Revised procedures for the preparation of the "Report of Explanation of Drastic Changes in Collection Performance" (BIR Form No. 1771) and Phase out of BIR Forms No. 12.10 and 12.11

1994 REVENUE MEMORANDUM ORDER NO. 73-94 SUBJECT : Revised procedures for the preparation of the "Report of Explanation of Drastic Changes in Collection Performance" (BIR Form No. 1771) and Phase out of BIR Forms No. 12.10 and 12.11 TO : All Internal Revenue Officers and Others Concerned 1. Objective This order is issued to: 1. Improve the procedures for the evaluation and explanation of drastic changes in collection performance by prescribing a revised BIR Form No. 1771 for this purpose (refer to Annex A) and by phasing out BIR Form No. 12.10 (Consolidated Monthly Report of Collection) and BIR Form No. 12.11 (Monthly Collection Report on Selected Internal Revenue Taxes). 2. Involve all concerned officials, including the Revenue District Officers, Regional Directors and National Office, in the process of evaluating and explaining the causes of drastic changes in collection performance. 3. Facilitate the review process of the collection performance in response to the requirements of the Department of Finance, Congress and other offices, by prescribing specific inputs from the Revenue District Offices in explaining drastic changes in collection performance. II. Procedure 1. The Revenue District Officer (RDO) shall accomplish BIR Form No. 1771 on a monthly basis and/or; and provide explanation of drastic changes defined as follows: A. When collection versus goal for particular type of tax(es) results in: i. shortfall or deficiency in collection and/or; ii. excess in collections amounting to 20% or m ore B. When current collection compared to previous year's for particular type of tax(es) results in: i. decrease in collection, and/or; ii. increase in collections amounting to 40% or more for the month In the event that there are no drastic changes of collection performance for particular type of tax(es), the phrase " NO DRASTIC CHANGES " shall be indicated in the explanation column of BIR Form No. 1771. 2. In accomplishing the explanation column of BIR Form No. 1771, the following, among others, must be indicated: A. Identification of specific industries/sectors contributing to the shortfall/decrease and/or excess/increase of collections (drastic changes); B. Identification of specific taxpayers and their tax payments contributing to the drastic changes; C. Identification of effects of changes in laws and/or administrative procedure, and fiscal incentive measures. 3. The RDO shall submit BIR Form No. 1771 to the Collection Division of the Regional Office not later than the tenth working day from the end of each month. BIR Form No. 1209 shall be prepared in three copies and distributed as follows: Original - Statistics Division thru the Collection Division of the Regional Office Duplicate - Collection Division Triplicate - File Copy 4. The Collection Division thru the Regional Director shall transmit to the Statistics Division all BIR Form No. 1771 submitted by the RDOs not later than the fifteenth working day from the end of each month. In the event that the BIR Form No. 1771 of the RDOs are not yet complete, the Collection Division shall transmit whatever BIR Form No. 1771 are available and indicate in said transmittal the names of the RDOs which failed to submit BIR Form No. 1771. 5. The Statistics Division shall evaluate BIR Form No. 1771 and prepare a report explaining causes of drastic changes of collection per kind of tax and/or per regional/revenue district office. This report should be submitted thru the Assistant Commissioner (ACIR - Management and Planning Service) to the Commissioner, Deputy Commissioners and ACIR (Collection Service) not later than the end of each month. III. Repealing Clause This Order supersedes Revenue Memorandum Order No. 42-93. The use of BIR Forms No. 12.10 and No. 12.11 as hereby phased out inasmuch as the information contained in the report is now included in BIR Form No. 1771. IV. Effectivity This Order shall take effect beginning January, 1995 collection report. casia LIWAYWAY VINZONS-CHATO Commissioner ANNEX A Report on Explanation of Drastic Changes in Collection Performance