BIR starts the year with excess collection

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1 Volume 12 No. 2 February 2010 By Rowena Altura 1 BIR PRIORITIES * Exceed BIR revenue target of P 830 Billion for 2010 * Improve taxpayer satisfaction and compliance * Improve taxpayer and taxfiler base BIR starts the year with excess collection CIR presents BIR Legacy Scroll to PGMA THE BIR IS off to a good start in 2010 with its January revenue collections exceeding the target for the month by more than 13%. The good news was first announced by Commissioner Joel L. Tan- Torres last February 17 during the 1st Directors' Conference held for the year. Based on preliminary report, the BIR was able to collect P Billion in January, exceeding its P 56 Billion target by P 7.30 Billion. The Commissioner congratulated all revenue officials and personnel present during the conference for a job well done, and expressed hope that the good collection performance of the BIR could be replicated in the succeeding months. The remarkable collection performance was again announced by the Commissioner in the presence of President Gloria Macapagal- Arroyo, Finance Secretary Margarito B. Teves and the country's large taxpayers during the 2010 Tax Campaign Kick-off of the Large Taxpayers Service (LTS) held last February BIR inks MOA with SEC Finance Secretary Margarito B. Teves, together with Commissioner Joel L. Tan- Torres and ACIRs Nestor Valeroso and Zenaida Garcia, poses with President Gloria Macapagal-Arroyo after she had awarded Plaques of Recognition to the representatives of the Large Taxpayers Service (LTS) Billionaires Club during the Service s 2010 Tax Campaign Kick-off held last February 25 at the NBC Tent in Fort Bonifacio. BIR starts...to p.2 Tax filing and payment made easier By Eleonor Capili By Taxpayer Info. & Educ. Div. THE BIR AND the Securities and Exchange Commission (SEC), represented by Commissioner Joel L. Tan-Torres and SEC Chairman Fe B. Barin, entered into a Memorandum of Agreement last February 17 for the simplification of procedures on the submission of Annual Financial Statements (AFS) by registered corporations, partnerships and associations. Based on the MOA, the SEC agreed to simplify its requirements from the said taxpayers by requiring them to submit only one (1) copy of the complete AFS with external auditor s certification, Balance Sheet and Income Statement duly stamped by the BIR or Authorized Agent Bank (AAB), and two (2) sets of photocopies of the said documents. The SEC shall also conduct a random review of the submitted AFS of the corporations, partnerships and associations to determine their compliance with Commissioner Joel L. Tan-Torres and Securities and Exchange Commission (SEC) Chairman Fe Barin sign a Memorandum of Agreement on February 17 at the BIR Training Room. the financial reporting requirements. The BIR, on the other hand, shall also simplify its procedures by stamping RECEIVED only on the first page of the three (3) copies of Income Tax Return (ITR) and of the external auditor s certification, Income Statement and Balance Sheet. The Bureau shall no longer stamp the other pages of the financial statements and its attachments. BIR inks..to p. 2 WITH THE TAX FILING season fast approaching, Commissioner Joel L. Tan- Torres issued several revenue issuances to make Income Tax (returns) filing and payment convenient for taxpayers and the Authorized Agent Banks (AABs). No limit on Income Tax payment thru RCOs In Revenue Memorandum Order (RMO) No issued last January 8, the Commissioner lifted the limitation in the amount of cash or check that can be accepted as payment for annual Income Taxes (under BIR Form Nos. 1700, 1701 and 1702) by Revenue Collection Officers (RCOs) in areas where there are AABs. However, for all the other taxes to be accepted by the RCOs, the issuance of Revenue Official Receipts (RORs) shall be limited only to tax payments in cash not exceeding the amount of P 20,000 per return. There shall be no limit on the amount if payment is made through checks. Tax filing..to p. 3

2 2 NATIONAL BIR starts...from p at the NBC Tent in Fort Bonifacio. During the said event, Commissioner Tan-Torres reported to the President that the BIR was able to surpass its collection target by more than 13% for two consecutive months (in December 2009 and January 2010) since he became full-fledged Commissioner of Internal Revenue in November last year. He gave his commitment to the President that the BIR (as the "Institution of Progress") will continue to "stand and deliver" its collection target for the succeeding months. The Commissioner then presented to President Arroyo the BIR Legacy Scroll containing the amount of taxes collected annually by the Bureau during her administration (from 2001 to 2009), which totaled P Trillion. Commissioner Tan-Torres also presented the 2010 tax campaign theme and logo of the Bureau (Making the Public Know) as well as some of the initiatives that the BIR will pursue in March to encourage voluntary tax compliance, such as the re-launching of the "Handang Maglingkod" Program and the re-invigorated Run After Tax Evaders (RATE) Program. He ended his presentation with the showing of the video of the 2010 tax campaign jingle entitled, "Buwis ay Mahalaga" composed by Revenue District Officer James Commissioner Tan-Torres presents to President Arroyo the BIR Legacy Scroll containing the amount of annual BIR Tax Collections from 2001 to 2009 which totaled P Trillion. Ferrer, who was acknowledged by Commissioner Tan-Torres during the said event. Secretary Teves also delivered a message wherein he appealed to all large taxpayers to "pay the right taxes in accordance to their income". On the part of the BIR, he said that efforts are already underway to simplify the tax forms and to improve the delivery of service to taxpayers through the "Handang Maglingkod" Program. For the tax cheats, the Secretary said that the filing of tax evasion cases under the RATE Program will be intensified. "I