Work Programming, Work Planning, Accomplishment Reporting and Evaluation Process for 1996

November 2, 1995 REVENUE MEMORANDUM ORDER NO. 38-95 SUBJECT : Work Programming, Work Planning, Accomplishment Reporting and Evaluation Process for 1996 TO : All Assistant Commissioner, Regional Directors, National Division Chiefs, Regional Division Chiefs, Revenue District Officers and Others Concerned I. OBJECTIVES This Order is issued to: 1. prescribed the Work Programs, with the key events and performance measures, for 1996, that address the requirement of the Tax Administration Strategic Plan and the Medium Term Revenue Program. 2. specify the approach for the preparation of uniform Work Plans by Revenue District Officers, Regional Division Chiefs and National Divisions Chiefs and the consolidated of these Work Plans by the Regional Directors and Assistant Commissioners. 3. prescribed the procedures for evaluating the accomplishments on attainment of 1996 Work Plans key events and performance measures and other factors of the offices of the Assistant Commissioner, Regional Director, Revenue District Officer and Division Chief. 4. provide a feedback system to management and the implementor regarding the performance and rankings of different offices in terms of their attainment of different aspects of tax administration projects and activities. II. DEFINITION OF TERMS In order to have a common understanding of the provisions of this Order, the following are hereby defined: 1. WORK PROGRAM gives direction and priority on operational as well as staff work to be undertaken by Revenue District Offices and/or National/Regional Office Division. This is prescribed based on functional lines by the concerned Assistant Commissioner and addresses the requirements of the Tax Administration Strategic Plan and the Medium Term Revenue Program. This identifies key events and minimum annual performance measurement levels which need to be undertaken by the different offices in the BIR. Refer to Annexes A1 to A14 - for the listing of the Work Programs for 1996. 2. KEY EVENT this is the desired end result or major milestone activity to be undertaken by concerned offices for each defined work program. This, as measured by specific performance measurement criteria, shall be the basis for a common framework for reporting and evaluating the performance/accomplishment of all concerned offices. 3. WORK PLAN contains a listing of the implementing activities to be undertaken for the key events prescribed in each Work Program, as well as quantification by month of the performance commitments/goals of concerned offices for these key events. Refer to Annexes C1 and C2 for the format of the two kinds of Work Plans to be prepared. 4. MINIMUM ANNUAL PERFORMANCE MEASURE prescribes the uniform basis for reporting and evaluating performance/accomplishment of particular offices for the identified key events. This should be clear, measurable, efficiency or magnitude-oriented (with input-output relationship, related to the size of the office, and/or time bound) and indicative of desired results of key events. 5. IMPLEMENTING ACTIVITY this is the specific task, measure or strategy that will be undertaken by particular officials in a certain office to implement or attain the key events prescribed in the Work Program. This is to be indicated in the Detailed Work Plan. 6. SCORE the percentage rating (ranging from 1% - 100%) of actual performance compared to goal for each key event of a particular Work Program and/or other performance factors. 7. WEIGHTED AVERAGE SCORE the percentage rating of performance in particular programs and other performance factor determined by the Assistant Commissioner by multiplying the key event score(s) by assigned weights and adding these together. 8. WEIGHTED AVERAGE OVERALL SCORE the overall percentage rating of performance of offices as determined by multiplying the weighted average score by assigned scoring weights and adding these together. III. POLICIES AND PROCEDURES In order to attain the foregoing objectives, the following are hereby prescribed relative to the Work Program, Work Planning, Accomplishment Reporting and Evaluation Process for 1996: A. 1996 Work Programs The Assistant Commissioners (ACIRs), after reviewing the 1995 Work Programs prescribed in RMO No. 65-94, and 1996 Work Planning Seminar/Workshop held last October 17, to 20, 1995, have prescribed the following Work Programs for 1996. PROGRAM RESPONSIBLE ACIR 1. Legal Enforcement Program ACIR, Legal Service 2. Tax Fraud Program ACIR, Intelligence and Investigation Service 3. Personnel Integrity Program ACIR, Intelligence and Investigation Service 4. Accountants Receivable Mgt. Program ACIR, Collection Service 5. Government Withholding Tax ACIR, Collective Service Compliance Program 6. Selective Audit Program ACIR, Assessment Service 7. Third Party Information ACIR, Assessment Service 8. Non-Filer Detection Program ACIR, Perf. Mon. Service 9. Taxpayer