BIR starts the year with excess collection

(1)

1

BIR PRIORITIES

Exceed BIR revenue target of P 830 Billion for 2010

Improve taxpayer satisfaction and compliance

Improve taxpayer and taxfiler base

* * *

Volume 12 No. 2 February 2010

By Rowena Altura

BIR starts the year with excess collection

THE BIR IS off to a good start in 2010 with its January revenue collections exceeding the target for the month by more than 13%.

The good news was first an-nounced by Commissioner Joel L. Tan-Torres last February 17 during the 1st Directors' Conference held for the year. Based on preliminary report, the BIR was able to collect P 63.30 Billion in January, exceeding its P 56 Billion tar-get by P 7.30 Billion.

The Commissioner congratulated all revenue officials and personnel present during the conference for a job well done, and expressed hope that the good collection performance

of the BIR could be replicated in the suc-ceeding months.

The remarkable collection perfor-mance was again an-nounced by the Com-missioner in the pre-sence of President Gloria Macapagal-Arroyo, Finance Sec-retary Margarito B. Teves and the coun-try's large taxpayers during the 2010 Tax

Campaign Kick-off of the Large Taxpa-yers Service (LTS) held last February

Finance Secretary Margarito B. Teves, together with Commissioner Joel L. Tan-Torres and ACIRs Nestor Valeroso and Zenaida Garcia, poses with President Gloria Macapagal-Arroyo after she had awarded Plaques of Recognition to the represen-tatives of the Large Taxpayers Service (LTS) “Billionaires’ Club” during the Service’s 2010 Tax Campaign Kick-off held last February 25 at the NBC Tent in Fort Bonifacio.

BIR starts...to p.2

BIR inks MOA with SEC

BIR inks..to p. 2

THE BIR AND the Securities and Ex-change Commission (SEC), represented by Commissioner Joel L. Tan-Torres and SEC Chairman Fe B. Barin, entered into a Memorandum of Agreement last February 17 for the simplification of procedures on the submission of An-nual Financial Statements (AFS) by registered corporations, partnerships and associations.

Based on the MOA, the SEC agreed to simplify its requirements from the said taxpayers by requiring them to sub-mit only one (1) copy of the complete AFS with external auditor’s certifica-tion, Balance Sheet and Income State-ment duly stamped by the BIR or Au-thorized Agent Bank (AAB), and two (2) sets of photocopies of the said docu-ments.

The SEC shall also conduct a ran-dom review of the submitted AFS of the corporations, partnerships and associa-tions to determine their compliance with

the financial reporting requirements. The BIR, on the other hand, shall also simplify its procedures by stamping “RECEIVED” only on the first page of the three (3) copies of Income Tax Return (ITR) and of the external auditor’s certification, In-come Statement and Balance Sheet. The Bureau shall no longer stamp the other pages of the financial state-ments and its attachstate-ments.

Commissioner Joel L. Tan-Torres and Securities and Ex-change Commission (SEC) Chairman Fe Barin sign a Memorandum of Agreement on February 17 at the BIR Training Room.

Tax filing..to p. 3

T

Tax filing and

ax filing and

payment made

easier

WITH THE TAX FILING season fast approaching, Commissioner Joel L. Tan-Torres issued several revenue issu-ances to make Income Tax (returns) fi-ling and payment convenient for tax-payers and the Authorized Agent Banks (AABs).

No limit on Income Tax payment thru RCOs

In Revenue Memorandum Order (RMO) No. 2-2010 issued last January 8, the Commissioner lifted the limitation in the amount of cash or check that can be accepted as payment for annual Income Taxes (under BIR Form Nos. 1700, 1701 and 1702) by Revenue Collection Offi-cers (RCOs) in areas where there are AABs.

However, for all the other taxes to be accepted by the RCOs, the issuance of Revenue Official Receipts (RORs) shall be limited only to tax payments in cash not exceeding the amount of P 20,000 per return. There shall be no limit on the amount if payment is made through checks.

By Eleonor Capili

CIR presents BIR Legacy Scroll to PGMA

(2)

2

NA

NATIONAL

TIONAL

25 at the NBC Tent in Fort Bonifacio.

During the said event, Commissioner Tan-Torres re-ported to the President that the BIR was able to surpass its collection target by more than 13% for two consecutive months (in December 2009 and January 2010) since he be-came full-fledged Commissioner of Internal Revenue in No-vember last year. He gave his commitment to the President that the BIR (as the "Institution of Progress") will continue to "stand and deliver" its collection target for the succee-ding months. The Commissioner then presented to Presi-dent Arroyo the BIR Legacy Scroll containing the amount of taxes collected annually by the Bureau during her adminis-tration (from 2001 to 2009), which totaled P 5.115 Trillion.

Commissioner Tan-Torres also presented the 2010 tax campaign theme and logo of the Bureau (Making the Public Know) as well as some of the initiatives that the BIR will pursue in March to encourage voluntary tax compliance, such as the re-launching of the "Handang Maglingkod" Pro-gram and the re-invigorated Run After Tax Evaders (RATE) Program. He ended his presentation with the showing of the video of the 2010 tax campaign jingle entitled, "Buwis ay

Mahalaga" composed by Revenue District Officer James BIR starts...from p. 1

Ferrer, who was acknowledged by Commissioner Tan-Torres during the said event.

Secretary Teves also delivered a message wherein he appealed to all large taxpayers to "pay the right taxes in accordance to their income". On the part of the BIR, he said that efforts are already underway to simplify the tax forms and to improve the delivery of service to taxpayers through the "Handang Maglingkod" Program. For the tax cheats, the Secretary said that the filing of tax evasion cases under the RATE Program will be intensified.

"I hope that you will continue to become responsible partners in nation building", Secretary Teves said.

To show the Bureau's appreciation to the top contribu-tors to revenue collections in 2009, four (4) large taxpayers (LTs) were declared members of the "Billionaires' Club". These are the Manila Electric Company; Nestle Philippines, Inc.; San Miguel Corporation; and Holcim Philippines, Inc. The four LTs were chosen based on the increase in their CY 2009 tax payments, which should be at least P 1 Billion and at least 20% compared to their CY 2008 tax payments.

