RMO No. 24-2010 — Prescribes the policies and guidelines for the development of the Industry Champion Program of the BIR Digest | Full Text

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE March 15, 2010 REVENUE MEMORANDUM ORDER NO. 24-2010 Subject : Industry Champion Program To : All Internal Revenue Officers and Others Concerned I. OBJECTIVE The Bureau of Internal Revenue (BIR) needs to develop in-depth expertise/specialization in industries or sectors to get the best understanding of issues affecting them. This entails not only knowing taxpayers/prominent personalities comprising the industry or sector, but also knowing other relevant factors as follows: A. linkages among taxpayers in the industry; B. clientele/suppliers/distributors of taxpayers in the industry; C. government offices regulating the taxpayers in the industry/sector; D. industry developments and its environment; and E. industry strengths, weaknesses, opportunities, and threats/risks. By taking into account all these elements, the BIR shall be able to identify tax issues leading to better voluntary tax compliance of taxpayers and more effective enforcement by the BIR. This Order is issued to prescribe the policies and guidelines for the development of the Industry Champion Program of the BIR. II. POLICIES AND GUIDELINES A. Policies The BIR shall develop thorough expertise in identified industries and sectors to be led by the Industry Champions. These Industry Champions shall be the principal office/person responsible for the development and dissemination of expertise and issues on identified industries and sectors. The Industry Champions and the industries and sectors shall be identified in Revenue Special Order(s) or other issuances that shall be issued for this purpose. B. Guidelines The Industry Champion shall be responsible for the following: 1. Tapping experts from the industry who shall assist in the identification and training of personnel; 2. Coordinating with government regulatory offices (e.g. tapping the data sources of agencies regulating industries, forging of Memoranda of Agreement);

3. Monitoring of transactions and developments from various information sources (media, internet, corporate annual reports, etc.); 4. Liaising with Industry Associations; 5. Subscribing or procuring trade publications; 6. Conducting training for BIR personnel; 7. Recommending the issuance of pertinent revenue issuances (including Revenue Audit Memorandum Order, Revenue Memorandum Order, etc.); 8. Providing inputs for the communication of tax issues and developments to various stakeholders; 9. Establishing industry benchmarks and standards for use in BIR administration and enforcement activities; 10. Attending to the concerns and matters affecting the industry; 11. Organizing tax audit task forces which shall conduct selective industry audit and monitor the results of investigation of the other taxpayers in the industry; 12. Submitting regular reports to the Commissioner of Internal Revenue and other offices; and 13. Discharging other functions to be prescribed by the Commissioner of Internal Revenue. C. Initial List of Industry Champions The BIR's initial list of Industry Champions and the assigned offices are: INDUSTRY ASSIGNED OFFICES 1. Banking and Insurance Large Taxpayers (LT) - Regular 2. Telecommunications LT - Regular 3. Power LT - Excise 4. Petroleum LT - Excise 5. Cement LT - Excise 6. Shipping Task Force (TF) pursuant to Revenue Special Order (RSO) 7. Health Maintenance Organizations TF(RSO) 8. Semiconductor TF(RSO) 9. Business Process Outsourcing TF(RSO) 10. Mining LT - Excise 11. Real Estate LT - Regular 12. Schools TF(RSO) 13. Show business and Entertainment TF(RSO) 14. Tourism Enterprises TF(RSO) 15. Foundations TF(RSO) 16. Enterprises enjoying tax TF(RSO) incentives TF(RSO) 17. Professionals (Lawyers, Doctors, Certified Public Accountants, Architects)

The identified Industry Champions shall submit a work plan of their activities for 2010 to the Commissioner of Internal Revenue and the Assistant Commissioner - Policy and Planning Service not later than March 31, 2010 or ten (10) days after the issuance of the RSO, whichever is later. D. Other Industries and Sectors The other industries and sectors not included in the list in paragraph II(C) shall continue to be administered following existing directions and procedures, until these are identified to be included in the Industry Champion Program. Once identified, the Industry Champions shall follow the guidelines in this Order. III. REPEALING CLAUSE All revenue issuances inconsistent herewith are hereby repealed or modified accordingly. IV. EFFECTIVITY This Order shall take effect immediately. (Original Signed) JOEL L. TAN-TORRES Commissioner of Internal Revenue