Operation "Clean Up Receivable Accounts" — (CURA)

November 29, 1974 REVENUE MEMORANDUM ORDER NO. 56-74 SUBJECT : Operation "Clean Up Receivable Accounts" (CURA) TO : All Internal Revenue Officers and Others Concerned This Office has declared a nationwide campaign to collect the current and delinquent accounts from December, 1974 to June 30, 1976. This project shall be known as "Operation C U R A" meaning "Clean Up Receivable Accounts". All Regional Directors and Revenue District Officers are instructed to personally direct this operation in their respective regions and districts and to mobilize all their personnel irrespective of their occupational groupings for this purpose to insure its success. They are to be directly responsible for the success or failure of this Operation. In the National Office, this Operation shall be implemented and controlled by a Committee composed of the National Coordinator as Chairman and the Revenue Operations Heads (Collection, Assessment, and Legal) as Members. The Revenue District Officers, Revenue Regional Directors, and the National Committee are authorized to organize work groups within their respective areas and utilize every available personnel to assist, them in their work. The Revenue Operations Head (Collection) is the executive officer of the National Committee who shall be assisted by his staff officers. No leave of absence for the duration of this project shall be allowed except on valid and serious grounds. Any employee who refuses to participate in this campaign or who tries to blunt the implementation of the project should be reported immediately to this Office by telegram. The campaign shall be in three (3) phases: Phase I shall be from December, 1974 to March, 1971 Phase II shall be from April, 1975 to June 30, 1975 Phase III shall be from July, 1975 to June 30, 1976. Phase I consists mainly in determining the actual status of each receivable account as listed in the Delinquent Accounts register prepared by the Data Processing Center as of November 14, 1974 denominated herein as "Operation C U R A".' It shall also include the search of the docket for each case in the list to support the collection actions to be made. The detailed procedures for regional and district offices on the matching of dockets against the CURA list, the search for missing dockets, determination of the status of each account and the various actions to be taken in each situation are shown in supplement marked "Supplement A". The procedures in the National Office for this operation shall be issued by the Chairman of the National Committee. Phase II involves the follow-up activities to enforce the collection of taxes determined to be actually collectible and supported by dockets. This will include not only the routine enforcement actions like contact with taxpayers and/or the enforcement through summary remedies but may also include certain activities or actions which this Office may declare later on to settle them. Phase II, however, may be started immediately even before the completion of the matching of dockets or as soon as sufficient dockets are ready for enforcement. Phase III consists of a no-nonsense collection enforcement action against accounts remaining outstanding after termination of Phase II. The type of collection enforcement action that shall apply to the receivable accounts shall depend upon what category the account is classified. For this purpose, receivable accounts in the CURA list shall be classified as follows: Category I Court Cases Category II Protested Cases Category III Receivable Accounts, neither Court case nor protested case. All receivable accounts under Category III shall have been issued warrants of distraint and of levy at the start of Phase III and are ready for final and complete execution. During this phase, criminal cases shall be filed in court and if warranted, some taxpayers may be recommended to be picked up by military authorities for their refusal or failure to pay their delinquent taxes pursuant to General Order No. 2-A. Regular progress reports shall be required, the format of which shall be devised by the National Committee. Revenue Regional Directors and Revenue District Officers shall submit a final report of the performance of each of their revenue personnel involved in this project. cd Everyone concerned is hereby enjoined to exert extra effort to make this project a success. Those who make good shall be rewarded, while those who fail shall be dealt with accordingly. This Order shall take effect immediately. MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE MANILA SUPPLEMENT TO REVENUE MEMORANDUM ORDER NO. 56-74 PHASE I 1. Match dockets against the CURA list. a) The matching of dockets shall be made simultaneously in the Office of the Revenue District Office for accounts P5,000.00 and below; in the Collection Branch for accounts P5,000.00 but not over P20,000.00; and in the Tax Accounts Division for accounts P20,000.00 and over. The Chief, Administrative Branch and Chief, Records Division shall charge out all outstanding dockets to the units where they should be acted upon. b) Dockets on protested cases and court cases in the hands of the Assessment Branch, Assessment Department, Legal Branch, Legal Department, and in the hands of fieldmen in the Revenue District Offices and in the hands of fieldmen in the National Office shall be inventoried in a standard form. This form shall contain the name of the taxpayer, kind of tax, assessment or demand number, date due, and amount due. The account of the taxpayer should be segregated accordingly by each year and kind