President Arroyo, together with Secretary Teves, awarded Plaques of Recognition to the representatives of the four LTs. The awarding ceremony was witnessed by Com-missioner Tan-Torres and Assistant ComCom-missioners Nestor Valeroso of LTS-Regular and Zenaida Garcia of LTS-Excise who delivered presentations on the need for institutional building in the BIR; having Industry Champions in the LTS and development of "Pinoy Big Ticket Items", respectively. The LTS Tax Campaign Kick-off was further highlighted with the signing of the Revenue Regulations by Secretary Teves and Commissioner Tan-Torres providing the rationale and guidelines on the submission of the Statement of Ma-nagement Responsibility.

The event culminated with a toast and the Pledge of Commitment by the large taxpayers, led by Ms. Editha de Leon of Nestle Philippines, Inc., and the BIR officials/per-sonnel led by Commissioner Tan-Torres.

BIR inks...from p.1

All concerned BIR offices shall certify photocopies of the ITRs, including the attached financial statements, upon payment of the required certification fee by the requesting re-gistered corporations, partnerships or associations.

“With our partnership with the SEC, along with the Autho-rized Agent Banks, the receipt and processing of ITRs and their attachments will now be easier, faster and more convenient for the taxpaying public,” Commissioner Tan-Torres said.

Commissioner Tan-Torres presents to President Arroyo the BIR Legacy Scroll con-taining the amount of annual BIR Tax Collections from 2001 to 2009 which totaled P 5.115 Trillion.

(3)

3

NA

NATIONAL

TIONAL

The issuance of RORs for the an-nual Income Tax payment of individual taxpayers and calendar-period corpo-rate taxpayers shall start five (5) wor-king days prior to and until April 15.

No more tedious stamping of attachments by AABs

In RMO Nos. 6-2010 and 13-2010 issued last January 20 and February 4, respec-tively, the tedious stamping of all pages of the financial statements being en-countered by the AABs every tax filing season was addressed by Commis-sioner Tan-Torres.

Pursuant to the RMOs, the finan-cial statements attached to the Income Tax Returns shall be stamped “RE-CEIVED” only on the page of the Audit Certificate, the Balance Sheet and the Income Statement. The other pages of the financial statements and its attach-ments shall need not be stamped re-ceived anymore.

Moreover, taxpayers shall only ac-complish and file three (3) copies of tax returns with the AAB and /or the BIR. Any tax return in excess of three shall not be received by the AAB and/or the BIR.

“With these new set of procedures, we are addressing the problems of AABs, particularly the time-consuming process of stamping all the pages of documents attached to the ITRs, which results to long queue of taxpayers in the banks,” Commissioner Tan-Torres said.

Public Assistance and Awareness Campaign

In line with the BIR’s “Making the Pub-lic Know” tax campaign theme and logo for 2010, Commissioner Tan-Torres is-sued RMO Nos. 3-2010 and 4-2010 di-recting BIR frontline offices to imple-ment high visibility Public Assistance and Awareness Campaign (PAAC).

Some of the activities under the PAAC include the allotment of a regu-lar BIR tax column in national and local newspapers containing information such as Income Tax deadline count-down; regular interviews and appea-rances of BIR officials in radio and tele-vision programs; use of electronic bill-boards in disseminating tax informa-tion; and regular conduct of tax

semi-nars, dialogues and symposia. Special events shall also be orga-nized and held to heighten the aware-ness of the taxpaying public on vari-ous tax matters. Such events include the launching of the 2010 Income Tax Filing Campaign; awarding of top tax-payers; conduct of 2010 “Handang Maglingkod” Project; compilation and dissemination of Tax Compliance Is-sues; establishment of eLounge in Rvenue District Offices; launching of e-Complaint and Taxpayer Satisfaction Survey System; and signing of Memo-randum of Agreement with various or-ganizations.

To help taxpayers comply with their tax obligations during the tax filing sea-son, all Revenue District Offices (RDOs) shall set up tax filing centers/ clinic in strategic locations, such as malls and city/municipal halls. The RDOs shall also assign at least one (1) BIR personnel in every AAB to help answer taxpayer queries and concerns

during peak periods.

“No Noon Break” Work Schedule and Overtime on Saturdays

Starting March 15 to April 15, 2010, the RDOs’ designated tax filing centers as well as the Office of Collection Agents shall be open on Saturdays from 8:00 AM to 5:00 PM to receive tax returns and validate payments of taxpayers. A “No Noon Break” work schedule shall also be observed in the tax filing cen-ters until April 15 and in all BIR front-line offices year round (per RMO No. 5-2010).

The AABs shall also be requested to open in all four (4) Saturdays before the tax deadline starting on March 20, 2010 to receive tax returns and vali-date payments of taxpayers.

“By adopting all these initiatives, we hope to encourage voluntary com-pliance by making tax filing and pay-ment more convenient for our taxpa-yers,” Commissioner Tan-Torres said.

Tax filing...from .1

The BIR ranked FIFTH (5th) among 177 agencies in terms of compliance to the requirements of the Integrity Development Action Plan (IDAP) for 2009. Secretary Constancia De Guzman (center) of the PAGC awarded a Certificate of Recognition to the BIR last February 9 at the Land Bank of the Philippines-Head Office in Malate, Manila. It was received by DCIR Celia King, together with (L-R) Paco RDO Petronilo Fernando, ACIR Leonor Villalon-Rogers and Asst. Division Chief Ione Alejo.

BIR ranks 5th in Integrity

Development

(4)

4

NA

NATIONAL

TIONAL

Pr

Project V

oject V

oject Valentine checks on V

alentine checks on V

alentine checks on VA

alentine checks on V

A

AT

A

T

liabilities of motels

FEBRUARY IS THE Love Month and is

known to be the peak period for motels. In anticipation of the high demand for motel services, Commissioner Joel L. Tan-Torres introduced Project Valentine by issuing Revenue Memorandum Or-der (RMO) No. 16-2010 last February 5. The RMO provides the policies and guidelines in determining the output Value-Added Tax (VAT) liabilities of motels and other similar establishments. Hotels, resorts and other establishments, which do not regularly allow short time (less than 24 hours) stay are not co-vered by the said Order.

