All Chiefs of Division issuing Authority to Issue Payment Order (ATIPO) in the National Office, Heads of Special Investigation Teams, Revenue District Officers and Other Officials and Revenue Employees Concerned

September 13, 1988 REVENUE MEMORANDUM ORDER NO. 42-88 TO : All Chiefs of Division issuing Authority to Issue Payment Order (ATIPO) in the National Office, Heads of Special Investigation Teams, Revenue District Officers and Other Officials and Revenue Employees Concerned SUBJECT : Proper Crediting of Internal Revenue Collections In evaluating the performance of Revenue District Offices (RDOs) and other divisions in the National Office engaged in collection, it has been observed that: 1. There are overlapping or double reporting of collections by the RDOs and the divisions in the National Office; 2. There is improper crediting of collections in the RDOs due to change of venue of payment of internal revenue taxes. In order to appraise properly the performance of all RDOs in terms of actual and potential revenue collection, the following procedures are hereby prescribed: 1. The following requirements prescribed in the memorandum of the undersigned dated September 5, 1988 shall be strictly observed: a) In all cases involving national accounts, the ATIPO shall be issued only by the offices which have custody of the docket/records of the case and the ATIPO shall be addressed to the Accounts Receivable/Billing Division only. aisa dc b) The corresponding payment order for national accounts shall be issued only by the Accounts Receivable/Billing Division. c) Revenue Collection Officers or PO-Issuing Officers situated in the National Office are hereby prohibited from issuing payment orders involving national accounts. 2. Special Investigation Teams and audit divisions in the National Office shall course to the Accounts Receivable/Billing Division all ATIPOs to accept payment of deficiency internal revenue tax determinations arising from audited/investigated cases to which the taxpayers are agreeable or have agreed even before letters of demand and notice of assessments are issued. 3. The Accounts Receivable/Billing Division shall monitor all collections from deficiency taxes and delinquent accounts from National Office cases. Beginning October, 1988, it shall submit a monthly report of collections from deficiency and delinquent accounts to the Statistical Analysis Division every tenth day of the month using the attached format (ANNEX A) indicating (a) the particular RDO to which the collections shall be properly credited and (b) the address of the taxpayer. Collections from non-resident Filipinos abroad (those which originated from International Tax Affairs' Division [ITAD] shall not be included in this report. 4. All Revenue Collection Officers or PO-Issuing Officers in the RDOs shall report to the Statistical Analysis Division every tenth day of the month, all collections outside of the RDO jurisdiction using an adjustment sheet. acd 5. The Statistical Analysis Division (SAD) shall collate and monitor monthly the adjustment entries to the reports of collections of the various RDOs in BIR Form 12.09. It shall, in turn, inform the RDOs of their increased/decreased collections. Correspondingly, said adjustments shall be reflected on the monthly collection performance of RDOs reported by the SAD to the Commissioner. 6. An ad hoc special team composed of revenue personnel to be designated from the Collection, Assessment, Financial, Excise Tax and Planning and Research Services shall be created to verify the correctness of the reports required herein and to take measures to ensure compliance of all concerned with the requirements of this Order. Said Team shall render regular progress reports and shall report noncompliance or violations of this Order to the Commissioner and to the Deputy Commissioners thru the Assistant Commissioner, for Assessment, Chairman, Performance Evaluation Body. This Order shall take effect immediately. (SGD.) BIENVENIDO A. TAN, JR. Commissioner