Bureau of Internal Revenue
Republic of the Philippines

Highlights 2000 | Collection Performance | Tax Returns Filed | Revenue Programs | Tax Statistics

REVENUE PROGRAMS

COMMISSIONER'S OFFICE GROUP

Large Taxpayers Monitoring

Executive Order No. 175, which was signed and approved in 1999, sought to strengthen control over large taxpayers through the creation of the Large Taxpayers Service. The need for a well-defined institutional structure in dealing with large taxpayers was underscored. On October 31, 2000, the control over large taxpayers was further strengthened through the approval of Executive Order No. 306. The new EO integrated the functions of the Excise Taxpayers Service (ETS) with the Large Taxpayers Service (LTS) and Large Taxpayers District Offices were directly placed under the supervision of the LTS. Likewise, to better monitor large taxpayers in the Regions, the first Large Taxpayers District Office (LTDO) was created in Revenue Region No. 8 - Makati and is envisioned to be a one-stop shop that will render full service to the top taxpayers of the Region.

Owing to the close monitoring of the compliance of large taxpayers (regular large taxpayers and excise taxpayers), about 54.58% of total BIR collection or P 196.94 billion was collected. With regards to audit, Revenue Memorandum Order No. 18-2000 prescribed the CY 2000 Audit Program for large taxpayers covering income, value added, percentage, withholding and other taxes or a particular tax liability of large taxpayers for taxable years 1998 and 1999 and uninvestigated prior years.

Enhanced Enforcement System

Under the Enforcement Program, initiatives to improve the investigation of tax fraud and policy cases were undertaken. As a result, the BIR was able to collect P 61.903 million from 69 cases and recommended the issuance of Assessment Notices involving P 2.157 billion from 101 cases. It has also recommended 22 tax fraud cases for criminal prosecution amounting to P 153.267 million and 13 cases for civil fraud amounting to P 1.908 billion. Closing of 186 erring business establishments was recommended as a result of the conduct of surveillance activities. Closure was due to the violation of the provisions of the National Internal Revenue Code (NIRC).

The purpose of the audit is not only to increase revenue collections but also to gather and process data and information for tax policy analysis and revenue projections. For this year, particular groups of taxpayers were identified as part of the "High Profile Cases" to be audited, namely: i) Hospitals and the Physicians working therein; ii) Basketball Players in the Philippine Basketball Association; iii) Pharmaceutical and Cosmetic Companies; and iv) Government Public Works Contractors. The audit of these high profile cases will continue in the year 2001.

BIR Change Management

The Change Management Program is a continuing process which focuses on getting "buy-ins" and building widespread acceptance and commitment brought about by various changes being implemented in the Bureau.

Various activities are being conducted in line with the BIR Change Management Program such as the Change Management Workshops/Briefings, Integrated Tax System (ITS) Rollout Orientations to convey accurate and timely information regarding systems rollout, posting of flyers on ITS capabilities to establish constant presence of rollout messages and conduct of ITS Trivia Contest to generate enthusiasm regarding the rollout. In the early part of the year, the activities focussed on the rollout of front-end systems, namely: Registration, Collection and Bank Reconciliation, Returns Processing and Returns Compliance considered as case systems of the BIR Tax Computerization Project (TCP).

Moreover, as part of the Change Management Program, the Ownership Building Project was developed to attain these objectives: i) create awareness, develop understanding, gain acceptance and establish commitment in implementing the various capability releases among key stakeholders in the rollout sites; ii) strengthen and involve the BIR change network in orienting process owners, site heads and affected BIR personnel about the activities in preparation for the rollout and the benefits which could be realized after the rollout; and iii) equip process owners and rollout site heads with a knowledge management tool to sustain the ITS transition process as a means to achieve these objectives, the BIR E-mail facility was utilized in transmitting messages regarding capability release definitions and rollout schedules. Various orientations were held involving the ITS Champions who serve as ITS coaches. Process Owner briefings were conducted to brief them on their roles and responsibilities with regards to the rollout activities. Assessment of the stakeholders' ownership and commitment levels were undertaken to determine the need for change management intervention, as well as to identify the necessary actions to sustain/increase performance of the concerned process owners and site heads.