Based on the RMO, all establish-ments covered are required to submit to their respective Revenue District Office (RDO) a Sworn Declaration within 10 days from the issuance of the Order, and for each year thereafter, on or before January 31 of each year. The Sworn Declaration shall contain information on the establishment’s room type, number of rooms and rate per room, which shall be the basis in computing the prescribed revenues per month of the establishment.

Based on the information gathered from the Sworn Declarations submitted by all establishments, an Occupancy Turnover Analysis Report (OTAR) per establishment shall then be prepared by the RDO specifying the additional out-put VAT to be collected.

Once notified by the RDO of the proposed additional output VAT to be paid for each month, the motel has the option to amend its VAT returns for the months in question, and pay the corresponding additional output tax within 10 days from receipt of the no-tice, in order to avoid the imposition of penalties and surcharges and the issuance of Mission Order for the con-duct surveillance on the establishment. Motels that will choose not to amend their VAT returns shall be recom-mended for surveillance activities for a period of not less than 10 days in order

to determine their true and correct tax liabilities. Should the surveillance acti-vity disclose the understatement of ta-xable gross sales by 30% or more of the motel’s correct taxable sales for the quar-ter, the motel shall be considered for tem-porary closure under the “Oplan Kan-dado” procedures.

IN VIEW OF the large discrepancy noted between the number of re-corded deaths in the National Sta-tistics Office and the number of Es-tate Tax returns filed with the BIR in the past years, Commissioner Joel L. Tan-Torres has issued Revenue Memorandum Order (RMO) No. 10-2010 last February 2 to implement Project Rest in Peace (R.I.P.).

“Through Project R.I.P., BIR is targeting to increase the number o f E s t a t e Ta x r e t u r n s f i l e d t o 250,000 and the Estate Tax collec-tions to P10.7 Billion,” said Com-missioner Tan-Torres when he launched the project during the 1st National Command Conference held last January 20.

In order to achieve said targets, the Commissioner directed all BIR Revenue District Offices (RDOs) to closely monitor potential Estate Tax cases by establishing linkages with and accessing the records of the Civil Registers, hospitals, memorial parks, cemeteries, funeral parlors, crematoriums, Judicial Clerks of Courts, obituaries, life insurance companies and other financial in-stitutions.

Relevant information, such as the name and address of decedent, date of death, status of decedent, and name and address of rela-tive(s)/contact person(s) shall be secured from the said

establish-BIR implements

BIR implements

Pr

Project R.I.P

oject R.I.P

oject R.I.P...

oject R.I.P

ments. All information gathered by the RDOs shall be submitted to the BIR Audit Information, Tax Exemption and Incentives Divi-sion (AITEID), for processing and centralized warehousing of data.

The RDOs are also directed to send Notification Letter to the rela-tive/administrator of the decedent, advising and reminding him/her of the requirements and due dates for filing of Notice of Death and Es-tate Tax Return, and the payment of Estate Taxes.

In case, the relative/adminis-trator fails to comply with the Bureau’s requirements within the specified due date, the RDO shall undertake necessary actions to determine the Estate Tax obliga-tion of the decedent. These ac-tions can include such activities as background investigation to determine the properties of the estate; issuance of Letter of Au-thority to investigate the case; is-suance of subpoena duces tecum to compel the relative/contact per-son to submit information; issu-ance of notices to entities that may be in possession of the pro-perties of the decedent ordering them not to allow the dissipation or withdrawal of the properties without prior BIR approval; and all other activities deemed war-ranted. (See full text of RMO No.

10-2010 at www.bir.gov.ph.) By Pinky Mateo The imposition of sanctions against

a motel under the “Oplan Kandado” Pro-gram shall not preclude the BIR from filing the appropriate tax evasion charges under the Run After Tax Evaders (RATE) Program, if evidence so requires, against the concerned motel or the responsible officers of the establishment.

(5)

5

BIR seeks US$50 M grant for r

BIR seeks US$50 M grant for reform pr

eform pr

eform projects

eform pr

ojects

By Eleonor Capili

NA

NATIONAL

TIONAL

COMMISSIONER Joel L. Tan-Torres and DCIR Lilia C. Guillermo went to Washington DC, USA last February 8 to 10 to meet with officials of the Millennium Challenge Corporation (MCC) and negotiate for the release of US$ 50.3 Million grant for three BIR reform programs.

The two officials, together with Finance Undersecretary Rosalia de Leon and Executive Director Romeo Thomas, Jr. of the Department of Finance’s Revenue Integrity Protec-tion Service (DOF-RIPS), discussed with MCC officials the pertinent pro-visions of the Compact Agreement and Program Implementation Agree-ment relative to the Revenue Admi-nistration Reform Project (RARP).

Three (3) BIR projects for conside-ration under the RARP are the nation-wide implementation of the Electronic Tax Information System (eTIS); utilization of Automated Auditing Tools (AAT) in the Large Taxpayers Service (LTS); and Pub-lic Awareness Program (PAP).

Seventy percent (70%) or $ 35 Mil-lion of the grant will be allotted to the eTIS, which aims to enhance the

Bu-reau’s fifteen-year-old Integrated Tax System (ITS) and make the BIR systems (i.e. Taxpayer Registration; Returns Filing and Processing, etc.) accessible online for use by the Bureau’s internal and external stakeholders.

The AAT, which will need $ 1.2 Mil-lion funding, will further strengthen the audit and enforcement capabilities of the LTS through its data analysis tools that will make summarizing and sorting of data, statistical sampling and data con-version easier.

Finally, the PAP, which has $ 7 Mil-lion funding requirement, aims to ensure extensive communication of the Bu-reau’s plans, programs and initiatives to improve tax governance, promote

trans-parency and accountability, and increase revenue collections. The program is in line with Commissioner Tan-Torres’ thrust to adopt high visibility public awareness campaign on the Bureau’s enforcement and service programs.

