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RAO No. 3-2023

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REVENUE ADMINISTRATIVE ORDER NO. 3-2023 issued on August 31, 2023 amends Sections III.I.1, III.I.3 and III.I.4 of Revenue Administrative Order (RAO) No. 3-2014 and Section II.I.2 of RAO No. 5-2019 relative to the functions of the Assessment Section, Collection Section, Client Support Section and Compliance Section under the Revenue District Office in the Revenue Region, to wit:
             A. Assessment Section
                i. Prepares list of taxpayers recommended for audit for approval of
                   the Commissioner;
                ii. Conducts field audit investigation/verification covering the following
                a. Automatically selected by the Audit Module; 
                b. Manually selected and approved by the Commissioner for
                c. Applying for cancellation of business registration and/or
                    retirement or closure of business;
                d. Applying for tax credit/refund other than Value-Added Tax
                    (VAT) and those under the jurisdiction of Legal Division;
                e. With post-review findings relative to One-Time Transaction
                 f. Approved for re-investigation; and
                 g. Other cases that are covered by the directive of the
                      Commissioner or his authorized revenue official;
                     iii. Processes VAT Refund claims of taxpayers other than claims of
                        direct exporters pursuant to Section 112 (A) of the National Internal
                        Revenue Code (NIRC) of 1997, as amended (this applies to RRs
                        without VAT Audit Section under the Assessment Division);
                    iv. Prepares and submits reports of investigation with relevant
                        supporting schedules and documents that shall comprise the audit
                        case docket of taxpayers, to the reviewing office of the Regional
                     v. Processes application for Certificates Authorizing Registration
                         (CARs) arising from ONETT such as payment for capital gains tax
                         on sale of real properties and shares of stocks, creditable
                         withholding tax, documentary stamp tax pertaining to transfers of
                         properties, estate tax, donor’s tax;
                    vi. Pre-audits Annual Information return (BIR Form No. 1604 CF and
                         1604 E with attachments such as Alphalist of Employees and
                         Payees) and prepares computation of recommended tax
                         deficiencies, if any, and endorses the same to concerned office for
                         collection enforcement;
                   vii. Identifies potential tax evaders and refers their cases to proper
                         offices for investigation and prosecution;
                  viii. Conducts ocular inspection for the determination of zonal value of
                         real property within the concerned RDO’s jurisdiction;
                    ix. Validates discrepancies arising from Tax Reconciliation System
                        (TRS) and RELIEF (Reconciliation Listing for Enforcement)
            Programs and recommends for the immediate audit or investigation
            of potential taxpayers based on the discrepancies noted;
                     x. Analyses stop-filers/non-filer cases of taxpayers under the
                        Taxpayer Account Management Program (TAMP) to determine
                        which are valid or not and endorses those that are invalid to the
                        concerned office for closure, and handles the resolution of those
                        determined as “valid Stop-filer cases”;
                   xi. Recommends issuance of Subpoena Duces Tecum (SDT) to
                        taxpayers who are not complying with the “Notice for Presentation
                        of Books”, and with the submission of Summary List of Sales (SLS),
                        Summary List of Purchases (SLP), Alphabetical List of Employees/
                        Payees subject to Withholding Tax and other relevant
                        document/records to be audited;
                  xii. Prepares report on Cannot Be Located (CBL) taxpayers that shall 
                        be recommended for publication;
                 xiii. Witnesses destruction of obsolete or expired inventories and
                       prepares corresponding reports to the head of office for
                       consolidation in audit or investigation of taxpayers;
                 xiv. Evaluates Declaration of Loss sustained from casualty or from
                       robbery, theft or embezzlement submitted by taxpayer/s and
                       prepares corresponding reports to the head of office for
                       consolidation in audit or investigation of taxpayers;
                  xv. Prepares replies to queries (on-line and walk-in) pertaining to the
                       implementation of any tax related programs/systems/ processes;
                 xvi. Elevates to top management issues and problems encountered in
                       the implementation of tax-related programs/systems and processes
                       for resolution;
                xvii. Conducts surveillance activities, inventory stocktaking and other
                       related activities, in coordination with other concerned offices such
                       as the Regional Investigation Division (RID), pursuant to a Mission
                       Order issued by an authorized revenue official;
               xviii. Conducts post-evaluation of Point of Sales (POS) and Cash
                       Register Machines (CRM) granted permit by the Client Support
                xix. Evaluates application for compromise settlement and/or abatement
                       of taxes pursuant to Section 204 of the NIRC of 1997, as amended;
                 xx. Assists the Client Support Section in the conduct of tax information
                       dissemination and briefings of new revenue issuances;
                 xxi. Ensures the correctness of availment of tax exemptions/ incentives 
                       of cooperatives pursuant to Republic Act No. 9520 and
                       recommends revocation of Certificate of Tax Exemption (CTE) due
                       to any irregularity, fraud and violation of any provisions of the
                       National Internal Revenue Code of 1997, as amended, upon
                       verification using existing applicable BIR revenue issuances;
               xxii. Evaluates Board of Investments (BOI) Income Tax Holiday (ITH)
                      dockets forwarded by the BOI thru Audit Information, Tax
                      Exemption and Information Division (AITEID) of any income not
                      subject to ITH and recommend the issuance of Letter of Authority
                      (LA), if warranted;
              xxiii. Assists in the conduct of Tax Compliance Verification Drive
                      (TCVD); and
             xxiv. Performs other functions as may be assigned.
