RMO No. 12-2010 — Prescribes the policies and guidelines relative to the Assistant Chiefs’ Challenge System Digest | Full Text Annex A

1 REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE February 2, 2010 REVENUE MEMORANDUM ORDER No. 12-2010 SUBJECT : Assistant Chiefs' Challenge System TO : All Internal Revenue Officials, Employees and Others Concerned I. BACKGROUND AND OBJECTIVE Assistant Chiefs (AC) perform a very important task in tax administration. The ACs, specially the Assistant Regional Director (ARD) and the Assistant Revenue District Officer (ARDO), are the key persons supporting their respective offices in the tax collection and other tax administration efforts. Unfortunately, the performance evaluation system presently in place does not adequately present the true value, contribution and capability of the AC. There is a need to provide a system that will provide this information on the capability and performance of the AC. This Order is being issued to put in place the Assistant Chiefs' Challenge System (ACCS) and the policies and guidelines for this. II. POLICIES AND GUIDELINES 1. The ACCS is an optional undertaking for ARDs, ARDOs and technical assistants, who were previously holding positions of Regional Directors, Revenue District Officers , ARDs and ARDOs, and holding items of Chief Revenue Officer III and higher. 2. The ACCS involves the persons taking the option to conceptualize and manage a special project that will improve tax collection and administration. 3. The special project that shall be considered for the ACCS are those that have an immediate impact, with quantifiable results, with a time table for implementation and shall utilize the resources of the AC's particular office.

2 4. The special projects that can be considered are, among others, 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 expansion of taxpayer registration database f. Public awareness and assistance campaign activities g. Financial Accounting vs Tax Accounting treatment review h. Linkages with institutions i. Garnishment and foreclosure of assets j. Apprehension of taxpayers on non-issuance of official receipts 5. The details of the special project to be undertaken shall be indicated in the ACCS Project Proposal Form (refer to Annex A). The project proposal to be indicated therein shall be discussed with and concurred by the Chief of the Office. 6. For the first phase of this undertaking, the AC who shall opt to participate shall submit the Project Proposal Form to the Commissioner of Internal Revenue not later than February 5, 2010. Thereafter, the Commissioner of Internal Revenue shall confirm the acceptance of the project proposal and notify the concerned AC not later than one week from the date of receipt of the form. 7. With the notification, the AC shall implement the project. The AC shall follow all existing and applicable rules and procedures in the implementation of the project. The AC is encouraged to submit regular progress reports to the Commissioner of Internal Revenue and the Head of Office on the results of implementation of the project. 8. The AC shall submit to the Commissioner of Internal Revenue, copy furnished the Head of Office, a final report on the results of the project not later than May 30, 2010. 9. The results of the ACCS project shall be considered in the evaluation of the performance of the AC. 10. The Commissioner of Internal Revenue shall prescribe for BIR wide implementation the implementation of projects that are deemed to be the best practice.

3 III. REPEALING CLAUSE All revenue issuances which are inconsistent with this Order are hereby revoked, modified or amended accordingly. IV. EFFECTIVITY This Order shall take effect immediately. (Original Signed) JOEL L. TAN-TORRES Commissioner of Internal Revenue A-