Basic Proc.

8/12/2019 Basic Proc.

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General Course for Revenue Officers BPRTC 300 Slide 1TMD

BASIC PROCEDURES

& REQUIREMENTS FORTAXPAYERS CONCERN

Module 300


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Objectives

Know the basic procedures and requirements for the

registration of new taxpayers;

Identify the different BIR Forms;

Know the filing of different returns and payment oftaxes;

Name and describe the basic functions of thedifferent divisions in the BIR Regional Office; and

Know how to claim tax refund and get tax clearance.


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Registration of New Taxpayers

Person subject to internal revenue shall register to theappropriate Revenue District Officer:

within 10 days from date of employment or

on or before the commencement of business or before payment of any tax due, or upon filing of a return, statement or declaration as

required in the NIRC


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List of Major Fomrs (ENCS)

FORM NO. FORM TITLE

0605 Payment Form

1600 Monthly Remittance Return ofValue-Added Tax and OtherPercentage Taxes Withheld

(Under RAS 1051, 7649, 8241 and8424)

1600-WP Remittance Return of PercentageTax on Winnings and Prizes Withheld

by Race Track Operators

1601-C Monthly Remittance of Income TaxesWithheld on Compensation


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List of Major Forms (ENCS)

FORM NO. FORM TITLE

1601-E Monthly Remittance Return ofCreditable Income Taxes Withheld(Expanded) (Except for transactionsinvolving onerous transfer of realproperty classified as ordinary

asset)

1601-F Monthly Remittance Return of FinalIncome Taxes Withheld

1602 Quarterly Remittance Return ofFinal Income Taxes Withheld (OnInterest Paid On Deposits And YieldOn Deposit Substitutes/Trusts/Etc.)


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FORM NO. FORM TITLE

1603 Quarterly Remittance Return ofFinal Income Taxes Withheld (OnFringe Benefits Paid to EmployeesOther Than Rank and File)

1604-E Annual Information Return ofCredible Income TaxesWithheld(Expanded)/IncomePayments Exempt from WithholdingTax


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FORM NO. FORM TITLE

1604-CF Annual Information Return ofIncome Taxes Withheld onCompensation and FinalWithholding Taxes

1606 Withholding Tax Remittance Return(For Onerous Transfer of RealProperty Other Than Capital AssetIncluding Taxable and Exempt)


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FORM NO. FORM TITLE

1700 Annual Income Tax Return (forIndividuals Earning CompensationIncome-Including Non-Business/Non-Professionals

Related income)

1701 Annual Income Tax Return (ForSelf-Employed, Professionals,Estates and Trusts - Including

Those with both Business andCompensation Income)


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FORM NO. FORM TITLE

1701Q Quarterly Income Tax Return (ForSelf-Employed, Professionals,Estates and Trusts - Includingthose with both Business and

Compensation Income)

1702 Annual Income Tax Return (ForCorporations and Partnerships)

1702Q Quarterly Income Tax Return (ForCorporations and Partnerships)


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FORM NO. FORM TITLE

1703 Annual Income Information Return(For Non-Resident Citizens/OCWsand Seamen - For Foreign-SourcedIncome)

1706 Capital Gains Tax Return (ForOnerous Transfer of Real Propertyclassified as Capital Asset - bothTaxable and Exempt)

1707 Capital Gains Tax Return (ForOnerous Transfer of Shares ofStock Not Traded Through theLocal Stock Exchange)


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FORM NO. FORM TITLE

1707-A Annual Capital Gains Tax Return(For Onerous Transfer of Shares ofStock Not Traded Through TheLocal Stock Exchange)

1701-A1F Account Information Form (For Self-Employed, Estate and Trust)

1702-A1F Account Information Form (ForCorporations and Partnerships)

1800 Donor's Tax Return

1801 Estate Tax Return


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FORM NO. FORM TITLE

2000 Documentary Stamp TaxDeclaration/Return

2304 Certificate of Income Payment NotSubject to Withholding

Tax (Excluding CompensationIncome)