hope that you will continue to become responsible partners in nation building", Secretary Teves said. To show the Bureau's appreciation to the top contributors to revenue collections in 2009, four (4) large taxpayers (LTs) were declared members of the "Billionaires' Club". These are the Manila Electric Company; Nestle Philippines, Inc.; San Miguel Corporation; and Holcim Philippines, Inc. The four LTs were chosen based on the increase in their CY 2009 tax payments, which should be at least P 1 Billion and at least 20% compared to their CY 2008 tax payments. President Arroyo, together with Secretary Teves, awarded Plaques of Recognition to the representatives of the four LTs. The awarding ceremony was witnessed by Commissioner Tan-Torres and Assistant Commissioners Nestor Valeroso of LTS-Regular and Zenaida Garcia of LTS-Excise who delivered presentations on the need for institutional building in the BIR; having Industry Champions in the LTS and development of "Pinoy Big Ticket Items", respectively. The LTS Tax Campaign Kick-off was further highlighted with the signing of the Revenue Regulations by Secretary Teves and Commissioner Tan-Torres providing the rationale and guidelines on the submission of the Statement of Management Responsibility. The event culminated with a toast and the Pledge of Commitment by the large taxpayers, led by Ms. Editha de Leon of Nestle Philippines, Inc., and the BIR officials/personnel led by Commissioner Tan-Torres. BIR inks...from p.1 All concerned BIR offices shall certify photocopies of the ITRs, including the attached financial statements, upon payment of the required certification fee by the requesting registered corporations, partnerships or associations. With our partnership with the SEC, along with the Authorized Agent Banks, the receipt and processing of ITRs and their attachments will now be easier, faster and more convenient for the taxpaying public, Commissioner Tan-Torres said.

3 NATIONAL BIR ranks 5th in Integrity Development Tax filing...from.1 The issuance of RORs for the annual Income Tax payment of individual taxpayers and calendar-period corporate taxpayers shall start five (5) working days prior to and until April 15. No more tedious stamping of attachments by AABs In RMO Nos and issued last January 20 and February 4, respectively, the tedious stamping of all pages of the financial statements being encountered by the AABs every tax filing season was addressed by Commissioner Tan-Torres. Pursuant to the RMOs, the financial statements attached to the Income Tax Returns shall be stamped RE- CEIVED only on the page of the Audit Certificate, the Balance Sheet and the Income Statement. The other pages of the financial statements and its attachments shall need not be stamped received anymore. Moreover, taxpayers shall only accomplish and file three (3) copies of tax returns with the AAB and /or the BIR. Any tax return in excess of three shall not be received by the AAB and/or the BIR. With these new set of procedures, we are addressing the problems of AABs, particularly the time-consuming process of stamping all the pages of documents attached to the ITRs, which results to long queue of taxpayers in the banks, Commissioner Tan-Torres said. Public Assistance and Awareness Campaign In line with the BIR s Making the Public Know tax campaign theme and logo for 2010, Commissioner Tan-Torres issued RMO Nos and directing BIR frontline offices to implement high visibility Public Assistance and Awareness Campaign (PAAC). Some of the activities under the PAAC include the allotment of a regular BIR tax column in national and local newspapers containing information such as Income Tax deadline countdown; regular interviews and appearances of BIR officials in radio and television programs; use of electronic billboards in disseminating tax information; and regular conduct of tax seminars, dialogues and symposia. Special events shall also be organized and held to heighten the awareness of the taxpaying public on various tax matters. Such events include the launching of the 2010 Income Tax Filing Campaign; awarding of top taxpayers; conduct of 2010 Handang Maglingkod Project; compilation and dissemination of Tax Compliance Issues; establishment of elounge in Revenue District Offices; launching of e- Complaint and Taxpayer Satisfaction Survey System; and signing of Memorandum of Agreement with various organizations. To help taxpayers comply with their tax obligations during the tax filing season, all Revenue District Offices (RDOs) shall set up tax filing centers/ clinic in strategic locations, such as malls and city/municipal halls. The RDOs shall also assign at least one (1) BIR personnel in every AAB to help answer taxpayer queries and concerns 3 The BIR ranked FIFTH (5th) among 177 agencies in terms of compliance to the requirements of the Integrity Development Action Plan (IDAP) for Secretary Constancia De Guzman (center) of the PAGC awarded a Certificate of Recognition to the BIR last February 9 at the Land Bank of the Philippines-Head Office in Malate, Manila. It was received by DCIR Celia King, together with (L-R) Paco RDO Petronilo Fernando, ACIR Leonor Villalon-Rogers and Asst. Division Chief Ione Alejo. during peak periods. No Noon Break Work Schedule and Overtime on Saturdays Starting March 15 to April 15, 2010, the RDOs designated tax filing centers as well as the Office of Collection Agents shall be open on Saturdays from 8:00 AM to 5:00 PM to receive tax returns and validate payments of taxpayers. A No Noon Break work schedule shall also be observed in the tax filing centers until April 15 and in all BIR frontline offices year round (per RMO No ). The AABs shall also be requested to open in all four (4) Saturdays before the tax deadline starting on March 20, 2010 to receive tax returns and validate payments of taxpayers. By adopting all these initiatives, we hope to encourage voluntary compliance by making tax filing and payment more convenient for our taxpayers, Commissioner Tan-Torres said.

