BIR at 99

Strengthening Tax
Administration for a
STRONG REPUBLIC
 AREAS OF TAX ADMINISTRATION

REGISTRATION

AUDIT & TP INFO.

ENFORCEMENT & EDUC. DECLARATION

PAYMENT
 TAXPAYER INFORMATION & EDUCATION

PROBLEM SOLUTION
Difficulty in getting Make tax information
timely, accurate and easily accessible to
consistent tax
information taxpayers
Impact Intensify taxpayer
Taxpayers are awareness activities
discouraged/unable to
voluntarily comply with
tax requirements
Result
Low taxpayer
registration/compliance
TAXPAYER INFORMATION & EDUCATION
BIR Website Provides
Providesupdated
updatedtax
tax
information
information(i.e.
(i.e.rulings,
rulings,
issuances,
issuances,etc.),
etc.),downloadable
downloadable
tax
taxforms
formsand
andaccess
accessto toBIR
BIRe-
e-
Services
Services
 TAXPAYER INFORMATION & EDUCATION
Contact Center
PARTNERS:
ePLDT, Philcox,
TP Contacts CIDA/PTTAF
BIR

Telephone Fax On Demand Emailing Web Interface

First
Firstand
andsingle
singlepoint
pointof
of
contact
contactwhere
whereTP’s
TP’s
queries
queriesand
andfeedback
feedbackcan
can Call Center Knowledge
be
beaccurately
accuratelyand
and Agent DB
consistently
consistentlyhandled
handled responds to
questions
 TAXPAYER INFORMATION & EDUCATION
eRaffle (Bayan, I-txt ang Resibo)

Aims
Aimstotoencourage
encourage
consumers
consumersto tohabitually
habitually
ask
askfor
forinvoices/receipts
invoices/receipts

PARTNERS:
Globe, Smart, Red Ribbon,
Starbucks, Enchanted Kingdom,
Jollibee, Shoe Mart, TV
networks
 TAXPAYER REGISTRATION
PROBLEM
Numerous documentary
requirements
Many signatories in documents
Complicated procedures
Difficulty in monitoring
taxpayer compliance with
registration requirements
Impact
Low 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 activities
TIN application via BIR website
Provide venue to report
establishments who are not
issuing valid receipts or invoices
 TAXPAYER REGISTRATION
eTIN

Web-based
Web-basedapplication
applicationsystem
systemthat
that
allows
PARTNER:
allowstaxpayers
taxpayerstotosecure/inquire
secure/inquireon
on
their Oracle Phils.
theirTINs
TINson-line
on-line

TP Your application has been

received.

You, <TP Name>, are now

registered with the BIR.
TIN Inquiry Display of
given the Registration Form You Tax Identification Number
taxpayer’s on the internet (to is 300-000-285-000.

full name enable taxpayer to

Automatic
and birth perform online
issuance of TIN to
date registration)
new registrant
 TAXPAYER REGISTRATION
eRaffle (Bayan, I-txt ang Resibo)

Leads
Leadstotoidentification
identification
of
of business
business
establishments
establishmentsand and
professionals
professionalswho
whoareare
not
notregistered
registeredwith
withBIR
BIR
PARTNERS:
Smart, Globe, Red Ribbon,
Starbucks, Enchanted Kingdom,
Jollibee, Shoe Mart, TV networks
 TAXPAYER REGISTRATION
Mobile Revenue Officers

On-the-spotcheck
On-the-spot checkofoftax
taxcompliance
complianceof ofbusiness
businessestablishments
establishmentswherein
wherein
RevenueOfficers
Revenue Officerscan
canreport
reportinstantly
instantlyvia
viaSMS
SMStaxpayer
taxpayerviolations
violations

Receives text messages

Text TIN, Inquiry

or Violation Code
to BIR
BIR RO checks
document
TIN Verification
RR / Issuance Inquiry Sends validation results
Red Army Monitoring
System
PARTNER:
Smart-MDI
 TAX DECLARATION

PROBLEM
Difficulty in filing tax
information with the BIR
System unavailability of EFPS
during tax deadlines
Impact
Taxpayers 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
 TAX DECLARATION
eFPS Full Outsourcing