During the negotiation, MCC offi-cials said that the timeline for the MCC Board consideration of the Philippine Compact will be on March 10, 2010, and that the Target Compact signing will be on April 2010.

“We hope that the $ 50 Million fund will be granted so that the proposed BIR projects will be realized to improve go-vernance in tax administration, in pursuit of greater transparency and accoun-tability,” Commissioner Tan-Torres said.

LAST FEBRUARY 1, the House of Repre-sentatives approved on third reading House Bill No. 7134 establishing a Philippine Tax Academy, which will serve as the primary training school for tax and customs collec-tors and administracollec-tors. Its counterpart mea-sure, Senate Bill No. 3206, was set for third reading on February 3, but was deferred due to lack of quorum. Both bills were certified by President Gloria Macapagal-Arroyo as urgent measures for legislation.

Once established, the Philippine Tax Academy will provide continuing education and training for tax and cus-toms collectors and administrators in the BIR, Bureau of Customs and Bu-reau of Local Government Finance. It will develop training curricula and

con-duct seminars, workshops and other training programs designed to develop and enhance the skills and knowledge, moral fitness, efficiency and capability of employees in the three agencies.

“The creation of the Tax Academy will improve the tax collection efficiency of tax collectors and

administra-tors, enabling them to be-come more competent and effective public ser-vants for the national in-terest,” Commissioner Joel L. Tan-Torres said in his letters to Undersecre-taries Carmencita Lao and Bernandino Sayo of the Presidential Legisla-tive Liaison Office.

Chief-of-Staff Marina C. De Guzman of the

Of-By Wency Fernandez

Commissioner Joel L. Tan-Torres, together with DCIR Lilia C. Guillermo (left) and Executive Director Romeo Tomas, Jr. (2nd from right) of DOF-RIPS, poses with the officials of the Millennium Challenge Corporation after their negotiation for $ 50 Million funding for BIR tax administration projects held last February 8 to 12 in Washington DC, USA.

T

Tax Academy Bill pushed

ax Academy Bill pushed

Senator Juan Miguel Zubiri presides the Senate Hearing on Tax Academy Bill held last February 1. Revenue officials in attendance are Chief-of-Staff Marina C. De Guzman, Assistant Commissioner Leonor Villalon-Rogers, Atty. Wency Fernandez of the Office of the Commissioner and Assistant Division Chief Silverio Sante of the Corporate Communications Division.

fice of the Commissioner (OCIR), ACIR Leonor Villalon-Rogers of the Policy and Planning Service, Atty. Wency Fernandez of OCIR and Assistant Division Chief Silverio Sante of the Corporate Communications Di-vision attended the Senate Committee hea-ring on the bill held last February 1.

(6)

6

NA

NATIONAL

TIONAL

BIR cr

BIR creates Committee to monitor tax

eates Committee to monitor tax

er

eroding measur

oding measur

oding measures

es

FACED WITH AN P 830 Billion

collec-tion goal in 2010 and the recent pas-sage of several tax eroding measures, Commissioner Joel L. Tan-Torres saw the need to closely monitor and review the existing, newly-enacted and pro-posed laws granting tax incentives and exemptions.

In view of this, the Commissioner issued Revenue Special Order (RSO) No. 60-2010 creating the Tax Exemptions and Incentives Oversight Committee, which is chaired by Deputy Commis-sioner Lucita G. Rodriguez and co-chaired by Atty. Edwin R. Abella. Mem-bers of the Committee are Marina C. De Guzman; Mapemaroma M. Cantillep;

Grace Evelyn A. Lacerna; Gay Christine C. Cortes; Enrico D. Cruz; Gealdina E. Reyes; Amelita B. Escober; and Reynoso A. Floreza, Jr.

Pursuant to the RSO, the Commit-tee shall coordinate the drafting of Implementing Rules and Regulations (IRRs) of newly-enacted laws granting tax incentives and exemptions (i.e. exemption from VAT of senior citizens, tax exemption of local water districts and cooperatives, etc.). It shall also eva-luate the quantification of tax loss brought about by tax eroding mea-sures, which impact on the Bureau’s revenue collection, revenue goal deter-mination and performance evaluation of BIR offices.

The Committee shall also

recom-mend policies on the implementation of laws with tax incentives and/or exemp-tions and, whenever necessary, pursue the audit of tax incentive and exemp-tion cases.

To support the performance of its functions, the Committee has two (2) teams, namely: Monitoring, Evaluation and Database Enhancement Team and IRR Review, Revision and Preparation Team.

“With the creation of this Commit-tee, we hope to dampen the negative impact of the tax eroding measures in the BIR’s tax collection by coming up with stringent measures to prevent the abuse of tax incentives and exemptions granted by the law,” said Commissioner Tan-Torres.

BIR Assistant Chiefs to play mor

BIR Assistant Chiefs to play more active r

e active r

e active role

e active r

ole

SPARE TIRES NO MORE!

This, in gist, is the underlying message of Revenue Memorandum Order (RMO) No. 12-2010, which insti-tutionalized the Assistant Chiefs' Chal-lenge System or ACCS.

The ACCS was introduced by Com-missioner Joel L. Tan-Torres during the first (ever conducted) Assistant Chiefs' Command Conference held last January 13 at the BIR National Training Center.

In recognition of the very impor-tant role Assisimpor-tant Chiefs (ACs) per-form in tax administration, Commis-sioner Tan-Torres saw the need to pro-vide a system that will propro-vide infor-mation on the "true value, contribution and capability" of the ACs.

Under the ACCS, Assistant Re-gional Directors (ARDs), Assistant Revenue District Officers (ARDOs) and technical assistants who were pre-viously holding positions of Regional Directors, Revenue District Officers, ARDs and ARDOs, and holding items of Chief Revenue Officer III and higher, have the option to conceptualize and manage Special Projects that will im-prove tax collection and administration.

