Guidelines and Procedures in the Roll-Out of the National Office Management Information and Planning and Control System (NO MIS) at the ITS Pilot Sites

November 27, 1997 REVENUE MEMORANDUM ORDER NO. 65-97 TO : Deputy Commissioners (DCIRs), Assistant Commissioners (ACIRs), NO Division Chiefs, Regional Directors, Heads of Revenue Data Centers, Revenue District Officers, Regional Division Chiefs and Other Revenue Personnel Concerned SUBJECT : Guidelines and Procedures in the Roll-Out of the National Office Management Information and Planning and Control System (NO MIS) at the ITS Pilot Sites 1. OBJECTIVES 1.1 General This Order is issued to lay down the guidelines and procedures in the roll-out of the National Office Management and Information and Planning and Control System (NO MIS) at the ITS Pilot Sites. 1.2 Specific a) For Operations Audit : To provide for allocation of goals within various tax programs and for reporting and evaluation against agreed performance indicators. b) For Statistics : To provide annual regional collection goal allocation by type of tax and by month. c) For Profiling : To provide taxpayer and industry profiles using ITS and available external data to assist in taxpayer selection, inquiry and investigation. d) For Zonal Valuation : To provide the most current zonal values for tax computations. 2. GUIDELINES AND PROCEDURES 2.1 For Operations Audit 2.1.1 Formulation of Work Plans a) The ACIRs of the different Revenue Services shall formulate their respective annual work programs consisting of key events and minimum performance measures which will be implemented by a Revenue Memorandum Order. b) The ACIRs shall assign the work programs to each unit type (NO Divisions, Regional Office Divisions, and Revenue District Offices). c) The ACIRs and Regional Directors shall allocate their minimum annual performance measures. d) The Regional Divisions, RDOs, and NO Divisions will log in to NO MIS and inquire on the assigned work programs. e) The Regional Divisions, RDOs, and NO Divisions will formulate their Work Plans and enter the same to NO MIS (i.e. monthly breakdown of performance measures). f) ACIRs and Regional Directors will inquire on the Work Plans. g) The Planning Division will inquire on the Work Plans and shall prepare and submit reports to the Commissioner, Deputy Commissioners and ACIR, Management and Planning Service. 2.1.2 Reporting of Accomplishment a) The Regional Divisions, RDOs, and NO Divisions shall carry out their respective Work Plan activities and enter their monthly accomplishments against their agreed plans. b) Generation and printing of reports shall be done by the system automatically or as requested by a particular office. c) The Planning Division will inquire on the monthly accomplishment reports of the various revenue offices and then, manually prepare the BIR consolidated monthly report for submission to the Department of Finance. 2.1.3 Evaluation a) The Planning Division shall enter percentage weights for the various Work Programs, as approved by top management (Work Program Weights). b) The ACIRs shall assign and enter percentage weights for the various key events in their respective Work Programs (Key Event Weights). c) The system automatically computes the Weighted Average Score (WAS) per Work Program and the Weighted Average Overall Score (WAOS) for each office. 2.2 For Statistics 2.2.1 Goal Allocation by the Statistics Division a) The Statistics Division allocates the regional goals based on the approved Revenue Memorandum Order on Regional Allocation approved by the Commissioner of Internal Revenue. b) In case the Regional Office fails to allocate the RDO goals on time, the Statistics Division shall do the allocation. 2.2.2 Goal Allocation by the Regional Offices a) The Regional Office shall allocate on-line the assigned collection goal by logging to NO on or before the deadline set for the purpose. b) The Regional Office allocates the regional collection goal to their respective RDOs by month and major tax types. c) The sum of all RDO collection goals should be equal to the regional collection goal allocated. d) The Regional Office may modify its RDO goals on or before the set deadline. 2.2.3 Goal Inquiry The Statistics Division and other concerned Offices may inquire on-line the assigned RDO collection goal by month and major tax type allocated by the Regional Offices. 2.2.4 Generation and Printing of Reports The System Administrator (ISG) shall generate and print standard reports and distribute the same to the authorized users. 2.3 For Profiling 2.3.1 Internal Taxpayer Profile 2.3.1.1 Uploading of Internal Taxpayer Data to ITS Database a) The Regional Data Centers shall upload selected RDO data to NO. b) The uploaded data will be stored in ITS database. 2.3.2 External Taxpayer Profile 2.3.2.1. Preparation of Memorandum of Agreement ( MOA ) a) The Revenue District Officers and NO Division Chiefs shall submit to their respective ACIRs their list of required information from the different external agencies. b) The ACIRs shall evaluate the need for the information sought. c) The ACIRs shall initiate dialogue with the Heads of external agencies. d) The ACIRs shall prepare the initial draft of the Memorandum of Agreement for review by the Law Division. e) The Law Division shall review and prepare the final draft of the Memorandum of Agreement for the signatures of the Commissioner and the Head of the External Agency concerned. 