of tax. c) The inventory of dockets required under the next preceding paragraph shall be submitted to the Revenue District Officer if the amount involved is P5,000.00 or below; to the Chief, Collection Branch if the amount involved is over P5,000.00 but not exceeding P20,000.00 and to the Chief, Tax Accounts Division if the amount involved is over P20,000.00. They shall be matched against the CURA list, instead of the dockets themselves for they are not in the actual possession of the Revenue District Officer, Chief, Collection Branch, and Chief, Tax Accounts Division. The inventory list shall be segregated into three categories, namely: 1. Those accounts P5,000.00 and below; 2. Those accounts over P5,000.00 but not exceeding P20,000.00; and 3. Those accounts P20,000.00 and over. 2. It is expected that in matching the dockets and/or inventory of tax dockets, there shall be accounts in the CURA list having dockets, accounts with missing dockets. 3. Therefore, while matching the dockets and/or inventory of dockets against the CURA list, post in pencil to the left side of the CURA list the following information for control purposes: a) "WCD", if the account in the CURA list has complete docket; b) "WICD", if the account in the CURA list has incomplete docket; c) "Pre-Ass", if the account is under review by the Assessment Branch; d) "Pro-RDO", if the account is under reinvestigation by a fieldmen in the Revenue District Office; e) "Pro-Legal", if the account is under review in the Legal Branch; f) "CTA-No.____", if the account is in the Court of Tax Appeals; g) "CFI-No.___", if the account is in the Court of First Instance; and h) Any similar indication can be made in the CURA list, but accounts identified without dockets shall be left blank. 4. There shall be dockets which are CURA listed, and others are not CURA listed. Mark the docket as "Listed" or "Unlisted" as the case may be. 5. Dockets which are CURA listed have due dates prior to December 31, 1972 and are classified into: a) "Enforceable", that is, they are neither in court nor protested; b) "Prescribed", that is, the government is barred from enforcing collection due to prescription; c) "Court Case", if they are in court; and d) "Protested" if they are under review or reinvestigation. 6. Dockets which are not CURA listed are classified into: a) Those whose due dates are after December 31, 1972 b) Those whose due dates are prior to December 31, 1972 The reason for this classification is because there are accounts whose due dates fall after December 21, 1972 and which are not included in the CURA list. They shall be listed separately by the DPC and said list shall be released soon. 7. After matching each docket to the CURA list, DARV Form No. 1 or 2 of Revenue Memorandum Order No. 7-72 shall be accomplished, if they had not yet been accomplished, and charge it and the docket to the review committee created under the same order. After which, the docket shall be charged out for appropriate action as indicated in the DARV Forms. 8. Dockets which are not CURA listed and whose due dates are prior to December 31, 1972 shall be verified against previous DPC lists of delinquent accounts, and if they are previously listed, check if there were postings to said previous list, and if so, transfer postings to the docket, and consider the docket closed. If previously listed, but no posting had been made to the DPC list, consult your DPC transaction register if you have and from there you can derive information of payment. If you do not have the DPC transaction register and the account is not CURA listed, but listed in the previous DPC list, consider the docket closed. However, if the docket had never been listed in any previous DPC list of delinquent accounts and the account has not prescribed, prepare a special Form 40.00 report and submit the same to the Revenue Operations Head (Collection), otherwise, if the collection is barred by prescription you can consider the case closed without any ATCA, after all the account was not listed. 9. Dockets which are not CURA listed but whose due dates fall after December 31, 1972 shall be matched against a separate DPC list which is coming out soon. Collection enforcement shall proceed for those accounts. Collections from these accounts (Unlisted-current accounts) shall be reported separately from collections of CURA listed accounts. As soon as the second DPC list shall arrive, the dockets of these accounts shall likewise be matched to it. Should there be dockets not listed in said list, check your Form 40.00 report (Using the date as reference). If it was not included there, cheek further if it was a national assessment or regional assessment. If it was a national assessment, send a follow up letter, or you may consider the docket closed. Check your DPC transaction register for the information of payment can be derived there. If it was a regional assessment check the payment through your BIR Form 12.31 or through DPC abstract of collection. Also check your Form 40.00, and if assessment was not reflected in your Form 40.00, prepare a special Form 40.00 for these accounts and submit the same to the Revenue Operations Read (Collection). 10. For accounts in the CURA list identified as having no dockets, there shall be two classifications, namely: a) DPC generated accounts, that is, the accounts were set-up on the basis of a return filed. b) Form 40.00 accounts, that is, the accounts were set up on the basis of the Form 40.00 reports submitted by assessment units. 