Procedures for Non-ITS Revenue District Offices (RDOs) in Conducting Bank Branch Performance Check

April 8, 1999 REVENUE MEMORANDUM ORDER NO. 37-99 TO : All Internal Revenue Officers and Employees Concerned SUBJECT : Procedures for Non-ITS Revenue District Offices (RDOs) in Conducting Bank Branch Performance Check I. OBJECTIVE This order is issued to provide standard procedures for non-ITS RDOs in monitoring performance of Authorized Agent Bank (AAB) branches in the submission of collection documents. II. DEFINITION OF TERMS For purposes of this order, the following definition shall apply: 1. Bank Branch Performance Check refers to the review and analysis of collection documents [Batch Control Summary (BCS) and returns] submitted by AAB branches. It allows the Bureau to monitor performance of the AABs in terms of accurate and timely submission of tax returns/documents. 2. Non-ITS RDOs these are Revenue District Offices where no Integrated Tax Systems (ITS) is rolled out and the only tax collection system implemented is the Limited Bank Data Entry System (LBDES). III. POLICIES A. Non-ITS RDOs outside Metro Manila/Metro Cebu shall conduct the Bank Branch Performance Check. B. Bank Branch Performance Check shall be conducted by the RDOs within two (2) weeks from receipt of tax returns. IV. PROCEDURES A. The Collection Section, RDO shall: 1. Pick up duplicate copy of returns together with the BCS from AAB branches. 2. Identify and segregate batches for Bank Branch Performance Check. Twenty percent (20%) of the total returns received shall be selected at random. 3. Send batches that will not undergo the Bank Branch Performance Check to the Administrative Section. 4. Perform the Bank Branch Performance Check for selected batches: 4a. Check return and BCS for procedural errors. 4b. Document errors in BIR Form 2841 (Bank Branch Performance Statistics, Annex A). 4c. Sign BIR Form 2841 to indicate that batch has been checked. 4d. If BIR Form 2841 has procedural errors, photocopy erroneous return and/or BCS. Otherwise, send documents to Administrative Section for custody and safekeeping. 4e. Prepare Monthly LBDES Exception Report (Annex B) based on BIR Form 2841. 4h. Transmit monthly LBDES Exception Report together with photocopy of return and/or BCS to the Collection Programs Division (CPD) not later than the 28th day of the following month. B. Administrative Section, RDO shall: 1. Receive duplicate return and BCS from the Collection Section. 2. Label and store documents for easy retrieval and ensure proper safekeeping and security measures. 3. Act on inquiries and requests for certifications of true copies of documents and such other requests for data of which they have custody. LLphil C. Collection Programs Division (CPD), Collection Service shall: 1. Receive photocopy of erroneous return and/or BCS with the Batch Exception Report from the Collection Section, RDO. 2. Collate discrepancies and submit report to the Collection Service. 3. Update RDO on the status of discrepancies coordinated with the AAB. D. The Collection Service shall: 1. Coordinate resolution of discrepancies, including penalty imposition with concerned AAB thru its Head Office. 2. Update the Deputy Commissioner, Operations Group on the results of discrepancies coordinated with AABs on a monthly basis. LLjur V. REPEALING CLAUSE All other issuance and/or portions thereof inconsistent herewith are hereby repealed and amended accordingly. VI. EFFECTIVITY This order takes effect immediately. (SGD. ) BEETHOVEN L. RUALO Commissioner of Internal Revenue ANNEX A Bank Branch Performance Statistics ANNEX B LBDES Exception Report