Service & Information Program ACIR, Mgt & Planning Svc. 10. Personnel Training Program ACIR, Human Resource Development Service 11. Financial and Administrative Service ACIR, Financial and Improvement Program Admin. Service 12. Returns Processing Program ACIR, ISOS 13. TIN Issuance Program ACIR, ISOS 14. National Office Staff Services and All ACIRs Operations Program (NOSSOP) The details of these aforementioned Work Programs and the allocation of the annual performance measures to the Regional Offices are prescribed in Annexes A1 to A14 and B respectively. B. Preparation and Submission of the 1996 Work Plan 1. By Regional Division Chiefs and Revenue District Officers and consolidation by the Regional Directors. The minimum performance measures prescribed in Annex B shall have to be allocated by the Regional Directors to their respective Regional Office Division and or Revenue District Offices. Upon allocation, the Regional Office Division Chiefs and Revenue District Officers in consultation with their staff, shall prepare the: (1) 1996 General Work Plan (Annex C1) and (2) 1996 Detailed Work Plan (Annex C1) for each of the Work Program which has been determined to be applicable for the particular office, as specified in the portion "offices to prepare Work Plans for the program" (refer to Annexes A1 to A14 ). The Work Plans shall be submitted to the respective Regional Director not later than November 17, 1995 . Two copies each of the 1996 General Work Plan and Detailed Plan are to be prepared and distributed as follows: Original - Regional Director Duplicate - File Copy The Regional Directors shall then consolidate their Divisions' and Revenue District Offices' 1996 General Work Plans for each Work Program and submit such consolidation, including the summary of performance measure breakdown for particular office(s) (using Annex C1 ) to the Assistant Commissioner concerned not later than November 22, 1995 . Two copies of the consolidated 1996 General Work Plans are to be prepared and distributed as follows: Original - ACIR responsible for the work program(s) Duplicate - File Copy Thereafter, each Assistant Commissioner shall consolidate the Regional Offices' 1996 General Work Plans for the Work Program(s) formulated and submit such consolidated to the Chief, Planning Division (using Annex C1 ) not later than November 27, 1995 . Two copies each of the 1996 General Work Plans are to be prepared and distributed as follows: Original - Chief Planning Division Duplicate - File Copy The Chief, Planning Division shall then summarize the Work Plans for 1996 and furnish the summary to the Commissioner, Deputy Commissioners and Assistant Commissioner, Management and Planning Service (MPS) not later than December 1, 1995 . 2. By National Office Division Chiefs and consolidation by the Assistant Commissioner. The Division Chiefs in the National Office, in consultation with their staff shall prepare the following: 1. 1996 General Work Plan 2. 1996 Detailed Work Plan For the National Office Staff Service and Operations Program prescribed by the respective Assistant Commissioner. These Work Plans shall be submitted to the respective Assistant Commissioner than November 17, 1995. The Assistant Commissioner shall then consolidate their division 1996 General Work Plans (using Annex C1) and submit such consolidation to the Chief, Planning Division not later than November 27, 1995. The Chief, Planning Division shall then summarize the Work Plans for 1996 and furnish this summary to the Commissioner Deputy Commissioners and Assistant Commissioner Management and Planning Service not later than December 1, 1995. C. Preparation and Submission of the Monthly Accomplishment Report on Work Plans The Monthly Accomplishment Report on Work Plans (Annex D) shall be prepared in duplicate by the specified officials indicated in the first column below. The original copy shall be submitted to the specified officials indicated in the second column not later than the fourth day of each month. Prepared By Submitted To National Office Assistant Commissioner concerned Division Chief Regional Office Regional Director Division Chief Revenue District Officers Regional Director The Regional Director shall then consolidate the Regional Office Divisions and Revenue District Offices' Monthly Accomplishment Reports on Work Plans for each Work Program and submit consolidation including the Summary Breakdown of Performance by particular office(s) (using Annex D) to the Assistant Commissioner concerned not later than the seventh day of each month. Two copies of these consolidated report shall be prepared and distributed as follows: Original - Assistant Commissioner Responsible for Work program Duplicate - File Copy Thereafter, the Assistant Commissioner shall consolidate the Monthly Accomplishment Reports on Work Plans submitted by the Regional Directors and their respective National Office Division Chiefs and submit such consolidation (using Annex D) to