Awarding to
AyalaPort
April 23, 2003 Enhancement
Enhancementandand
expansion
expansionof
ofeFPS
eFPScoverage
coverage
Review and Design of new eFPS
June 30, 2003 and
andcapacity
capacitythrough
throughfull
full
outsourcing
outsourcing
Migration to the Internet Data Center
by Aug 1, 2003

Deployment of the New Expanded

EFPS by Oct 31, 2003 PARTNER:
eFiling and ePayment for Top 1000 of 43 AyalaPort
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
 TAX DECLARATION
eSubmission
Allowsthe
theelectronic
electronicsubmission
submission
PARTNERS:
Allows
ofBIR
of BIRrequirements,
requirements,such
suchasastax
tax PEZA, E-KONEK,
returns,alphalist
returns, alphalistof
of SEIPI
compensationearners,
earners,list
listof
of BIR
compensation
payeescovered
coveredby byexpanded
expanded Website
payees
withholdingtax
withholding taxand
andschedules
schedulesof of
Sales,Receipts
Sales, Receiptsand
andPurchases
Purchases
viathe
via theBIR
BIRWebsite
Website
Taxpayer 1

Export Taxpayer 2
Community

Taxpayer n
 TAX DECLARATION
eExcise

Web-based
Web-basedautomation
automationof ofthe
the
preparation,
preparation,transmittal
transmittaland
and
processing
processingofofthe
theremoval
removal PARTNER:
application
applicationfor
forexcise
excisetax
taxproducts
products E-KONEK
 TAX PAYMENT

PROBLEM SOLUTION
Difficulty in paying taxes
(i.e. not enough AABs, Electronic payment of
strict payment venue taxes
requirement, etc.)
Inclusion of more banks
Tax payment diversion in eFPS through use of
Impact Payment Gateway
Taxpayers are
discouraged to pay taxes Notification of taxpayers
Taxes paid do not go to on tax payments made
govt. coffers
Result
Low revenue collection
registered
 TAX PAYMENT
Mandatory eFPS
PARTNER:
Mandatory
Mandatorypayment
paymentof oftax
tax AyalaPort
via
viaeFPS
eFPSfor
foridentified
identifiedlarge
large
and
andnon-large
non-largetaxpayers
taxpayers

BIR
eFPS

Internet Payment Confirmation

Taxpayer
in his
office Banks
/home/eCafe
eFPS was cited for Excellence in E-Governance (E-Payment category) in the E-
Government Award
 TAX PAYMENT
eBroadcasting PARTNERS:
Automatic
Automaticconfirmation
confirmationof of BAP, Smart, Globe, Oracle
payments
paymentsmademadebybytaxpayers
taxpayersto toBIR
BIR Phils., Sun Microsystems
thru
thruAccredited
AccreditedAgent
AgentBanks
Banks Phils. and e-Science Corp.
(AABs)
(AABs)within
within48
48hours
hoursfrom
from
transaction
transactiondate
datevia
viae-mail,
e-mail,mobile
mobile
phone and the BIR Website BIR
phone and the BIR Website

BIR MESSAGING FACILITY BIR EMAIL FACILITY

BIR WEB FACILITY
(sends machine to (sends eMail to TP of (publishes payment
machine payment data to tax payment details) confirmation in BIR
TP mobile number) Website)

TP views own
TP receives TP receives payment
payment payment confirmation by
confirmation thru confirmation thru entering TIN and
text messaging eMail PIN
 TAX PAYMENT
Mobile RO (for Thrift Banks)

Authorization
Authorizationof
ofthrift
thriftbanks
banksto
toaccept
accepttax
taxreturns
returnsand
andpayments
payments

