RMO No. 42-2011 — Amends certain provisions of RMO Nos. 11-2008 and 30-2001, which prescribes the criteria to comply with and the required documents to be submitted by the banks applying to be a BIR Authorized Agent Bank Digest | Full Text

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City November 11, 2011 REVENUE MEMORANDUM ORDER NO. 42-2011 SUBJECT: Amending Certain Provisions of Revenue Memorandum Order (RMO) Nos. 11- 2008 and 30-2001, Prescribing the Criteria to Comply With and the Required Documents to be Submitted by the Banks Applying to be a Bureau of Internal Revenue's Authorized Agent Bank (BIR-AAB) TO : All Internal Revenue Officers and Others Concerned. ________________________________________________________________________________ I. BACKGROUND AND OBJECTIVE In order to expedite the processing of accreditation and re-accreditation of AABs, this Order is being issued to amend certain provisions of RMO Nos. 11-2008 and 30-2001 relative to the accreditation/re-accreditation of the bank applying to be a BIR- AAB to accept Over-the-Counter (OTC) payment of internal revenue taxes and through the Electronic Payment and Filing System (EFPS). II. AMENDATORY PROVISIONS: A. Item II.A of RMO NO. 11-2008 is hereby amended to read as follows: "II. GENERAL POLICIES AND GUIDELINES A. CRITERIA FOR ACCREDITATION/RE-ACCREDITATION - XXX XXX XXX 1. Xxx xxx 2. The bank does not have any past due obligations with BSP and the bank operations comply substantially with the BSP rules and regulations; 3. Xxx xxx 4. Xxx xxx In addition to the above, bank applying for re-accreditation shall have: 1. Xxx xxx 2. Xxx xxx 3. For those who wish to be an EFPS-AAB, the following criteria, in addition to the above, should be met: a. The bank should be able to provide electronic banking facility to its clients as certified by the BSP; X X X X X X X X X" 1

B. Item III.A. of RMO No. 30-2001 is hereby amended to read as follows: "III. DETAILED PROCEDURES A. Accreditation Procedure 1. The BANK HEAD OFFICE shall: 1.1 File an application for accreditation/re-accreditation to collect internal revenue taxes with the Commissioner of Internal Revenue, Attention: The Chief, Collection Programs Division (CPD). The following documents should be attached to the application: 1.1.1 Proof of being a commercial or universal bank; 1.1.2 Proof/certification that the bank does not have any past due obligations with BSP; and that, as of the date of certification and during the immediately preceding year, the bank has not been cited for any violation of BSP rules and regulations; and that, it is compliant with the capital adequacy requirement; 1.1.3 Written authorization for the BIR to validate the above information with the BSP; 1.1.4 Latest copy of the Bank's Consolidated Statement of Condition under DCB I/II, Form No. 2A.1 & 2A.2, Revised March 1999, together with all the supporting schedules which were duly acknowledged as officially received by the BSP; 1.1.5 Annual audited reports for the last three (3) preceding years; 1.1.6 Names of the members of the Board of Directors and the Bank Officers for the current year; 1.1.7 Inventory and technical specifications of computer hardware and software resources (Head Office and branches); 1.1.8 List of branches currently operating nationwide with complete addresses, contact persons, and telephone numbers (in soft and hard copies); and 1.1.9 List of branches to be accredited (at least 80% of the branches operating nationwide) using the attached format marked as Annex "A" (in soft and hard copies)." XXX XXX XXX XXX 3. The CPD shall: 3.1 Receive from the bank the application for accreditation together with its supporting documents as enumerated in A.1.1.1 of this Order; 3.2 Evaluate the documents received from the Bank proving its eligibility to be a BIR-AAB under the following criteria: 3.2.1 It is a commercial/universal bank 3.2.2 It is compliant with BSP rules and regulations 3.2.3 It has minimum three (3) years of operations 3.2.4 Its computer facilities/infrastructure is compliant with the BIR's technical specifications and requirements 3.2.5 It is accrediting at least 80% of its branches nationwide 2

3.3 Prepare communication to BSP to validate the certifications submitted; 3.4 Present the Evaluation Report/request for reconsideration to the Bank Accreditation Committee (BAC) for evaluation/ recommendation to the Commissioner of Internal Revenue (CIR)/Management Committee (MANCOM); 3.5 Based on the recommendation of BAC and/or as decided by CIR/MANCOM, prepare communication to the Bank for signature of the CIR, informing the bank of the approval/denial of its request for accreditation/reconsideration; 3.6 Disseminate/release the signed communication to the Bank; 3.7 Assign Bank Code and Revenue District Office (RDO) Code to the newly accredited bank and communicate the same to the Bank/concerned BIR offices; 3.8 Encode and activate the assigned Bank/RDO Codes in the ITS; 3.9 Inform the AABs of the advices/updates/bulletins/issuances, etc. not later than forty-eight (48) hours from receipt of information from the CIR or his duly authorized representative; 3.10 Advise/Update the AABs of revenue issuances and system enhancements affecting the collection system within two (2) days from the signing of the revenue issuances or approval of system enhancements. The implementation of procedural concerns and amendments affecting technology or system changes shall take effect not later than thirty (30) days from the availability of the new BIR technology or system; 3.11 Respond formally to the queries raised by the AABs within fifteen (15) days from receipt of the request; and 3.12 Prepare communication to the AAB relative to the action taken on its protest/request for reconsideration on the denial of the application for accreditation. 4. The BAC shall: 4.1 Discuss/review the Evaluation Report submitted by the BAC Secretariat headed by the Chief, CPD on the request for accreditation/reconsideration of the bank applying to be a BIR- AAB; 4.2 Evaluate and recommend appropriate action on the request for accreditation/reconsideration of the bank applying to be a BIR- AAB; 4.3 Elevate to the CIR/MANCOM, for approval/disapproval of the bank's request for accreditation/reconsideration; and 4.4 Inform the CPD on the action taken by the CIR/MANCOM, for appropriate action. XXX XXX XXX XXX" 3

III. REPEALING CLAUSE This Order supersedes all revenue issuances and/or portions thereof that are inconsistent herewith. IV. EFFECTIVITY This Order shall take effect immediately. (Original Signed) KIM S. JACINTO-HENARES Commissioner of Internal Revenue J-1 _____ FMM _____ NMA _____ EBQ _____ ERV _____ GER _____ TFF _____ SMC _____ MEB 4