the Chief, Planning Division not later than the tenth day of each month . On a case to case basis, the Assistant Commissioner concerned has the flexibility of discarding the cumulative accomplishment portion of Annex D for non-recurring events/activities. The Chief, Planning Division shall then summarize these accomplishment reports and submit the BIR Accomplishment Report for the month to the Commissioner thru channels, not later than the fifteenth day of each month. Said BIR report is to be submitted to the Secretary of Finance and other specified officials. D. Performance Evaluation and Feedback System The performance of offices shall be evaluated and ranked by considering the results of attainment of the performance measures for the key events prescribed in the various Work Programs and other relevant performance measures such as compliance to reporting requirements, participation in special projects, etc. The evaluation procedures shall be as follows: 1. Every quarter, the concerned Assistant Commissioner (ACIRs) shall score the performance of particular offices for each key event prescribed in the Work Program(s) they are responsible for. In general, this shall be done by comparing cumulative actual accomplishments (as indicated in the accomplishment report submitted) with the planned performance measure/goal (as indicated in their Work Plans). Furthermore, performance factors other than the key events prescribed in the Work Plans may be considered by the concerned ACIR. This can include such factors as compliance to reporting requirements or other instructions/directives, participation in special projects administered by the ACIR, attendance or meetings, etc. 2. Using the scores of the key event/performance factor the concerned ACIR shall determine the weighted average score (WAS) of each office (Revenue District Office, Regional and National Office Division) involved in the work program(s) and other performance that they are responsible for. The ACIR shall assign "weights" to these key events/performance factor scores to determine the WAS, where the total of these weights should amount to 100% The WAS is determined by multiplying the key event/performance factor scores by the assigned weights and getting the sum of these products. 3. All ACIRs shall submit the individual WAS of each of the offices covered by their particular program(s) and other performance factor to the Chief, Planning Division in one consolidated report. 4. Furthermore, all Regional Directors shall submit their respective scores (not exceeding 100%) of the cumulative performance on other factors of all their Revenue District Offices and Regional Divisions to the Chief, Planning Division. Likewise, the ACIR Information Systems Development Service can submit scores of the performance of Revenue District Offices and Regional Divisions on other relevant factors to the Chief, Planning Division. The other factors can include such matters as compliance to reporting requirements, or other instructions/directions, participations in special projects of the Regional Directors and the ACIR of ISDS, attendance in meetings, etc. 5. The Chief, Planning Division shall then determine the weighted average overall score (WAOS) for each of the Revenue District Office, Regional Office Division and National Office Division using the "scoring weights" prescribed in Section E. The WAOS is determined by multiplying the WAS by the assigned scoring weights and getting the sum of their products. 6. The Chief, Planning Division shall submit the WAOS of the Regional and District offices to the Deputy Commissioner for Operations Group the WAOS of the National Office division to the respective Deputy Commissioners having jurisdiction thereof; and the WAOS of the Legal Service and Intelligence and Investigation Service to the Office of the Commissioner. 7. The Deputy Commissioner for Operations Group shall evaluate the Regional Directors based among others, on the WAOS derived by all the Revenue District Offices and Regional Office Divisions under his particular jurisdiction and submit the results of evaluation directly to the Commissioner. 8. The Deputy Commissioner for Resources Management Group and Information Systems Group shall also evaluate the performance of their respective ACIRs in terms of the quality and effectiveness of the activities that they undertake for the year and submit the results of their evaluation directly to the Commissioner. 