                 B. Collection Section
                 i. Monitors and supervises the collection of all internal revenue taxes
                    within the jurisdiction of the RDO;
                 ii. Reconciles Authorized Agent Bank (AAB) collections indicated in
                     the Batch Control Sheet (BCS) against remittance or Consolidated
                     Report of Daily Collection (CRDC) information transmitted by the
                     concerned Bank Head Office;
                iii. Ensures that tax collections across all payments channels are
                    timely and correctly uploaded/encoded in the Integrated Tax
                    System-Collection and Bank Reconciliation (ITS-CBR)/Internal
                    Revenue Integrated System – Collection Remittance and
                    Reconciliation (IRIS-CRR);
                iv. Monitors, analyzes and resolves unpaid tax revenues based on the
                    data on unpaid/partially paid tax returns with tax due provided by
                    the Collection Performance Monitoring Division as extracted from
                    the pertinent BIR systems by the Data Warehousing Systems and
                    Operations Division;
                v. Undertakes quality verification of notices, various correspondence,
                   and ITS-CBR/IRIS-CRR to be issued to AABs and Revenue
                   Collection Officers (RCOs);
              vi. Evaluates and acts on verified unpaid taxes due and other unpaid
                  tax liabilities (e.g., unpaid 2nd installment payment due,
                  unredeemed dishonored checks, unpaid tax due per return);
            vii. Supervises all RCOs assigned in the different cities/ municipalities
                  under the district’s jurisdiction;
            viii. Reconciles the RCO collections reflected in the electronic Revenue
                  Official Receipt (eROR)/Revenue Official Receipt (ROR) and
                  electronic Official Receipt (eOR)/Official Receipt (OR) issued and
                  the loose documentary stamps sold against the corresponding
                  deposits made to the Authorized Government Depository Bank
              ix. Undertakes all the necessary actions and immediate coordination
                  with the concerned revenue office and AAB/RCO to resolve the
                  detected discrepancies;
               x. Monitors cash and forms accountabilities of RCOs and acts on any
                   discrepancies in RCOs’ reports;
               xi. Ensures that all tax payments are encoded in Mobile Revenue
                   Collection Officer System (MRCOS);
              xii. Issues discrepancy notice to RCOs for compliance to collection and
                   deposit requirements;
              xiii. Evaluates response and recommends cases of RCOs with
                    discrepancies to RID or Legal Division for further investigation and
                    implementation of administrative sanctions, if necessary;
               xiv. Analyzes and resolves suspended payment transactions based on
                     reports generated/submitted by Revenue Data Center (RDC);
                xv. Assists the Compliance Section in searching and ascertaining the
                     whereabouts of stop-filers falling under the district’s jurisdiction,
                     conducts ocular inspection of taxpayer’s premises;
              xvi. Prepares and maintains an up-to-date record of district collection
                     reports required by Regional and National Offices;
             xvii. Prepares the monthly General Control Ledger and all its
                    attachments covering all self-assessed tax to be forwarded to the
                    Arrears Management Section for collection enforcement for
                    approval by the Head Office and for submission to the Accounts
                    Receivable Monitoring Division;
            xviii. Processes requests for the issuance of Tax Debit Memo (for RR
                    Nos. 8A – Makati City and 8B – South NCR only);
             xix. Assists the Compliance Section in monitoring government offices
                    and private entities relative to their compliance to the withholding
                    tax system;
              xx. Maintains and updates list of Withholding Agents information;
             xxi. Resolves non-TAMP invalid stop-filers/non-filers with payment
                    and/or filing issues referred/endorsed by Assessment/ Compliance
                     Section; and
             xxii. Performs other functions as may be assigned.
