RAO No. 03-2023 — Amends Revenue Administrative Order (RAO) Nos. 3-2014 and 5-2019, relative to the functions of Assessment Section, Collection Section, Client Support Section and Compliance Section under the Revenue District Office in the Revenue Region

BUREAU OF JNTERNAL REVENUE REI'UBLIC OF THE PHILIPPINES National Office Building DE: PARTMENT OF FINANCE BUREAU OF INTERNALREVEN CntTYTv AUG 31 2023 1 o: &s p

Quezon City RECORDS MGT. DIVISION

August 31, 2023

REVENUE ADMINISTRATIVE ORDER NO. 3- 20 23

SUBJECT AMENDMENT OF REVENUE ADMINISTRATIVE ORDER

(RAO) NOS. 3-2014 AND 5-2019 RELATIVE TO THE FUNCTIONS OF ASSESSMENT SECTION, COLLECTION SECTION, CLIENT SUPPORT SECTION AND COMPLIANCE SECTION UNDER THE REVENUE DISTRICT OFFICE IN THE REVENUE REGION

TO All Internal Revenue Officials and Employees Concermed

E OBJECTIVE

Administrative Order (RAO) No. 3-2014 dated November 5, 2014 and II.I.2 of RAO This Order is issued to amend Sections II1.1.1, III.I.3 and IlI.I.4 of Revenue

Revenue District Office (RDO) in the Revenue Region (RR). No. 5-2019 dated July 18, 2019 relative to the functions of the Assessment Section Collection Section, Client Support Section and Compliance Section under the

I AMENDMENTS

I. REVENUE DISTRICT OFFICE

1. Assessment Section

1.1. Prepares list of taxpayers recommended for audit for approval of the Commissioner;

1.2. Conducts field audit investigation/verification covering the following

cases:

a b Manually selected and approved by the Commissioner for audit; Automatically selected by the Audit Module:

C. O Applying for cancellation of business registration and/or the jurisdiction of Legal Division: retirement or closure of business; With post-review findings relative to One-Time Transaction Applying for tax credit/refund other than VAT and those under

(ONETT); EERTDFTERNATRETENE 2M SLE T 1

::

A Approved for re-investigation; and g Other cases that are covered by the directive of the Commissioner or his authorized revenue official;

1.3 Processes VAT Refund clalms of taxpayers other than clalms of

without VAT Audit Section under the Assessment Division); direct exporters pursuant to Section 112 (A) of the National Internal Revenue Code (NIRC) of 1997, as amended (this applies to RRs

1.4. supporting schedules and documents that shall comprise the audit case docket of taxpayers, to the reviewing office of the Regional Prepares and submits reports of investigation with relevant Office:

1.5. Processes application for Certificates Authorizing Registration

(CARs) arising from ONETT such as payment for capital gains tax on

tax, docurmentary stamp tax pertaining to transfers of properties. estate tax, donor's tax; sale of real properties and shares of stocks, creditable withholding

1.6. Pre-audits Annual Information return (BIR Form No. 1604 CF and

Payees) and prepares computation of recommended tax collection enforcement; deficiencies, if any, and endorses the same to concerned office for 1604 E with attachments such as Alphalist of Employees and

1.7. Identifies potential tax evaders and refers their cases to proper

offices for investigation and prosecution:

1.8. Conducts ocular inspection for the determination of zonal value of

real property within the concerned RDO's jurisdiction;

1.9. Validates discrepancies arising from Tax Reconciliation System Programs and recommends for the immediate audit or investigation (TRS) and RELIEF {Reconciliation Listing for Enforcement)

of potential taxpavers based on the discrepancies noted;

1.10. Analyses stop-filers/non-filer cases of taxpayers under the Taxpayer Account Management Program (TAMP) to determine which are valid or not and endorses those that are invalid to the concerned office for closure, and handles the resolution of those determined as "valid Stop-filer cases":

1.11. Recommends issuance of Subpoena Duces Tecum (SDT) to

Summary List: of Purchases (SLP), Alphabetical List of taxpayers who are not complying with the "Notice for Presentation of Books", and with the submission of Summary List of Sales (SLS). Employees/Payees subject to Withholding Tax and other relevant document/records to be audited: 2 BUREAU OF JNTE RNAL'REVENUE RECORDS MGT. DIVISION tntiim (OADNA AUG 31 2U23 C0 23 p

1.12. Prepares report on Cannot Be Located (CBL) taxpayers that shall be

recommended for publication;

1.13. Witnesses destruction of obsolete or expired inventories and

prepares corresponding reports to the head of office for consolidation in audit or investigation of taxpayers;

1.14. Evatuates Declaration of Loss sustained from casualty or from

in audit or investigation of taxpayers: robbery. theft or embezzlement submitted by taxpayer/s and prepares corresponding reports to the head of office for consolidation

1.15. Prepares replies to queries (on-line and walk-in) pertaining to the implementation of any tax related programs/ systems/processes;