9. The Commissioner shall evaluate the ACIRs of the Legal Service and Intelligence and Investigation Service in terms of the quality and effectiveness of activity undertaken for the year. E. Scoring Weights for WAOS The following scoring weights shall be considered in determining the WAOS: Program/Other Performance Factor Scoring Weight for particular officers RDO LD SID AD CD FD AdD NOD 1. Legal Enforcement 85% 2. Tax Fraud 10% 40% 3. Personnel Integrity 40% 4. Accounts Receivable Management 10% 80% 5. Government Withholding 5% Tax Compliance 6. Selective Audit 10% 80% 7. Third Party Information 5% 8. Non-Filer Detection 10% 9. Taxpayer Service and Information 10% 10. Personnel Training 5% 5% 5% 5% 11. Financial and Administrative 5% 85% 85% service Improvement 12. Returns Processing 2.5% 13. TIN Issuance 2.5% 14. Collection Compared to Goal/ 15% Previous Year Collection Factor * 15. Other performance factor 10% 15% 15% 15% 15% 15% 15% prescribed by Regional Director and ACIR, ISDS 16. National office Staff operations 100% TOTAL 100% 100% 100% 100% 100% 100% 100% Legend: LD - Legal Division CD - Collection Division NOD - National Office Division SID - Special Investigation Division FD - Finance Division AD - Assessment Division AdD - Administrative Division * To be furnished by Assistant Commissioner, Collection Service F. Preparation and Submission of the Quarterly Performance Evaluation Report on Accomplishment of 1996 Work Plans and other Performance Factors. 1. The Regional Directors and/or ACIR, ISDS submit the consolidated quarterly report scores of the performance on other factors of Revenue District Offices and/or Regional Offices Divisions to the Chief, Planning Division not later than the 10th day of the month following each quarter. 2. The concerned ACIR shall consolidate the Quarterly Performance Evaluation Report on WAS of the different offices covering the particular Work Program(s) they are responsible for (including NOSSOP) and shall submit these to the Chief, Planning Division not later than the 10th day of the month following each quarter. 3. The Chief, Planning Division shall submit the Consolidated Quarterly Performance Evaluation Report on WAOS of the different offices to the Commissioner and concerned Deputy Commissioner thru channels, not later than the 15th day of the month following each quarter. 4. The Deputy Commissioners shall submit the Evaluation Report of Performance of the Regional Directors and Assistant Commissioners to the Commissioners not later than the 20th day of the month following each quarter. G. Illustrative Examples Refer to RMO No. 65-94 and RMO 24-95 for example on the accomplishment of the Detailed Work Plan and Monthly Accomplishment Report on Work Plans of Particular offices, and on determining the WAS and WAOS. IV. IMPLEMENTING GUIDELINES In order to properly implement the procedures prescribed in this order, the concerned Assistant Commissioner shall prepare the necessary revenue issuance to the Order and/or support or give evidence on the attainment or accomplishment of key events performance measures indicated in particular Work Program(s). V. REPEALING CLAUSE This Order supersedes Revenue Memorandum Order Nos. 65-94 and 24-95 dated November 17, 1994 and August 21, 1995, respectively, and all other issuances or portions thereof inconsistent herewith. VI. EFFECTIVITY This Order takes effect immediately and shall apply to the 1996 Work Planning process. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue ANNEX A1 LEGAL ENFORCEMENT PROGRAM FOR 1996 KEY EVENTS MINIMUM ANNUAL PERFORMANCE MEASURES 1. Prompt response to queries 1. Not less than eight (8) out of involving the application of every ten (10) queries received CIR/BIR rulings on administrative during the month by the Legal interpretation of internal revenue Division must be answered, laws, tax treaties and other laws signed by the Regional Director related thereto. and released to taxpayer/inquiries within thirty (30) days from receipt thereof 2. Prepare decisions can contested 2. Number of tax cases decided as tax cases for collection of taxes of the end of each month must be at least eight (8) out of every ten (10) tax cases received during the month. 3. File civil cases for collection of 3. Number of civil cases filed in the taxes. proper courts must be 80% of the number of tax cases referred to the Legal Division during the month. 4. File criminal complaints for penal 4. Number of criminal cases filed violations of the Tax Code. with the Prosecutor's Office or the Department of Justice must be 80% of the number of tax cases received by the Legal Division during the month. 5. Process claims for refund/credit 5. Number of claims for tax refund/ of internal revenue taxes credit processed and decided as (except VAT) * erroneously or of the end of each month must illegally received as overpayment be at least six (6) out of ten (10) of taxes involving questions of law claims received during the month. or fact and laws. 6. Prepare decisions on administrative 6. Number of administrative cases cases involving light offenses as decided must be at least 80% of defined by the Civil Service the number of cases received by Commission rules and regulations. the Legal Division during the month. OFFICES TO PREPARE WORK PLANS FOR THE PROGRAM Legal Division of the Regional Offices * Claims for tax refund/credit of VAT are presently processed by the RDOs. ANNEX A2 TAX FRAUD PROGRAM FOR 1996 KEY EVENTS MINIMUM ANNUAL PERFORMANCE MEASURES 1. Evaluate complaints, denunciations 1. 