OPERATIONS GROUP

Collection Enforcement and Assessment

One of the priority programs of the BIR is the Compromise Settlement Program which benefited both the taxpayers and the Bureau, as taxpayers with outstanding accounts receivable and disputed assessments were given the opportunity to settle their tax liabilities. The Program contributed to the increase in collection for the year, amounting to P 121.933 million, from delinquent accounts which is 46.69% higher compared to last year's collection of P 83.125 million.

As part the BIR's revenue -generating measures to re-enforce collection, the use of Documentary Stamps Metering Machines with Encryption, pursuant to Revenue Memorandum Order No. 83-98, was expanded during this year. The system serves as an electronic on-line control that was found to significantly improve the monitoring of Documentary Stamp Tax (DST) collections. Relative to this, a total of 509 metering machines with encryption were installed in 65 users/taxpayers (banks, insurance and shipping companies) and a Documentary Stamps Metering Machine Data Center was established at the 10th floor, National Office Building.

The BIR-Land Regulatory Authority (BIR-LRA) Project, which involves the validation by BIR-LRA verifiers of Certificates Authorizing Registration presented to the Registry of Deeds, was implemented for the purpose of ensuring that all internal revenue taxes are collected prior to the registration of any document transferring real property or rights. This BIR-LRA tie-up resulted in the identification of 116 questionable Certificates Authorizing Registration (CARs)/Tax Clearance Certificates amounting to P 21.628 million.

A new mode of payment for Government Offices was implemented last April, 2000, 15 days after the signing of Joint Circular (JC) No. 1-2000. It is a joint agreement between the Department of Finance, the Department of Budget and Management and the Commission on Audit, which provides for the guidelines in the remittance of all taxes withheld by National Government Agencies to the BIR. For the year 2000, remittance through the use of Tax Remittance Advice resulted in the collection of P 10.2 Billion. An increase of 105.57% over last year's collection.

This year, various Audit Programs were implemented in order to ensure the equitable and reasonable selection of tax cases with the highest tax potential for audit at the regional level These Audit Programs include: (1) the Office Audit Program in the Regional Assessment Divisions per Revenue Memorandum Order No. 36-2000, which aims to collect additional revenues from cases not covered by the regular Annual Audit Program, thereby, enhancing voluntary compliance of professionals and individual taxpayers engaged in small-scale business, as well as corporate taxpayers, estates and trusts within the Regional Offices covering taxable years 1997, 1998 and 1999; (2) the Audit Program for Revenue District Offices (RDOs) per revenue Memorandum Order No. 24-2000, which aims to enhance taxpayers' voluntary compliance by encouraging payment of correct amount of internal revenue taxes through quality audit of tax returns covering the investigation of 1998 and 1999 internal revenue tax returns; and (3) the Short-term Audit Program per Revenue Memorandum Order No. 19-2000, which aims to enhance voluntary compliance of taxpayers through the immediate audit of currently filed quarterly, monthly and other tax returns.

The Third Party Information Program (TPI) is one of the key programs implemented by the Bureau. This Program is geared towards the gathering and processing of relevant financial data from internal and external sources, and then utilizing these data to strengthen the assessment and enforcement functions of the Bureau. Internal sources refer to tax returns, declarations and information returns filed by taxpayers at the Revenue District offices (RDOs) and other offices within the Bureau. On the other hand, external sources pertain to other government entities from whom the bureau can obtain significant financial data on taxpayers who may have substantially under-declared their taxable income or have failed to file the required returns. For this year, the Bureau has continued to expand the taxpayer base through the linkage with the Bureau of Customs (BOC) and the Securities and Exchange Commission (SEC).