2305 Certificate of Update of Exemptionand of Employer's and Employees

Information

2306 Certificate of Final Income TaxWithheld


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FORM NO. FORM TITLE

2307 Certificate of Credible Tax Withheldat Source

2316 Employer's Certificate ofCompensation Payment/Tax

Withheld (For CompensationPayment With or Without TaxWithheld)

2550M Monthly Value-Added Tax

Declaration

2550Q Quarterly Value-Added Tax Return


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FORM NO. FORM TITLE

2550Q Quarterly Value-Added Tax Return

2551 Quarterly Percentage Tax Return(Except Transactions InvolvingShares of Stock Listed and Traded

Through The Local StockExchange, and Percentage TaxPayable Under Special Laws)


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FORM NO. FORM TITLE

2552 Percentage Tax Return (ForTransactions Involving Shares ofStocks Listed & Traded ThroughThe Local Stock Exchange or

Through Initial and/or SecondaryPublic Offering)

2553 Return of Percentage Tax PayableUnder Special Laws


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Filing & Payment as to Kind of Taxes

Persons liable to pay any internal revenue tax shall file areturn covering all transactions of the return period.

Payment of returns with either of the following - AuthorizedAgents Bank, a Revenue Collection Officer, duly authorized

City or Municipal treasurer within the jurisdiction of theRevenue District Office.

In case of no payment, returns should be filed directly to theRegional District Office where the taxpayer is registered.


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THE ASSESSMENT DIVISION AND

THE REFUND PROCESS

Functions of the Assessment Division

Develop regional programs, standards and other measures necessaryto implement the assessment prescribed by the National Office;administer, monitor and evaluate said assessment programs andrecommend improvements thereto;

Provide liaison and coordination with other regions when investigation/audit involves assistance from district offices outside the region;

Evaluate training needs of Revenue Officers on assessment matters;

Review audit reports coming from RDO and Special InvestigationDivision (SID) which do not involve tax fraud criminal prosecution;


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THE ASSESSMENT DIVISION AND

THE REFUND PROCESS

Functions of the Assessment Division

Review and act on all letters of protests, requests for reinvestigationand similar communications;

Prepare, approve and monitor/ issuance of preliminary assessment

notice and assessment notice/ demand letter;

Supervise and coordinate submission of assessment reports byRDOs and consolidate such reports; and

Perform such other related functions as may be assigned.


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THE DIFFERENT SECTIONS IN THE

ASSESSMENT DIVISION

Assessment Programs and Performance AuditSection

Review and Evaluation Section

Tax Billing Section

Regulatory Operations Monitoring Section


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HOW TO CLAIM TAX REFUND

Requirements in Claiming Tax Refund (RMO 39-94

dated May 6, 1994)

Income tax return for the year

TIN I.D. Card

Valid employees ID issued by employer

Authorization (if authorized representative)


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TAX REFUND FLOW CHARTADMINISTRATIVE DIVISION

Receive TRP

TRP Summary/ Diskette, NFT, SAA

ASSESSMENT DIVISION

Certify expenses necessary and

lawful

FINANCE DIVISON

Batch TRP check/ match.Draw UV to effect receipt of SAA Prepare DA

ASSISTANT DIRECTOR

Approve TRP Summary

Prepare DA

FINANCE DIVISION

Certify availability of funds.

Draw UV to effect debit accounts by LBP

LANDBANK

Issue Debit Advice to BIR

CC Administrative DivisionFund Transfer (IOM)

ADMINISTRATIVE DIVISION

Mail TRN after five (5) days after DA

Taxpayer

LANDBANKPU Issued Refund


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THE SPECIAL INVESTIGATION DIVISION

Function of the Assessment Division

Develop regional program, plans, standards, and other measuresnecessary to implement the tax fraud investigation and intelligenceprograms described by the National Office;

Develop criminal tax cases and conduct intelligence operation to

detect, prevent and neutralize and individuals and organizationsinvolved in syndicated crimes, smuggling and use of fake BIRaccountable forms;

Conduct or undertake the investigation and/ or recommendreinvestigation of tax fraud cases referred by the Intelligence andInvestigation Division and cases referred by the RDO;


