Statistics of Income for 1993 Returns

April 21, 1994 REVENUE MEMORANDUM ORDER NO. 38-94 SUBJECT : Statistics of Income for 1993 Returns TO : All Internal Revenue Officers and Others Concerned 1. OBJECTIVES AND POLICIES 1.1. This order prescribes the processing of additional information on and from 1993 income tax returns by Revenue District Offices. 1.2. The submission of timely and accurate information is necessary for tax policy and administrative formulation purposes. cd 1.3 At this time when the capacity of the national office computer facilities is constrained to process this mass volume of data from the income tax returns, the initial source of these information, namely the Revenue District Offices, for the meantime, are prescribed to process and furnish these data. 2. PROCEDURES: 2.1 Annexes 1 to 1 are to be used in processing and reporting the prescribed data. 2.2 The data to be processed and indicated in these Annexes shall correspond to or come from 1993 income tax returns filed from the period January 1, 1994 to August 31, 1994. The income tax returns for this purpose are BIR Forms 1701, 1701A, 1701C and 1702, which are filed either in the RDO, accredited banks or foreign service posts abroad. 2.3 Annexes 1 to 1 shall be submitted to the Chief, Statistics Division on a monthly basis not later than the 10th day following each month, by each Revenue District Officer, copy furnished the Regional Director. 2.4 The reports can be prepared on a partial basis and should be correspondingly indicated in the Annex. If a partial processing and submission is done, the subsequent reports pertaining to tax returns filed for a particular month shall be prepared separate from the report(s) pertaining to tax returns filed for other months. The data to be included in these subsequent reports should only contain those processed for the specified period and should not include those processed and reported in previous periods/reports. 2.5 The complete submission of information prescribed in this order should be submitted not later than September 30, 1991. VICTOR A. DEOFERIO, JR. Officer-In-Charge ILLUSTRATION : RDO X receives a total of 10,000 ITRs filed during the month of March 1994. Per RMO 29-91, the ITR's are segregated by type of tax return (BIR Form 1701, 1701A, 1701C and 1702). cdt After sorting the returns, the ITR's are broken down by BIR Form No. as follows: BIR Form No. No of Returns 1701 2,500 1701A 5,000 1701C 1,000 1702 1,500 Total 10,000 The report forms prescribed in this order are accomplished as follows: I. Report of Statistics from BIR Form 1701 (For Self-Employed and Professionals): (Refer to Sample Annex 1) A. This report is final in as much as all the 2,500 Form 1701's received during March were completely processed/tabulated during the month of May. B. Part I. Taxpayer's Personal Status from Section A: 1. Out of the 2,500 1701 ITRs processed, fifty (50) were filed by Estates and Trusts. 2. Five hundred (500) ITRs were filed by Single/Widow/Widower with no Dependents and Without Special Exemption; 350 ITR's were filed by those claiming Special Exemptions, for a total of 850. 3. Out of the 850 1701 ITRs filed by Heads of Families, 350 claimed Special Exemptions, 500 did not. Out of the 350 returns filed by Heads of Families with Special Exemptions, 75 have 1 dependent, 50 with 2 dependents, 125 have 3 dependents and with 4 or more dependents. 4. The number of returns filed by Married filers is 750. Out of this, 300 claimed Special Exemptions, with 50 having 1 dependent, 50 with 2, . . . and 100 with 4 dependents. On the other hand, of the 450, fifty Married filers without Special Exemptions, 50 had 1 dependent, 100 had 2 and 150 had 3 and 4 dependents. The total for Part I, # 1, 2, 3, 4 should be 2,500. II. Report of Statistics from BIR Form 1701-A (For Individuals Earning Compensation Income) (Refer to Sample Annex 2 (A) and (B)) A. This report consists of partial (Sample Annex 2(A)) and final (Sample Annex 2 (B)) segments for the total of 5,000 Form 1701-A ITR's filed in March 1994. The partial report accounts for 3,500 ITR's processed during the month of May and the final report accounts for the remaining 1,500 ITR's processed during the month of June. cd i B. Part I. Taxpayers' Personal Status from Section A: 1. Out of the 3,500 ITR's processed for the partial report for the March 1994, four hundred fifty (450) ITR's were filed by Single/Widow/Widower with no Dependent and without Special Exemption; six hundred fifty (650) by those claiming special exemption. 