4 4 NATIONAL Project Valentine checks on VAT liabilities of motels By Pinky Mateo FEBRUARY IS THE Love Month and is known to be the peak period for motels. In anticipation of the high demand for motel services, Commissioner Joel L. Tan-Torres introduced Project Valentine by issuing Revenue Memorandum Order (RMO) No last February 5. The RMO provides the policies and guidelines in determining the output Value-Added Tax (VAT) liabilities of motels and other similar establishments. Hotels, resorts and other establishments, which do not regularly allow short time (less than 24 hours) stay are not covered by the said Order. Based on the RMO, all establishments covered are required to submit to their respective Revenue District Office (RDO) a Sworn Declaration within 10 days from the issuance of the Order, and for each year thereafter, on or before January 31 of each year. The Sworn Declaration shall contain information on the establishment s room type, number of rooms and rate per room, which shall be the basis in computing the prescribed revenues per month of the establishment. Based on the information gathered from the Sworn Declarations submitted by all establishments, an Occupancy Turnover Analysis Report (OTAR) per establishment shall then be prepared by the RDO specifying the additional output VAT to be collected. Once notified by the RDO of the proposed additional output VAT to be paid for each month, the motel has the option to amend its VAT returns for the months in question, and pay the corresponding additional output tax within 10 days from receipt of the notice, in order to avoid the imposition of penalties and surcharges and the issuance of Mission Order for the conduct surveillance on the establishment. Motels that will choose not to amend their VAT returns shall be recommended for surveillance activities for a period of not less than 10 days in order to determine their true and correct tax liabilities. Should the surveillance activity disclose the understatement of taxable gross sales by 30% or more of the motel s correct taxable sales for the quarter, the motel shall be considered for temporary closure under the Oplan Kandado procedures. BIR implements Project R.I.P. By Ruth Llausas IN VIEW OF the large discrepancy noted between the number of recorded deaths in the National Statistics Office and the number of Estate Tax returns filed with the BIR in the past years, Commissioner Joel L. Tan-Torres has issued Revenue Memorandum Order (RMO) No last February 2 to implement Project Rest in Peace (R.I.P.). Through Project R.I.P., BIR is targeting to increase the number of Estate Tax returns filed to 250,000 and the Estate Tax collections to P10.7 Billion, said Commissioner Tan-Torres when he launched the project during the 1 st National Command Conference held last January 20. In order to achieve said targets, the Commissioner directed all BIR Revenue District Offices (RDOs) to closely monitor potential Estate Tax cases by establishing linkages with and accessing the records of the Civil Registers, hospitals, memorial parks, cemeteries, funeral parlors, crematoriums, Judicial Clerks of Courts, obituaries, life insurance companies and other financial institutions. Relevant information, such as the name and address of decedent, date of death, status of decedent, and name and address of relative(s)/contact person(s) shall be secured from the said establish- The imposition of sanctions against a motel under the Oplan Kandado Program shall not preclude the BIR from filing the appropriate tax evasion charges under the Run After Tax Evaders (RATE) Program, if evidence so requires, against the concerned motel or the responsible officers of the establishment. ments. All information gathered by the RDOs shall be submitted to the BIR Audit Information, Tax Exemption and Incentives Division (AITEID), for processing and centralized warehousing of data. The RDOs are also directed to send Notification Letter to the relative/administrator of the decedent, advising and reminding him/her of the requirements and due dates for filing of Notice of Death and Estate Tax Return, and the payment of Estate Taxes. In case, the relative/administrator fails to comply with the Bureau s requirements within the specified due date, the RDO shall undertake necessary actions to determine the Estate Tax obligation of the decedent. These actions can include such activities as background investigation to determine the properties of the estate; issuance of Letter of Authority to investigate the case; issuance of subpoena duces tecum to compel the relative/contact person to submit information; issuance of notices to entities that may be in possession of the properties of the decedent ordering them not to allow the dissipation or withdrawal of the properties without prior BIR approval; and all other activities deemed warranted. (See full text of RMO No at

5 5 BIR seeks US$50 M grant for reform projects By Eleonor Capili By Wency Fernandez NATIONAL Commissioner Joel L. Tan-Torres, together with DCIR Lilia C. Guillermo (left) and Executive Director Romeo Tomas, Jr. (2nd from right) of DOF-RIPS, poses with the officials of the Millennium Challenge Corporation after their negotiation for $ 50 Million funding for BIR tax administration projects held last February 8 to 12 in Washington DC, USA. Tax Academy Bill pushed LAST FEBRUARY 1, the House of Representatives approved on third reading House Bill No establishing a Philippine Tax Academy, which will serve as the primary training school for tax and customs collectors and administrators. Its counterpart measure, Senate Bill No. 3206, was set for third reading on February 3, but was deferred due to lack of quorum. Both bills were certified by President Gloria Macapagal-Arroyo as urgent measures for legislation. Once established, the Philippine Tax Academy will provide continuing education and training for tax and customs collectors and administrators in the BIR, Bureau of Customs and Bureau of Local Government Finance. It will develop training curricula and conduct seminars, workshops and other training programs designed to develop and enhance the skills and knowledge, moral fitness, efficiency and capability of employees in the three agencies. The creation of the Tax Academy will