RAO No. 05-2019 — Amends RAO No. 3-2014 relative to the functions of VAT Audit Section under the Assessment Division, Arrears Management Section under the Collection Division and Collection Section under the Revenue District Office in the Regional Office Digest | Full Text

lilrl'}L lli l(. ()l -i lJIr l'}lJIl-ll:,l'INES l)l-,1),\11 l'\ IEN.t' olr IrlN,tN(.i: BUREAU OF IN'TERNAL RE\'ENUE Quezon City I July 18, 201 - REVENUE ADMINISTRATIVE ORDER NO. 5 #.CIq SUBJECT AMENDMENT OF REVENUE ADMINISTRATIVE ORDER TO (RAO) NO. 3-2A14 DATED NOVEMBER 5, 2014 DEFINING THE FUNCTIONS OF VAT AUDIT SECTION UNDER THE ASSESSMENT DIVISION, ARREARS MANAGEMENT SECTION UNDER THE COLLECTION DIVISION AND COLLECTION SECTION UNDER THE REVENUE DISTRICT OFFICE IN THE REGIONAL OFFICE All lnternal Revenue Officials and Employees t. OBJECTIVE: This Order ts issued to: Prescribe/define the functions of the VAT Audit Section (VATAS) under the Assessment Division in the Regional Office; 2 Prescribeidefine the functions of the Arrears Management Section (AMS) under the Collection Division in the Regional Office; and 3 Redefine the functions of Collection Section under the Revenue District Office (RDO) in the Regional Office as provided under RAO No. 3-2014 dated November5,2014. II, FUNCTIONS: B. Assesssxeni Eivission 5. V;\T Auetrit Seetion 5.1. [valuates taxpayers' VAI- con"rpliance through pre-audii analysis of ta;< and information returns, as well as other data within the Bui'eau; 5.2. Conducts audit/investigation of VAT cases with focus on risk areas as documentcd iri an audit plarr and utilizing BIR's information technology; 5.ll Recomrnends tlie issuainci. oi Subpciena DL;ces J'ecr-iri: ({iDT) fnr \/li\ f ca:lt:; irr tir{:} eveirt of i;,r::1:l;vcrs' irnn-sUirrnission of rjr:riiilrentt; ,.r^rl Ia'n; ntnJ"VrlaI.'\.,1 .j , r.i I lL] i_. ''' l..!4 . +,1 ,--)i I t /:

5.4. Conducts appropriate action on protested VAT cases relative to questions of fact; 5.5, Prepares and submits repcrts of investigation for issuance of Preliminary/ Final Assessment Notices; 5.6. Reviews taxpayers' voluntary compliance after audit; and 5.7. Performs other functions as may be assignecr. C. Collection Division 4. Arrears Management Section 4.1 . Enforces collection of delinquent accounts resulting from final assessment and self-assessed tax, including final judgment on appealed cases, thru summary remedies emanating from the concerned offices within the jurisdiction of the Regional Office and submits corresponding report on the action taken thereon; 4.2. Coordinates with internal and external offices such as government agencies, private and foreign institutions, for purposes of securing information on the assets/properties of delinquent taxpayers that may be subjected to distraint or levy; 4.3. Evaluates the requests of delinquent taxpayers for availment of installment plan/agreement and submits written recommendations thereon, whether for Cenial cr approval, for further revieuv and denial/approval by the concerned authorized revenue official; 4.4. Mon itors the compliance by all concerned delinq uent taxpayers on their approved installment plan/agreement, and enforces the immediate action for the full recovery of the delinquent account, in case of the delinquent taxpayer's default; 4.5. Searches and determines the whereabouts of delinquent taxpayers falling under the Region's jurisdiction by locating their respective registered and/or ac;tual present addresses; 4.6. Coordinates with the Legal Division of the Regiorral Office in filing criminal/civil cases against delinquent taxpayers to properly enforce collection of their oittstanding tax liabilities; 4.7. Classifies Accounts Receivable/Delinquent Account (AR/DA) cases according to the established calse prioritization methodology for pLlrlx)ses of identifying cases titat i"r,:..luire pri'iority actions, 4 t]. Prepares end ::r?tvcs Preliminary Colli:ciior"r L,etters (PCt-), ij:inal i\'.l,ri r\jlii.ri.tr,ri-) hivn,ufrj,irU,ci\: \Q.)cUrii.,''.ri,i,i.i.,j \/ti-rNi:lipl-a.i\ri j, \VAi/i'u,riri(;;riririJtc' ,v''if tli*ilt{:rrLirrrri'.:rrrrrr,L! ur i\( L|',.i',ltlY v /\u\iilrlllttL-f\ t V,iiri"i-;jrr.its oi'Garnir;iiinei-ri (Titl;, ili:iice r;f l-evy (i.iOL) ;.triill'ti i'jr'iice cf i;,;r [-rei'r iiii-i-l ) rlnd f.iotir;e of i i;culi']l-.irltrce (i'iL)L; 1'or deillrr;:re[]t taxp:ayers rl;ithttt',,, il; risdieiir-rn,

