BIR at 99BIR at 99Strengthening TaxStrengthening Tax

Administration for a Administration for aSTRONG REPUBLICSTRONG REPUBLIC

AREAS OF TAX ADMINISTRATIONAREAS OF TAX ADMINISTRATION

REGISTRATION

AUDIT & ENFORCEMENT DECLARATION

PAYMENT

TP INFO. & EDUC.

PROBLEMDifficulty in getting timely, accurate and consistent tax informationImpactTaxpayers are discouraged/unable to voluntarily comply with tax requirementsResultLow taxpayer registration/compliance

SOLUTIONMake tax information easily accessible to taxpayersIntensify taxpayer awareness activities

TAXPAYER INFORMATION & EDUCATIONTAXPAYER INFORMATION & EDUCATION

TAXPAYER INFORMATION & EDUCATIONTAXPAYER INFORMATION & EDUCATIONBIR Website Provides updated tax

information (i.e. rulings, issuances, etc.), downloadable tax forms and access to BIR e-Services

Provides updated tax information (i.e. rulings, issuances, etc.), downloadable tax forms and access to BIR e-Services

TP Contacts BIR

KnowledgeDB

Call Center Agent

responds to questions

Fax On Demand Emailing Web InterfaceTelephone

TAXPAYER INFORMATION & EDUCATIONTAXPAYER INFORMATION & EDUCATIONContact Center

First and single point of contact where TP’s queries and feedback can be accurately and consistently handled

First and single point of contact where TP’s queries and feedback can be accurately and consistently handled

PARTNERS:ePLDT, Philcox, CIDA/PTTAF

TAXPAYER INFORMATION & EDUCATIONTAXPAYER INFORMATION & EDUCATIONeRaffle (Bayan, I-txt ang Resibo)

Aims to encourage consumers to habitually ask for invoices/receipts

Aims to encourage consumers to habitually ask for invoices/receipts

PARTNERS:

Globe, Smart, Red Ribbon, Starbucks, Enchanted Kingdom, Jollibee, Shoe Mart, TV networks

TAXPAYER REGISTRATIONTAXPAYER REGISTRATION

PROBLEM

Numerous documentary requirementsMany signatories in documentsComplicated proceduresDifficulty in monitoring taxpayer compliance with registration requirements

ImpactLow number of registrants

Result

Low taxpayer base

SOLUTION

Simplification of processing of ONETT transactions

Prescribing uniform procedures in evaluating applications for CAS Conduct of tax mapping activitiesTIN application via BIR websiteProvide venue to report establishments who are not issuing valid receipts or invoices

TIN Inquiry given the taxpayer’s full name and birth

date

TP

Display of Registration Form on the internet (to

enable taxpayer to

perform online registration)

TAXPAYER REGISTRATIONTAXPAYER REGISTRATIONeTIN

Web-based application system that allows taxpayers to secure/inquire on their TINs on-line

Web-based application system that allows taxpayers to secure/inquire on their TINs on-line

PARTNER:Oracle Phils.

Your application has been received.

You, <TP Name>, are now registered with

the BIR.

You Tax Identification Number is 300-000-

285-000.Automatic issuance of TIN

to new registrant

TAXPAYER REGISTRATIONTAXPAYER REGISTRATIONeRaffle (Bayan, I-txt ang Resibo)

Leads to identification of business establishments and professionals who are not registered with BIR

Leads to identification of business establishments and professionals who are not registered with BIR

PARTNERS:

Smart, Globe, Red Ribbon, Starbucks, Enchanted Kingdom, Jollibee, Shoe Mart, TV networks

BIR RO checks document

Text TIN, Inquiry or

Violation Code to BIR

Receives text messages

Sends validation results

TIN VerificationRR / Issuance InquiryRed Army Monitoring System

TAXPAYER REGISTRATIONTAXPAYER REGISTRATIONMobile Revenue Officers

On-the-spot check of tax compliance of business establishments wherein Revenue Officers can report instantly via SMS taxpayer violations

On-the-spot check of tax compliance of business establishments wherein Revenue Officers can report instantly via SMS taxpayer violations

