Revenue bureau adopts new procedures in taxpayer service

TO DELIVER better taxpayer service is an initiative of the Bureau of Internal Revenue (BIR) to improve taxpayer satisfaction and compliance, which is one of its priorities geared towards improvement in tax administration.

BIR Commissioner Joel L. Tan-Torres said part of this initiative is the adoption of new procedures in the filing of income tax returns (ITRs) and payment of taxes especially this tax filing season.

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He added that the thrust of the bureau’s projects and programs are geared towards achieving service excellence to maximize voluntary compliance of taxpayers which the BIR believed is the most effective means of revenue collection.

Certain issuances have been implemented to effect these new procedures.

These issuances include Revenue Memorandum (RMO) 6-2010, as amended by RMO 13-2010, which simplified the rules on receipt of ITRs, attachments and financial statements; RMO 5-2010 which prescribed the, “All Year-Round No Noon Break Policy” and RMO 2-2010 which set policies on the receipt of payments during the April 15 deadline.

Memorandum of Agreements (MOA) have also been forged by BIR and other agencies particularly the Securities and Exchange Commission (SEC) to make effective issuance of RMO 6-2010, as amended by RMO 13-2010, in order to minimize if not take away queues during the filing season and with the Land Transportation Office (LTO) to clarify who are not required to secure Taxpayer Identification Numbers (TINs) as a condition for applications for driver’s license.

Bank Bulletin 2010-09 was also issued, directing Authorized Agent Banks (AABs) to open on two consecutive Saturdays to accept tax payments and to extend their banking hours up to 5 p.m. for a certain period during the filing season.

The new procedures showed the simplified rules on receipt of ITRs, attachments and Annual Financial Statements (AFS) to result in no more queues during filing season.

Instead of the time-consuming process of stamping on all the pages of documents attached to the ITRs that result in long taxpayers’ queues in the banks and BIR district offices, the BIR has entered into a MOA with SEC whereby all BIR offices and AABs shall receive only three copies of the ITR and shall stamp only the first page of the ITR, the external auditor’s certification, income statement and balance sheet.

Accordingly, the other pages of the financial statements need not be stamped “received” anymore.

The new procedure also state that SEC shall require only one copy of the complete AFS, with the External Auditor’s Certification, Balance Sheet and Income Statement duly stamped by the BIR or AABs, and two sets of photocopies.

Meanwhile, the BIR implemented the All Year-Round No Noon Break Policy in all its offices tasked to deliver frontline services to taxpayers to ensure uninterrupted taxpayer service that would result to increased voluntary compliance and eventually help raise tax collection.

Pursuant to RMO 5-2010, all frontline service offices in the bureau are obliged to adopt a work schedule on a rotation basis, where all needed assistance to taxpayers are provided for during working hours, even at noon time, all year through, to guarantee uninterrupted taxpayer service.

It is also embodied in the issuance that service shall be made available to taxpayers who are already within the BIR offices at 5 p.m., until they have completed their transaction with the bureau.

It was also made imperative for concerned offices to make certain the availability of electronic taxpayer services for 24 hours, seven days a week. The frontline service offices included are the Large Taxpayers Service, Collection Service, Assessment Service, Taxpayers Assistance Service, Legal Service and all the divisions under said services.

The BIR, on the other hand, issued a directive through RMO 2-2010, setting no limitation in the amount of cash or check that shall be accepted by Revenue Collection Officers (RCOs) in areas where there are AABs, as payment of annual income taxes using BIR Form 1700, 1701 and 1702, during the April 15, 2010 deadline, to serve the taxpayers better.

However, for all other taxes, payment in cash should not exceed P20,000 per return, otherwise the Bureau shall not accept the tax payment and issue Revenue Official Receipt (ROR).

Only payments made through checks shall have no limitation on the amount for all taxes shall be accepted by the bureau.

The RMO further stated that the issuance of RORs for annual income tax payment of individual taxpayers and calendar-period corporate taxpayers shall start five days working days prior to and until April 15.

The BIR signed a MOA with the LTO clarifying persons who are not required to secure TIN in their applications for driver’s license. The individuals include accredited foreign personnel of diplomatic missions and international organizations; individuals not engaged in business such as minors, students, househelpers, housewives, balikbayans and the like provided that they are securing a non-professional driver’s license, foreigners such as tourists, foreign students, foreign missionaries; and professional members of religious organizations, such as priests, pastors, nuns, lay ministers and missionaries.

The BIR offices and its agent banks would open on two Saturdays -- March 27, 2010 (in lieu of April 3 which is Black Saturday) and April 10 to accept tax payments.

They are also requested to extend their banking hours up to 5 p.m., from April 5 to April 15, 2010 to accept tax returns and payments, which was contained in Bank Bulletin 2010-09 in accordance with the provisions of the Memorandum of Agreement between the AABs, the BIR and the Bureau of Treasury. (PR)