4.9. Monitors the reprlies of banks regarding issued WGs; 4.10.Serves and executes writs of executions issued by the Court of Tax Appeals and other courts and submits corresponding report of the action taken thereon to the Legal Division; 4.11. lnstitutes necessary actions for the release of proceeds from garnished/distrained/levied properties of delinquent taxpayers by concerned parties; 4.12. Recommends the liftingicancellation of the WDLs, WGs, I'lTLs, NOL and NOE in favor of the delinquent taxpayers within its jurisdiction, and processes the same upon approval thereof by the duly authorized revenue official, pursuant to the existing laws, guidelines, policies and procedures; 4.13.Conducts the actual or constructive seizure of personal properties from the delinquent taxpayers and/or concerned third parties having actual possession of or control over the properties; 4.14. Conducts ocular inspection of levied andior distrained properties to ascertain their respective physical existence and conditions, as vuell as the potential values and the marketability thereof, for purposes of determining whether or not the same are already sufficient to fully satisfy the delinquent account and that there is no longer a need to scout for other properties to be subject to summary remedies; 4.i5 Acts as the iemporary custociian of ihe seizedliorreiteC propefiies to under their jurisdiction prior disposition thereof, in accordance with existing policies and guidelines; 4.l6.Consolidates the titles of forfeited properties under the jurrsdiction of the region (for non-Mega Manila regions only) as a result of a "tax sale" in favor of the government, in coordination with the Forfeited Assets Management Unit (FAMU), Collection Service; 4.17. Scouts for interested buyers of forfeited assets (for non-Mega Manila regions only) ancl evaluates their corresponding offers for negotiaied sales thereof, and suklmits recomrnendations thereon to the FAMU conduct fuilher under the Collection Service for the of revie w/evaluation; 4 'i B. Forwaards to the FAMU, Collection Service, within the prescribed periodd, all ARIDA ciockets v'rherein the corresponding NOL and I'JTL coverriing the seizecj properties were alreacly served and/or duly aRnengoiststrateterdobfyDieheedsr.,:oLilacenrenle-d[ragnosvpecr;rnrmtaieionnt re-r]lli:,:tspy cffice (e.g Offic'';, etc.), for tlre I}\t'.;(,1/\i*/>.\^s$eiry reryiew prior io the r,r:tidur-:i of itttction sale of ti'rli :rri::ccl :i"iii:s, ,. Yl"\ rl'lv-rrt---r t-: i ,. . .., , r t.q.,;.i,'** \,ri i,l j; 'i 'r \ ": " 'li'r'i "t ' : ',:ili