11. To identify the accounts in the CURA list whether they are DPC generated accounts, or Form 40.00 accounts, the last column of the CURA lists shall show the source document from which the account has set up by DPC, for examples: a) "IT-70", indicates that the account was set-up from the 1970 income tax return filed. "IT" means income tax return, the figure "70" means the return filed for 1970. b) "70-08", indicates that the account was set-up from Form 40.00 report for the month of August, 1970. "70" means the year the Form 40.00 was prepared, and "08" means for the month of August for the same year. 12. DPC generated accounts may come into two categories, namely: a) The amount due per return is the same as that what is set-up in the CURA lists b) The amount due per return is different from what is set-up by the DPC. Since we are under the pay-as-you-file system, it is generally assumed that taxpayer pay their income tax as they file their return. Check where the return was filed, and check the amount due per return against the amount due per CURA list, and check further indication of payment in the return. If the amount due per return tallies with the amount due per CURA list, and there is indication that there was payment upon filing, check the corresponding BIR Form 12.31 report or DPC abstract of Collections. 13. If the amount due per CURA list is different from what is indicated in the return, check how the DPC arrived at in computing the amount. Usually, it happens that the taxpayer failed to indicate the names of his dependents, or there were dependents who were overaged or disqualified as dependents, by machine generation, the DPC arrived at the amount due. What was wrong in this process was that there was no corresponding notice and demand made. If the computation of DPC was correct, a demand must be made by issuing a new assessment notices, and by cancelling the account in the CURA list by ATCA. If there was nothing due per your computation, cancel the account by accomplishing the attached form called "Project CURA Adjustment Notice". The form is self-explanatory. It can also be used as substitute document for official receipts and ATCA. 14. The form, "Project CURA Adjustment Notice", should be serially numbered similar to the numbering of ATCA, and the distribution of the copies shall be as follows: 1. Original direct to the DPC and forwarded in numerical sequence, regardless of the amount involved 2. Duplicate direct to the Tax Accounts Division also in numerical sequence, regardless of the amount involved 3. Triplicate Collection Branch 4. Quadruplicate Revenue District Office 15. The DPC shall, upon receipt of this form, verify from its records the report of payment whether the amounts official receipt number (BOR/ROR) tallies with its original records. If this is found correct, the same form is approved by the Chief, Data Processing Center, and the account shall be closed. The approved form shall be available for reference and/or for audit anytime. Any account closed by this form shall appear in the transaction register. 16. Any account identified in the CURA list as set-up by the Form 40.00 should have corresponding dockets, and if the docket is missing, a thorough search for it by all units concerned shall be made by accomplishing DARV Form No. 3, a copy of which is hereto attached as your guide. a) If the amount is P5,000.00 or below, the Revenue District Officer, after a thorough search of his records, shall accomplish this form, and charge the same to the Administrative Branch or unit concerned as indicated in the form. b) If the amount is over P5,000.00 but not exceeding P20,000.00, the Chief, Collection Branch, after a thorough search of his records, accomplish DARV Form 3, and charge the same to the Administrative Branch or to the unit concerned. c) If the account is over P20,000.00 or over, the Chief, Tax Accounts Division, after a thorough search of his records, accomplish DARV Form 3, and charge it to Records Division or to the unit immediately concerned about it. 17. DARV Form No. 3 shall be routed to all units concerned where it should go until it is fully accomplished. If it is established that no docket is available, DARV Form No. 1 or 2 shall be accomplished, and together with DARV Form No. 3, they shall be charged to the review committee created under Revenue Memorandum Order No. 7-72 for its decision. If the account without docket appears to have prescribed, the committee may cancel the account by using ATCA, that is, if the account involved is P10,000.00 or below, otherwise, the accomplished DARV Form 1 or 2 and 3 shall be forwarded to the Tax Accounts Division for further search or decision of the National Committee. 18. A careful study of accounts in the CURA list should be made. If a taxpayer has more than one account having the same due dates, it can be assumed that these accounts have only one docket, and if the sum total amounts to more than P20,000.00, DARV Form No. 3 should be forwarded to the Tax Accounts Division for search of the docket in the National Office. 19. There are accounts in the CURA list involving the same year, the same assessment number, but the due date and amount due are different from each other. The first account may have been set-up from the income tax returns, while the other was set-up from Form 40.00 report. The first account can be cancelled by "Project CURA Adjustment "Notice", while the second must be enforced if docket is available. Likewise, there are accounts in the CURA list with the same assessment number, the same year, the same due date, and the same amount; one of them should be cancelled by accomplishing PCAN (Project CURA Adjustment Notice). 