Question & AnswerQ&A (BIR REVENUE MEMORANDUM ORDER NO. 14-2002, MAY 17, 2002)
The primary objective is to implement the Memorandum of Agreement among the DOF, BIR, DILG, and local government leagues to enhance tax enforcement and collection efforts by increasing the taxpayer base and ensuring compliance with internal revenue tax laws.
The Department of Finance (DOF), Bureau of Internal Revenue (BIR), Department of Interior and Local Government (DILG), League of Provinces of the Philippines (LPP), League of Cities of the Philippines (LCP), League of Municipalities of the Philippines (LMP), and Liga ng mga Barangay sa Pilipinas (LBP).
LGUs must submit: a) Annual Alphabetical List of Taxpayers who were issued permits to engage in business; b) Annual Alphabetical List of Professionals/Persons issued with Professional/Occupational Tax Receipts; and c) Quarterly List of Contractors of government contracts with monthly breakdowns.
Taxpayers must present: a) Income Tax Returns of the preceding quarters/years; b) VAT/Percentage Tax Returns; c) BIR Certificate of Registration (Form No. 2303); and d) Annual Registration Fee payment (Form No. 0605).
The RDO receives reports from LGUs, transmits them to the concerned Revenue Data Center (RDC) or Assessment Service, retains copies for their use, checks for discrepancies, and initiates actions such as taxpayer registration or verification as needed.
The Taxpayer Assistance Service helps LGUs disseminate tax reminders, provides BIR resource speakers for tax information dialogues, and promotes BIR programs and campaigns, such as issuing official receipts/invoices.
The RDO coordinates with local officials to verify compliance, notifies them of discrepancies, forwards cases to the Assessment Section for validation and possible issuance of Pre-assessment or Final Assessment Notices, and may initiate independent verification or examination.
The RDO submits requirements to the Revenue Accounting Division on collections such as mining taxes, franchise taxes, special privilege taxes, VAT collection, and others to facilitate the computation and issuance of certificates that serve as the basis for IRA allocation to LGUs.
For defective diskettes or invalid file formats, the Revenue Data Center returns them to the RDOs to require LGUs to retransmit corrected data within specified deadlines, ensuring accurate processing and data integrity.
Yes, the Assessment Section of the RDO may initiate verification or examination of LGU records independently, even without referrals from other district sections.