RMO No. 56-2019 — Amends certain provisions of RMO No. 36-2016 relative to the policies and procedures in the decentralization of recording of internal revenue taxes Digest | Full Text | Annexes A - O

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

JD October 28, 2019

REVENUE MEMORANDUM ORDER NO. 56-2019

SUBJECT Amending Certain Provisions of Revenue Memorandum Order

No. 36 -2016

TO All internal Revenue Officiais, Employees and Others Concerned

1. BACKGROUND

On June 27, 2016, Revenue Memorandum Order (RM0) No. 36-2016 was issued prescribing the policies and procedures in the decentralization of recording of internal revenue taxes thru

to all Regional Finance Divisions (RFDs) Authorized /gent Banks (AABs), Special Allotment Release Order (SARO) and Direct Crediting

However, It has been observed that despite the issuance of the said RMO, the total monthly recorded collection figures in the BIR's Books of Accounts are still not reconciled with the total

delayed submission of the required Reports on Validated Collection for Booking in the tax coliections recorded in the Books of the Bureau of the Treasury (BTr) due to failure and/or Collection Books and documents such as Journal Entry Vouchers (JEVs), necessary in the recording of collections and adjustments, by the concerned offices to the Revenue Accounting Division (RAD) and RFDs.

In order to address these problems, this Order is hereby issued to amend certain policies and procedures in the recording and reporting of internal revenue taxes collected by the Revenue Regions (RRs) of this Bureau.

1I.OBJECTIVES

This Order is hereby issued to:

1. Prescribe the uniform policies and guidelines in the initial recording of internal

revenue taxes coilected by the concerned revenue offices in the National Office (NO) and Regional Offices (RO) -Collection Books;

2. Define the duties and responsibilities of all concerned revenue offices to ensure that

all tax collections are timely and accurately recorded in the No and Ro Collection Books; and

3 Prescribe the reportorial requirements to facilitate the recording and reconciliation of

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III. POLICIES

A For purposes of fair presentation of the internal revenue tax collections in the Bureau's financial statements, the RAD and RFDs shall record initially the tax coilections in the Collection Books based on the following collection reports and data of the RAD:

on Coliections Adjustments Channel of Payments/ Name of Report/Document Report on Consolidated Validated Source Coliection Responsible Section Deadline

(CRDCs) Per Bank and Per Reports of Daily Collection Consolidated Reports of Daify Collection and Reporting

Authorized Thru the NO/RO - Coilection Books {Annex A} RDO For Initiat Booking in transmitted by thel Authorized Agent Bank-Head Offices (AAB-HOs) as (CRDCs) submitted/ (CRRS) ,RAD Section Reconciliation

{AABs Agent Banks a) For 1-15 collection b) For 1-31 collection Bangko Sentral ng reconciled with the List of Remittance Pilipinas {BSP} (LOR) provided by the 25th day of On or before On or before the month

(eTRAs) (SARO) Remittance Advice Thru Speciat Allotment Thru Release Order Electronic Tax Weekly Validated (Annex B) Withholding Tax Collection eTRA For Initial Booking in the NO/RO - Collection Books Special Allotment Release Report of National Government Agencies Thru Order Validated Withholding from EFPS Copy of SARO, Agency provided by Tax Collection Report Government Agencies Thru eTRA generated concerned agencies of National JEV and BTr JEV CRRS. RAD CRRS, RAD Within two days of the following upon receipt of the 15th day of Every Tuesday the following documents complete month week

Crediting {DC} Thru Direct a b Credit Advice for BSP-LOR for Banks Own-tax Liability checkless paments BTr JEV for other Direct Crediting BTr JEV provided by Copy of Credit Advice, other documents and concerned agencies CRRS, RAD Within two days upon receipt of documents complete

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Statement of Report of Weekly Validated Collections and Deposits (SRCD}{Annex K of RMO Report of Coliections and Deposits 36-2016)

Collection Officers (RCOs) Thru Revenue Deposits (RCD) with Deposit Slips Collections and Deposits generated thru MRCOS (In case the SRCD is not yet available/ submitted by the concerned RCOs/RDO} Report of Collections and Statement of Report of Officiat Receipts Validated Revenue Deposit Slips {ROR}/ Official Receipts {OR} and Collection Section, RDOs the deadline On or before prescribed under existing policies and guidelines

Collections Coltections "Transfer-out" "Transfer-in" Collection Books Validated Transfer in Booking in the NO/RO - (Annex C} Collection Report For Initiat Booking in the NO/RO - Collection Books Validated Transfer Out Collection Report For Initial {Annex D} Collection Report (Annex A of RMO 36- 2016) of the Information System Group Periodic Transfer Out Group Periodic Transfer In Collection Report (Annex A of RMO 36- 2016) of the Information System CRRS, RAD CRRS, RAD the data/report the data/report upon receipt of upon receipt of On or before On or before the 3rd day the 3rd day

B. All the necessary adjustments and reclassification on the recorded collections shall be

performed by the RFDs once the concerned offices submitted the reguired collection reports pursuant under RMO No. 36-2016 and to effect the correct tax types or the Unified Accounts Code Structure (UACS) of the Bureau's tax collections.

