REVENUE MEMORANDUM CIRCULAR NO. 77-2019 issued on August 6, 2019 publishes the full text of the Memorandum of Collaboration (MOC) and MOC Sub–Agreement to ensure safe and efficient data sharing between the Bureau of Internal Revenue (BIR) and the Insurance Commission (IC) in accordance with Republic Act (RA) No. 10173, RA No. 10963 and Executive Order No. 53.
Through the MOC, the BIR and IC have mutually agreed to coordinate their efforts by entering into sub-agreements for the following:
a. Enhanced process for collecting life insurance premium tax and crediting IC’s insurance fund share from the premium tax collection;
b. Framework to facilitate the exchange and reconciliation of data between the IC and the BIR and methodology in determining the correct tax liability of the following:
Insurance companies (Life and Non-Life);
Mutual benefit associations;
Health Maintenance Organizations (HMOs); and
Other entities and persons under the supervision of the Insurance Commission (IC).
c. Automated interconnectivity of agencies involved in compulsory insurance, suchas the following:
Compulsory Third Party Liability insurance (LTO)
Compulsory insurance for agency-hired migrant workers (POEA)
d. Process on the issuance of certification by the BIR on the 25% share of the IC on the premium tax collection (large taxpayers and non-large taxpayers);
e. Process on the service of Warrant of Distraint and Levy to:
Licensed insurance companies;
Companies under conservatorship, receivership, or liguidation
f. Such other issues and processes that may be solved or enhanced by inter-agency collaboration.
The parties shall create an inter-agency collaboration committee and appropriate subcommittee to oversee and monitor the proper implementation of the MOC and sub-agreements as well as recommend policies and procedures as these become necessary in the monitoring of the tax payments of insurance companies. Internal policies and procedures in the conduct of the committee’s business, including cost and work sharing, shall be adopted.
The Department of Finance (DOF) shall monitor and assess the performance of the parties with respect to the subjects of the MOC. Hence, the parties shall submit regular monitoring and performance evaluation reports to the DOF.
Through the MOC Sub-Agreement, the BIR and IC have mutually agreed as follows that:
a. IC consent to share with BIR confidential/personal data or information of their members which it collected in the performance of mandated duties and functions
pursuant to Section 5 of the National Internal Revenue Code (NIRC) of 1997, as amended by the TRAIN Law, to be utilized by BIR for assessment, its collection, and
enforcement of national internal revenue taxes only;
b. BIR consent to share with IC personal data or information of the taxpayers not otherwise covered by Section 270 of the NIRC of 1997, as amended, which it
collected in the performance of its mandated duties and functions, subject to compliance with Section 4 of National Privacy Commission Circular No. 16-02, to be
utilized by IC for tax validation purposes only;
c. The type of personal data or information to be shared between IC and BIR, mode of data sharing, frequency, and other operational details shall be specified in the
Technical Annex of the MOA; Provided that, BIR shall not share information regarding business, income, estate, secret operations, style of work, apparatus of any
manufacturer or producer, or any confidential information regarding the business of the taxpayer, knowledge of which was acquired during the performance of duties pursuant to Section 270 of the NIRC of 1997;
d. The operational details of the data sharing agreement shall be updated in a phased-in approach, once infrastructure is available. Provided, that such updates shall be considered amendments to the MOA. Provided further, that BIR and IC shall designate and authorize technical representatives to update the operational details;
e. Access to the personal data or information shall be limited to the list of BIR and IC officers/employees specified in the Technical Annex of the MOA. The types of
processing to the data shall likewise be limited to those specified in the Technical Annex. Any modification to the access list and the types of processing allowed shall
require the approval of the Commissioner of Internal Revenue for BIR and the Commissioner for IC;
f. BIR and IC shall designate a Data Protection Officer prior to the signing of the MOA, who shall also stand as witnesses in the signing of the agreement;
g. BIR and IC shall implement appropriate security measures, as specified in the Technical Annex, to ensure protection of the personal information of data subjects,
including the policy for retention, destruction and disposal of records;
h. BIR warrants to treat any and/or all information by IC pursuant to the MOA with utmost confidentiality, in accordance with the Data Privacy Act, and for tax
assessment, collection, and enforcement purposes only. BIR further agrees to hold IC and its officials and employees, free and harmless from any liability of whatsoever nature and kind from the misuse of any and/or all personal data or information from IC or on account of any breach of confidence committed by any employee and/or authorized representative of BIR;
i. IC warrants to treat any and/or all information by BIR pursuant to the MOA with utmost confidentiality, in accordance with the Data Privacy Act, and for tax
validation purposes only. IC further agrees to hold BIR and its officials and employees, free and harmless from any liability of whatsoever nature and kind from
the misuse of any and/or all personal data or information from BIR or on account of any breach of confidence committed by any employee and/or authorized
representative for IC;
j. In case of violation of the rights of the data subject as specified in the Data Privacy Law and its Implementing Rules and Regulations, he/she may file a complaint before the Commissioner of Internal Revenue for BIR and Commissioner for IC;
k. The MOA shall take effect upon the signing thereof by the parties’ authorized representatives and shall remain in full force for five years thereafter or until mutually abrogated by the parties concerned. Provided, that the effectivity of the MOA may not be extended, without prejudice to entering into a new data sharing agreement; and
l. The MOA may be accessed by concerned data subjects in accordance with the process specified in the BIR’s People’s Freedom of Information Manual and IC’s
People’s Freedom of Information Manual. The request for information shall be addressed to the Commissioner of Internal Revenue for BIR and the Commissioner for IC.