTEM Tax Types / Form Types / ATCs ANNEX D R.D.O. ROLL-OUT SCHEDULE RDO# CITY/MUNICIPALITY ROLL-OUT DATE 1 Laoag City April 1, 1998 2 Vigan, Ilocos Sur April 1, 1998 3 San Fernando, La Union April 1, 1998 4 Calasiao, Pangasinan April 1, 1998 5 Alaminos, Pangasinan April 1, 1998 6 Urdaneta, East Pangasinan April 1, 1998 7 Bangued, Abra April 1, 1998 8 Baguio City April 1, 1998 9 La Trinidad, Benguet April 1, 1998 10 Bontoc, Mountain Province April 1, 1998 11 Tabuk, Kalinga Apayao April 1, 1998 12 Lagawe, Ifugao April 1, 1998 13 Tuguegarao, Cagayan April 1, 1998 14 Bayombong, Nueva Vizcaya April 1, 1998 15 Iligan, Isabela April 1, 1998 16 Cabarroguis, Quirino April 1, 1998 17 Tarlac, Tarlac April 1, 1998 18 Olongapo City April 1, 1998 19 Subic Bay Metropolitan Authority April 1, 1998 20 Balanga, Bataan April 1, 1998 21 San Fernando, Pampanga April 1, 1998 22 Baler, Aurora April 1, 1998 23 Cabanatuan City, Nueva Ecija April 1, 1998 24 Valenzuela, MM February 1, 1998 25 Malolos, Bulacan February 1, 1998 26 Malabon-Navotas, MM February 1, 1998 27 Caloocan City February 1, 1998 28 Novaliches, Quezon City October 1, 1997 29 San Nicolas-Tondo, Manila September 1, 1997 30 Binondo, Manila July 1, 1996* 31 Sta. Cruz, Manila September 1, 1997 32 Quiapo-Sampaloc-San Miguel, Manila July 1, 1996* 33 Intramuros-Malate-Ermita July 1, 1996* 34 Paco-Pandacan-Sta. Ana, Manila September 1, 1997 35 Romblon,. Romblon September 1, 1997 36 Puerto Princesa City, Palawan September 1, 1997 37 San Jose, Occidental Mindoro September 1, 1997 38 Quezon City (North) July 1, 1997 39 Quezon City (South) July 1, 1997 40 Cubao, Quezon City July 1, 1997 41 Mandaluyong City October 1, 1997 42 San Juan, MM October 1, 1997 43 Pasig City October 1, 1997 44 Taguig-Pateros, MM January 1, 1998 45 Marikina, MM October 1, 1997 46 Cainta-Taytay, Rizal October 1, 1997 47 Makati (East) January 1, 1998 48 Makati (West) January 1, 1998 49 Makati (North) January 1, 1998 50 Makati (South) January 1, 1998 51 Pasay City January 1, 1998 52 Paraaque City July 1, 1996* 53 Las Pias, MM January 1, 1998 54 Trece Martires, Cavite March 1, 1998 55 San Pablo City March 1, 1998 56 Calamba, Laguna March 1, 1998 57 San Pedro, Laguna March 1, 1998 58 Batangas City March 1, 1998 59 Lipa City March 1, 1998 60 Lucena City March 1, 1998 61 Gumaca, Quezon March 1, 1998 62 Boac, Marinduque March 1, 1998 63 Calapan, Oriental Mindoro March 1, 1998 64 Daet, Camarines Norte March 1, 1998 65 Naga City, Camarines Sur March 1, 1998 66 Iriga City, Camarines Sur March 1, 1998 67 Legaspi City March 1, 1998 68 Sorsogon, Sorsogon March 1, 1998 69 Virac, Catanduanes March 1, 1998 70 Masbate, Masbate March 1, 1998 71 Kalibo, Aklan May 1, 1998 72 Roxas City May 1, 1998 73 San Jose, Antique May 1, 1998 74 Iloilo City May 1, 1998 75 Barotac Nuevo, Iloilo May 1, 1998 76 Victorias, Negros Occidental May 1, 1998 77 Bacolod City May 1, 1998 78 Binalbagan, Negros Occidental May 1, 1998 79 Dumaguete City May 1, 1998 80 Mandaue City January 1, 1998 81 Cebu City (North) August 16, 1996 82 Cebu City (South) January 1, 1998 83 Talisay, Cebu January 1, 1998 84 Tagbilaran City January 1, 1998 85 Catarman, Northern Samar May 1, 1998 86 Borongan, Eastern Samar May 1, 1998 87 Catbalogan, Western Samar May 1, 1998 88 Tacloban City May 1, 1998 89 Ormoc City May 1, 1998 90 Maasin, Southern Leyte May 1, 1998 91 Dipolog City June 1, 1998 92 Pagadian City June 1, 1998 93 Zamboanga City June 1, 1998 94 Isabela, Basilan June 1, 1998 95 Jolo, Basilan June 1, 1998 96 Bongao, Tawi-Tawi June 1, 1998 97 Gingoog City, Misamis Oriental June 1, 1998 98 Cagayan de Oro City June 1, 1998 99 Malaybalay, Bukidnon June 1, 1998 100 Ozamis City, Misamis Occidental June 1, 1998 101 Iligan City June 1, 1998 102 Marawi City June 1, 1998 103 Butuan City June 1, 1998 104 Bayugan, Agusan del Sur June 1, 1998 105 Surigao City June 1, 1998 106 Tandog, Surigao June 1, 1998 107 Cotabato City June 1, 1998 108 Kidapawan, North Cotabato June 1, 1998 109 Tacurong, Sultan Kudarat June 1, 1998 110 General Santos City June 1, 1998 111 Koronadal, South Cotabato June 1, 1998 112 Tagum, Davao del Norte June 1, 1998 113 Davao City June 1, 1998 114 Mati, Davao Oriental June 1, 1998 115 Digos, Davao del Sur June 1, 1998