Taxpayer Information and Education

The Tax Campaign Program of the Bureau was launched in a kick off ceremony held at the Malacañang Palace last March 15, 2000. During this occasion, a Memorandum of Agreement between the Bureau and the representatives from the private sectors (Federation of Filipino Chinese Chambers of Commerce and Industry, Management Association of the Philippines, Philippine Chamber of Commerce and Industry, Tax Management Association of the Philippines, Science Park of the Philippines, Inc., Finance Executives Institute of the Philippines and Philippine Institute of Certified Public Accountant and Philippine Retailers Association) was signed to bring about a collaborative union in intensifying the tax information campaign.

In order to render effective and efficient service to the taxpayers, especially during the BIR filing season, "Tax Tulungan Centers" were set-up in selected commercial malls nationwide. This was in coordination with the Philippine Retailers Association (PRA) and the Philippine Institute of Certified Public Accountants (PICPA). Moreover, each Revenue District/Regional Office established a Taxpayers Service Counter equipped with information materials, tax forms and adequate physical logistics to serve as a "one-stop-shop" in serving the needs of the taxpayers.

Another nationwide raffle of sales invoices and receipts dubbed as "Humingi ng Resibo: Milyun-Milyon Pa Rin Ang Panalo" was conducted as a follow-up to the successful staging of the raffle promo last year. Pursuant to Revenue Meorandum Order No. 20-2000, the Raffle Promo aims to: i) improve tax awareness by encouraging consumers to demand sales invoices and receipts for purchases; ii) involve the private sector in the government's objective to increase revenue collection; iii) enhance the Bureau's data bank and facilitate the development of a system for an effective audit of tax liabilities; and iv) verify the authenticity of surrendered sales invoices and receipts and take the necessary action in cases of tax fraud and/or evasion. For this year, the Raffle Promo contributed more than P 500 million in additional collections from VAT and other percentage taxes.

For CY 2000, the total number of registered taxpayers was recorded at 4, 486, 844 registering an increase of 601,327 or 15.48% from last year's 3,885,517 registered taxpayers (refer to table on the below).

TOTAL NUMBER OF REGISTERED TAXPAYER

The increase in the number of registered taxpayers was attributed to the following activities:

* Intensified tax mapping activities;
* Implementation of the Tax Record Update (TRU) Program; and
* Conduct of campaigns, seminars and briefings

 

LEGAL and INSPECTION GROUP

Legal Matters

Under the Legal Program, judicial actions and actions on administrative protest on assessments were intensified. Likewise, implementing regulations and rulings were issued.

For this year, the decisions were rendered on various tax cases in favor of the government as follows:

i)	1 assessment case involving P 45.189 million and 14 refund cases involving P 163.301 million at the Court of Tax Appeals.
ii)	2 assessment cases involving P 27.871 million and 8 refund cases involving P 915.815 million at the Court of Appeals.
iii)	3 assessment cases involving P 22.478 million at the Supreme Court.

On the other hand, 10 complaints, motions, comments, replies and memoranda were filed in the Regional Trial Courts involving P 13.906 million.

Moreover, 76 protested assessments recommended for revision/modification/cancellation/withdrawal involving P 4.751 billion, and 256 claims for tax credit/refund involving P 848.592 million recommended for approval, were acted upon.

The Philippine Government, through the Bureau of Internal Revenue, has been conducting tax treaty negotiations with other countries in order to: i) lessen the impact of burdensome double taxation on income derived from cross border investments; ii) assure long-term enjoyment of the benefits of the Agreement as reduced tax rates paves the way for sustained inflow of foreign investments; and iii) enable the tax authorities of both Contracting States to exchange information vital to the enforcement of their taxation laws and the collection of revenues. This year, two tax treaty negotiations were concluded and signed, namely, the RP-Czech Republic on November 13, 2000 and RP-Sri-Lanka on December 11, 2000. In addition, 3 tax treaty negotiations were concluded in Manila, namely: i) RP-Bahrain on March 15-17, 2000; ii) RP-New Zealand on May 3-4, 2000; and iii) RP-Vietnam on August 28-30, 2000.

With close monitoring, a total of P 2.009 million was collected from 10 Foreign Service posts which include: Milan, Toronto, Jeddah, Agana, Tokyo, Saipan, Brunei, Honolulu, Jakarta and Seoul.