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Conduct liaison activities with other intelligence, police andinvestigative agencies for the conduct of arrests raids and seizures;

Coordinate and integrate all intelligence activities of the district officesof the region;

Prepare and submit regional accomplishment report or tax fraudinvestigation and intelligence operations to the National Office;

Conduct the reinvestigation of administrative cases against personnelwithin the region involving light offenses and on those referred by the

Intelligence and Investigation Service (IIS) ; and



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Different Sections in the SID are:

Intelligence Operation Section Tax Fraud Investigation Section


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THE COLLECTION DIVISION AND

BIR CLEARANCE

Functions of the Collection Division

Develop regional programs, plans, standards and other measuresnecessary to implement the collection programs and accounting ofrevenues prescribed by the National office;

Monitor and evaluate the implementation of the said collection

programs and recommend improvements thereto to the NationalOffice;

Maintain liaison with the accredited banks and ascertain compliancewith the remittance procedures;

Maintain records of accounts receivable within the region and issuenotice of delinquency and Tax Clearance Certificates;


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BIR CLEARANCE

Execute the final judgment on appealed cases;

Coordinate and oversee the sale of forfeited properties;

Set-up the control and accounting of receivable accounts;

Prepare and issue Tax Debit memo (TDM) based on Tax Credit

Certificates (TCC) submitted by taxpayers within the jurisdiction ofthe region;

Monitor all matters pertaining to acquired assets within the region;

Supervise and coordinate submission of reports on collections andon registration and regulatory operations;


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BIR CLEARANCE

Evaluate offers of compromise settlement of delinquent accounts;

Prepare and issue ATCA on cases settled by compromise includingthose under suspense file and recommendations for closure; and


Different Sections in the Collection Division are:

Collection Programs and Performance Audit Section

Receivable Accounts Monitoring Section Withholding Agents Monitoring Section


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HOW TO GET TAX CLEARANCE

Secure and accomplish application form and have it notarized

For individual applicants:

1. Present latest income tax returns2. Present authorization letter for representative

For single proprietors/ partnerships/ corporations:Present:

1. Latest income tax returns

2. VAT registration certificate3. Monthly/ Quarterly/ VAT returns4. Authorization letter for representative

Required fees

1. Documentary Stamp P30.002. Certification Fee 15.00

Taxpayers record up-date duly received by RDOs concerned.


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THE LEGAL DIVISION AND TAX EXEMPTION

Functions of the Legal Division

Serve as the legal counsel in cases involving assessment andcollection of internal revenue taxes, fees, etc., within the region;

Evaluate situations referred by district offices concerning applicationof a revenue ruling, technical advice or post-review memorandum and

if appropriate, refer them to the National Office;

Issue clearances and/ or legal clarifications based on establishedprecedents;

Elevate to the National Office, cases for rulings or opinions, whichinvolve national policies or where there are no establishedprecedents;


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Recommend action on disputed assessments to authorized officials

and review and recommend actions on offers of compromise;settlement of assessments involving question of law; refer the sameto the Legal Service for review, evaluation and final approval of theCommissioner;

Evaluate evidence of any case before judicial action, civil or criminal,is instituted and prepare corresponding pleadings and memoranda;

Assist the Provincial Prosecutors or State Prosecutors of theDepartment of Justice in criminal prosecution of violators of the

National Revenue Code(NIRC) and related statutes;


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Process claims for tax refund/credit of erroneously paid or illegallycollected taxes involving questions of law(s); Refer the same to the

Legal Service for review, evaluation and final approval of theCommissioner;

Review and evaluate for the approval of the Regional Director thereports and recommendations submitted by the RDOs regarding theuse of computerized books of accounts applications for taxexemptions such as VAT exemption from corporate income tax underSection 26 of NIRC, registration of Retirement Plan under RA No.4917, registration of Donee Institutions under Batas Pambansa No.45

and application for registration under the Law on Senior Citizen; and



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Different Sections in the Legal Division are:

Litigation and Prosecution Section

Appellate and Personal Inquiry Section

Law Section

Basic Proc.

Documents

Transcript of Basic Proc.