REVENUE MEMORANDUM ORDER NO. 36-2016 issued on June 30, 2016 prescribes the policies and procedures in the decentralization to the Regional Finance and Collection Divisions under the BIR Revenue Regions (RRs) of reconciliation, recording and reporting of internal revenue taxes collected across all tax payment channels by the Revenue District Offices (RDOs). The recording of all internal revenue taxes collected from taxpayers registered under the respective jurisdiction of the RRs, through the different channels of payment, shall be performed by the Regional Finance Divisions (RFDs) of the concerned RRs. On the other hand, the recording of all taxes from taxpayers registered under the Large Taxpayers Service (LTS) shall remain as one of the functions of the Revenue Accounting Division (RAD). A subsidiary ledger for each RDO under the LTS shall be separately maintained by the RAD for the recording of tax collection. Prior to the recording of all tax collections in the Regional Office (RO)-Collection Books or National Office (NO)-Collection Books, including adjustments thereto by the RFDs or RAD, as the case may be, the same shall be evaluated and reconciled by the RDOs or concerned RDOs of the LTS. Based on all available collection data provided in the Integrated Tax System/Electronic Tax Information System (ITS/eTIS), Collection Reconciliation System (CRS) and other collection reports received from all concerned internal and external offices (e.g., RAD, DWSOD, BTr, BSP, etc.), the Revenue Collection Divisions (RCDs) shall subsequently review and validate the reconciled report of the RDOs, while the RAD shall review and validate the reconciled reports transmitted by the concerned RDOs under the LTS with prior recommendation and approval of the Assistant Commissioner (ACIR), LTS. Accordingly, the RFDs and RAD shall not prepare the corresponding Journal Entry Voucher (JEV) without the appropriate written recommendation from the RCDs and ACIR, LTS, respectively. The RAD shall be regularly provided by the RFDs with a copy of all the documents pertinent to adjustments made in the RO-Collection Books, for purposes of updating the RAD’s records. The basis of recognition of tax collections in the Collection Books shall be the collection date and not the booking date. The term “collection date” refers to the actual date when the tax payment is received by the BIR through the different payment channels, while the term “booking date” refers to the date when the tax collection is actually uploaded/encoded in the ITS-CBR/eTISCRR. For recording of tax collections based on the collection dates thereof across the different payment channels, the provisions of Revenue Memorandum Circular (RMC) No. 17-2012 shall be strictly observed. With respect to taxes collected by the Revenue Collection Officers (RCOs), where the Electronic Revenue Official Receipts issued are being used by the RFDs as basis of recording in the RO-Collection Books, even if such recorded collections are not yet actually deposited by the concerned RCOs with the Authorized Government Depository Bank (AGDB) during the month of collection, the amount of the undeposited/unremitted tax collections shall be duly disclosed by the RFDs, as footnote, in the monthly Statement of Internal Revenue Collection (SIRC) attached to the trial balance to be submitted to the RAD. These information shall be the basis of the RAD in the reconciliation of the total tax collections from RCOs against the corresponding total collection data recorded by the Bureau of Treasury (BTr). In preparing BIR Form No. 12.09, the amount of taxes collected by RCOs to be reflected in the said report shall be based on the actual dates when the RCO collections are deposited with the AGDB. To further ensure that tax collections are accurately recorded and reflected in the ITSCBR/eTIS-CRR, the following requirements shall be strictly observed: a. All RCOs shall properly accomplish the deposit slips in a clear and legible manner. The RCOs shall ensure that the AGDB-machine validation on the deposit details are reflected in a clear and readable manner before leaving the AGDB premises. b. For Special Allotment Release Order (SARO) and Bangko Sentral ng Pilipinas (BSP) direct crediting transactions (such as BSP checkless payment, payment thru the Philpass facility made by large and non-large taxpayers, tax payments made by the BTr, NIA-CASECNAN and all other government agencies using the direct crediting facility), the same shall be encoded in the ITS-CBR/eTIS-CRR by the concerned RDOs based on the BTr JEVs, together with supporting documents (such as BSP credit advice as proof of payment, agency JEV and the like), as provided by the RAD. Accordingly, the same shall be recorded in the NO-Collection Books and RO-Collection Books by the RAD and all concerned RFDs, respectively. c. It shall be the responsibility of the concerned RDO that tax collections across all payment channels are timely and correctly uploaded/encoded in the ITS-CBR/eTISCRR, in cases where the tax collections in the ITS-CBR/eTIS-CRR are incomplete due to non-uploading, or erroneous uploading/encoding thereof. For this purpose and on matters pertaining to non-uploading of collection data in the ITS-CBR/eTIS-CRR, the concerned RDO shall immediately coordinate with the concerned RDC to resolve the issue(s) attendant thereto. The daily collection data contained in the Consolidated Reports of Daily Collection (CRDCs) that are manually-submitted by the Authorized Agent Bank-Head Offices (AAB-HOs) to the RAD shall be electronically transmitted, on a per RDO and AAB-branch basis, to the concerned RDOs, RCDs and RFDs, within two (2) days from receipt thereof. In cases where the electronically transmitted CRDCs by the AABs have not yet been uploaded