Sends Uploading Feedback

eMail /Text Payment

Thrift Bank accepts Tax Report to BIR
Payment & returns

PARTNER:
Smart-MDI Upload Payment Data to
BIR
 TAX PAYMENT *Allied Bank
*China Bank
(BPI/ Citytrust)
Payment Gateway *Metrobank
*Equitable PCI Bank
*RCBC
*Security Bank
*Union Bank/Interbank
ABN Amro Bank
BIR eFPS Bangko Kredito
Centennial Bank
Citystate Savings Bank
P East West Bank
Malayan Bank
F A Orion Bank
Plantersbank
I Y PS Bank
L M RCBC Savings Bank
Asia United Bank
I E Banco Filipino
N N *Bank of Commerce (Panasia)
*Chinatrust Bank
G T Citibank N.A.
Export & Industry Bank
First E-Bank (PDCP Bank)
Global Bank (Philbank)
Manila Bank
Use
UseofofBancnet
BancnetATM
ATMGateway
Gatewayfor
foron-line
on-line Merchants Bank
(Orient Bank)
interface
interfacewith
witheFPS
eFPS *PBCom
*Philtrust Bank
*Standard Chartered Bank
*United Overseas Bank
PARTNER:
BANCNET
 TAX AUDIT & ENFORCEMENT

PROBLEM SOLUTION
Need to build TPI data for Require quarterly
investigation purposes submission of
Summary Lists of
Benchmarking of taxpayer
performance with industry Sales and
performance Purchases

Complaints by some taxpayers of Establish linkages

harassment with external
Impact agencies to build
TPI data
Difficulty in monitoring level of
taxpayer compliance as well as No contact audit
processing of data from taxpayers thru establishment
of industry
Result benchmarks
Actual collection falls below the tax
potential
 TAX AUDIT & ENFORCEMENT
eReport Card

Notification
Notificationof
oftaxpayer’s
taxpayer’sperformance
performancevs.
vs.pre-defined
pre-defined
industry
industrybenchmark
benchmark

Tax Automatic Letter

Declaration Generation
Taxpayer
Centric
Informati
on
Generate Automatic Emailing
Tax XXXX
CEO Report
Payment XXXX
XXXX

BIR
Datawarehouse PARTNER:
Third Party
Information SAS Web Interface
TAX AUDIT & ENFORCEMENT
Sample of eReport Card
 TAX AUDIT & ENFORCEMENT
Data Warehousing

Building
BuildingofofTPI
TPIdatabase
databasefor
forcross-referencing
cross-referencingwith
withtax
tax
declarations
declarationsto
todetect
detectpossible
possibleunder-declaration
under-declarationof
ofrevenues
revenues

PARTNER:
SAS
 TAX AUDIT & ENFORCEMENT
Text Mining
Captures
Capturesin
inBIR
BIReRaffle
eRaffledatabase
databasebusiness
business
establishments/professionals
establishments/professionalswhowhoare
arenot
not
issuing
issuingvalid
validreceipts/invoices
receipts/invoices BIR Regional
District
Offices

RESIBO
Mike Sy *
TIN of OR *
Globe OR Num *
Text Entries Amount • Investigate
NO OR ABC • Analyze “Text Messages” : business
Store - patterns of data establishments
Bacobo St. - classify unusual behaviors for suspect
Malate
and
fraud text message
- group bus. establishments/professionals professionals
that do not issue valid receipts who do not issue
SMART • Classify establishments/professionals with valid receipts,
Text Entries PARTNER: invalid TIN by RDO including those
• Utilize sales information of texter to
SAS countercheck sales declared by
with invalid TIN
establishments/professionals
 CONTINUOUS ENHANCEMENT
TAXPAYER INFORMATION AND EDUCATION
Extension of BIR text raffle promo
Hard launch of BIR Contact Center
BIR Portal implementation
TAXPAYER REGISTRATION
E-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
CONTINUOUS ENHANCEMENT

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
 STRONG TAX ADMINISTRATION
THRUST
Taxpayers well-informed
about their tax obligations
Streamlined registration
procedures
Convenient tax filing and
payment
Tax payments properly
accounted for
No contact audit
DESIRED RESULT
 Enhanced voluntary
compliance
 Increased taxpayer base
 Increased number of
filers/tax payments
 No diversion of tax
payments
 Enhanced
transparency / no
opportunity for
corruption
STRONG REPUBLIC

INCREASED TAX COLLECTIONS

STRONG TAX ADMINISTRATION