PARTNER:Smart-MDI

TAX DECLARATIONTAX DECLARATION

PROBLEM

Difficulty in filing tax information with the BIR

System unavailability of EFPS during tax deadlines

ImpactTaxpayers are discouraged/unable to file tax returns

Result

Low number of tax returns filed

SOLUTION

Electronic filing of tax returns via eFPS

Expansion of coverage of eFPS to include more BIR Forms and more taxpayers

Enhancement of eFPS capacity through full outsourcing

Awarding to AyalaPort

April 23, 2003

eFiling and ePayment for Top 1000 of 43 Computerized RDOs by Dec 31, 2003

eFiling and ePayment of Top 1000 Taxpayers of All RDOs by Dec 31, 2004

eFiling and ePayment of all Taxpayers by 2005

Migration to the Internet Data Center by Aug 1, 2003

Review and Design of new eFPS June 30, 2003

Deployment of the New Expanded EFPS by Oct 31, 2003

TAX DECLARATIONTAX DECLARATIONeFPS Full Outsourcing

Enhancement and expansion of eFPS coverage and capacity through full outsourcing

Enhancement and expansion of eFPS coverage and capacity through full outsourcing

PARTNER:AyalaPort

Export Community

BIR Website

Allows the electronic submission of BIR requirements, such as tax returns, alphalist of compensation earners, list of payees covered by expanded withholding tax and schedules of Sales, Receipts and Purchases via the BIR Website

Allows the electronic submission of BIR requirements, such as tax returns, alphalist of compensation earners, list of payees covered by expanded withholding tax and schedules of Sales, Receipts and Purchases via the BIR Website

Taxpayer 1

Taxpayer 2

Taxpayer n

eSubmissionTAX DECLARATIONTAX DECLARATION

PARTNERS:PEZA, E-KONEK, SEIPI

Web-based automation of the preparation, transmittal and processing of the removal application for excise tax products

Web-based automation of the preparation, transmittal and processing of the removal application for excise tax products

PARTNER:E-KONEK

TAX DECLARATIONTAX DECLARATIONeExciseeExcise

PROBLEM

Difficulty in paying taxes (i.e. not enough AABs, strict payment venue requirement, etc.)Tax payment diversion

ImpactTaxpayers are discouraged to pay taxesTaxes paid do not go to govt. coffersResultLow revenue collection registered

SOLUTION

Electronic payment of taxes

Inclusion of more banks in eFPS through use of Payment Gateway

Notification of taxpayers on tax payments made

TAX PAYMENTTAX PAYMENT

Taxpayer in his office

/home/eCafe

BIReFPS

Banks

Payment ConfirmationInternet

Mandatory payment of tax via eFPS for identified large and non-large taxpayers

Mandatory payment of tax via eFPS for identified large and non-large taxpayers

TAX PAYMENTTAX PAYMENTMandatory eFPSMandatory eFPS

PARTNER:AyalaPort

eFPS was cited for Excellence in E-Governance (E-Payment category) in the E-Government Award

eBroadcasting

Automatic confirmation of payments made by taxpayers to BIR

thru Accredited Agent Banks (AABs) within 48 hours from

transaction date via e-mail, mobile phone and the BIR Website

Automatic confirmation of payments made by taxpayers to BIR

thru Accredited Agent Banks (AABs) within 48 hours from

transaction date via e-mail, mobile phone and the BIR Website BIR

TP views own payment

confirmation by entering TIN and

PIN

BIR WEB FACILITY(publishes payment confirmation in BIR

Website)

BIR MESSAGING FACILITY(sends machine to

machine payment data to TP mobile number)

TP receives payment confirmation thru text messaging

TP receives payment confirmation thru eMail

BIR EMAIL FACILITY

(sends eMail to TP of tax payment details)

PARTNERS:BAP, Smart, Globe, Oracle Phils., Sun Microsystems Phils. and e-Science Corp.

TAX PAYMENTTAX PAYMENT

Sends Uploading Feedback

Thrift Bank accepts Tax Payment & returns

eMail /Text Payment Report to BIR

Upload Payment Data to BIR

Mobile RO (for Thrift Banks)TAX PAYMENTTAX PAYMENT

Authorization of thrift banks to accept tax returns and paymentsAuthorization of thrift banks to accept tax returns and payments

PARTNER:Smart-MDI

Use of Bancnet ATM Gateway for on-line interface with eFPS

Use of Bancnet ATM Gateway for on-line interface with eFPS

*Allied Bank*China Bank(BPI/ Citytrust)*Metrobank*Equitable PCI Bank*RCBC*Security Bank*Union Bank/InterbankABN Amro BankBangko KreditoCentennial BankCitystate Savings BankEast West BankMalayan Bank Orion BankPlantersbankPS BankRCBC Savings BankAsia United BankBanco Filipino*Bank of Commerce (Panasia)*Chinatrust BankCitibank N.A.Export & Industry BankFirst E-Bank (PDCP Bank)Global Bank (Philbank)Manila BankMerchants Bank(Orient Bank)*PBCom*Philtrust Bank*Standard Chartered Bank*United Overseas Bank