1.16. Elevates to top management issues and problems encountered in

for resolution: the implementation of tax-related programs/systems and processes

1.17. Conducts surveillance activities, inventory stocktaking and other related activities, in coordination with other concerned offices such

Order issued by an authorized revenue official: as the Regional Investigation Division (RID), pursuant to a Mission

1.18. Conducts post-evaluation of Point of Sales (POS) and Cash Register Machines (CRM) granted permit by the Client Support Section:

1.19. Evaluates application for compromise settlement and/or abatement of taxes pursuant to Section 204 of the NIRC of 1997. as amended;

1.20. Assists the Client Support Section in the conduct of tax information dissemination and briefings of new revenue issuances:

1.21. Ensures the correctness of availment of tax exemptions/incentives of irregularity, fraud and violation of any provisions of the National Internal Revenue Code of 1997, as amended, upon verification using cooperatives pursuant to Republic Act No. 9520 and recommends revocation of Certificate of Tax Exemption (CTE) due to any existing applicable BiR revenue issuances;

1.22. Evaluates Board of Investments (BOI) Income Tax Holiday (ITH) dockets forwarded by the BOI thru Audit Information, Tax Exemptior

and Information Division (AITEID) of any incame not subject ta ITH and recommend the issuance of Letter of Authority (LA), if warranted;

DUREAU OF INTERNAL REVENUE RECOROS MGT. NNy AUG 31 2023 COAnNA 23C CUE n

1.23.Assists in the conduct of Tax Compliance Verification Drive (TCVD): and

1.24. Performs other functions as may be assigned.

2. Collection Section

2.1. Monitors and supervises the collection of all intermal revenue taxes within the jurisdiction of the RDO:

2.2 Reconciles Authorized Agent Bank (AAB) collections indicated in the Report of Daily Collection (CRDC) information transmitted by the concerned Bank Head Office: Batch Control Sheet (BCS) against remittance or Consolidated

2.3. Ensures that tax collections across all payments channels are timely and correctly uploaded /encoded in the Integrated Tax System. Integrated System -- Collection Remittance and Reconciliation (IRIS) CRR): Collection and Bank Reconciliation (ITS-CBR) / Internal Revenue

2.4. Monitors, analyzes and resolves unpaid tax revenues based on the data on unpaid/partially paid tax returns with tax due provided by the Collection Perfomance Monitoring Division as extracted from the pertinent BIR systems by the Data Warehousing Systems and Operations Division:

2.5. Undertakes quality verification of notices, various correspondence.

Collection Officers (RCOs): and ITS-CBR/IRIS-CRR to be issued to AABs and Revenue

2.6. tax liabilities (e.g., unpaid 2nd installment payment due, unredeemed dishonored checks, unpaid tax due per return); Evaluates and acts on verified unpaid taxes due and other unpaid

2.7. Supervises all RcOs assigned in the different cities/municipalities under the district's jurisdiction;

2.8. Reconciles the RcO collections reflected in the electronic Revenue

Official Receipt (eROR)/ Revenue Official Receipt (ROR) and

deposits made to the Authorized Government Depository Bank (AGDB); the loose documentary stamps sold against the corresponding electronic Official Receipt (eOR)/ Official Receipt (OR) issued and

2.9. Undertakes all the necessary actions and immediate coordination

detected discrepancies; with the concerned revenue office and AAB/RcO to resolve the BUREAU OF INTERNTL REVENUE NNYm AUG 31 2023 0YUm

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2.10. Monitors cash and forms accountabilities of RcOs and acts on any discrepancies in RcOs' reports:

2.11. Ensures that ail tax payments are encoded in Mobile Revenue

Collection Officer System (MRCOS):

2.12. Issues discrepancy notice to RcOs for compliance to collection and deposit requirements;

2.13. Evaluates response and recommends cases :of RcOs with implermentation of administrative sanctions, if necessary; discrepancies to RID or Legal Division for further investigation and

2.14. Analyzes and resolves suspended payment transactions based on reports generated/submitted by Revenue Data Center (RDC);

2.15. Assists the Compliance Section in searching and ascertaining the whereabouts of stop-filers falling under the district's jurisdiction, conducts ocular inspection of taxpayer's premises;

2.16. Prepares and maintains an up-to-date record of district collection reports required by Regional and National Offices:

2.17. Prepares the monthly General Control Ledger and all its attachments Head Office and for submission to the Accounts Receivable covering all seif-assessed tax to be forwarded to the Arrears Management Section for collection enforcement for approval by the Monitoring Division;

2.18. Processes requests for the issuance of Tax Debit Memo (for RR Nos. 8A -- Makati City and 8B - South NCR only):

2.19. Assists the Compliance Section in monitoring government offices system: and private entities relative to their compliance to the withholding tax