2. Out of the 900 1701-A ITR's filed by Heads of Families, 600 claimed special exemptions, 300 did not. Out of the 400 Heads of Families with Special Exemptions, 200 taxfilers have 1 dependent, 125 are 2, 150 have 3, 125 have 4. 3. The number of returns filed by married taxfilers is 1,500 with 859 claiming Special exemptions, while 650 did not. Out of the 850 taxfilers who claimed Special Exemption, 200 claimed 1 dependent, 250 claimed 2, 175 claimed 3 and 225 claimed 4. The total for Part I, # 1, 2, 3 should be 3,500. C. Part II. Tax Returns Classification from Section B One thousand three hundred (1,300) 1701-A returns filed out of the 3,500 were Break-Even, 1000 were Taxable/Payable, 450 were Refundable Taxable and 250 were Refundable Exempt. Part III. Spouse's Income Status from Section B. This portion refers to married taxfilers only (Part I, # 3). The total number of taxfilers for Part III should be equal to the total of Part I, # 3 or 1,500. Out of the 1,500 taxfilers, 1,000 have spouses with compensation income only and 500 have spouses without income. Note: Sample Annex 2(B) will just present the tabulation of the remaining 1,500 of the 5,000 ITR's received last March. C. Part II. Tax Returns Classification from Section B: Out of the total 2,500 returns, 700 were taxable Break-Even (withholding tax is equal to tax due), 1,000 were Taxable Collectible/Payable, 100 were Exempt, 400 were Refundable Taxable and 300 were Refundable Exempt. D. Part III. Taxpayers/Spouse Source of Income from Section B. This portion refers to Married taxfilers only (Part I, # 4 of Sample Annex 1). The total number of taxfilers for Part III should be equal to the total from Part 1, # 4 or 750. Out the 150 taxpayers/filers with compensation income only, 60 have spouses earning business/professional income only, while 90 have spouses with mixed incomes. Out of the 300 taxfilers reporting business/professional income only, 100 filers have spouses who have compensation income only, 70 have spouses who reported business income only, 50 have spouses with mixed incomes, and 80 have spouses not earning any income. cd Of the 300 taxfiler reporting mixed income, 65 have spouses earning compensation income only, 85 have spouses who reported business/ profession income only, 95 have spouses with mixed incomes and 55 have spouses not earning any income. However, taxpayer/filers with compensation income only and with spouses are either earning compensation only or are without income will use BIR Form No. 1701-A, thus the corresponding cells are darkened or unfilled. III. Report of Statistics from BIR Form 1701-C (Non-Resident Income Tax Return) (Refer to Sample Annex 3) A. This report is final. All 1,000 Form 1701-C ITR's received for the period March 1 are accounted for in this report. B. Part I. Taxpayers Personal Status Out of the 1,000 ITRs, three hundred (300) were filed by Single/Married but legally separated, 400 by married taxfilers or heads of the family. C. Part II. Tax Returns Classification Three hundred and fifty (350) taxfilers out of the 1,000 were Break-Even, 150 were Taxable/Payable returns, 200 were Exempt returns, 50 were Refundable Taxable and 250 were Refundable Exempt returns. The total of Part II should be equal to total of Part I or 1,000. IV. Report of Statistics from BIR Form 1702 (Corporation/ Partnership Annual Income Tax Return) (Refer to Sample Annex 4) A. This report is final. All 1,500 Form 1702 ITR's received for the period March 1-3 are accounted for in this report. B. Part I. Industry/Profession Code Out of the 1,500 ITRs, 200 returns were filed under the industry\profession code 1110-1600, 150 were under 2110-2299 . . . and 200 returns were under 9101-9900 industry/profession code. C. Part II. Filipino Ownership Out of the 1,500 filers, 300 were corporations/partnerships which are 91% to 10 Filipino-owned, . . . and 250 are below 50% Filipino-owned. D. Part III. Tax Returns Classification Per Section B Three hundred and fifty (350) returns out of the 1,500 were Break-Even, 500 were Taxable/Payable, 200 were Exempt, etc. The totals for Parts I, II and III should each be 1,500. Note: In the event, there are missing information as prescribed (for example, missing industry/profession code), the processor shall attempt to fill in the missing data. c ANNEX 1 SAMPLE ANNEX 1 ANNEX 2 dt SAMPLE ANNEX 2 SAMPLE ANNEX 2B ANNEX 3 SAMPLE ANNEX 3 ANNEX 4 SAMPLE ANNEX 4