REVENUE MEMORANDUM ORDER NO. 4-2006 issued on January 27, 2006 prescribes the guidelines and procedures in the conduct of benchmarking and adapts/implements the performance benchmarking method in the Revenue District Offices (RDOs). Initial coverage of the Order will be the top 200 taxpayers per line of industry per district based on gross sales as reflected in the tax returns, or actual gross sales/receipts as determined from sources within and outside the Bureau, whichever is higher. The number of taxpayers will be increased until all taxpayers of all industries have been fully covered, which is targeted to happen on or before end of calendar year 2008. Benchmarking shall be separate for corporations and individuals, and it shall be on a per area, per line of industry and per tax type basis. It shall be done in the districts by preparing a profile of taxpayers per taxable year. Based on tax returns and data from other sources within and outside the Bureau, RDOs shall determine the specific industry target/coverage to be benchmarked. Priority industries for benchmarking covering taxable year 2004 are the following: a. Manufacturing (Flour, Softdrinks, Sugar, Cement and Plastic) b. Hardware c. Restaurants d. Shipping e. IT Providers f. Telecommunication g. Call Centers h. Logistics Providers (Arrastre, Stevedoring, Freight, Trucking and Courier Services) i. Construction j. Petroleum In cases where Letters of Authority have been issued to taxpayers subject of benchmarking, the RDO shall not close the case without taking into consideration the prescribed benchmarks. RDOs shall submit a Monthly Report on the Status of Benchmarking Activities to the Regional Director through the Regional Committee, which is created for this purpose, on or before the 5th day of the following month. The Regional Committee shall consolidate the reports of the districts and submit a Consolidated Report on Benchmarking Activities (to the Deputy Commissioner for Operations, copy furnished the Assessment Service, on or before the 10th day of the following month. Appropriate cases will be filed against taxpayers who will be found to have supplied fabricated data or incorrect information just to meet the benchmark requirements.