The Special Projects that will be con-sidered for the ACCS are those that have immediate impact; with quantifiable re-sults and specific time table; and shall utilize the existing resources in the AC's particular office. The Special Projects can include any of the following: a) audit of industry or sector that is prevalent in the area of jurisdiction; b) update of zonal valuation; c) Project R.I.P.; d) clean up of delinquent accounts; e) clean up and ex-pansion of taxpayer registration database; f) public awareness and assistance cam-paign activities; g) financial accounting vs. tax accounting treatment review;

BIR Speakers’ Bur

BIR Speakers’ Bureau cr

eau cr

eau created

eated

IN LINE WITH the BIR’S strategy to

con-duct high visibility public awareness cam-paign in 2010, Commissioner Joel L. Tan Torres has ordered the creation of the BIR Speakers’ Bureau with the issuance of Revenue Memorandum Order (RMO) No. 9-2010 last February 2.

The BIR Speakers’ Bureau will be comprised of all revenue officials hol-ding items of Director and above as well as other recommended revenue

personnel who met the qualification re-quirements and standards set by the Assistant Commissioner for Taxpayers Assistance Service (ACIR, TAS).

Members of the Speakers’ Bureau will be assigned by the ACIR, TAS to deliver talks in seminars, public fora and other events. They will also be assigned to guest in television/radio programs where they will discuss updates on tax rules and regulations, as well as programs/projects h) linkages with institutions; i) garnish-ment and foreclosure of assets; and j) apprehension of taxpayers on non-issuance of official receipts.

For the first phase of the ACCS Project, interested Assistant Chiefs had already submitted their Project Proposals to the Office of the Com-missioner of Internal Revenue.

The results of the ACCS shall be considered in the evaluation of the performance of the ACs. Moreover, implemented projects that are deemed best practices shall be adopted for Bureauwide implementation.

By Danilo Diaz

BIR Speakers’...to p. 11 By Minnie Quintos

(7)

7

By Eleonor Capili

IN LINE WITH the Bureau's thrust to professionalize the revenue service, two new development programs have been conceptualized, which were pre-sented to revenue officials by DCIR Celia C. King during the 1st National Command Conference held last Janua-ry 20 to 21.

The two programs are Junior Exe-cutive Development Program (JEDP), for newly-hired revenue personnel, and the Senior Executive Develop-ment Program (SEDP), for identified BIR officials.

Under the JEDP, a select group of 45 newly-hired lawyers and CPAs will undergo a six-month management trai-ning that will expose them to th e diffe-rent functions of the BIR, namely: as-sessment, collection, legal, regulatory, taxpayer service and computerization.

The training curriculum for the JEDP will cover the different types of internal revenue taxes (i.e. Income Tax, VAT, Transfer Tax, etc.) as well as to-pics on international taxation and spe-cial incentives taxation. Spespe-cial topics, such as project management, tax re-search methodologies, taxpayer service fundamentals, economic and fiscal con-cepts, and CTA procedures and deci-sion update, are also included in the training curriculum for the JEDP.

The first 1 ½ months of the JEDP consist of lectures to be handled by se-nior BIR officials and tax practitioners from the private sector. The remaining 4 ½ months will be job rotation of JEDP

BIR adopts Junior and Senior Executive

Development Pr

Development Programs

ograms

participants to various BIR offices (in the National Office and selected Re-gional Offices in Metro Manila) where they will gain first hand, on-the-job ex-perience on various operations of the Bureau.

The JEDP was launched last Janu-ary 15 at the BIR National Training Cen-ter wherein Commissioner Joel L. Tan-Torres welcomed the first batch of newly hired lawyers and CPAs to the program. The participants, who were chosen based on their academic records and BAR/CPA exam results, have signed a three-year service commitment con-tract with the BIR. The JEDP will subse-quently be offered to other qualified re-venuers who have the potential to as-sume position of higher responsibility.

"The JEDP will not only bring ca-reer growth for competent BIR person-nel, but will also serve as a strategy to attract young, intelligent professionals to join the revenue service," Commis-sioner Tan-Torres said.

The SEDP, on the other hand, was conceptualized to enhance the

BIR executives' knowledge on the functions, policies, plans, programs and activities of the different services and divisions of the BIR.

Under the SEDP, participants will undergo a refresher course on the pro-visions of the 1997 National Internal Revenue Code; audit procedures and techniques; and collection procedures. To help the participants become more effective managers, the SEDP will also cover topics on time management and prioritizing, which include setting goals and standards; planning and scheduling; delegating; problem sol-ving; and running effective meetings.

The SEDP participants will also be given trainings to improve their leader-ship skills, particularly on teambuilding and improving productivity. Modules on report making and Performance Management System of the Bureau will also be included in the SEDP training curriculum.

A Revenue Memorandum Order shall be issued to prescribe the guide-lines in the administration of the SEDP.

Seminar on Reflexology conducted

By Training Delivery Division

AS PART OF the Bureau's People Wellness Program, a one-day Seminar on Basic Reflexology was conducted last January 29 at the BIR National Of-fice.

Ms. Farida Chang of the Technical Education Skill Development Autho-rity (TESDA) discussed with revenu-ers the basic techniques of massaging

and the benefits of relexology. "We are conducting seminars like this to improve the health con-ditions of our fellow revenuers in order to make them more produc-tive at work," Chief Maria Elena Tan of the Training Delivery Division (TDD) said.

The seminar was organized by the TDD in cooperation with the Human Resource Development Ser-vice.

NA

NATIONAL

TIONAL

Commissioner Joel L. Tan-Torres, together with DCIRs Gregorio V. Cabantac and Lilia C. Guillermo, poses with the 1st batch of newly-hired CPAs and lawyers who are attending the Bureau’s Junior Executive Development Program.

(8)

8

REGIONAL

RR 18, KORONADAL CITY – The re-gion, through Revenue District Office (RDO) No. 111, started the year with a bang with the closure of a big estab-lishment last February 2 under the Bureau’s “Oplan Kandado” Program.