Lastly, to further sustain the Bureau's collection efficiency, 3,622 numbered and unnumbered rulings were issued. On the other hand, 14 Revenue Regulations were finalized and approved by the Secretary of the Department of Finance, to wit:

• Revenue Regulations No. 1-2000 - Prescribing the Regulations to Amend the Provision of RR No. 12-97 with respect to Sharing, Distribution and Manner of Disposition of the 2% Share of the Local Government Units from the 5% Special Tax paid by PEZA-registered Enterprises.
  
  
• Revenue Regulations 2-2000 - Prescribing the Procedures to be Adopted during the Transition Period in the Phase-out of Leaded Gasoline in Metro Manila.
  
  
• Revenue Regulations 3-2000 - Extending the Deadline for the Accreditation of Tax Agents.
  
  
• Revenue Regulations 4-2000 - Prescribing the Posting in Place of Business of a Notice on the Requirement for the Issuance of Sales/Commercial Invoices and/or Official Receipts by Persons engaged in Trade or Business, including the Exercise of Profession.

• Revenue Regulations 5-2000 - Prescribing the Regulations Governing the Manner of the Issuance of Tax Credit Certificates and Conditions for their Use, Revalidation and Transfer.
  
  
• Revenue Regulations 6-2000 - Prescribing the Regulations to Implement the Compromise Settlement of Internal Revenue Tax Liabilities of Taxpayers with Outstanding Receivable Accounts and Disputed Assessments with the Bureau.
  
  
• Revenue Regulations 7-2000 - Amending Sec. 2.83.3 of RR No. 2-98 Regarding the Requirement for List of Income Payees. In lieu of the manually-prepared Alphabetical List of Employees and Payees and Income Payments subject to Creditable and Final Withholding Taxes, which are required to be attached as an Integral Part of the Annual Information Returns. The Withholding Agent may, at his option, Submit 3.5 inch floppy diskettes containing the said Lists.
  
  
• Revenue Regulations 8-2000 - Amending Specific Provisions of RR No. 2-98 and RR No. 3-98 with Respect to the "De Minimis" Benefits, Additional Compensation Allowance (ACA), Representation and Transportation Allowance (RATA) and Personal Relief Allowance (PERA).
  
  
• Revenue Regulations 9-2000 - Identifying the Persons Liable for the Documentary Stamp Tax (DST) and the Mode of Payment/Remittance of the said Tax Under Certain Conditions.
  
  
• Revenue Regulations 10-2000 - Further Amending RR No. 2-98, 3-98 and 8-98 with Respect to the Exemptions of Monetized Leave Credits of Government Officials and Employees and the Enumeration of "De Minimis" Benefits which are Exempt from Income Tax on Compensation and Fringe Benefits Tax.
  
  
• Revenue Regulations 11-2000 - Prescribing the Registration and the Manner of Filing of Income Tax Returns and Payment of Income Tax, if any, of Marginal Income Earners with Gross Sales/Receipts not exceeding P100,000.00 during any Twelve (12) month period.
  
  
• Revenue Regulations 12-2000 - Extending Further the Deadline for the Accreditation of Tax Agents from December 31, 2000 to February 28, 2001, Amending for this Purpose Revenue Regulations No. 15-99, as Amended by Revenue Regulations No. 3-2000.
  
  
• Revenue Regulations No. 13-2000 - Implementing Section 34 (B) of the Tax Code of 1997 relative to the Requirements for the Deductibility of Interest Expense from the Gross Income of a Corporation or an Individual engaged in Trade, Business or in the Practice of Profession.
  
  
• Revenue Regulations 14-2000 - Amending Sections 2 (2), 3 and 6 of Revenue Regulations No. 13-99 relative to the Sale, Exchange or Disposition by a Natural person of his "Principal Residence".

Personnel Integrity

The Personnel Integrity Program is strictly being implemented every year, to promote the integrity of the revenue workforce through the conduct of quality investigation of administrative cases involving erring revenue personnel.

This year, preliminary investigation of administrative cases resulted to the filing of 80 Formal Charges on various offenses against BIR personnel. Administrative cases filed against erring revenue personnel resulted in the prosecution of 33 personnel; the breakdown of penalties imposed in these cases is shown on the table below.

