8box Solutions Inc.


Contact Number: 09369340340
Email: sales@8box.solutions

REVENUE ADMINISTRATIVE ORDER NO. 5-2019 issued on July 18, 2019 amends Revenue Administrative Order (RAO) No. 3-2014 relative to the functions of Value-Added Tax (VAT) Audit Section under the Assessment Division, Arrears Management Section under the Collection Division and Collection Section under the Revenue District Office in the Regional Office, to wit: I. Assessment Division a. VAT Audit Section i. Evaluates taxpayers’ VAT compliance through pre-audit analysis of tax and information returns, as well as other data within the Bureau ii. Conducts audit/investigation of VAT cases with focus on risk areas as documented in an audit plan and utilizing BIR’s information technology iii. Recommends the issuance of Subpoena Duces Tecum (SDT) for VAT cases in the event of taxpayers’ non-submission of documents and records iv. Conducts appropriate action on protested VAT cases relative to questions of fact v. Prepares and submits reports of investigation for issuance of Preliminary/Final Assessment Notices vi. Reviews taxpayers’ voluntary compliance after audit II. Collection Division a. Arrears Management Section i. Enforces collection of delinquent accounts resulting from final assessment and self-assessed tax, including final judgment on appealed cases, thru summary remedies emanating from the concerned offices within the jurisdiction of the Regional Office, and submits corresponding report on the action taken thereon ii. Coordinates with internal and external offices for purposes of securing information on the assets/properties of delinquent taxpayers that may be subjected to distraint or levy iii. Evaluates the requests of delinquent taxpayers for availment of installment plan/agreement and submits written recommendations thereon, whether for denial or approval iv. Monitors the compliance by all concerned delinquent taxpayers on their approved installment plan/agreement, and enforces the immediate action for the full recovery of the delinquent account, in case of the delinquent taxpayer’s default v. Searches and determines the whereabouts of delinquent taxpayers falling under the Region’s jurisdiction by locating their respective registered and/or actual present addresses vi. Coordinates with the Legal Division of the Regional Office in filing criminal/civil cases against delinquent taxpayers to properly enforce collection of their outstanding tax liabilities vii. Classifies Accounts Receivable/Delinquent Account (AR/DA) cases according to the established case prioritization methodology viii. Prepares and serves Preliminary Collection Letters (PCL), Final Notice before Seizure (FNBS), Warrants of Distraint and Levy (WDL), Warrants of Garnishment (WG), Notice of Levy (NOL) and/or Notice of Tax Lien (NTL) and Notice of Encumbrance (NOE) for delinquent taxpayers within its jurisdiction ix. Monitors the replies of banks regarding issued WGs x. Serves and executes writs of executions issued by the Court of Tax Appeals and other courts and submits corresponding report of the action taken thereon to the Legal Division xi. Institutes necessary actions for the release of proceeds from garnished/distrained/levied properties of delinquent taxpayers by concerned parties xii. Recommends the lifting/cancellation of the WDLs, WGs, NTLs, NOL and NOE in favor of the delinquent taxpayers within its jurisdiction, and processes the same upon approval thereof by the duly authorized revenue official xiii. Conducts the actual or constructive seizure of personal properties from delinquent taxpayers and/or concerned third parties having actual possession of or control over the properties xiv. Conducts ocular inspection of levied and/or distrained properties to ascertain their respective physical existence and conditions, as well as the potential values and the marketability thereof xv. Acts as the temporary custodian of the seized/forfeited properties under their jurisdiction prior to disposition thereof xvi. Consolidates the titles of forfeited properties under the jurisdiction of the region (for non-Mega Manila regions only) as a result of a “tax sale” in favor of the government, in coordination with the Forfeited Assets Management Unit (FAMU), Collection Service xvii. Scouts for interested buyers of forfeited assets (for non-Mega Manila regions only) and evaluates their corresponding offers for negotiated sales thereof, and submits recommendations thereon to the FAMU under the Collection Service for the conduct of further review/evaluation xviii. Forwards to the FAMU, Collection Service, within the prescribed period, all AR/DA dockets wherein the corresponding NOL and NTL covering the seized properties were already served and/or duly annotated by the concerned government regulatory office, for the necessary review prior to the conduct of auction sale of the seized properties xix. Prepares the monthly General Control Ledger and all its attachments covering all AR/DA cases handled by the Section for collection enforcement xx. Prepares the Monthly Consolidated Warrant of Distraint and/or Levy and all its attachments covering all AR/DA cases handled by the section xxi. Maintains the updated database/records of the Section xxii. Records applications for compromise settlement/abatement of penalties, and updates the same every time action thereon is done xxiii. Updates pertinent information in the Accounts Receivable Monitoring System (ARMS), prescribed AR/DA Spreadsheets, AR/DA History Sheets, etc. xxiv. Maintains updated inventory and records of distrained, levied and seized properties of taxpayers under its jurisdiction xxv. Conducts analysis and profiling of AR/DA data for purposes of determining the most appropriate strategies that will be applied to effectively collect the delinquent accounts III. Revenue District Office a. Collection Section i. Monitors and supervises the collection of all internal revenue taxes within the jurisdiction of the RDO ii. Reconciles payment against remittance information submitted by AAB-Br/Bank Head Office and Revenue Collection Officers (RCOs) iii. Undertakes quality verification of notices, various correspondence and ITS-generated reports to be issued to AABs and RCOs iv. Evaluates, acts and recommends on taxpayer’s request for compromise settlement, abatement of penalties and/or payment on installment basis v. Keeps and maintains history cards (BIR Form No. 27.06) to record all actions taken on each docket or case vi. Supervises all RCOs assigned in the different cities/municipalities under the district’s jurisdiction vii. Monitors cash and forms accountabilities of RCOs and acts on any discrepancies in RCOs’ reports viii. Encodes all payments, deposit slips and dishonored checks received from RCOs ix. Issues discrepancy notice to RCOs for compliance to collection and deposit requirements x. Evaluates response and recommends cases of RCOs with discrepancies to Regional Investigation Division or Legal Division for further investigation and implementation of administrative sanctions, if necessary xi. Analyzes and resolves suspended payment transactions based on reports generated/submitted by RDC xii. Searches and ascertains the whereabouts of stop-filers falling under the district’s jurisdiction, conducts ocular inspection of taxpayer’s premises xiii. Processes requests for installment payment of tax liabilities and maintains installment plan xiv. Prepares and maintains an up-to-date record of district collection reports required by Regional and National Offices xv. 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 xvi. Processes requests for the issuance of Tax Debit Memo xvii. Monitors government offices and private entities relative to their compliance to the withholding tax system xviii. Updates taxpayers/WAs on withholding tax information xix. Refers unresolved cases to the Assessment Section for further action