Mitzu Motor Parts, located at French Street, Polomolok, South Cota-bato, was temporarily closed for com-mitting several tax violations, which include failure to register with the BIR and failure to issue official invoices. Said violations were uncovered during the surveillance activities conducted by the Revenue Officers of RDO 111 headed by Assessment Section Chief, Aileen Punzalan.

Regional Director (RD) Marcelinda Omila-Yap and Asst. RD Alberto Olasiman, together with the region’s Division Chiefs and several Revenue Officers of the district executed the clo-sure operations. The group was es-corted by three police officers and

Bombo Radyo repor-ter, Bic Manalo who covered the event.

The said closure brought to eight (8) the total number of busi-ness establishments temporarily closed by R R 1 8 u n d e r t h e “Oplan Kandado” Pro-gram, despite the vola-tile peace and order situation in the area.

The following day (February 3), 225 top corporate and individual tax-payers of the region were briefed on the requirements of new tax laws and regulations, particularly the filing and payment of taxes via the BIR’s Elec-tronic Filing and Payment System (eFPS).

The briefing was conducted by Revenue Data Center (RDC) Head Victor Baylon, RDC-Minadanao Divi-sion Chief, Arvin Tinnae and Taxpa-yers Assistance Unit Head, Sumael

Abad. They were assisted by eLounge personnel Ray Gido Pagaran and Patricio Diaz.

“The seminar is part of our strate-gies to improve tax collections under the rationale that an informed taxpayer is a more compliant taxpayer,” RD Yap said.

By Jasmin Cuadra

A GROUP OF REVENUERS gathered once again last January 30 at the Quezon City Memorial Circle for “Hataw” Aero-bics Exercises sponsored by Revenue Region (RR) No. 5 – Caloocan City.

Said activity is regularly conducted every last Saturday of the month as part of the Bureau’s People Wellness Prog-ram. It is spearheaded by the Resource Management Group through the Medi-cal, Dental and Welfare Division.

Officials and employees from the National Office, led by Assistant Com-missioner Carolina G. Pesayco and Head Revenue Executive Assistant Ma. Nieva A. Guerrero, and from RR Nos. 5, 6 – Manila, 7 – Quezon City and 8 – Makati, participated in the exercises led by pro-fessional aerobics instructors.

Other officials present were RDO Rodolfo Mendoza and ARDO Marie Pelarca (RD 25); RDO Conrado Soriano (RD 26); ARDO Corazon Balines (RD 27); RDO Joseph Catapia (RD 28); and ARDO Edwin Guzman (RD 49).

Revenuers

hold HA

hold HAT

T

TA

A

AW

A

W

exer

exercises

cises

By Medical, Dental & Welfare Div.

RD 110, GENERAL Santos City - The district, headed by Revenue District Officer Franklin Ladores, conducted a one-day seminar on the general up-dating of tax exemption by personnel of the Philippine National Police (PNP).

The seminar was held last Feb-ruary 15 at the Police Regional Office XII in Tambler. All provincial Finance Officers of PNP Regional Finance

Ser-vice Office XII, led by Police Supe-rintendents Emmanuel Peralta and Lester Camba, attended the seminar together with their staff.

The seminar aims to guide the PNP Finance Officers on the proper withholding of taxes from the salary of their uniformed and non-uni-formed personnel. It was facilitated b y R e v e n u e O f f i c e r s J o s e p h Arguelles, Abdul Jalil Taratingan, Asnawie Mamongcara and Adiah Macasindil, under the supervision of Revenue Officer Samer Paporo.

GenSan district conducts

seminar for PNP

By Jasmin Cuadra

RR 18

RR 18 p

p

padlocks big establishment in South Cotabato

adlocks big establishment in South Cotabato

Kor

Koronadal top taxpayers briefed on eFPS

onadal top taxpayers briefed on eFPS

RR 18 - Koronadal City revenuers, led by Regional Director Marcelinda Omila-Yap (right, standing near the tarpaulin), pose for a photo to document the temporary closure of a big establishment located in South Cotabato, which was administered by the Regional Office last February 2.

(9)

9

REGIONAL

RR 6 - Manila RR 6 - ManilaRR 6 - Manila RR 6 - ManilaRR 6 - Manila RR 7 - Quezon City RR 7 - Quezon CityRR 7 - Quezon City RR 7 - Quezon City RR 7 - Quezon City RR 1 - Calasiao, Pangasinan RR 1 - Calasiao, Pangasinan RR 1 - Calasiao, Pangasinan RR 1 - Calasiao, Pangasinan RR 1 - Calasiao, Pangasinan RR 8 - Makati City RR 8 - Makati City RR 8 - Makati City RR 8 - Makati City RR 8 - Makati City

2010 Regional T

2010 Regional Tax Campaign Kick-offs

ax Campaign Kick-offs

Revenue officials and employees in different Regional Offices across the country kicked off their respective Tax Campaign for 2010 with various activities and programs, which were highlighted mostly with motorcades; recognition of each region’s Top Taxpayers and the ceremonial pledging of support by taxpayers to the BIR programs and projects.

RR 5 RR 5 RR 5 RR 5

RR 5 --- C C C C Caloocan Cityaloocan Cityaloocan Cityaloocan Cityaloocan City RR 4 - San Fernando, Pampanga

RR 4 - San Fernando, Pampanga RR 4 - San Fernando, Pampanga RR 4 - San Fernando, Pampanga RR 4 - San Fernando, Pampanga

RR 3 - T RR 3 - T RR 3 - T RR 3 - T

RR 3 - Tuguegarao, Cagayanuguegarao, Cagayanuguegarao, Cagayanuguegarao, Cagayanuguegarao, Cagayan RR 2 - CAR

RR 2 - CAR RR 2 - CAR RR 2 - CAR RR 2 - CAR

RR 9 - San Pablo City RR 9 - San Pablo CityRR 9 - San Pablo City RR 9 - San Pablo City RR 9 - San Pablo City

RR 11 - Iloilo City RR 11 - Iloilo CityRR 11 - Iloilo City RR 11 - Iloilo City

RR 11 - Iloilo City RR 1RR 1RR 1RR 12RR 12222 - - Bacolod - - - Bacolod Bacolod Bacolod Bacolod CityCityCityCityCity RR 10

RR 10 RR 10 RR 10

(10)

10

REGIONAL

Sear

Search for Student T

ch for Student T

ch for Student Tax Wizar

ax Wizar

ax Wizard launched in Legazpi r

ax Wizar

d launched in Legazpi r

d launched in Legazpi region

d launched in Legazpi r

egion

RR 10, LEGAZPI CITY – The region

launched last February its “Search for Student Tax Wizard for 2010” as part of its high visibility public awareness campaign.