100% of the complaints, denunciations and confidential information and confidential information received received. must be evaluated within 5 days. 2. Conduct preliminary investigation 2. 80% of the cases handled must be on complaints denunciations and reported within 90 days. confidential information received to establish the prima facie of fraud. 3. Conduct formal investigation on 3. Number of tax fraud investigation complaints, denunciations and conducted. confidential information received with prima facie evidence of the Formula: existence of fraud. Total LC/CI Received as of Sept. '95 per BIR Form 40.21 x 12 x 5% 9 4. Develop and submit tax fraud 4. Number of tax fraud cases referred cases for criminal prosecution or for criminal prosecution (at least 4 per civil action: Office initiated quarter). a) Residents of posh villages/ 4.1 At least 50% of the investigation condominiums conducted must be recommended for b) Professionals criminal prosecution to Legal Division b-1 Doctors 4.2 At least 80% of cases recommended b-2 Lawyers must be accepted by Legal Division b-3 Accountants for referral to Department of Justice. b-4 Entertainers/Artist 4.3 At least 80% of all other cases handled c) Dealers of prime commodities recommend for criminal prosecution must d) Real estate dealers/brokers/ be recommended for civil action developers e) Manufacturers f) e.g. outside sources 5. Deter probable re-employment by 5. 100% of all taxpayers identified as tax the denounced taxpayer of the same evaders for a specific taxable year must be tax evasion scheme in the succeeding investigated in the succeeding taxable taxable years. year/s to determine whether the same scheme is still being employed 6. Apprehend violators for non- 6. Number of apprehensions made issuance of invoices, unauthorized Formula: For SIDs use of cash register machines and At least one violator must be apprehended other bookkeeping laws and regulations for every 1,000 taxpayer (engaged in (until such time the unified invoicing business) registered per ISOS records will be enforced) as of October 31, 1995. 7. Recommend to the CIR closure of 7. Number of business establishments closed. business establishments for violation of VAT and excise tax codal provision. 7.1 For SIDs 25 cases For RDOs: Formula: At least one business establishment must be closed for every 2,000 taxpayers (engaged in business) registered per ISOS records as of October 31, 1995. 7.2 Number of business establishments recommended for prosecution as a result of third offense (At least 2 per semester) OFFICES TO PREPARE WORK PLANS FOR THE PROGRAM Key Event 1,4 & 6 - RDOs 1 to 7 - SID 4 - Legal Div. ANNEX A3 PERSONNEL INTEGRITY PROGRAM FOR 1996 KEY EVENTS MINIMUM ANNUAL PERFORMANCE MEASURES 1. Forward to Legal Division/Service 1. At least ninety percent (90%) of all all administrative cases filed against complaints and/or denunciations must erring revenue personnel. be investigated and evaluated Respondents in at least eighty percent (80%) of all cases investigated shall, if prima facie evidence or probable cause exists, or if duly substantiated sworn complaints have been submitted by complaints, be issued formal charges (and preventive suspension orders, if necessary). 2. Recommend the closing of 2. At least ninety-five percent (95%) administrative cases found to be of all cases recommend for closing without prima facie evidence. shall merit the approval of the Commissioner of Internal Revenue. 3. Evaluate reports of irregularities and 3. At least ninety-five percent (95%) of anomalies referred to this Office by all reports referred by the Finance the Performance Monitoring Service Divisions must be evaluated and Regional Office, concerning the appropriate and the Finance Division of reporting and remittance of revenue each action taken collections, to determine the appropriate administrative action to be taken in each case. 4. Conduct periodic informal lecturers 4. Conduct at least one (1) informal lecture at the Regional Offices, to enlighten at each Regional Office once a year. the revenue personnel assigned thereat of their duties and obligations pursuant to the Administrative Code of 1987 (Executive Order No. 292), the Code of Conduct and Ethical Standards of Public Officials and Employees (Republic Act No. (713), and other allied statutes, laws, directives, and revenue regulations relative to administrative discipline. OFFICES TO PREPARE WORK PLANS FOR THE PROGRAM Key Event 1 to 4 - SID 1 - Legal Div./Service 3 - Finance Division ANNEX A4 ACCOUNTS RECEIVABLE MANAGEMENT PROGRAM FOR 1996 KEY EVENTS MINIMUM ANNUAL PERFORMANCE MEASURES 1. Collective Reduce * total accounts 1. At least 50% of accounts receivables receivable of every regional and as of December 31, 1995 showing the district offices number of cases and amount reduced. (See Annexes A4-1 and A4-2 for instruction on allocation of performance measures and