2018 BIR Priority Programs in Philippines

changes to 2012 VAT audit program PhilippinesBy: Tax and Accounting Center Philippines

Under Revenue Memorandum Circular No. 6-2018 (RMC 6-2018) dated December 18, 2017, the Bureau of Internal Revenue (BIR) has published and disseminated its priority programs for calendar year 2018 identified and adopted during its 2018 Annual Planning Session held last December 8-9, 2018 taking into consideration the Tax Reform for Acceleration and Inclusion (TRAIN) Law under Republic Act No. 10963. This RMC will address three (3) principal objectives of the BIR as follows:

Attain Collection Targets

To attain the BIR’s collection target for calendar year 2018, it would initiate the following programs:

  • Expedite updating of the schedule of zonal values for tax purposes;
  • Intensified audit investigation through CAATs, BEPS, Transfer pricing, examinations  of franchisors, national government agencies, government owned and controlled corporations, small taxpayers, and other industry issues;
  • Enhanced implementation of Arrears Management Program in the Regional Offices;
  • Broaden the tax base by 10% through tax mappings (TCVD), focused mapping of those who failed to renew ATPs, stop filer cases, CRM/POS post-evaluation -training, cannot be located taxpayers, stocktaking activities, and summary lists of sales and purchases;
  • Run after tax evaders (RATE);
  • Oplan Kandado or temporary closure of establishment for non-compliance;
  • Taxpayer Account Monitoring Program (TAMP) clean-up;
  • Large Taxpayer Service (LTS) – Excise Tax Program related to TRAIN – sugar sweetened beverage, internal revenue stamps integrated system (IRSIS), electronic official registry book (eORB) alcohol program, and fuel marking program for petroleum products;

Improve Taxpayer Satisfaction

For improving the taxpayer satisfaction, the BIR would initiate the following programs:

  • Massive tax education campaign / public awareness and education through information dissemination using tri-media, social media, and comprehensive communication strategy; and effectively disseminate Tax Reform Package under TRAIN;
  • Information and Communications Technology (ICT) Solutions for Improved Taxpayer Services by increasing BIR’s internet access bandwidth, adequate server and hardware capacity, and licenses and softwares.

Strengthen Good Governance

For the effective management and integrity of the tax personnel and collection, the BIR would initiate the following:

  • Expedite recruitment of new personnel and promotion of qualified employees
  • Capacity building for BIR officials and employees
  • Attendance and leave management
  • Budget utilization program
  • Building program for housing each Revenue District Office
  • Action on administrative cases filed against erring revenue officials and employees

BIR offices are enjoined to align their activities and projects to the above programs, to ensure the achievement of the above principal objectives, and fulfillment of BIR’s mandate.

For more details on the 2018 BIR Priority Programs in the Philippines, please download the copy of RMC 6-2018.

Disclaimer: This article is for general conceptual guidance only and is not a substitute for an expert opinion. Please consult your preferred tax and/or legal consultant for the specific details applicable to your circumstances. For comments, you may please send mail at info@taxacctgcenter.org, or you may post a question at Tax and Accounting Center Forum and participate therein.

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