2.20. Maintains and updates list of Withholding Agents information;

2.21. Resolves non-TAMP invalid stop-filers/non-filers with: payment and/or filing issues referred/endorsed by Assessment/Compliance

Section; and

2.22. Performs other functions as may be assigned.

3. Client Support Section

3.1. taxpayers; Delivers fast, efficient and courteous frontline service to the 5 BUREAU OF INTERNALREVENUE tntiit COYDdA AU6 31 2023 0T300E

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3.2 Provides assistance to taxpayers in the district, such as answering such as flyers, instruction booklets, etc.; of aueries and distribution of forms and tax information materials

3.3. Undertakes tax information dissemination and education campaign in coordination with the Assessment Section and other concerned BIR offices;

3.4. Receives from taxpayers fomal inquiries and all kinds of applications/requests for registration, permit, certificate, infomation required documents; updates and Tax Identification Number (TIN). together with the

3.5. Processes applications for taxpayer record update, modification of taxpayers' information, authority to print receipts and invoices. registration of books of accounts, application to use loose-leaf sales requirements prescribed under BIR revenue issuances: receipts and invoices, acknowledgement certificates for use of Computerized Accounting System and other registration

3.6. Processes applications for registration/cancellation of registration/ transfer certificates/notices; o registration and generates corresponding

3.7. Generates Tax Clearance Certificates for Business Closure upon

recommendation of the Collection and Assessment Sections;

3.8. Distributes/issues to taxpayers all kinds of registration certificates/authorities and permits including, but not limited to, TIN

guidelines under existing revenue issuances; Cards, Authority to Print and Certificate of Registration following the

3.9. Maintains a masterlist of all taxpayers within the RDO's jurisdiction;

3.10. Establishes an updated taxpayers' registration profile and

infomation;

3.11. Coordinates and conducts briefings for new taxpayer registrants;

3.12. Inquires on the existence of taxpayer information in the BIR Registration Systems:

3.13. Provides internet facility and technical assistance to taxpayers who

are availing of BIR e-services and other computer-assisted programs;

3.14. Acts on third party information gathered from government agencies. Local Government Units (LGUs), etc., relative to registration; 6 [BUREAU OF INTERNAL REVENUE RECORDS MGT. DIVISION initiyt 00 A0oYn AUG 31 2023 G 53Jpm

3.15. Receives and processes applications for taxpayer's enroiment in the existing revenue issuances; BIR registration systems and other online systems defined under

3.16.Acts on stop-filer cases of non-TAMP taxpayers with registration issues referred by the Compliance Section; and

3.17.Performs other functions as may be assigned.

4. Compliance Section

4.1. Ensures/monitors compliance with tax rules and regulations by all taxpayers within the district office's jurisdiction:

4.2. Conducts Tax Compliance Verification Drive (TCVD) mapping

taxpayers within their jurisdiction which may require assistance from other concerned sections/offices, if the need arises; intermal revenue laws and regulations and identify potential operations to determine taxpayer's compliance to requirements of

4.3. Prepares required TCVD reports as prescribed under existing issuances:

4.4. Monitors compliance of taxpayers apprehended during the conduct of TCVD and refer to the Revenue District Officer any protest/appeal of the taxpayer in relation to the findings made:

4.5. Evaluates and analyses stop-filer/non-filer of non-TAMP taxpayers

received, identifies valid/invalid cases, endorses the same to the

payment and/or filing issues shall be endorsed to the Collection Client Support Section for resolution; Section while those due to registration errors shall be referred to the concerned office and monitors its resolution. Invalid case with

4.6. Monitors, evaluates and analyses inactive business taxpayers in

coordination with concerned Sections of the RDO/BIR offices for

status in applicable BIR system database; accurate and timely classification/tagging of taxpayer's registration

4.7. Receives, validates. and monitors taxpayer's submission and

limited to Summary Lists of Sales, Purchases and Importations compliance with tax information requirements including but not (SLS/P/I)/RELIEF data and AIpha Lists of Payees/Employees and uploading thereof to the RDC:

4.8. Monitors and reminds taxpayers within its jurisdiction of. the compliance and payment requirements of the Bureau which may require direct communication to taxpayer BUREAU OF JNTERNAL REVENUE Nntttr AUG 31 2023 9Y

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4.9. Prepares and submits regular status reports to concerned BiR

level of compliance by type of taxpayers on the filing of tax returns and payment of the corresponding taxes, including the submission offices prescribed under existing revenue issuances regarding the

of information returns; and

4.10. Performs other functions as may be assigned.

REPEALING CLAUSE

All issuances or portions thereof not consistent with the provisions of this Order are hereby repealed or amended accordingly.

Iv. EFFECTIVITY

This Order shall take effect immediately.

RO OMAGUK JR

B-2 Commiss ner of Internal Revenue 3f8

BUREAU OF INTERNAL REVENUE RECORDS MGT. DIVISION NNTTT AUG 31 2023 yei CORDOIR V35 mm