improve the tax collection efficiency of tax collectors and administrators, enabling them to become more competent and effective public servants for the national interest, Commissioner Joel L. Tan-Torres said in his letters to Undersecretaries Carmencita Lao and Bernandino Sayo of the Presidential Legislative Liaison Office. Chief-of-Staff Marina C. De Guzman of the Of- COMMISSIONER Joel L. Tan-Torres and DCIR Lilia C. Guillermo went to Washington DC, USA last February 8 to 10 to meet with officials of the Millennium Challenge Corporation (MCC) and negotiate for the release of US$ 50.3 Million grant for three BIR reform programs. The two officials, together with Finance Undersecretary Rosalia de Leon and Executive Director Romeo Thomas, Jr. of the Department of Finance s Revenue Integrity Protection Service (DOF-RIPS), discussed with MCC officials the pertinent provisions of the Compact Agreement and Program Implementation Agreement relative to the Revenue Administration Reform Project (RARP). Three (3) BIR projects for consideration under the RARP are the nationwide implementation of the Electronic Tax Information System (etis); utilization of Automated Auditing Tools (AAT) in the Large Taxpayers Service (LTS); and Public Awareness Program (PAP). Seventy percent (70%) or $ 35 Million of the grant will be allotted to the etis, which aims to enhance the Bureau s fifteen-year-old Integrated Tax System (ITS) and make the BIR systems (i.e. Taxpayer Registration; Returns Filing and Processing, etc.) accessible online for use by the Bureau s internal and external stakeholders. The AAT, which will need $ 1.2 Million funding, will further strengthen the audit and enforcement capabilities of the LTS through its data analysis tools that will make summarizing and sorting of data, statistical sampling and data conversion easier. Finally, the PAP, which has $ 7 Million funding requirement, aims to ensure extensive communication of the Bureau s plans, programs and initiatives to improve tax governance, promote transparency and accountability, and increase revenue collections. The program is in line with Commissioner Tan-Torres thrust to adopt high visibility public awareness campaign on the Bureau s enforcement and service programs. During the negotiation, MCC officials said that the timeline for the MCC Board consideration of the Philippine Compact will be on March 10, 2010, and that the Target Compact signing will be on April We hope that the $ 50 Million fund will be granted so that the proposed BIR projects will be realized to improve governance in tax administration, in pursuit of greater transparency and accountability, Commissioner Tan-Torres said. fice of the Commissioner (OCIR), ACIR Leonor Villalon-Rogers of the Policy and Planning Service, Atty. Wency Fernandez of OCIR and Assistant Division Chief Silverio Sante of the Corporate Communications Division attended the Senate Committee hearing on the bill held last February 1. Senator Juan Miguel Zubiri presides the Senate Hearing on Tax Academy Bill held last February 1. Revenue officials in attendance are Chief-of-Staff Marina C. De Guzman, Assistant Commissioner Leonor Villalon-Rogers, Atty. Wency Fernandez of the Office of the Commissioner and Assistant Division Chief Silverio Sante of the Corporate Communications Division.

6 6 NATIONAL BIR creates Committee to monitor tax eroding measures es By Aileen Marquez FACED WITH AN P 830 Billion collection goal in 2010 and the recent passage of several tax eroding measures, Commissioner Joel L. Tan-Torres saw the need to closely monitor and review the existing, newly-enacted and proposed laws granting tax incentives and exemptions. In view of this, the Commissioner issued Revenue Special Order (RSO) No creating the Tax Exemptions and Incentives Oversight Committee, which is chaired by Deputy Commissioner Lucita G. Rodriguez and cochaired by Atty. Edwin R. Abella. Members of the Committee are Marina C. De Guzman; Mapemaroma M. Cantillep; Grace Evelyn A. Lacerna; Gay Christine C. Cortes; Enrico D. Cruz; Gealdina E. Reyes; Amelita B. Escober; and Reynoso A. Floreza, Jr. Pursuant to the RSO, the Committee shall coordinate the drafting of Implementing Rules and Regulations (IRRs) of newly-enacted laws granting tax incentives and exemptions (i.e. exemption from VAT of senior citizens, tax exemption of local water districts and cooperatives, etc.). It shall also evaluate the quantification of tax loss brought about by tax eroding measures, which impact on the Bureau s revenue collection, revenue goal determination and performance evaluation of BIR offices. The Committee shall also recommend policies on the implementation of laws with tax incentives and/or exemptions and, whenever necessary, pursue the audit of tax incentive and exemption cases. To support the performance of its functions, the Committee has two (2) teams, namely: Monitoring, Evaluation and Database Enhancement Team and IRR Review, Revision and Preparation Team. With the creation of this Committee, we hope to dampen the negative impact of the tax eroding measures in the BIR s tax collection by coming up with stringent measures to prevent the abuse of tax incentives and exemptions granted by the law, said Commissioner Tan-Torres. BIR Assistant Chiefs to play more e active role By Minnie Quintos SPARE TIRES NO MORE! This, in gist, is the underlying message of Revenue Memorandum Order (RMO) No , which institutionalized the Assistant Chiefs' Challenge System or ACCS. The ACCS was introduced by Commissioner Joel L. Tan-Torres during the first (ever conducted) Assistant Chiefs' Command Conference held last January 13 at the BIR National Training Center. In recognition of the very important role Assistant Chiefs (ACs) perform in tax administration, Commissioner Tan-Torres saw the need to provide a system that will provide information on the "true value, contribution and capability" of the ACs. Under the ACCS, Assistant Regional Directors (ARDs), Assistant Revenue District Officers (ARDOs) and technical assistants who were previously holding positions of Regional Directors, Revenue District Officers, ARDs and ARDOs, and holding items of Chief Revenue Officer III and higher, have the option to conceptualize and manage Special Projects that will improve