sample of monthly breakdown, respectively) OFFICES TO PREPARE WORK PLANS FOR THE PROGRAM Revenue District Offices a) have been paid partially and the balance was cancelled by an ATCA; b) the whole amount was totally cancelled through an ATCA due to valid reasons such as: b-1 the case has already prescribed (in this cases determine the personnel who caused the prescription); b-2 the taxpayer if dead; b-3 the taxpayer cannot be located; b-4 the tax case has been compromised and/or abated resulting to partial payment of the case or criminal action has been filed against the taxpayer for failure to pay the tax. ANNEX A4-1 ACCOUNTS RECEIVABLE MANAGEMENT PROGRAM FOR 1996 INSTRUCTION ON HOW TO ALLOCATE THE PERFORMANCE To arrive at the correct Minimum Annual Performance Measure, the following guidelines and procedures is hereby prescribed: 1. The base of the 50% -minimum annual performance measure shall be the total inventory of accounts receivables at the end of December 31, 1995 which is arrived at by using the figures in the revised inventory of accounts receivables as of Dec. 31, 1994 (see sample computation in Annex A4-2 as indicated in your 1995 Accounts Receivable Management Program). This beginning inventory for the 1996 Work Plan should tally with the figure shown in GCL reports as of December 31, 1995. 2. The annual Performance Measure (APM) shall be equal to 50% of the number of cases and not of the amount of Accounts Receivable, excluding those under protest or still in court. 3. The 50% minimum annual performance measure shall be further broken down into Monthly Performance Measures (MPM). The RDO is given the leeway to determine the Monthly Performance Measure either by dividing the APM in #2 above by 12 months or allocate the APM based on what he feels he can collect /reduce on a month which may not be the same every month. 4. To determine the correct number of cases closed and amount collected, the name of the taxpayers whose account are cancelled by ATCA must be reported in BIR Form 1247 (Monthly List of Accounts Cancelled by ATCA) and in BIR Form 1248 (Monthly List of Accounts Paid) in accordance with DCIR Rualo's memo dated October 20, 1995. 5. If the accounts cancelled are uncollected, the provisions of RMO 35-95 must be strictly followed. NOTE: Please see sample in Annex A4-2 on how to prepare the 1996 General Work Plan showing the monthly breakdown of performance measure. ANNEX A4-2 1996 GENERAL WORK PLAN ACCOUNTS RECEIVABLE MANAGEMENT PROGRAM ANNUAL PERFORMANCE KEY EVENTS MEASURE Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 1. Collect/reduce At least 50% total accounts of the receivable of accounts every regional receivable and district as of Dec. 31, offices 1995 showing the number and amount reduced Example: Revised At lease 50% of 30 30 25 20 40 40 35 35 35 35 30 11 Inventory as 733 cases of 366 of Dec. 31, 1994 cases CASES AMOUNT 1,027 - 232,466,759.81 Less: Collected/Closed during 1995 as Reconciled with the GCL figure: 394 - 8,754,3003.72 Inventory as of December 31, 1995 733 - 144,923,476.09 FOR THE YEAR 1995, I AM COMMITTING MYSELF TO THE ATTAINMENT OF THE KEY EVENTS AND PERFORMANCE MEASURES, THE SPECIFICATIONS ON THE IMPLEMENTING ACTIVITIES OF WHICH ARE REFLECTED IN THE DETAILED WORK PLAN. SIGNATURE OVER PRINTED NAME OFFICE ANNEX A5 GUIDELINES AND INSTRUCTIONS KEY EVENTS MINIMUM ANNUAL PERFORMANCE MEASURES 1. Prepare and maintain an updated 1. Initial number of listed government separate list/file of all government entities should be submitted on or entities before February 15, 1996 2. Conduct dialogues/Seminars/workshops 2. January 2 to March 31, 1996 with concerned officials of each government entities 3. Require the submission of the monthly 3. Gathering of the first listing should list of government contractors from the be completed on or before city, municipal and provincial treasurers. February 29, 1996. - Only the number of government contractor gathered should be submitted to the Chief, WAMP on or before the 15th day of March, Update every 25th day of the following month. - Number of additional government contractors should be submitted on or before the 25th day of the following month to the Chief, WAMD. 4. Verify compliance by treasurers with 4. Verify at least 75% of those who withholding tax requirements in relation complied with the submission of lists to the above requirements. per month. 