in the ITS-CBR/eTIS-CRR, the manually-submitted CRDCs by the AAB-HOs that were subsequently transmitted by the RAD shall be used by the concerned RDOs, RCDs and RFDs for validation and reconciliation with the daily Batch Control Sheets and the appropriate recording thereof to the RO-Collection Books. The RAD shall, on a monthly basis, reconcile the List of Remittances received from the BSP with the CRDCs and BTr JEVs transmitted by the AAB-HOs and BTr, respectively. Any discrepancy/ies therefrom shall be immediately coordinated by the RAD with the concerned RDOs, RCDs and RFDs; and the same shall be considered as a reconciling item that shall be taken up as adjustment to the previously recorded tax collection in the RO-Collection Books. To determine the appropriate RDO where the tax collections shall be credited, the Data Warehousing and Systems Operations Division (DWSOD) shall generate thru the ITS/eTIS a bimonthly Transfer In and Transfer Out Collection Report as of the 15th and end of each month containing the “transfer in” and “transfer out” transactions. The said report shall be transmitted to the concerned RDOs, for verification purposes, copy furnished the RAD, RCDs and RFDs, not later than three (3) days immediately after the fifteen-day period of the month covering the said transactions. The recording by the RFDs of “transfer in” and “transfer out” transactions shall be governed by the provisions specified in the Order. All concerned RDOs and LTS offices shall prepare their respective Report on Validated Collections for Booking in the NO and RO-Collection Books per channel of payment after performing all the reconciliation procedures. The RAD and all the concerned RFDs shall utilize the applicable account codes of the Unified Accounts Code Structure (UACS) pursuant to the Commission on Audit (COA) Resolution No. 2014-003 dated January 24, 2014, for purposes of recording the tax collections across all payment channels in the NO and RO-Collection Books. The RAD shall provide the concerned LT offices, RDOs, RCDs and RFDs with COA-Prescribed Account Codes per UACS Per Tax Type containing the existing Alphanumeric Tax Codes (ATCs) with applicable UACS codes, on a per tax type basis. Accordingly, all RDOs and concerned LTS offices shall ensure that the applicable account codes of the UACS are properly reflected in each and every Report on Validated Collections for Booking in NO-RO Collection Books Per Channel of Payment that are being submitted to the RAD and RFDs, thru the RCDs, as the case may be. All RFDs as well as the RAD shall prepare and submit to the concerned offices the prescribed reports specified in the Order. However, in meritorious cases wherein any concerned RFD cannot prepare and submit any of the said prescribed financial reports within the set deadline on the ground that there are collection data that have not yet been received/accounted for, or the validation or reconciliation thereof has not yet been completed, a tentative financial report(s) shall be submitted to the concerned offices containing the initially completed, validated and/or reconciled collection data. An amended financial report(s) shall be submitted superseding the previously submitted tentative financial reports(s) within fifteen (15) days after the deadlines. Accordingly, in the preparation of the amended financial report(s), the upward and/or downward adjustments to the previously submitted tentative financial report(s) shall only reflect the collection data pertaining to the specific collection month/quarter/year being adjusted. The RAD shall prepare the BTr Daily Report on BIR Deposited Collections to AGDB Branches and electronically transmit the same to the concerned RDOs, RCDs and RFDs within five (5) days from receipt of the BTr JEVs and the supporting documents from the BTr. The withholding taxes collected from the National Government Agencies shall be recorded based on the Tax Remittance Advices (TRAs) generated by the eTRA System, except for manually-prepared TRAs, as may be authorized by the Commissioner of Internal Revenue. All 2015 tax collections that were previously reconciled by the RAD and subsequently sorted and transmitted on a monthly basis to all the concerned RDOs shall be re-transmitted by the RAD to the said RDOs, including the RCDs and RFDs. Unless these 2015 collection data have been fully reconciled by the RDOs with the RAD, the same shall be used as the base figures in preparing the monthly comparative reports by the said concerned Regional Offices. In cases where there are adjustments to the 2015 tax collections of other concerned RDOs that were reported to the RAD, as a result of the said reconciliation, the same shall be immediately communicated in writing by the RAD to all the affected RDOs. All adjustments to tax collections covering 2015 and all prior years, as validated with the BTr, shall be recorded and transmitted in writing by the RAD to the concerned RFDs, RCDs and RDOs, for purposes of adjustment in their respective comparative collection reports. The provisions of this Order shall cover all tax collections, thru all payment channels, received by the BIR upon effectivity hereof. However, the tax collections from January 1, 2016 to June, 2016 thru the AABs, Direct Crediting (ie., BSP checkless payment, PhilpaSS availed by nonlarge taxpayers, tax payments made by the BTr, NIA-CASECNAN and all other government agencies availing the direct crediting facility) and SAROs that were already reconciled, recorded and reported by the RAD shall be transferred to the concerned RFDs, through the corresponding JEVs, including the applicable supporting documents. Accordingly, the concerned RFDs shall prepare the corresponding JEVs to effect such transfer of recorded tax collections by the RAD.