tax collection and administration. The Special Projects that will be considered for the ACCS are those that have immediate impact; with quantifiable results and specific time table; and shall utilize the existing resources in the AC's particular office. The Special Projects can include any of the following: a) audit of industry or sector that is prevalent in the area of jurisdiction; b) update of zonal valuation; c) Project R.I.P.; d) clean up of delinquent accounts; e) clean up and expansion of taxpayer registration database; f) public awareness and assistance campaign activities; g) financial accounting vs. tax accounting treatment review; BIR Speakers Bureau created By Danilo Diaz IN LINE WITH the BIR S strategy to conduct high visibility public awareness campaign in 2010, Commissioner Joel L. Tan Torres has ordered the creation of the BIR Speakers Bureau with the issuance of Revenue Memorandum Order (RMO) No last February 2. The BIR Speakers Bureau will be comprised of all revenue officials holding items of Director and above as well as other recommended revenue h) linkages with institutions; i) garnishment and foreclosure of assets; and j) apprehension of taxpayers on nonissuance of official receipts. For the first phase of the ACCS Project, interested Assistant Chiefs had already submitted their Project Proposals to the Office of the Commissioner of Internal Revenue. The results of the ACCS shall be considered in the evaluation of the performance of the ACs. Moreover, implemented projects that are deemed best practices shall be adopted for Bureauwide implementation. personnel who met the qualification requirements and standards set by the Assistant Commissioner for Taxpayers Assistance Service (ACIR, TAS). Members of the Speakers Bureau will be assigned by the ACIR, TAS to deliver talks in seminars, public fora and other events. They will also be assigned to guest in television/radio programs where they will discuss updates on tax rules and regulations, as well as programs/projects BIR Speakers...to p. 11

7 BIR adopts Junior and Senior Executive Development Programs By Eleonor Capili IN LINE WITH the Bureau's thrust to professionalize the revenue service, two new development programs have been conceptualized, which were presented to revenue officials by DCIR Celia C. King during the 1st National Command Conference held last January 20 to 21. The two programs are Junior Executive Development Program (JEDP), for newly-hired revenue personnel, and the Senior Executive Development Program (SEDP), for identified BIR officials. Under the JEDP, a select group of 45 newly-hired lawyers and CPAs will undergo a six-month management training that will expose them to th e different functions of the BIR, namely: assessment, collection, legal, regulatory, taxpayer service and computerization. The training curriculum for the JEDP will cover the different types of internal revenue taxes (i.e. Income Tax, VAT, Transfer Tax, etc.) as well as topics on international taxation and special incentives taxation. Special topics, such as project management, tax research methodologies, taxpayer service fundamentals, economic and fiscal concepts, and CTA procedures and decision update, are also included in the training curriculum for the JEDP. The first 1 ½ months of the JEDP consist of lectures to be handled by senior BIR officials and tax practitioners from the private sector. The remaining 4 ½ months will be job rotation of JEDP participants to various BIR offices (in the National Office and selected Regional Offices in Metro Manila) where they will gain first hand, on-the-job experience on various operations of the Bureau. The JEDP was launched last January 15 at the BIR National Training Center wherein Commissioner Joel L. Tan- Torres welcomed the first batch of newly hired lawyers and CPAs to the program. The participants, who were chosen based on their academic records and BAR/CPA exam results, have signed a three-year service commitment contract with the BIR. The JEDP will subsequently be offered to other qualified revenuers who have the potential to assume position of higher responsibility. "The JEDP will not only bring career growth for competent BIR personnel, but will also serve as a strategy to attract young, intelligent professionals to join the revenue service," Commissioner Tan-Torres said. The SEDP, on the other hand, was conceptualized to enhance the Seminar on Reflexology conducted By Training Delivery Division AS PART OF the Bureau's People Wellness Program, a one-day Seminar on Basic Reflexology was conducted last January 29 at the BIR National Office. Ms. Farida Chang of the Technical Education Skill Development Authority (TESDA) discussed with revenuers the basic techniques of massaging NATIONAL and the benefits of relexology. "We are conducting seminars like this to improve the health conditions of our fellow revenuers in order to make them more productive at work," Chief Maria Elena Tan of the Training Delivery Division (TDD) said. The seminar was organized by the TDD in cooperation with the Human Resource Development Service. 7 Commissioner Joel L. Tan-Torres, together with DCIRs Gregorio V. Cabantac and Lilia C. Guillermo, poses with the 1st batch of newly-hired CPAs and lawyers who are attending the Bureau s Junior Executive Development Program. BIR executives' knowledge on the functions, policies, plans, programs and activities of the different services and divisions of the BIR. Under the SEDP, participants will undergo a refresher course on the provisions of the 1997 National Internal Revenue Code; audit procedures and techniques; and collection procedures. To help the participants become more effective managers, the SEDP will also cover topics on time management and prioritizing, which include setting goals and standards; planning and scheduling; delegating; problem solving; and running effective meetings. The SEDP participants will also be given trainings to improve their leadership skills, particularly on teambuilding and improving productivity. Modules on report making and Performance Management System of the Bureau will also be included in the SEDP training curriculum. A Revenue Memorandum Order shall be issued to prescribe the guidelines in the administration of the SEDP.