The Search, which earned the endorsement of the Commission on Higher Education (CHED), is open to all interested BS Accounting and BS Business Administration stu-dents of colleges and universities in the Bicol region.

Legazpi revenuers, led by Re-gional Director Diosdado Mendoza, vi-sited schools in the region to dissemi-nate information and encourage students to participate in the Search. “Through this activity, we aim to instill tax consciousness among the youth who, later on, will become taxpayers” Director Mendoza said.

2010 Regional T

2010 Regional Tax Campaign

ax Campaign

Kick-offs

RR 15 - Zamboanga CIty RR 15 - Zamboanga CItyRR 15 - Zamboanga CIty RR 15 - Zamboanga CItyRR 15 - Zamboanga CIty

RR 16 - Cagayan de Oro City RR 16 - Cagayan de Oro CityRR 16 - Cagayan de Oro City

RR 16 - Cagayan de Oro CityRR 16 - Cagayan de Oro City RR 19 - Davao CityRR 19 - Davao CityRR 19 - Davao CityRR 19 - Davao CityRR 19 - Davao City

Handog ng bawat Pilipino Maipabatid sa publiko Buwis na binabayaran, Lahat tayo'y makikinabang

Programa ng gobyerno dapat malaman Para sa ating lipunan Kaya kami ngayon ay naririto

Upang ipaabot sa inyong lahat ito

Refrain:

Halina, tara na, tayo na. Makibahagi, makisama

at makiisa Isigaw sa buong madla Buwis ay mahalaga para sa ating

bansa. Pagbayad ng buwis, ating panindigan Sa tamang oras, laging bayaran Magbayad ng tapat, buwis kabang yaman Ito ay para sa lahat

Buwis ay Mahalaga*

*2010 BIR Tax Campaign Jingle Music & Lyrics By: RDO James Ferrer

RR 14 - T RR 14 - TRR 14 - T

(11)

11

New Revenue Issuances

FEA

FEATURES

TURES

RR No. 1-2010 Expands the coverage

of taxpayers required to file returns and pay taxes through the BIR’s Electronic Filing and Payment System (eFPS) RR No. 2-2010 Amends RR No. 16-2008 with respect to the determination of the Optional Standard Deduction (OSD) of General Professional Partnerships and the partners thereof, as well as the man-ner and period for making the election to claim OSD in the Income Tax Returns RR No. 3-2010 Provides the rationale and guidelines for the submission of the Statement of Management Respon-sibility

RR No. 4-2010 Amends RR No. 11-2006 relative to the accreditation of tax prac-titioners/agents as a prerequisite to their practice or representation before the BIR

RMO No. 9-2010 Prescribes the poli-cies and guidelines for the creation of the Speakers’ Bureau

RMO No. 10-2010 Prescribes the poli-cies and guidelines relative to Project R.I.P.

RMO No. 11-2010 Prescribes the poli-cies and guidelines on the monitoring, review and determination of the tax con-sequences of “Big-Ticket Items”

RMO No. 12-2010 Prescribes the poli-cies and guidelines relative to the As-sistant Chiefs’ Challenge System RMO No. 13-2010 Amends RMO No. 6-2010 relative to the stamping of In-come Tax Returns and the audited Fi-nancial Statements

RMO No. 14-2010 Prescribes the re-portorial requirements for the CY 2010 Public Assistance and Awareness Cam-paign

RMO No. 15-2010 Prescribes the poli-cies and guidelines on the handling of court cases

RMO No. 16-2010 Prescribes the poli-cies and guidelines in determining the output Value-Added Tax liabilities of motels and other similar establish-ments

RMC No. 9-2010 Notifies the loss of one original copy of Tax Credit Certifi-cate issued to Fil-Am Foods, Inc. (now Pilmico Animal Nutrition Corporation) RMC No. 10-2010 Prescribes the 2010 Strategy Map of the BIR

RMC No. 11-2010 Circularizes the full text of COMELEC Resolution No. 8737 RMC No. 12-2010 Circularizes the full text of Joint Rules and Regulations implementing the “Philippine Coopera-tive Code of 2008”

RMC No. 13-2010 Publishes the full text of Administrative Order No. 277 entitled “Creating an Independent Com-mittee to Review, Assess and Evaluate All the Important Smuggling and Tax Evasion Cases Handled by the BIR and the BoC”

RMC No. 14-2010 Circularizes the full text of Joint Circular No. 2009-1A of the DBM, BIR and NTA, amending the guidelines and procedures on the re-lease of the share of LGUs

RMC No. 15-2010 Publishes the full text of Memorandum Circular No. 30, se-ries of 2009 of the Civil Service Commis-sion reminding all government officials and employees holding non-political of-fices/positions of the prohibition from engaging directly or indirectly in any par-tisan political activity

BIR Speakers’...from p. 6

and online eServices of the BIR. To prepare the members of the Speakers’ Bureau for their tasks, the ACIR, TAS will provide them with the necessary training to further enhance their skills in communication.

The speakers will also be provided with the necessary materials (i.e. po-werpoint presentations, talking points, press releases, newspaper clippings, di-gest of revenue issuances and BIR ru-lings, etc), which they can use in their speaking engagements.

At the regional and district office levels, the Regional Directors and Re-venue District Officers can likewise ini-tiate their own communication and in-formation activities pursuant to the Public Awareness and Assistance Cam-paign prescribed in RMO No. 4-2010.