5. Identify violators of withholding tax 5. At least 10% of the total listed laws and impose penalties to designated government entities within the district officials of government entities. per month. (See Annexes A5-1 and A5-2 for monthly breakdown of performance measure and guidelines/instructions, respectively) ANNEX A5-1 GUIDELINES AND INSTRUCTIONS KEY EVENT 1 1 Prepare and maintain an update listing of all government entities (National, Local including barangays, GOCCs & other government offices) Initial listing should be submitted on or before February 15, 1996. UPDATED LISTING SHALL BE SUBMITTED EVERY 25TH OF THE FOLLOWING MONTH: LISTINGS OF GOVERNMENT REGISTERED WITHHOLDING AGENTS REVENUE DISTRICT NO: ________ AS OF THE MONTH: ________ SUMMARY BY NO. OF OFFICES COMPENSATION EXPANDED FINAL GOVERNMENT BANKS MONEY PAYMENT BALANCE AS OF PREVIOUS MONTH ________________ _____________ _______ ____________ _________ ADD: NEWLY REGISTERED ________________ _____________ _______ ____________ _________ LESS: CANCELLED/ TRANSFERRED ________________ _____________ _______ ____________ _________ UPDATED REGISTERED GOVERNMENT ENTITIES ________________ _____________ _______ ____________ _________ KEY EVENT 2 Number of government seminar/dialogues/workshop conducted: FORMULA: a) At least one seminar/dialogue per month for every 10 registered government entities b) A minimum of 3 participants KEY EVENT 3 a. Gather from government treasurers/Chief Accountants a monthly listing of government constructors. b. Submit the first listing of government contractors on or before February 29, * 1995 SUMMARY BY NO. OF OFFICES: BALANCE AS OF PREVIOUS MONTH: ________ ADD: NEWLY REGISTERED ________ LESS: CANCELED/TRANSFERRED ________ UPDATE REGISTERED GOVERNMENT ENTITIES ________ MONTHLY UPDATE OF GOVERNMENT CONTRACTORS SHALL BE SUBMITTED EVERY 25TH OF THE FOLLOWING MONTH TABULATED AS FOLLOWS: UPDATE ON THE LISTINGS OF GOVERNMENT REGISTERED WITHHOLDING AGENTS REVENUE DISTRICT NO: ________ AS OF THE MONTH: ________ SUMMARY BY NO. OF OFFICES REGISTERED: BALANCE AS OF PREVIOUS MONTH: ________ ADD: NEWLY REGISTERED ________ LESS: CANCELED/TRANSFERRED ________ UPDATE REGISTERED GOVERNMENT ENTITIES ________ KEY EVENT 4 Verify compliance and submission of the Monthly Lists of Government Contractors of at least 75% of the number of Update registered government Contractors KEY EVENT 5 a. Verify compliance and filing of returns and identify violators/non-filers of withholding tax returns by matching the update list of government entities for the month against received returns from government entities. b. 10% of the identified violators should be penalized per month ANNEX A6 SELECTIVE AUDIT PROGRAM FOR 1996 KEY EVENTS MINIMUM ANNUAL PERFORMANCE MEASURES 1. Perform quality audit 1.1 Number of reports of audit/investigation approved by the Revenue District Office for transmittal to the Assessment Division must be at least 90% of cases terminated and closed at the RDO level. The revenue District Officer must forward the entire docket of the tax cases to the Assessment Division within fifteen (15) days from receipt of the report. 1.2 The submission of reports of audit/ investigation shall be the responsibility of both the Revenue Officers who conducted the investigation and the Revenue District Officer. The Revenue District Officer must submit his audit/investigation report to the RDO within 120 days from the date of issuance of the Letter of Authority (LA). If not submitted within 120 days, the LA must be revalidated and a process and a progress report shall be attached to the docket. 1.3 Number of reports of audit/investigation approved by the Assessment Division for assessment/termination must be at least 60% of the reports forwarded to the said Division. 1.4 Total internal revenue collections thru audit/investigation must be at least 60% of the total deficiency taxes determined. 1.5 Total assessment thru audit/investigation must be at least 80% accurate upon review of the Assessment Division. 1.6 Audit must result in deficiency tax assessments and/or collections amounting to at least: i. 10% increase from previous year's tax deficiency assessment and/or collection if an audit/investigation was conducted; or ii. 5% increase from the tax declared per return being audited/ investigated, if no investigation was conducted for the prior year. 2. Apply strictly and consistently audit 2. 100% of cases assigned for audit policies for 1996. shall be in accordance with the revenue memorandum order on selective audit program. 3. Audit and process claims for tax 3. At least 80% of the claims filed must credit/refund. have reported. 4. Perform quality review of reports of 4.1 Number of reports of investigation audit/investigation. approved by the Assessment Division must be at least 90% accurate base on standards set for quality review. 4.2 Total number of dockets reviewed must be at least 60% of dockets received for review 4.3 Number of protests/requests for reconsideration acted upon must be at least 80% of total number of protest/requests of reconsideration received by the Assessment Division. 4.4 Reports of investigation/audit must be reviewed by the Assessment Division within thirty (30) days from receipt thereof OFFICES TO PREPARE WORK PLANS FOR THE PROGRAM KEY EVENT - 1, 2 & 3 - Revenue District Offices 4 - Assessment Division ANNEX A7 THIRD PARTY INFORMATION PROGRAM FOR 1996 KEY EVENTS MINIMUM ANNUAL PERFORMANCE MEASURES 1. Identify and submit to the Assessment 1. Number of potential source of Service potential source of third Party information submitted must be at least Information. 