8 8 REGIONAL RR 18 padlocks big establishment in South Cotabato Koronadal onadal top taxpayers briefed on efps By Jasmin Cuadra RR 18, KORONADAL CITY The region, through Revenue District Office (RDO) No. 111, started the year with a bang with the closure of a big establishment last February 2 under the Bureau s Oplan Kandado Program. Mitzu Motor Parts, located at French Street, Polomolok, South Cotabato, was temporarily closed for committing several tax violations, which include failure to register with the BIR and failure to issue official invoices. Said violations were uncovered during the surveillance activities conducted by the Revenue Officers of RDO 111 headed by Assessment Section Chief, Aileen Punzalan. Regional Director (RD) Marcelinda Omila-Yap and Asst. RD Alberto Olasiman, together with the region s Division Chiefs and several Revenue Officers of the district executed the closure operations. The group was escorted by three police officers and Bombo Radyo reporter, Bic Manalo who covered the event. The said closure brought to eight (8) the total number of business establishments temporarily closed by RR 18 under the Oplan Kandado Program, despite the volatile peace and order situation in the area. The following day (February 3), 225 top corporate and individual taxpayers of the region were briefed on the requirements of new tax laws and regulations, particularly the filing and payment of taxes via the BIR s Electronic Filing and Payment System (efps). The briefing was conducted by Revenue Data Center (RDC) Head Victor Baylon, RDC-Minadanao Division Chief, Arvin Tinnae and Taxpayers Assistance Unit Head, Sumael GenSan district conducts seminar for PNP By Jasmin Cuadra RD 110, GENERAL Santos City - The district, headed by Revenue District Officer Franklin Ladores, conducted a one-day seminar on the general updating of tax exemption by personnel of the Philippine National Police (PNP). The seminar was held last February 15 at the Police Regional Office XII in Tambler. All provincial Finance Officers of PNP Regional Finance Service Office XII, led by Police Superintendents Emmanuel Peralta and Lester Camba, attended the seminar together with their staff. The seminar aims to guide the PNP Finance Officers on the proper withholding of taxes from the salary of their uniformed and non-uniformed personnel. It was facilitated by Revenue Officers Joseph Arguelles, Abdul Jalil Taratingan, Asnawie Mamongcara and Adiah Macasindil, under the supervision of Revenue Officer Samer Paporo. RR 18 - Koronadal City revenuers, led by Regional Director Marcelinda Omila- Yap (right, standing near the tarpaulin), pose for a photo to document the temporary closure of a big establishment located in South Cotabato, which was administered by the Regional Office last February 2. Abad. They were assisted by elounge personnel Ray Gido Pagaran and Patricio Diaz. The seminar is part of our strategies to improve tax collections under the rationale that an informed taxpayer is a more compliant taxpayer, RD Yap said. Revenuers hold HATAW exercises By Medical, Dental & Welfare Div. A GROUP OF REVENUERS gathered once again last January 30 at the Quezon City Memorial Circle for Hataw Aerobics Exercises sponsored by Revenue Region (RR) No. 5 Caloocan City. Said activity is regularly conducted every last Saturday of the month as part of the Bureau s People Wellness Program. It is spearheaded by the Resource Management Group through the Medical, Dental and Welfare Division. Officials and employees from the National Office, led by Assistant Commissioner Carolina G. Pesayco and Head Revenue Executive Assistant Ma. Nieva A. Guerrero, and from RR Nos. 5, 6 Manila, 7 Quezon City and 8 Makati, participated in the exercises led by professional aerobics instructors. Other officials present were RDO Rodolfo Mendoza and ARDO Marie Pelarca (RD 25); RDO Conrado Soriano (RD 26); ARDO Corazon Balines (RD 27); RDO Joseph Catapia (RD 28); and ARDO Edwin Guzman (RD 49).