RESOURCE MANAGEMENT GROUP

Management Improvements

Despite budget constraints, the Bureau managed to improve and upgrade existing facilities and equipment. The Training Centers in Luzon and Mindanao were constructed for the conduct of in-house training of the BIR employees. The construction was made possible through the assistance of the German Development Foundation, Gessellschaft fur Technische Zusammenarbeit (GTZ), through its representative, Dr. Henning Becker.

Various cost-cutting strategies were implemented to support the austerity program of the government, namely: i) water and power conservation; ii) prohibition of outright personal long-distance calls using government telephones; iii) prudent and cost-efficient use of office supplies; iv) strictly limited foreign and local travels; and v) minimal use of overtime services.

Lastly, the BIR was able to secure from the Department of Budget and Management all possible compensation benefits for all its qualified officials and employees. These are the: i) Basic Salary Adjustment pursuant to Executive Order No. 219; ii) Increase in the monthly commutable of the Representation and Transportation Allowance (RATA) granted to officials and those equivalent rank, as may be determined by the Department of Budget and Management (DBM); iii) Clothing Allowance pursuant to the provisions of Section 45 of the General Appropriations Act for Year 2000 (RA No. 8760); iv) Mid-Year and Year-End Bonus and Cash Gift for CY 2000 pursuant to the Budget Circular No. 18-2000 dated September 6, 2000; and v) Productivity Incentive Benefit based on the performance ratings in 1999.

Professionalized Workforce

In order to constantly enhance the knowledge and work attitude of the Bureau's workforce, the Human Resource Development Program was implemented through the conduct of training programs, preparation and enhancement of training materials and development of policies and procedures with respect to recruitment, promotion and provision of benefits for the personnel.

As in previous years, the BIR continued to conduct various Integrated Tax System (ITS) training programs in anticipation of the full ITS rollout in the Regional and District Offices; BIR-GTZ Effective Leadership Seminars geared toward the exposure of the middle and top level management to the newest trends and principles in leadership and management; and technical training programs geared toward the improvement of the field officers' knowledge on the rules, regulations and procedures of tax administration. These technical training program include Symposium on Comprehensive Tax Reform Program (CTRP); Briefing on Revenue Memorandum Order Nos. 42-2000, 44-99, 82-99 and Revenue Regulations No. 6-2000; Basic Course for Revenue Officers; Briefing on Audit Program; Orientation Program for Large Taxpayers Service and Excise Taxpayers Service personnel; and the BIR-GTZ Operations Planning Workshop.

Aside from training programs conducted within the country, qualified BIR personnel were able to participate in various training programs abroad, namely: (1) Forecasting and Administrative Reform in Germany; (2) Study Tour on Human Resource Development in United States of America; (3) Computer-based Training Modules in Germany; (4) Training on Modern Developments in Value-Added Taxation in Germany; (5) Revenue Forecasting Seminar/Workshop in Germany; (6) Study Tour on Netherland's Tax and Customs Administration in Netherlands; (7) Computer-based Audit and Investigation in Germany; (8) Job-Evaluation and Manpower Planning in Germany; (9) Change Management and Administrative Reform in Germany; (10) Excise Tax Study Tour in Australia/New Zealand; and (11) CIAT Conference in Italy.

During the second semester of CY 2000, seven (7) Competency Examinations have been conducted in order to evaluate and assess the competency and proficiency of revenue personnel and to analyze their training needs. These examinations were participated in by all field employees, Group Supervisors, Division Chiefs and Assistant Division Chiefs of the Regional Assessment Divisions and Special Investigation Divisions, and the Bureau's Revenue District Officers and their Assistants.

The implementation of the Human Resource Information System (HRIS) was started this year. This System shall be an integral element in the effective allocation of human resources, the improved planning of human resource requirements, the enhanced work efficiency of BIR personnel and improved facilitating of training administration. Likewise, the new Performance Evaluation System (PES) was approved per Revenue Memorandum Order No. 43-2000. The new PES shall provide for the evaluation of the individual's performance in relation to the targets that are consistent with the duties and responsibilities attached to positions based on the work programs of the organizational Unit where the employee belongs.

