General Course for Revenue Officers BPRTC 300 Slide 1

TMD
BASIC PROCEDURES
& REQUIREMENTS FOR
TAXPAYERS CONCERN
Module 300
General Course for Revenue Officers BPRTC 300 Slide 2
TMD
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 of
taxes;
Name and describe the basic functions of the
different divisions in the BIR Regional Office; and
Know how to claim tax refund and get tax clearance.
General Course for Revenue Officers BPRTC 300 Slide 3
TMD
Registration of New Taxpayers
Person subject to internal revenue shall register to the
appropriate 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
General Course for Revenue Officers BPRTC 300 Slide 4
TMD
List of Major Fomrs (ENCS)
FORM NO. FORM TITLE
0605 Payment Form
1600 Monthly Remittance Return of
Value-Added Tax and Other
Percentage Taxes Withheld
(Under RAS 1051, 7649, 8241 and
8424)
1600-WP Remittance Return of Percentage
Tax on Winnings and Prizes Withheld
by Race Track Operators
1601-C Monthly Remittance of Income Taxes
Withheld on Compensation
General Course for Revenue Officers BPRTC 300 Slide 5
TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
1601-E Monthly Remittance Return of
Creditable Income Taxes Withheld
(Expanded) (Except for transactions
involving onerous transfer of real
property classified as ordinary
asset)
1601-F Monthly Remittance Return of Final
Income Taxes Withheld
1602 Quarterly Remittance Return of
Final Income Taxes Withheld (On
Interest Paid On Deposits And Yield
On Deposit Substitutes/Trusts/Etc.)
General Course for Revenue Officers BPRTC 300 Slide 6
TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
1603 Quarterly Remittance Return of
Final Income Taxes Withheld (On
Fringe Benefits Paid to Employees
Other Than Rank and File)
1604-E Annual Information Return of
Credible Income Taxes
Withheld(Expanded)/Income
Payments Exempt from Withholding
Tax
General Course for Revenue Officers BPRTC 300 Slide 7
TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
1604-CF Annual Information Return of
Income Taxes Withheld on
Compensation and Final
Withholding Taxes
1606 Withholding Tax Remittance Return
(For Onerous Transfer of Real
Property Other Than Capital Asset
Including Taxable and Exempt)
General Course for Revenue Officers BPRTC 300 Slide 8
TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
1700 Annual Income Tax Return (for
Individuals Earning Compensation
Income-Including Non-
Business/Non-Professionals
Related income)
1701 Annual Income Tax Return (For
Self-Employed, Professionals,
Estates and Trusts - Including
Those with both Business and
Compensation Income)
General Course for Revenue Officers BPRTC 300 Slide 9
TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
1701Q Quarterly Income Tax Return (For
Self-Employed, Professionals,
Estates and Trusts - Including
those with both Business and
Compensation Income)
1702 Annual Income Tax Return (For
Corporations and Partnerships)
1702Q Quarterly Income Tax Return (For
Corporations and Partnerships)
General Course for Revenue Officers BPRTC 300 Slide 10
TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
1703 Annual Income Information Return
(For Non-Resident Citizens/OCWs
and Seamen - For Foreign-Sourced
Income)
1706 Capital Gains Tax Return (For
Onerous Transfer of Real Property
classified as Capital Asset - both
Taxable and Exempt)
1707 Capital Gains Tax Return (For
Onerous Transfer of Shares of
Stock Not Traded Through the
Local Stock Exchange)
General Course for Revenue Officers BPRTC 300 Slide 11
TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
1707-A Annual Capital Gains Tax Return
(For Onerous Transfer of Shares of
Stock Not Traded Through The
Local Stock Exchange)
1701-A1F Account Information Form (For Self-
Employed, Estate and Trust)
1702-A1F Account Information Form (For
Corporations and Partnerships)
1800 Donor's Tax Return
1801 Estate Tax Return
General Course for Revenue Officers BPRTC 300 Slide 12
TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
2000 Documentary Stamp Tax
Declaration/Return
2304 Certificate of Income Payment Not
Subject to Withholding
Tax (Excluding Compensation
Income)
2305 Certificate of Update of Exemption
and of Employer's and Employees
Information
2306 Certificate of Final Income Tax
Withheld
General Course for Revenue Officers BPRTC 300 Slide 13
TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
2307 Certificate of Credible Tax Withheld
at Source
