Policies and Guidelines on Data Submission and Compliance
- Revenue District Office (RDO) shall secure from LGUs:
- Annual alphabetical list of taxpayers issued business permits.
- Annual alphabetical list of professionals issued Professional/Occupational Tax Receipts (PTR/OTR).
- Quarterly list (with monthly breakdown) of contractors for government contracts.
- In cases where LGUs span multiple RDOs, the RDO where the LGU is located coordinates data transmission to Tax Assistance Unit (TAU).
- RDO transmits data to relevant Revenue Data Centers (RDC) and Assessment Services.
- RDO reminds LGUs annually to require taxpayers to present key documents before business permit renewal, including tax returns and BIR certificates.
- Enforce compliance with Executive Orders 98 & 31, mandating certain tax-related requirements for government permits and documents.
- RDO monitors withholding tax compliance by LGU officials with field verifications.
- Taxpayer Assistance Service coordinates tax reminders, resource speakers, and BIR program promotions to LGUs.
- Assessment Service obtains updates on property fair market values from LGUs.
- Revenue Accounting Division requires submissions supporting computation and certification of Internal Revenue Allotment (IRA) and other tax-related certificates.
Procedures for Report Handling and Verification
- RDO receives tax data reports annually or quarterly from LGUs in specified formats.
- RDO forwards reports to RDCs and Assessment Service while retaining copies.
- Taxpayer Service Section:
- Receives and transmits reports electronically or physically.
- Matches submitted data with registration databases.
- Coordinates with taxpayers to correct or complete registrations.
- Prepares revised reports for monitoring.
- Collection Section:
- Monitors withholding tax law compliance.
- Notifies LGU officials of discrepancies.
- Coordinates locating unregistered and delinquent taxpayers.
- Assessment Section:
- Reviews discrepancies and validates findings.
- Accesses tax records subject to Local Government Code limitations.
- Issues conference letters and forwards dockets to Regional offices.
- May initiate examinations independently.
- Regional Office monitors MOA implementation and processes discrepancy reports and assessments.
- Taxpayer Assistance Unit segregates and distributes taxpayer data among RDOs.
Roles of Revenue Data Center (RDC) and ISOS
- RDC receives data from RDOs via diskettes or electronic transmission.
- RDC checks data integrity, removes viruses, requests replacements for defective files, and converts files to a standard format.
- RDC forwards data electronically to Information Systems Operations Service (ISOS).
- ISOS uploads data into Integrated Tax System (ITS), runs matching and validation modules, and identifies potential registrants and invalid data.
- ISOS forwards results monthly to concerned RDOs and TAS.
Functions of Assessment and Audit Divisions
- Asset Valuation Division monitors and updates property fair market values.
- Audit Information, Tax Exemption and Incentives Division receives and monitors quarterly contractor lists and consolidates financial data.
Collection and Accounting Service Responsibilities
- Revenue Accounting Division requires submissions for computing Internal Revenue Allotment and certificates related to mining taxes, Value-Added Tax, franchise taxes, special privilege taxes, excise taxes, and others.
- Prepares and furnishes certificates to LGU leagues.
- Provides data to Department of Budget and Management and LGUs as basis for allotments.
Taxpayer Assistance Service Duties
- Taxpayer Service Programs and Monitoring Division monitors registration compliance and reports from RDOs.
- Ensures integration of Community Tax Certificate details in tax returns.
- Taxpayer Information and Education Division supports tax information dissemination through resource speakers for LGU-led events.
Summary of Required Reports and Annexes
- Annex A-1: Annual alphabetical list of taxpayers issued business permits.
- Annex A-2: Annual alphabetical list of professionals issued PTR/OTR.
- Annex A-3: Quarterly list of contractors with monthly breakdown.
- Annex B: Summary Report of New Registrants (TAS Report 009).
Effectivity
- This Memorandum Order took effect immediately upon issuance on May 17, 2002.