RMO No. 58-2010 — Prescribes the CY 2010 Key Performance Indicators for the Large Taxpayers Service Digest | Full Text | Annexes A-A9 | Annexes B, E-G | Annexes C-D

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City June 25, 2010 REVENUE MEMORANDUM ORDER NO. 58-2010 To : All Deputy Commissioners (DCIRs), Assistant Commissioners � Large Taxpayers Service (LTS) for Regular and Excise, LT National Office Division Chiefs, LT District Officers and Others Concerned Subject : CY 2010 Key Performance Indicators (KPIs) for the LTS ___________________________________________________________________________ I. OBJECTIVES This Order is issued to: 1. Prescribe and provide details on the CY 2010 Large Taxpayers Service (LTS) � Regular and Excise, together with the Offices under the same (e.g., LT National Office Divisions and LT District Offices) Performance Measures by indicating the Priority Programs, KPIs, Program Weights, KPI Weights, Targets, as well as the Office(s) responsible to implement and monitor each Priority Program; (Refer to Annexes A-1 to A-9) 2. Prescribe the policies and procedures for monitoring and evaluating the performance of the LTS-Regular and Excise and the Offices under it vis-a-vis the Office Performance Measures; 3. Align the Priority Programs/Activities/Projects of the LTS- Regular and Excise and the Offices under the same to the 2010 BIR Strategy Map; and 4. Articulate the progress of BIR initiatives and tax reforms under the Performance Governance System. II. POLICIES 1. KPIs shall be used as bases for the performance monitoring and evaluation of incumbent heads of LTS � Regular and Excise, LTS National Office Divisions, and LT District Offices for CY 2010. 2. For purposes of ranking overall KPI, the two (2) LT Services- Regular and Excise shall be clustered with all the Revenue Regions (RRs) and referred to as Group "A", while the LTS audit offices shall be clustered with all the Revenue District Offices and referred to as Group "B". 1

3. The incumbent heads of office under Group "A", belonging to the top five (5) ranking may be assigned in the Office of their preference or be retained in their present area of assignment; while those belonging to the bottom five (5) ranking shall undergo training program. 4. The incumbent heads of office under Group "B", belonging to the top ten (10) ranking may be assigned in the RDO of their preference or be retained in their present area of assignment; while those belonging to the bottom ten (10) shall undergo training program. 5. The definitions and criteria used in 2009 for specific KPIs shall be adopted if the said is retained as 2010 KPI. However, if there is a need to define/redefine or clarify any 2010 KPI, the Commissioner who is directly the supervisor of the LTS Group may, at a later date, issue clarification for the said purpose. 6. A Performance Contract per Office shall be signed by the Head of Office, noted by the Commissioner and submitted to the Assistant Commissioner (ACIR), Policy and Planning Service not later than April 30, 2010. (Refer to Annex B) 7. The Commissioner, DCIRs, and ACIRs shall perform periodic checking and systematic documentation of the progress of each of the KPI included in the Performance Contracts of their supervised Offices. The Commissioner shall discuss, during the regular Management Committee (MANCOM) Meeting, issues/outstanding accomplishments reported on any KPI under their area of supervision. 8. The two (2) LTS ACIRs (Regular and Excise) shall as Measure Owners, prepare the Annual Office Performance Evaluation of the LT and the Offices under them (e.g. LT National Office Divisions and LT District Offices) for each of the KPIs being monitored by them. 9. An additional bonus equivalent to ten (10) points which shall come from the members of MANCOM, to wit: 9.1 Commissioner = 4 9.2 DCIR, Operations Group = 1 9.3 DCIR, Information Systems Group = 1 9.4 DCIR, Legal and Inspection Group = 1 9.5 DCIR, Resource Management Group = 1 9.6 DCIR, Special Concerns Group = 1 9.7 DCIR, Tax Reform Administrative Group = 1 10. An interim performance rating may be administered depending on the exigencies of service as determined by the MANCOM. III. PROCEDURES Hereunder are the procedures in the preparation and submission of the accomplishment reports and office performance evaluation for CY 2010 Priority Programs and KPIs: 2