9 REGIONAL 2010 Regional Tax ax Campaign Kick-offs 9 Revenue officials and employees in different Regional Offices across the country kicked off their respective Tax Campaign for 2010 with various activities and programs, which were highlighted mostly with motorcades; recognition of each region s Top Taxpayers and the ceremonial pledging of support by taxpayers to the BIR programs and projects. RR 1 - Calasiao, Pangasinan RR 2 - CAR RR 3 - Tuguegarao, Cagayan RR 4 - San Fernando, Pampanga RR 5 - Caloocan City RR 6 - Manila RR 7 - Quezon City RR 8 - Makati City RR 9 - San Pablo City RR 10 - Legazpi City RR 11 - Iloilo City RR 12 - Bacolod City

10 10 REGIONAL Regional Tax ax Campaign Kick-offs RR 14 - Tacloban City RR 15 - Zamboanga CIty RR 16 - Cagayan de Oro City RR 19 - Davao City Buwis ay Mahalaga* Handog ng bawat Pilipino Maipabatid sa publiko Buwis na binabayaran, Lahat tayo'y makikinabang Programa ng gobyerno dapat malaman Para sa ating lipunan Kaya kami ngayon ay naririto Upang ipaabot sa inyong lahat ito Refrain: Halina, tara na, tayo na. Makibahagi, makisama at makiisa Isigaw sa buong madla Buwis ay mahalaga para sa ating bansa. Pagbayad ng buwis, ating panindigan Sa tamang oras, laging bayaran Magbayad ng tapat, buwis kabang yaman Ito ay para sa lahat Search ch for Student Tax ax Wizard d launched in Legazpi region RR 10, LEGAZPI CITY The region launched last February its Search for Student Tax Wizard for 2010 as part of its high visibility public awareness campaign. The Search, which earned the endorsement of the Commission on Higher Education (CHED), is open to all interested BS Accounting and BS Business Administration students of colleges and universities in the Bicol region. Legazpi revenuers, led by Regional Director Diosdado Mendoza, visited schools in the region to disseminate information and encourage students to participate in the Search. Through this activity, we aim to instill tax consciousness among the youth who, later on, will become taxpayers Director Mendoza said. *2010 BIR Tax Campaign Jingle Music & Lyrics By: RDO James Ferrer

11 RR No Expands the coverage of taxpayers required to file returns and pay taxes through the BIR s Electronic Filing and Payment System (efps) RR No Amends RR No with respect to the determination of the Optional Standard Deduction (OSD) of General Professional Partnerships and the partners thereof, as well as the manner and period for making the election to claim OSD in the Income Tax Returns RR No Provides the rationale and guidelines for the submission of the Statement of Management Responsibility RR No Amends RR No relative to the accreditation of tax practitioners/agents as a prerequisite to their practice or representation before the BIR RMO No Prescribes the policies and guidelines for the creation of the Speakers Bureau RMO No Prescribes the policies and guidelines relative to Project R.I.P. RMO No Prescribes the policies and guidelines on the monitoring, review and determination of the tax consequences of Big-Ticket Items BIR Speakers...from p. 6 and online eservices of the BIR. To prepare the members of the Speakers Bureau for their tasks, the ACIR, TAS will provide them with the necessary training to further enhance their skills in communication. The speakers will also be provided with the necessary materials (i.e. powerpoint presentations, talking points, press releases, newspaper clippings, digest of revenue issuances and BIR rulings, etc), which they can use in their speaking engagements. At the regional and district office levels, the Regional Directors and Revenue District Officers can likewise initiate their own communication and information activities pursuant to the Public Awareness and Assistance Campaign prescribed in RMO No FEATURES New Revenue Issuances RMO No Prescribes the policies and guidelines relative to the Assistant Chiefs Challenge System RMO No Amends RMO No relative to the stamping of Income Tax Returns and the audited Financial Statements RMO No Prescribes the reportorial requirements for the CY 2010 Public Assistance and Awareness Campaign RMO No Prescribes the policies and guidelines on the handling of court cases RMO No Prescribes the policies and guidelines in determining the output Value-Added Tax liabilities of motels and other similar establishments RMC No Notifies the loss of one original copy of Tax Credit Certificate issued to Fil-Am Foods, Inc. (now Pilmico Animal Nutrition Corporation) RMC No Prescribes the 2010 Strategy Map of the BIR Happy Birthday OIC-ACIR Margaret Mary C. Lauron March 02 Chief Nerisa E. Candao March 02 RDO Imelda D. Cebuano March 02 OIC-HREA Rey Asterio L. Tambis March 03 Chief Beverly S. Milo March 04 OIC-Chief Myla A. Guindan March 04 Asst. Chief Gilda G. Hirang March 04 Asst. Reg. Dir. Alberto S. Olasiman March 05 Chief Ma. Chelo C. Añover March 06 Chief Robert F. Bernardo March 08 Asst. Chief Fernando S. Angulo March 08 CRO Eduardo T. Obero March 09 OIC-Chief Geraldine S. Bermas March 10 OIC-Asst. Chief Aurora R. Aquino March 11 RDO Marcelino L. Yap March 12 ARDO James P. Balagapo March 13 OIC-Asst. Chief Felix Paul R. Velasco March 13 OIC-ARDO Jose Edimar P. Jaen March 13 OIC-Chief Sarah R. Lacastesantos March 14 