2316 Employer's Certificate of
Compensation Payment/Tax
Withheld (For Compensation
Payment With or Without Tax
Withheld)
2550M Monthly Value-Added Tax
Declaration
2550Q Quarterly Value-Added Tax Return
General Course for Revenue Officers BPRTC 300 Slide 14
TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
2550Q Quarterly Value-Added Tax Return
2551 Quarterly Percentage Tax Return
(Except Transactions Involving
Shares of Stock Listed and Traded
Through The Local Stock
Exchange, and Percentage Tax
Payable Under Special Laws)
General Course for Revenue Officers BPRTC 300 Slide 15
TMD
List of Major Forms (ENCS)
FORM NO. FORM TITLE
2552 Percentage Tax Return (For
Transactions Involving Shares of
Stocks Listed & Traded Through
The Local Stock Exchange or
Through Initial and/or Secondary
Public Offering)
2553 Return of Percentage Tax Payable
Under Special Laws
General Course for Revenue Officers BPRTC 300 Slide 16
TMD
Filing & Payment as to Kind of Taxes
Persons liable to pay any internal revenue tax shall file a
return covering all transactions of the return period.
Payment of returns with either of the following - Authorized
Agents Bank, a Revenue Collection Officer, duly authorized
City or Municipal treasurer within the jurisdiction of the
Revenue District Office.
In case of no payment, returns should be filed directly to the
Regional District Office where the taxpayer is registered.
General Course for Revenue Officers BPRTC 300 Slide 17
TMD
THE ASSESSMENT DIVISION AND
THE REFUND PROCESS
Functions of the Assessment Division
Develop regional programs, standards and other measures necessary
to implement the assessment prescribed by the National Office;
administer, monitor and evaluate said assessment programs and
recommend 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 Investigation
Division (SID) which do not involve tax fraud criminal prosecution;
General Course for Revenue Officers BPRTC 300 Slide 18
TMD
THE ASSESSMENT DIVISION AND
THE REFUND PROCESS
Functions of the Assessment Division
Review and act on all letters of protests, requests for reinvestigation
and similar communications;
Prepare, approve and monitor/ issuance of preliminary assessment
notice and assessment notice/ demand letter;
Supervise and coordinate submission of assessment reports by
RDOs and consolidate such reports; and
Perform such other related functions as may be assigned.
General Course for Revenue Officers BPRTC 300 Slide 19
TMD
THE DIFFERENT SECTIONS IN THE
ASSESSMENT DIVISION
Assessment Programs and Performance Audit
Section
Review and Evaluation Section
Tax Billing Section
Regulatory Operations Monitoring Section
General Course for Revenue Officers BPRTC 300 Slide 20
TMD
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)
General Course for Revenue Officers BPRTC 300 Slide 21
TMD
TAX REFUND FLOW CHART
ADMINISTRATIVE 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 Division
Fund Transfer (IOM)
ADMINISTRATIVE DIVISION
Mail TRN after five (5) days after DA
Taxpayer
LANDBANK
PU Issued Refund
General Course for Revenue Officers BPRTC 300 Slide 22
TMD
THE SPECIAL INVESTIGATION DIVISION
Function of the Assessment Division
Develop regional program, plans, standards, and other measures
necessary to implement the tax fraud investigation and intelligence
programs described by the National Office;
Develop criminal tax cases and conduct intelligence operation to
detect, prevent and neutralize and individuals and organizations
involved in syndicated crimes, smuggling and use of fake BIR
accountable forms;
Conduct or undertake the investigation and/ or recommend
reinvestigation of tax fraud cases referred by the Intelligence and
Investigation Division and cases referred by the RDO;
General Course for Revenue Officers BPRTC 300 Slide 23
TMD
THE SPECIAL INVESTIGATION DIVISION
Conduct liaison activities with other intelligence, police and
investigative agencies for the conduct of arrests raids and seizures;
Coordinate and integrate all intelligence activities of the district offices
of the region;
Prepare and submit regional accomplishment report or tax fraud
investigation and intelligence operations to the National Office;
Conduct the reinvestigation of administrative cases against personnel
within the region involving light offenses and on those referred by the
Intelligence and Investigation Service (IIS) ; and
Perform such other related functions as may be assigned.