                C. Client Support Section
                  i. Delivers fast, efficient and courteous frontline service to the
                  ii. Provides assistance to taxpayers in the district, such as answering
                      of queries and distribution of forms and tax information materials,
                      such as flyers, instruction booklets, etc.;
                  iii. Undertakes tax information dissemination and education campaign
                      in coordination with the Assessment Section and other concerned
                      BIR offices;
                 iv. Receives from taxpayer’s formal inquiries and all kinds of
                     applications/requests for registration, permit, certificate, information
                     updates and Tax Identification Number (TIN), together with the
                     required documents;
                 v. Processes applications for taxpayer record update, modification of
                     taxpayers’ information, authority to print receipts and invoices,
                     registration of books of accounts, application to use loose-leaf sales
                     receipts and invoices, acknowledgement certificates for use of
                     Computerized Accounting System and other registration
                     requirements prescribed under BIR revenue issuances;
                 vi. Processes applications for registration/cancellation of
                      registration/transfer of registration and generates corresponding
                vii. Generates Tax Clearance Certificates for Business Closure upon
                     recommendation of the Collection and Assessment Sections;
                viii. Distributes/issues to taxpayers all kinds of registration
                      certificates/authorities and permits including, but not limited to, TIN
                      Cards, Authority to Print and Certificate of Registration following the
                      guidelines under existing revenue issuances;
                 ix. Maintains a masterlist of all taxpayers within the RDO’s jurisdiction;
                  x. Establishes an updated taxpayers’ registration profile and
                  xi. Coordinates and conducts briefings for new taxpayer registrants;
                  xii. Inquires on the existence of taxpayer information in the BIR
                       Registration Systems;
                 xiii. Provides internet facility and technical assistance to taxpayers who
                       are availing of BIR e-services and other computer-assisted
                 xiv. Acts on third party information gathered from government agencies,
                       Local Government Units (LGUs), etc., relative to registration;
                  xv. Receives and processes applications for taxpayer’s enrolment in
                       the BIR registration systems and other online systems defined
                       under existing revenue issuances;
                 xvi. Acts on stop-filer cases of non-TAMP taxpayers with registration
                        issues referred by the Compliance Section; and
                xvii. Performs other functions as may be assigned.
                   D. Compliance Section
                     i. Ensures/monitors compliance with tax rules and regulations by all
                       taxpayers within the district office’s jurisdiction;
                    ii. Conducts Tax Compliance Verification Drive (TCVD) mapping
                       operations to determine taxpayer’s compliance to requirements of
                       internal revenue laws and regulations and identify potential
                       taxpayers within their jurisdiction which may require assistance
                       from other concerned sections/offices, if the need arises;
                  iii. Prepares required TCVD reports as prescribed under existing
                  iv. Monitors compliance of taxpayers apprehended during the conduct
                       of TCVD and refer to the Revenue District Officer any
                       protest/appeal of the taxpayer in relation to the findings made;
                    v. Evaluates and analyses stop-filer/non-filer of non-TAMP taxpayers
                       received, identifies valid/invalid cases, endorses the same to the
                        concerned office and monitors its resolution. Invalid case with
                        payment and/or filing issues shall be endorsed to the Collection
                        Section while those due to registration errors shall be referred to
                        the Client Support Section for resolution;
                   vi. Monitors, evaluates and analyses inactive business taxpayers in
                        coordination with concerned Sections of the RDO/BIR offices for
                        accurate and timely classification/tagging of taxpayer’s registration
                        status in applicable BIR system database;
                   vii. Receives, validates, and monitors taxpayer’s submission and
                         compliance with tax information requirements including but not
                         limited to Summary Lists of Sales, Purchases and Importations
                         (SLS/P/I)/RELIEF data and Alpha Lists of Payees/Employees and
                         uploading thereof to the RDC;
                  viii. Monitors and reminds taxpayers within its jurisdiction of the
                         compliance and payment requirements of the Bureau which may 
                         require direct communication to taxpayers;
                    ix. Prepares and submits regular status reports to concerned BIR
                         offices prescribed under existing revenue issuances regarding the
                         level of compliance by type of taxpayers on the filing of tax returns
                         and payment of the corresponding taxes, including the submission
                         of information returns; and
                     x. Performs other functions as may be assigned.

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