3 for each quarter. 2. Complete verification/audit of third 2. Completion of verification/audit must party information received from the be within 120 days receipt of Assessment Service information OFFICES TO PREPARE WORK PLANS FOR THE PROGRAM Revenue District Offices ANNEX A8 NON-FILER DETECTION PROGRAM FOR 1996 KEY EVENTS MINIMUM ANNUAL PERFORMANCE MEASURES 1. Require non-filers listed/mapped in 1. 100% of listed/mapped but unregistered 1995 to register. taxpayer (within 6 months from January 1996). 2. Report to Legal Division for legal 2. As many as there are referrals to Legal. action those who refuse to register January to December 1996. after the 3rd notice from the RDO. OFFICES TO PREPARE WORK PLANS FOR THE PROGRAM Revenue District Offices ANNEX A9 TAXPAYER SERVICE AND INFORMATION PROGRAM FOR 1996 KEY EVENTS MINIMUM ANNUAL PERFORMANCE MEASURES 1. Conduct seminars and dialogues 1. Number of seminars/dialogues conducted with taxpayers. 1.1 Minimum of at least 20 participants per seminar 1.2 No. of seminars directed to barangay officials 2. Conduct Tri-Media information campaign. 2. Number of press release, radio and TV appearances pursuant to Tri-Media communication plan to prescribed on or before December 31, 1995 3. Maintain satisfactory level of service. 3.1 Results of taxpayer perception survey 3.2 Number of linkages NGOs/ LGUs/ industry/civic associations. 4. Undertake "special events/activities" 4. Number of special events/activities on taxpayer service/information matters completed i.e. tax quiz, exhibits, motorcade, enlistments of volunteer groups to assist in tax campaign, etc. 5. Establish and operationalize the taxpayer 5. Level of satisfactory and service and information section. operationalization of TSP per National Office directions to be prescribed on or before December 31, 1995 OFFICES TO PREPARE WORK PLANS FOR THE PROGRAM Revenue District Offices ANNEX A10 PERSONNEL TRAINING PROGRAM FOR 1996 KEY EVENTS MINIMUM ANNUAL PERFORMANCE MEASURES 1. Develop and recommend district and 1. Number of staff trained developed as regional staff for training as trainors trainers or recommended as trainers in seminars conducted by the National Office. 1.1 One for each functional group in the Region 1.2 One for the RDO 2. Conduct training course, dialogues, 2. 90% of concerned staff must be trained. briefings for regional/districts office personnel for the following functional 2.1 To be undertaken at least once a groups: month 2.2 In the RDO level, within five days upon receipt of new issuances and memorandum/administrative orders. a) Assessment b) Collection c) Tax Fraud Investigation d) Taxpayer Service and Information OFFICES TO PREPARE WORK PLANS FOR THE PROGRAM Key Event 1 - All Regional Div. Offices and RDO 2 - RDO, Coll'n Div. and Assesses ANNEX A11 RETURNS PROCESSING PROGRAM FOR 1996 KEY EVENTS MINIMUM ANNUAL PERFORMANCE MEASURES 1. Submit Budget Proposal for 1997 1. 90% accessibility of Budget Proposal submitted on February 15, 1996 2. Facilitate settlement of money claims 2. 90% of disbursement properties, obsolete accountable forms and valueless records shall be disposed within 10 days upon receipt of authority 3. Provide for preventive maintenance 3. 90% of unserviceable properties, program for office building, facilities obsolete, accountable forms and and vehicles. valueless records shall be disposed within 10 days upon receipt of authority. 4. Provide for preventive maintenance 4. 100% performance within scheduled program for office building, facilities time frame according to maintenance and vehicles. agreement/schedule. 5. Facilitate action on procurement 5. 90% of procurement requests acted requests. upon as follows: * Emergency Purchases - Less than P 1,000 - 1 day P1,001 P49,999 - 3 days * Public bidding - 30 days * Negotiations - 10 days OFFICES TO PREPARE WORK PLANS FOR THE PROGRAM Key Event 1 - Finance Div. and RDOs 2 - Finance Div. and Adm. Div 3 - Administrative Div. & RDOs 4 - Administrative Division 5 - Administrative Division ANNEX A12 RETURNS PROCESSING PROGRAM FOR 1996 KEY EVENTS MINIMUM ANNUAL PERFORMANCE MEASURES 1. Process tax returns filed directly with 1. Within 11 days from receipts of RDOs the returns from taxpayers, tax returns must be forwarded to ISOS. 2. Pre-audit 1701A and 1701 refundable 2. Within 5 days from receipt of tax returns. returns from taxpayers, the pre-audit must be completed and forwarded. OFFICES TO PREPARE WORK PLANS FOR THE PROGRAM Revenue District Offices ANNEX A14 NATIONAL OFFICE STAFF SERVICE AND OPERATORS PROGRAM FOR 1996 KEY EVENTS MINIMUM ANNUAL PERFORMANCE MEASURES Particular activities to be undertaken by National Office Divisions. These are unique and specific to each National Office Division as determined between the concerned Assistant Commissioner and National Office Division Chief OFFICES TO PREPARE WORK PLANS FOR THE PROGRAM Specified National Office Division