OIC-ACIR Margaret Mary C. Lauron March 02 Chief Nerisa E. Candao March 02 RDO Imelda D. Cebuano March 02 OIC-HREA Rey Asterio L. Tambis March 03 Chief Beverly S. Milo March 04 OIC-Chief Myla A. Guindan March 04 Asst. Chief Gilda G. Hirang March 04 Asst. Reg. Dir. Alberto S. Olasiman March 05 Chief Ma. Chelo C. Añover March 06 Chief Robert F. Bernardo March 08 Asst. Chief Fernando S. Angulo March 08 CRO Eduardo T. Obero March 09 OIC-Chief Geraldine S. Bermas March 10 OIC-Asst. Chief Aurora R. Aquino March 11 RDO Marcelino L. Yap March 12 ARDO James P. Balagapo March 13 OIC-Asst. Chief Felix Paul R. Velasco March 13 OIC-ARDO Jose Edimar P. Jaen March 13 OIC-Chief Sarah R. Lacastesantos March 14 Reg. Dir. Romulo L. Aguila Jr. March 15 OIC-RDO Fely C. Simon March 15 ARDO Mederico C. Villablanca March 15 OIC-HREA Gerardo R. Florendo March 16 Chief Roberta R. Navarro March 16 OIC-Chief Jonathan A. Jaminola March 16 ARDO Aida P. Olmedo March 16 RDO Eralin B. De Aro March 17 Reg. Dir. Jose N. Tan March 18 RDO Joseph M. Catapia March 18

RDO Rosemarie R. Ragasa March 19 Chief Benjamin T. Evangelista March 21 OIC-Chief Yusoph P. Binsuan March 21 Asst. Chief Amelia C. Rivera March 21 OIC-Reg. Dir. Glen A. Geraldino March 23 Asst. Chief Florydette A. Cuales March 23 OIC-ARDO Eutiquio S. Grajo March 23 ARDO Arnulfo A. Galapia March 25 RDO Satar T. Laguindab March 26 OIC-Chief Arminda D. Millena March 28 OIC-RDO Benjamin B. Babor March 28 Asst. Chief Anne Frank G. Evangelista March 28 Chief Myrna E. Sobremonte March 31 Chief Cynthia Lourdes Q. Santos March 31 OIC-ARDO Cornelio S. De Roma March 31

H

appy

B

irthday

H

appy

B

irthday

H

appy

B

irthday

DCIR Celia C. King

(12)

Rowena G. Altura Editor-in-Chief Silverio C. Sante Managing Editor Eleonor F. Capili News Editor

Mary Aileen F. Marquez

Writer

Beverly C. Samia Brando Ador C. Bautista

Layout Artists

The BIR Monitor is the official newsletter of the Bureau of Internal Revenue

published by the

Corporate Communications Division, under the

supervision of the Policy

and Planning Service.

Editorial Office: Room 903, BIR National Office, Agham Road, Diliman,

Quezon City Tel/Fax No. 426-2190

NINE (9) REVENUERS were recognized as Model Em-ployees of the Information Systems Group (ISG) for 2009 during an awarding ce-remony held last February 19 at the BIR Executive Confe-rence Room.

ISG awar

ISG awards Model Employees

ds Model Employees

m e n t S e r v i c e ( I S D S ) ; Alwayne Cunanan of Infor-mation Systems Operations Service (ISOS); Joey Corpuz of ISOS Data Center; Orlando Gapasin of Revenue Data Center Luzon 1; Oscar Leoncito of RDC Luzon 2; Homer Enriquez of RDC Visayas; and Arvin Tinnae of RDC Mindanao.

The awardees who were recognized for their com-mendable performance, re-sourcefulness and exemplary work attitude are: Mylene Dela Cruz of the Office of the Deputy Commissioner-ISG; Ruel Naval of Information Planning and Quality Service (IPQS); Leilani Ellano of In-formation Systems

Develop-Commissioner Joel L. Tan-Torres, together with DCIR Lilia Guillermo and other officials of the Information Systems Group (ISG), poses with the ISG Model Employees for 2009 after they have been awarded cash prizes and Certificates of Recognition last February 19 at the BIR Executive Conference Room. Lower photo shows the recognition of the ISG Model Employees of RDC-Visayas and RDC-Mindanao via video conference.

Commissioner Joel L. Tan-Torres and DCIR Lilia C. Guillermo awarded each Mo-del Employee with a Certifi-cate of Recognition and cash prize worth P 1,500.

In her message, DCIR Guillermo encouraged the awardees and other revenu-ers to keep on giving their best performance at work. “May you continue to ins-pire other revenuers to give their best in the performance of their assigned tasks,” DCIR Guillermo said.

The criteria used in choosing the ISG Model Employees are Performance (60%), Attendance (20%), Work Attitude (10%) and Office Behavior and Conduct (10%).

The recognition of Mo-del Employees under the ISG started in 1997 and has been held annually since then.

A GROUP OF revenue offi-cials and personnel from the Large Taxpayers Service (LTS) attended a three-day Training on Industry Audit Techniques conducted by the Japan International Co-operation Agency (JICA) last February 2 to 4 at the BIR Training Room.

Lecturers from the Na-tional Tax College in Japan, Mr. Yoshikazu Ueno, Mr.

Revenuers attend T

Revenuers attend Training on Industr

raining on Industr

raining on Industry

y

Audit T

Audit Techniques

echniques

Masahide Chiba and Ms. Naomi Orikasa imparted to the participants various tech-niques in auditing busi-nesses, particularly those under the manufacturing, shipping and real estate in-dustries.

The participants were also introduced to a new tech-nology used in reviewing fi-nancial statements and the business conditions affec-ting the taxable incomes of large taxpayers.

Gracing the opening program for the training were LTS Assistant Commis-sioner Nestor Valeroso, who gave the opening remarks; JICA representative, Alfredo Bernarte, who gave a mes-sage in behalf of JICA; As-sistant Commissioner Caro-lina Pesayco, who gave the closing remarks; BIR-JICA Project Consultant, Makiko Takaoka, and NTA Long Term Expert, Masahiro Morimoto.

By Training Delivery Div.