4.19. Prepares the monthly General Control Ledger and all its attachments covering all AR/DA cases handled by the Section for collection enforcement, and submits for approval by the Head of Office; 4.20. Prepares the Monthly Consolidated Warrant of Distraint andior Levy and all its attachrnents covering all AR/DA cases handled by the secticn for approval of the Head of Office; 4.21. Maintains the updated database/records of the Section: 4.21.1.Registry Book of lssued WDLs emanating from the Section; and 4.21.2. All applications for installment payments received, acted upon, and still pending evaluation with the concerned Division, including the outstanding balance per approved application; 4.22. Records applications for compromise settlernent/abatement of penatties, and updates the same every time action thereon is done; 4.23, Updates pertinent information in the Accounts Receivable Monitoring System (ARMS), prescribed AR/DA Spreadsheets, AR/DA History Sheets, etc.; 4.24. Maintains updated inventory and records of distrained, levied and seized properties of taxpayers under its jurisdiction; 4.25. Conducts analysis and profiling cf AR/DA data for purposes of determining the most appropriate strategies that wiii be applied tc effectively collect the delinquent accounts; 4.26. Prepares prescribed reports for submission to top management and other concerned effices; 4.27. Coordinates with other concerned offices in the implementation of the abovementioned functions; and 4.28. Performs other functions as may be assigned. I. Revenue Distr!ct Office 't. i":*l lect!orr Section 2.1 . hlonitors and supervises the collection of all internal revenue taxes v'riihin the jurisdiciion of ihe REC; 2.2. [{cconr;i]r..s pa}rment against t*'ri1'liii:r:e information submiiled l-,;r AAB-Bi-ii:ank F"lr-:ad Office and RCOs; 2.3. i,,lr.irls:r"t*l<es ciu::lity vci'ii'rcatict"r i:f i"roiices,,"'3rious i:i.-:l'l'e$pli.ldentlt: anci ii'r:l'1;enei"ated i'epoi-ts to bc is:rlr,:ij t.l /-\Aili: and i:'lCOs;

2.4. Evaluates, acts and reoommends on taxpayer's request for compromise settlement, abatement of penalties and/or payment on installment basis; 2.5. Keeps and maintains history cards (BlR Form No 27.06) to record all actions taken on each docket or case; 2.6. Supervises all RCOs assigned in the different citiesimunicipalities under the district's jurisCiction; 2]. Monitors cash and forms accountabilities of RCOs and acts on any discrepancies in RCOs' rePorts; 2.8. Encodes all payments, deposit slips and dishonored checks received from RCOs; 2.9. lssues discrepancy notice to RCOs for compliance to collection and deposit requirements; 2.10. Evaluates response and recommends cases of RCOs with discrepancies to Regional lnvestigation Division or Legal Division for further investigation and implementation of administrative sanctions, if necessary; 2.11. Analyzes and resolves suspended payment transactions based on reports generated/submitted by RDC; 2.i2. Searches ancj ascertains the whereabouts of stop-iiiers faiiing uncjer the district's jurisdiction, conducts ocular inspection of taxpayer's p rem ises, 2.13. Processes requests for installment payment of tax liabilities and maintains installment Plan; 2.14. Prepares and maintains an up-to-date record of district collection reports required by Regional and National Offices; 2.15, Prepares the rnonthly General Control Ledger and all its attachments covering all self-assessed tax to be fonvarded to the Arrears Management Section for collection enforcement for apprcval by the Head Office and for submission to the Accounts Receivable Monitoring Division; 2.16. Processes req uests for the issuance of Tax Debii Memo, ',,.17. Monitors governrnent ofir":es and private eni.itie:; rcirtive to their coi'irg:liance to the withl-ic-rldirrg tax s"lstern; ) 1R [Ir-rrlates i:-rlriAVers;/\.A./A.s air withliolditrg i.'.'l it-rfol-i:-r.:rti'-rfl, it., ; ril I \ ';::'.'+.'

2,19. Refers unresolved cases to the Assessment Section for further action; and 2.2A. Performs other functions as m ay be assig ned . Ill. REPEALING CLAUSE: All issuances or portions thereof not consistent with the provisions of this Order are hereby repealed or amended accordingly. tv. EFFECTIVITY: This Order shall take effect immediately. t*-1" .,ffie4/\'Lt CAESAR R. DULAY Commissioner of lnternal Revenue Approved: 025380 i:, i -.:,',:.:. ii :-,r.:,:.\:.,]i ,.,. .::j. i LOS G. 007268 Ii"' '' 't-. ,r-1,. ', ,:l'.1 '.. ,rl'll ;,:,l Secretary : 3."#S ff"spq'' i R.' i: , ,,,, JUL l Sf$f$ i ,: ,ti";'*y