C All disputed transfer-out revenue tax collections shall be subject to the submission of

the proper documentation as well as approval of the Regional Director if the transfer is within the regionai office before recording in the Regional Office -- Collection Books (RO - Collection Books). The approvai of the Assistant Commissioner, Collection Service is required if the affected office is outside the jurisdiction of the regional office. The RFDs shall provide the RAD copies of the JEVs issued together with the

revenue tax collections within the jurisdiction of the regional office. supporting documents pertaining to adjustments made on disputed transfer-out

D. The RAD shafl provide RFDs a report on dishonored checks reported by the AABs on a

monthly basis. This report shall be the basis of the RFDs in requiring the concerned Revenue District Offices (RDOs) anc} Regional Collection Divisions (RCDs) the immediate submission of the corresp ponding BIR Form 12.58 Report, as we!} as the photo copy of the dishonored checks, as basis in the recording of adjustments of coilections in RO - Callection Books BUREAU OF INTERNAL REVENUE NnTIYy NOV 2 8 2019 2:30 P.M1 AXOA 3

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E. The recording of collections thru RCOs by the RFDs shall be based on the Report of

Coliections and Deposits being submitted by the RCOs. In cases where the RCOs failed to submit such reports necessary for the recording of collections and deposits, RFDs shall utilize the use of the reports available in the Mobile Revenue Collection Officers System (MRCOS) facility as basis for initial recording. The necessary adjustments and reclassifications, if there's any, shall be made upon submission of the concerned RCOs of the prescribed reports together with the supporting documents.

F. The Bookkeeping Section (RAD-BS) of the RAD shall provide RFDs, whenever available,

data on deposits provided by Authorized Government Depository Banks (AGDBs

their collections thru RCOs, and eventually the basis of recording of collections in RO- Collection Books in cases where the Report of Collections and Deposits by the RCOs within their respective jurisdiction. This will serve as other source of information on

and the collection reports in MRCOS are unavailable.

G. The RFDs shall reconcile all the reported and recorded deposits made by all the RCOs under their respective jurisdiction against the data provided by the RAD. Accordingly, any discrepancies noted by the said office shall be coordinated with the concerned

RDOs and RCOs for validation. RFDs shall notify the RAD-BS for any discrepancies that requires intervention of the Bureau's National Office. These discrepancies noted for

Head Office and the BTr for eventual solution on the matter. resolution and if necessary, for coordination with the concerned BiR office, AGDB

H. One of the sources of discrepancies in Rco collections are dishonored checks. To facilitate the reconciliation, the RAD shall provide the RFDs with any information gathered from the AGDBs relative to the dishonored checks or any adjustments/

the concerned RCOs affected by the Dishonored Checks Report provided by the AGDBs. reversal made in relation to the deposits made by the RCOs. The RFDs shall identify

The same information shall also be provided by the RAD to Collection Performance and Monitoring Division, in charge in the monitoring of the performance of the RCOs , So that the proper action and coordination can be undertaken.

i. The RFDs shall submit, on a monthly basis, a Reconciliation Report per Channel of

Payment (Annex E-H) relative to the discrepancies noted between the Reported Collection per Collection Performance vs Recorded Collection per Financiat Performance. Such Reconciliation Report should fully account and expiain the discrepancies between the transmitted collection data of the RAD as compared with revenues reflected in the financial statement. The said report shatl be submitted by

reconciliation report for the month of June is on the 31st of July). the RFDs on the last day of the following month {i.e. the deadline of submission of

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IV. Transitory Provisions

The RAD shatl provide and transmit to the concerned RFDs a Summary of Coliections by necessary adjustments to address any variances discovered such as unrecorded, twice taken up, unsupported and erroneously taken up collections. Channel of Payments (Annex I - Q) for the period January to October, 2019. Accordingly, the RFDs sha!l compare the collections reflected in the said summary versus the amount recorded in the their respective Regionai Collection Books and shall undertake all the

IV. REPEALING CLAUSE

All existing revenue issuances or portions thereof inconsistent with the provisions of this Order are hereby repealed, modified and/or amended accordingly.

V. EFFECTIVITY

This Order shall take effect immediately

CAESAR R. DULAY Commissioner of internat Revenue 030 659

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