2.3.2.2. Loading of Data/Information from External Agencies to ITS Database a) ISOS shall load the data/information received from external agencies to ITS database. b) ISOS shall validate the TIN obtained from external data against the existing taxpayer records. Validated TINs shall be stored in the database. 2.3.2.3 Identification and Selection of Potential Registrants a) The procedures for the identification and selection of potential registrants are provided for in the Operations Manual. b) The System Administrator shall update the Potential Registrants records for downloading to concerned RDOs. 2.3.2.4. Case Creation For Potential Registrants a) The creation and assignment of cases involving potential registrants shall be governed by the guidelines and procedures prescribed in the Operations Manual under the All-Case Tracking Module of the Case Monitoring System. b) The Regional Data Center shall generate the notices (first/final) of potential registrants. c) The Revenue District Officer shall update the Potential Registrants record based on the result of the verifications made. 2.3.3 Internal Industry Profile 2.3.3.1 Uploading of Account Information to NO a) The Regional Data Center shall upload Account Information database to NO. b) The National Office computes the financial ratios based on Account Information including the average ratios for industries. 2.3.4 External Industry Profile 2.3.4.1 Loading of External Industry Data to ITS Database a) The National Office (ISOS) shall receive data from external agencies and shall load them to the ITS database. 2.3.5 Inquiry of Taxpayer and Industry Profiles The National Office Divisions, RO, RDO may log-in to NO MIS to inquire and request for the printing of taxpayer and industry data/information obtained from internal and external sources. 2.4 For Zonal Valuation 2.4.1 Creation of zonal values a) The Asset Valuation Division, National Office shall prepare a notice for the Revenue District Officer concerned requiring him to submit proposed schedule on Recommended Land Values thru a sub-technical committee meeting. b) The Revenue District Officer shall submit the proposed schedule on Recommended Land Values duly signed by the Sub-technical Committee on Real Property Valuation (STCRPV), composed of the Revenue District Officer as the Chairman, City/Municipality Assessors and two (2) representatives of private sectors members, to the Asset Valuation Division, National Office for review. c) The Asset Valuation Division, National Office shall review the duly submitted proposed schedule of zonal values by the RDO and send the corresponding notice to RDO concerned for its public hearing. 2.4.2 Public Hearing and Resolving Protests Arising from the Conduct of Public Hearings The policies and procedures for the conduct of public hearings and the resolution of protests arising from the conduct of public hearings on zonal values are provided for in the Operations Manual. 2.4.3 Resolving Protests Arising from Conduct of Public Hearing Any objections or issues raised after the conduct of public hearing held for the purpose of prescribing or modifying zonal values of real properties must be submitted in writing to the RDO concerned not later than ten (10) working days after the public hearing. 2.4.4 Final/Adjusted Report a) The Revenue District Officer shall prepare the Final/Adjusted Report of the Sub-technical Committee on Recommended Land Values and submit the same to the Asset Valuation Division, National Office for review. b) The Asset Valuation Division, National Office shall review and finalize the Final/Adjusted report of the Sub-technical Committee on Recommended Land Values and forward the same to the Technical and Executive Committees for signature and approval. c) The Asset Valuation Division, National Office shall forward the duly signed and approved schedule of zonal values to the Department of Finance for issuance of the implementing Department Order. d) The final schedule of zonal values as approved by the Department of Finance shall be forwarded to the Public Information and Education Division for publication in a newspaper of general circulation. e) The Asset Valuation Division, National Office shall inform the Revenue District Officer concerned regarding the effectivity date of the new zonal values. f) The Asset Valuation Division, National Office shall encode the initial/revised zonal values in the Zonal Codes Table Maintenance. 2.4.5 Revision of Zonal Values Revision or update of zonal valuation may be undertaken under any of the following circumstances. a) An Exception Report showing that most transactions tend to indicate that actual selling price of real property are greater than the zonal values in a given area b) Introduction of major improvements in a particular area c) When there is a major change in the division or classification of a particular area d) Upon instruction by the Commissioner of Internal Revenue e) Lapse of six (6) months from latest revision of zonal values in the area 3. TRAININGS AND MANUALS a) The NO MIS CBT (Computer Based Training) shall be installed in the different revenue offices for continues training of other personnel concerned. b) The Manual of Procedures Guide (MPG) of NO MIS shall be provided to the different revenue offices. 4. REPEALING CLAUSE All issuances and/or portions thereof inconsistent herewith are hereby repealed and amended accordingly. 5. EFFECTIVITY This Order takes effect immediately upon the roll-out of NO MIS. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue