Compliance with Executive Order No. 54

September 1, 1993 REVENUE MEMORANDUM ORDER NO. 49-93 SUBJECT : Compliance with Executive Order No. 54 TO : All Revenue Regional Directors, Revenue District Officers and Others Concerned Executive Order No. 54 requires the BIR to do the following: (1) publish an annual list of the top 4,000 corporations, indicating therein their gross sales or receipts and total taxes paid in at least two newspapers of general circulation; aisa dc (2) furnish annually to local government units information indicating the gross sales, business and income taxes paid by each person, corporate or otherwise, who is required to file an income tax return (ITR) within the jurisdiction of the local government unit (LGU); and (3) publish an annual list of top government officials who have filed ITRs, indicating the amount of income declared and income tax paid. The requirements of this EO is understood to be national in scope. However, due to limited resources and time constraints, and after consultations with Congressman Gary Teves, the author of the EO, it was decided that this undertaking be initially implemented at the RDO level. Then, efforts shall be done at the National Office to consolidate the lists. On Requirement No. 1: The source document of this requirement is BIR FORM 1702, majority of which have been filed last April, 1993. It is assumed that at this point in time, all RDOs have sorted their third (3rd) copy of the NPCS documents by Form No. and correspondingly a document locator number (DLN) has been assigned. Therefore, from the batch of all Form 1702s, the following steps should be done: Step 1: Arrange the filers of taxable 1702s from highest to lowest according to tax due (Section C, line 4) Step 2: Get the top 10% of this list and correspondingly capture the gross income (Section B, Total Gross Income) and total tax due (Section C, line 4) of each corporation. Step 3: Produce the list of top 10% corporate taxpayers under your jurisdiction using the format in Annex A. Step 4: Submit this list to Computer and Information Systems Service (CISS) and to the head of your particular LGU not later than October 30, 1993. On Requirement No. 2: Using the same assumption under requirement No. 1, there should be a separate batch of all 1701 Returns in the RDO. Requirement No. 2 is limited to self-employed individuals or those engaged in business, thus only 1701 Returns should be processed to generate this requirement. Step 1: Arrange all taxable 1701 Returns alphabetically Step 2: Capture the income from business/profession (Section B, line 5) and income tax due (Section B, line 8) Step 3: Produce an alpha list of individual taxpayers engaged in business in your jurisdiction using the format in Annex B Step 4: Submit this list to Computer and Information Systems Service (CISS) and to the head of your particular LGU not later than October 30, 1993. On Requirement No. 3: CISS has compiled a list of the following government officials from the TIN Database: aisa dc (a) Executive Department (President/Vice-President/Department Secretaries/Undersecretaries/Assistant Secretaries (b) Legislative Department (Senators and Congressmen) (c) Metro Manila Mayors Using the above lists, CISS will generate a list by RDO, on the basis of residential address or business address, if any, and transmit said list to the respective RDOs. The RDOs, in turn, should do the following: Step 1: Search from the completed Alpha list (under Requirement No. 2) if the government official under your jurisdiction filed a 1701 Return. If he is listed, extract the information (gross income and income tax due) about this official for inclusion in requirement No. 3. Step 2: The government officials who are not in the 1701 Alpha list may have filed a 1701A return. Therefore, from the batch of taxable 1701A returns, search the government official who is supposed to have filed in your RDO, then again extract information about him for inclusion in list No. 3; such as, gross income (Section B, line 1) and income tax due (Section B, line 4) Step 3: Produce a list of individual taxpayers who are top government officials in accordance with Annex C, arranged by Department; like Executive Department, Legislative Department (Senators/Congressmen) Step 4: Submit this list to CISS and to the head of your particular LGU not later than October 30, 1993. LGU not later than October 30, 1993. This Order takes effect immediately. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue ANNEX A BUREAU OF INTERNAL REVENUE LIST OF TOP CORPORATE TAXPAYERS ____________________________ Town/City/Province For Calendar Year 1992 Certified True and Correct: ___________________________ Revenue District Officer ANNEX B BUREAU OF INTERNAL REVENUE ALPHA LIST OF INDIVIDUAL TAXPAYERS ENGAGED IN BUSINESS/PROFESSION _____________________________ Town/City/Province For the Calendar Year 1992 Certified True and Correct: ___________________________ Revenue District Officer ANNEX C REVENUE OF INTERNAL REVENUE LIST OF INDIVIDUAL TAXPAYERS WHO ARE TOP GOVERNMENT OFFICIALS __________________________ Town/City/Province For Calendar Year 1992 Certified True and Correct: ___________________________ Revenue District Officer