FILING

PAYMENT

BIR eFPS

Payment GatewayTAX PAYMENTTAX PAYMENT

PARTNER:BANCNET

PROBLEMNeed to build TPI data for investigation purposes

Benchmarking of taxpayer performance with industry performance

Complaints by some taxpayers of harassment

ImpactDifficulty in monitoring level of taxpayer compliance as well as processing of data from taxpayers

Result

Actual collection falls below the tax potential

SOLUTIONRequire quarterly submission of Summary Lists of Sales and Purchases

Establish linkages with external agencies to build TPI data

No contact audit thru establishment of industry benchmarks

TAX AUDIT & ENFORCEMENTTAX AUDIT & ENFORCEMENT

TAX AUDIT & ENFORCEMENTTAX AUDIT & ENFORCEMENTeReport Card

GenerateCEO Report

Automatic LetterGeneration

Automatic Emailing

BIRDatawarehouse

TaxpayerCentric

Information

XXXXXXXXXXXX

Tax Payment

Tax Declaration

Third Party Information

Web Interface

Notification of taxpayer’s performance vs. pre-defined industry benchmarkNotification of taxpayer’s performance vs. pre-defined industry benchmark

PARTNER:SAS

TAX AUDIT & ENFORCEMENTTAX AUDIT & ENFORCEMENTSample of eReport Card

TAX AUDIT & ENFORCEMENTTAX AUDIT & ENFORCEMENTData Warehousing

Building of TPI database for cross-referencing with tax declarations to detect possible under-declaration of revenuesBuilding of TPI database for cross-referencing with tax declarations to detect possible under-declaration of revenues

PARTNER:SAS

TAX AUDIT & ENFORCEMENTTAX AUDIT & ENFORCEMENTText Mining

• Analyze “Text Messages” : - patterns of data - classify unusual behaviors for suspect fraud text message - group bus. establishments/professionals that do not issue valid receipts• Classify establishments/professionals with invalid TIN by RDO• Utilize sales information of texter to countercheck sales declared by establishments/professionals

• Investigate business establishments and professionals who do not issue valid receipts, including those with invalid TIN

SMART Text Entries

Globe Text Entries

RESIBO Mike Sy * TIN of OR * OR Num * Amount

NO OR ABC Store Bacobo St. Malate

BIR Regional District Offices

Captures in BIR eRaffle database business establishments/professionals who are not issuing valid receipts/invoices

Captures in BIR eRaffle database business establishments/professionals who are not issuing valid receipts/invoices

PARTNER:SAS

CONTINUOUS ENHANCEMENTCONTINUOUS ENHANCEMENT

TAXPAYER INFORMATION AND EDUCATIONExtension of BIR text raffle promo

Hard launch of BIR Contact Center

BIR Portal implementation

TAXPAYER REGISTRATIONE-payment of Registration Fees

Issuance/delivery of Plastic TIN Card and COR

TIN issuance for other types of individual taxpayers

Update of registration information

Accreditation of accounting firms for CAS registration

Accreditation of POS suppliers

Link with private organizations for provision of data capture of registration forms

TAX DECLARATION

eFPS full outsourcing

eFPS enhancements

TAX PAYMENT

Other mode of tax payments (i.e. ATM, Debit Card, etc.)

TAX AUDIT

LA/LN Monitoring

CONTINUOUS ENHANCEMENTCONTINUOUS ENHANCEMENT

STRONG TAX ADMINISTRATIONSTRONG TAX ADMINISTRATION

THRUST DESIRED RESULT

Taxpayers well-informed about their tax obligations

Enhanced voluntary compliance

Streamlined registration procedures

Increased taxpayer base

Convenient tax filing and payment

Increased number of filers/tax payments

Tax payments properly accounted for

No diversion of tax payments

No contact audit Enhanced transparency / no opportunity for corruption

STRONG TAX ADMINISTRATIONSTRONG TAX ADMINISTRATION

INCREASED TAX COLLECTIONSINCREASED TAX COLLECTIONS

STRONG REPUBLICSTRONG REPUBLIC