Reg. Dir. Romulo L. Aguila Jr. March 15 OIC-RDO Fely C. Simon March 15 ARDO Mederico C. Villablanca March 15 OIC-HREA Gerardo R. Florendo March 16 Chief Roberta R. Navarro March 16 OIC-Chief Jonathan A. Jaminola March 16 ARDO Aida P. Olmedo March 16 RDO Eralin B. De Aro March 17 Reg. Dir. Jose N. Tan March 18 RDO Joseph M. Catapia March RMC No Circularizes the full text of COMELEC Resolution No RMC No Circularizes the full text of Joint Rules and Regulations implementing the Philippine Cooperative Code of 2008 RMC No Publishes the full text of Administrative Order No. 277 entitled Creating an Independent Committee to Review, Assess and Evaluate All the Important Smuggling and Tax Evasion Cases Handled by the BIR and the BoC RMC No Circularizes the full text of Joint Circular No A of the DBM, BIR and NTA, amending the guidelines and procedures on the release of the share of LGUs RMC No Publishes the full text of Memorandum Circular No. 30, series of 2009 of the Civil Service Commission reminding all government officials and employees holding non-political offices/positions of the prohibition from engaging directly or indirectly in any partisan political activity DCIR Celia C. King March 20 RDO Rosemarie R. Ragasa March 19 Chief Benjamin T. Evangelista March 21 OIC-Chief Yusoph P. Binsuan March 21 Asst. Chief Amelia C. Rivera March 21 OIC-Reg. Dir. Glen A. Geraldino March 23 Asst. Chief Florydette A. Cuales March 23 OIC-ARDO Eutiquio S. Grajo March 23 ARDO Arnulfo A. Galapia March 25 RDO Satar T. Laguindab March 26 OIC-Chief Arminda D. Millena March 28 OIC-RDO Benjamin B. Babor March 28 Asst. Chief Anne Frank G. Evangelista March 28 Chief Myrna E. Sobremonte March 31 Chief Cynthia Lourdes Q. Santos March 31 OIC-ARDO Cornelio S. De Roma March 31

12 ISG awards Model Employees Commissioner Joel L. Tan-Torres, together with DCIR Lilia Guillermo and other officials of the Information Systems Group (ISG), poses with the ISG Model Employees for 2009 after they have been awarded cash prizes and Certificates of Recognition last February 19 at the BIR Executive Conference Room. Lower photo shows the recognition of the ISG Model Employees of RDC-Visayas and RDC-Mindanao via video conference. By Aileen Marquez NINE (9) REVENUERS were recognized as Model Employees of the Information Systems Group (ISG) for 2009 during an awarding ceremony held last February 19 at the BIR Executive Conference Room. A GROUP OF revenue officials and personnel from the Large Taxpayers Service (LTS) attended a three-day Training on Industry Audit Techniques conducted by the Japan International Cooperation Agency (JICA) last February 2 to 4 at the BIR Training Room. Lecturers from the National Tax College in Japan, Mr. Yoshikazu Ueno, Mr. The awardees who were recognized for their commendable performance, resourcefulness and exemplary work attitude are: Mylene Dela Cruz of the Office of the Deputy Commissioner-ISG; Ruel Naval of Information Planning and Quality Service (IPQS); Leilani Ellano of Information Systems Develop- ment Service (ISDS); Alwayne Cunanan of Information Systems Operations Service (ISOS); Joey Corpuz of ISOS Data Center; Orlando Gapasin of Revenue Data Center Luzon 1; Oscar Leoncito of RDC Luzon 2; Homer Enriquez of RDC Visayas; and Arvin Tinnae of RDC Mindanao. Revenuers attend Training on Industry Audit Techniques By Training Delivery Div. Masahide Chiba and Ms. Naomi Orikasa imparted to the participants various techniques in auditing businesses, particularly those under the manufacturing, shipping and real estate industries. The participants were also introduced to a new technology used in reviewing financial statements and the business conditions affecting the taxable incomes of large taxpayers. Gracing the opening program for the training were LTS Assistant Commissioner Nestor Valeroso, who gave the opening remarks; JICA representative, Alfredo Bernarte, who gave a message in behalf of JICA; Assistant Commissioner Carolina Pesayco, who gave the closing remarks; BIR-JICA Project Consultant, Makiko Takaoka, and NTA Long Term Expert, Masahiro Morimoto. Commissioner Joel L. Tan-Torres and DCIR Lilia C. Guillermo awarded each Model Employee with a Certificate of Recognition and cash prize worth P 1,500. In her message, DCIR Guillermo encouraged the awardees and other revenuers to keep on giving their best performance at work. May you continue to inspire other revenuers to give their best in the performance of their assigned tasks, DCIR Guillermo said. The criteria used in choosing the ISG Model Employees are Performance (60%), Attendance (20%), Work Attitude (10%) and Office Behavior and Conduct (10%). The recognition of Model Employees under the ISG started in 1997 and has been held annually since then. Rowena G. Altura Editor-in-Chief Silverio C. Sante Managing Editor Eleonor F. Capili News Editor Mary Aileen F. Marquez Writer Beverly C. Samia Brando Ador C. Bautista Layout Artists The BIR Monitor is the official newsletter of the Bureau of Internal Revenue published by the Corporate Communications Division, under the supervision of the Policy and Planning Service. Editorial Office: Room 903, BIR National Office, Agham Road, Diliman, Quezon City Tel/Fax No