General Course for Revenue Officers BPRTC 300 Slide 24
TMD
THE SPECIAL INVESTIGATION DIVISION
Different Sections in the SID are:
Intelligence Operation Section
Tax Fraud Investigation Section
General Course for Revenue Officers BPRTC 300 Slide 25
TMD
THE COLLECTION DIVISION AND
BIR CLEARANCE
Functions of the Collection Division
Develop regional programs, plans, standards and other measures
necessary to implement the collection programs and accounting of
revenues prescribed by the National office;
Monitor and evaluate the implementation of the said collection
programs and recommend improvements thereto to the National
Office;
Maintain liaison with the accredited banks and ascertain compliance
with the remittance procedures;
Maintain records of accounts receivable within the region and issue
notice of delinquency and Tax Clearance Certificates;
General Course for Revenue Officers BPRTC 300 Slide 26
TMD
THE COLLECTION DIVISION AND
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 of
the region;
Monitor all matters pertaining to acquired assets within the region;
Supervise and coordinate submission of reports on collections and
on registration and regulatory operations;
General Course for Revenue Officers BPRTC 300 Slide 27
TMD
THE COLLECTION DIVISION AND
BIR CLEARANCE
Evaluate offers of compromise settlement of delinquent accounts;
Prepare and issue ATCA on cases settled by compromise including
those under suspense file and recommendations for closure; and
Perform such other related functions as may be assigned.
Different Sections in the Collection Division are:
Collection Programs and Performance Audit Section
Receivable Accounts Monitoring Section
Withholding Agents Monitoring Section
General Course for Revenue Officers BPRTC 300 Slide 28
TMD
HOW TO GET TAX CLEARANCE
Secure and accomplish application form and have it notarized
For individual applicants:
1. Present latest income tax returns
2. Present authorization letter for representative
For single proprietors/ partnerships/ corporations:
Present:
1. Latest income tax returns
2. VAT registration certificate
3. Monthly/ Quarterly/ VAT returns
4. Authorization letter for representative
Required fees
1. Documentary Stamp P30.00
2. Certification Fee 15.00
Taxpayers record up-date duly received by RDOs concerned.
General Course for Revenue Officers BPRTC 300 Slide 29
TMD
THE LEGAL DIVISION AND TAX EXEMPTION
Functions of the Legal Division
Serve as the legal counsel in cases involving assessment and
collection of internal revenue taxes, fees, etc., within the region;
Evaluate situations referred by district offices concerning application
of 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 established
precedents;
Elevate to the National Office, cases for rulings or opinions, which
involve national policies or where there are no established
precedents;
General Course for Revenue Officers BPRTC 300 Slide 30
TMD
THE LEGAL DIVISION AND TAX EXEMPTION
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 same
to the Legal Service for review, evaluation and final approval of the
Commissioner;
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 the
Department of Justice in criminal prosecution of violators of the
National Revenue Code(NIRC) and related statutes;
General Course for Revenue Officers BPRTC 300 Slide 31
TMD
THE LEGAL DIVISION AND TAX EXEMPTION
Process claims for tax refund/credit of erroneously paid or illegally
collected taxes involving questions of law(s); Refer the same to the
Legal Service for review, evaluation and final approval of the
Commissioner;
Review and evaluate for the approval of the Regional Director the
reports and recommendations submitted by the RDOs regarding the
use of computerized books of accounts applications for tax
exemptions such as VAT exemption from corporate income tax under
Section 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
Perform such other related functions as may be assigned.
General Course for Revenue Officers BPRTC 300 Slide 32
TMD
THE LEGAL DIVISION AND TAX EXEMPTION
Different Sections in the Legal Division are:
Litigation and Prosecution Section
Appellate and Personal Inquiry Section
Law Section