The BIR workforce in 2000 reached 11,850 in 2000, which is 1.76% lower than last year's personnel complement of 12,058. The decrease can be attributed to the retirement of some employees and officials of the Bureau, as reflected in the table on the next page.

Cost of Operations

The total expenditure of the BIR in CY 2000 has reached P 3.778 billion. As in the past five years, the greatest bulk of the Bureau's operations cost was allotted for Personal Services which constituted 61.17% of the total expenditure.

With the P 360.802 billion collection during the year, the cost to collect every P 100.00 revenue is P 1.05 in 2000. This represents a 5% increase over previous year's cost of P 1.00.

CY 2000 BREAKDOWN OF BIR EXPENDITURES
(In Million Pesos)*

*Figures: Obligations incurred from a) Fund 152 - Special Fund; b) Fund 101 - General Fund; and c) Fund 105 - Tax Refund.

 

INFORMATION SYSTEMS GROUP

Implementation of Integrated Tax System (ITS)

In 1995, the BIR embarked on an organizational transformation effort through the implementation of the Five-Year Tax Computerization Project (TCP). Since then, the Bureau has already established the different service delivery systems adaptable to the Agency. Trainings, Seminars and Workshops were conducted to keep the BIR personnel abreast with the changes brought about by the Project. In 1997, the BIR National Revenue Command Center was established in order to monitor and manage the network, database and computer operations at the National Office and the five (5) Revenue Data Centers.

With the computing platform and comprehensive suite of application systems designed and developed, and the deployment of the front-end core transaction processing of ITS to the key metropolitan Revenue District Offices completed during the 5-year Tax Computerization project, the continuing need to maximize the potential benefits of the Integrated Tax System (ITS) gave rise to the Full Integrated Tax System (ITS) Rollout Acceleration Program.

The Full Integrated Tax System (ITS) Rollout Acceleration Program was adopted to continue the implementation of the ITS capabilities. Its main objective is to put into effect an integrated tax system that is information-driven and consistent with impartial tax compliance enforcement capabilities that will eventually: (1) strengthen revenue generation; (2) improve capacity to profile taxpayers; (3) enable compliance improvement; (4) improve operational efficiency with better provision of management information; and (5) reduced processing cost for claim on refunds and tax credits.

For this year, the implementation strategy of the ITS has been grouped into two (2) major categories, to wit: i) Implementation of the "Front-End Processes" consisting of the Registration, Payment, Stopfiler, and Returns Processing Capability rollouts; and ii) Implementation of the "Back-End Processes" consisting of the Accounts Receivable, Audit, Tax Credits and Refunds, Tax Reconciliation, and National Office Management Information Capabilities.

The Front-End Processes have been rolled out in the following sites:

• REGISTRATION - in Large Taxpayer Service (LTS), Excise Taxpayer Service (ETS) and Large Taxpayer District Office (LTDO) in Revenue Region (RR) No. 8 - Makati.
• PAYMENT - in LTS, ETS, and LTDO RR No. 8 - Makati
• STOPFILER - in LTS, ETS, LTDO No. 8 - Makati and 7 Revebue District Offices (RDOs)
• RETURNS PROCESSING - in LTS, ETS, LTDO RR No. 8 - Makati and 22 RDOs
  On the other hand, the implementation of the Back-End Processes, which was schedules for release on separate schedules at key BIR District Offices including RR No. 8 - Makati with its eight (8) RDOs, the Large Taxpayers Service (used to be LTS and ETS), and LTDO RR No. 8 - Makati, have started on the following sites:
• ACCOUNTS RECEIVABLE - in LTS, RR No. 8 - Makati and its eight (8) RDOs
• AUDIT - in RR No. 8 - Makati and its eight (8) RDOs
• NATIONAL OFFICE MANAGEMENT INFORMATION - in LTS

Other Back-End Processes are scheduled for rollout within the next two (2) quarters of Year 2001.