20. The documents that will adjust or close accounts in the CURA list, therefore, are the following: 1. Official Receipt (BOR/ROR) 2. ATCA 3. PCAN (Project CURA Adjustment Notice) 21. To have a better understanding of the matching procedure described above, there is enclosed, a "Matching Flow Chart" for your reference and guidance. 22. Immediately after all available dockets are matched to the CURA list, submit a summary report to the Revenue Operations Head (Collection) of the result of your matching operation. This report should not be later than April 5, 1975. Your report on matching operation shall be as follows: PHASE I Matching Operation No. of Cases Amount involved 1. Balance beginning per CURA list ==== =========== Less: Accounts having docket * ____ ____________ Accounts with missing dockets ==== =========== 2. Accounts having dockets classified into: For collection enforcement ____ ____________ Under protest or review ____ ____________ Under court case ____ ____________ Determined to have prescribed ____ ____________ Accounts closed but reappeared in the CURA list ____ ____________ 23. As indicated in the order, the National Committee shall devise progress reports for this operation. 24. Procedure for Phases II and III shall follow later. Prepared by: THEMISTOCLES R. MONTALBAN Chief, Tax Accounts Divisions TAN-1389-331-8 APPROVED: CONRADO P. DIAZ Deputy Commissioner of Internal Revenue (Operations) TAN-1182-568-4 BUREAU OF INTERNAL REVENUE MANILA PROJECT CURA ADJUSTMENT NOTICE Serial No. _________ Date ____________ NAME OF TAXPAYER ___________________________________________ ACCOUNT/ ASSESSMENT DATE AMOUNT DUE BOR/ROR NUMBER DATE AMOUNT PLACE OF TAN /DEMAND NUMBER PAYMENT ______ __________________ _________ _____________ __________________ _________ ________ _________ ______ __________________ _________ _____________ __________________ _________ ________ _________ ______ __________________ _________ _____________ __________________ _________ ________ _________ Note: The three spaces above shall be filled only when there are more than one account of the case taxpayer having the same due dates. There shall be one docket for those accounts. Indicate ATCA number if closed by it previously; and especially when there was only one receipt issued for all accounts, or there were several receipts issued for one account. If the account is determined to be DPC generated account, and the account set-up was in error, indicate below the explanation why the account should be removed from the CURA list. _______________________________________________________________________________________________________________ payment was verified from [] BIR FORM 12.51 [] DPC abstract, DPC generated account verified in error list of payment [] Receipt presented by taxpayer. Verified By: Approved: Verified By: Approved ___________ ______________ _ _ _ _ _ _ _ _ ___________ _____________ _ _ _ _ _ _ _ _ Chief, Collection Branch Chief, Assessment Branch RDO District Officer Chief, Tax Accounts Division DARV Form No. 3 BUREAU OF INTERNAL REVENUE MANILA SERIAL NO. ________ DOCKET SEARCH VERIFICATION SHEET (Cura Listed Accounts) NAME OF TAXPAYER _____________________________ DATE ___________ Account/TAN ASSESSMENT/DEMAND NO. DATE DUE AMOUNT DUE KIND OF TAX ____________ ________________________ ___________ ____________ _________ ____________ ________________________ ___________ ____________ _________ ____________ ________________________ __________ ____________ _________ Note: The three spaces above shall be filled only when the taxpayer has several accounts, but the due dates are the same. It has only one docket. [] The records of this office do not show that the docket of the above account/s was charged to this office. [] The records of this office show that the docket of the above account/s was charged to ____________________ on ___________ ________________________ RDO/Chief, Collection Branch [] The records of this Office do not show that the docket of the above account/s was charged to this Office. [] The records of this office show that the docket of the above account/s was charged to ___________________ on ________________ _______________________ Chief, Administrative Branch [] The records of this Office do not show that the docket of the above account/s was charged to this Office. [] The records of this office show that the docket of the above account/s was charged to ___________________ on ________________ ________________________ Chief, Assessment Branch [] The records of this Office do not show that the docket of the above account/s was charged to this Office. [] The records of this office show that the docket of the above account/s was charged to ___________________ on ________________ ____________________ Chief, Legal Branch [] The records of this Office do not show that the docket of the above account/s was charged to this Office. [] The records of this office show that the docket of the above account/s was charged to ___________________ on ________________ _______________________ Assistant Regional Director [] The records of this Office do not show that the docket of the above account/s was charged to this Office. [] The records of this office show that the docket of the above account/s was charged to ___________________ on ________________ ____________________ Revenue Regional Director CURA MATCHING OPERATION Footnotes Note * . Include in this report those accounts found to have been closed at the start of the matching operation. Those found to have been closed before the start of matching operation should be reported under "Project CURA Adjustment Notice".