A. Preparation and Submission of Accomplishment Reports 1. Prepare Monthly Accomplishment Report Report Office/Person Submitted To Due Date Responsible 1.1 LTDO Accomplishment LT District Officer Assistant Not later than the on KPIs (using format Commissioner � 10th day after end of in Annex C1) LTS Excise each month Not later than the 1.2 LT National Office LTS Division Assistant 10th day after end of Commissioners � each month Division Chief LTS Regular and Excise Not later than the Accomplishment on 12th day after end of each month KPIs (using the format Not later than the in Annex C1) 15th day after end of each month 1.3 LTS (Regular and Assistant Assistant Excise) Commissioner � Commissioner Accomplishment on LTS Regular and monitoring the KPI KPIs (using the format Excise in Annex C1) 1.4 Consolidated Accom- Assistant Assistant plishment of all LTDOs Commissioner � Commissioner and LTS Divisions LTS Regular and monitoring the KPI (using format in Annex Excise C2) 2. Prepare Consolidated Quarterly Accomplishment Report Report Office/Person Submitted To Due Date Responsible 2.1 LTDO Accomplishment LT District Officer Assistant Not later than the on KPIs (using format Commissioner � 10th day after end of in Annex D1) LTS Division LTS Excise each quarter Chief Assistant Not later than the 2.2 LT National Office Commissioners � 10h day after end of Division LTS Regular and each quarter Accomplishment on Excise KPIs (using the format Not later than the in Annex D1) 12th day after end of each quarter 2.3 LTS (Regular and Assistant Assistant Excise) Accomplish- Commissioner � Commissioner Not later than the ment on KPIs (using LTS Regular and monitoring the KPI 15th day after end of the format in Annex Excise each quarter D1) 2.4 Consolidated Accom- Assistant Assistant plishment of all LTDOs Commissioner � Commissioner and LTS Divisions LTS Regular and monitoring the KPI (using format in Annex Excise D2) 3

3. Consolidated Semestral Accomplishment/Status Report Report Office/Person Submitted To Due Date Responsible Commissioner 3.1Consolidated Accom- Assistant Not later than the Commissioner Commissioner 15th day of the month plishment of all LTS monitoring the following each KPI semester (Regular and Excise), Assistant Not later than the LT National Office Commissioners- 15th day of the month LTS following each Divisions and LTDOs semester (using the format in Annex E) 3.2 Status Assessment Report of LTS (Regular and Excise), LT National Office Divisions and LTDOs (using the format in Annex F) B. Evaluation of Office Performance Prepare Annual Office Performance Evaluation (using the format in Annex G) Activity Office/Person Submitted To Due Date Responsible Commissioner and 1. Annual Performance Assistant Deputy Not later than the Commissioner Commissioners 20th day of the Evaluation of LTS monitoring the month after the end KPI Commissioner of the year (Regular and Excise), LT Assistant Commissioner Not later than the National Office Commissioner 20th day of the (Regular and month after the end Divisions, and LTDOs Excise) of the year 2. Annual Performance Not later than the 23rd day of the Evaluation of LTS month after the end of the year Divisions 3. MANCOM additional MANCOM bonus or minus points for LTS (Regular and Excise), LT National Office Divisions and LTDOs C. Documentation The Office of the Commissioner, thru the Policy and Planning Service, shall be responsible in preparing the overall final ranking of LTS (Regular and Excise), Revenue Regions, Revenue District Offices, LTDOs, and LT Audit Divisions. The Planning Division must be provided with copies of all the foregoing documents. These documents shall serve as means of validation in the preparation of the Office Annual Performance Evaluation for the LTS (Regular and Excise), LT Audit 4

Divisions, LTDOs. Likewise, these will be used as bases/inputs for next year's strategy map and priority programs to be recommended to MANCOM. D. Analysis of LTS (Regular & Excise), LT National Office Divisions and LT District Offices KPIs Activity Office/Person Submitted To Due Date Responsible Commissioner 1. Prepare the Final Report ACIR, Policy and Not later than the of the Office Performance Planning Service 25th day of the Evaluation Report per month after the end KPI of the year 2. Analysis Report on the ACIR, Policy and Commissioner Not later than the result of accomplishment Planning Service 25th day of the of KPIs month after the end of the year IV. REPEALING CLAUSE All revenue issuances or portions thereof inconsistent herewith are hereby repealed or amended accordingly. V. EFFECTIVITY This Order takes effect immediately. (Original Signed) JOEL L. TAN-TORRES Commissioner of Internal Revenue B-1 jam 5