An important development in the Acceleration Program is the change in approach by which the capabilities are being launched. The new release strategy has adapted a phased approach, which is the launching of functions and features within a capability having the most immediate use and benefit to the Bureau. The phased approach in the release strategy that also allows the project teams to identify gap analysis and resolve issues. This approach likewise, enables the Bureau to manage the magnitude of process reengineering and organization restructuring.

Implementation of Taxpayer Service Support Infrastructure

BIR Web Page

The BIR Web Page is now fully available and readily accessible to all taxpayers and Internet users. This homepage was enhanced to provide updated tax information for the benefit of taxpayers and to provide a venue for taxpayers to interact with BIR online. BIR forms are also available on the said site and can be download by taxpayers. The Web Page can be accessed at www.bir.gov.ph

It is also through the Project that Taxpayer Identification Numbers (TINs) can now be verified by selected external agencies (like SEC, BOC) with assurance that there will be no duplication. Processing of TINs is centralized through the central facility, the National Office database.

Information Kiosks

These stand-alone facilities were improved to provide updated tax information relevant to taxpayers. As of CY 2000, five information kiosks are operational, two at the National Office and one each at the Makati Regional Office, Southern Luzon Data Center and Cebu Regional Office.

In both the BIR Webpage and Infokiosks, the National Internal Revenue Code (NIRC) can be electronically accessed, including the Comprehensive Tax Reform Program. The most updated BIR Forms are also available for use or view of taxpayers.

Implementation of User Support and Communication Infrastructure

Help Desk

These units manage the reporting and resolution of all types of problems faced by BIR personnel at any level and from any unit. It is supported by a server-based software that links all BIR Help Desk units nationwide. To date, six Help Desk units (NO, ISOS DC and the 4 RDCs) are fully operational.

E-Mail Facility

The TCP established an intr-net (E-mail facility) that facilitates office communication through its e-mail and file transfer facilities. This facility enhances communication among BIR personnel by providing better and faster exchange of information. With this development, the Bureau's Top Management strongly encourages its personnel to maximize the use of the E-mail Facility. Since its installation in 1997, the following are the sites currently availing of the said facility:

• National Office
• 5 Revenue Data Centers
• 15 Regional Offices (7 ITS, 8 non-ITS)
• 78 Revenue District Offices (40-ITS, 30-non-ITS)

Video Conferencing

This communication hardware facilitates the conduct of meetings between two or more sites remote from each other through the use of close-circuit television. This facility saves transportation costs, time, and effort.

Implementation of an Internal Administration System (IAS)

For an Internal Administration System (IAS) which is also a part of the TCP, two major software packages were installed this year to be implemented at the Human Resource Development and Financial and Administrative Services. The software packages are the PeopleSoft-Human Resource Management System (HRMS) and Financial Management Information System (FMIS) respectively.

External Linkages

The linkages project has benefited the government in terms of eliminating the cost of physical transmittal of documents and making information exchange between agencies easier. For this year, the BIR has implemented an external tie-up with five government agencies namely:

• BOC - Systems Operation Division continuously monitored the transmission of the year 2000 import transaction data based on the schedule agreed by both agencies. Said data are scheduled to be uploaded in NOMIS (Tax profiling) system to identify potential registrants.
• LRA - Fifteen (15) Registry of Deeds have been rolled out. As of December 2000, a total of 116 questionable TCL/CAR documents have been detected, all of which have been forwarded to Operations Group for appropriate action.
• SEC - Constantly coordinated with Assessment Service (Audit Information Tax Exemption and Incentive Division) on the identified 14,865 unregistered corporate taxpayers.
• DILG - Memorandum of Agreement (MOA) involving the DOF, BIR, DILG and the LGUs is currently being routed for signature.
• Mla. City Hall - MOA was formally signed in December 2000. The BIR participates in a Business-One-Stop-Shop (BOSS) project of Manila City Hall to:
  • Accept taxpayer's application for registration
  • Assist taxpayer's in their transactions
  • Disseminate information regarding BIR ruling and tax campaigns