__________________________________________________________________________________________________________________
.

Tax chief sets BIR reshuffle


Posted on 11:45 PM, December 17, 2009 [ BusinessWorld Online ]

BY ALEXIS DOUGLAS B. ROMERO, Reporter


CLOSE TO 60 SENIOR PERSONNEL will be reshuffled at the Bureau of Internal Revenue (BIR) next year, and its Large Taxpayers Service’s (LTS) complement increased, as part of a renewed effort to boost revenues.

The new assignments, BIR Commissioner Joel L. Tan-Torres said on Wednesday, would be based on performance assessments and were aimed at generating fresh strategies.

"We will implement a massive reshuffle effective next year. There was an understanding between the commissioner and regional directors that the KPIs (key performance indicators) will be the basis for reorganization," he told reporters.

"It’s good to have reorganization based on performance. It will infuse new ideas and initiatives ... The performers were given more responsible positions while underperformers were moved to districts with lower goals. It will take effect on January 1."

Reviewed were collection performance, number of delinquent establishments closed, number of tax campaigns for taxpayers and accountants, linkages with local governments and other sources of third party tax information, and taxpayer satisfaction.

The reshuffle will be the first under Mr. Tan-Torres’ administration. The bureau last implemented one in March under his predecessor, Sixto S. Esquivias IV who resigned in October after admitting that this year’s targets would not be met.

"They (revenue personnel) may slacken [if they are not moved] ... It will also keep them independent," Mr. Tan-Torres said.

More personnel will also be assigned to the LTS to intensify the monitoring of big businesses.

"We are beefing up the large taxpayers group. We will assign two assistant commissioners and will increase the audit divisions from four to eight. This will allow us to enhance our collection initiatives," Mr. Tan-Torres said.

"We will monitor better the compliance of large taxpayers if we increase our manpower. It this group collects around 70% of our taxes then we should put more resources there."

At present, the LTS, which oversees corporations and individuals with a net worth of at least P300 million, is headed by an assistant commissioner.

Orders dated December 14 and furnished to reporters yesterday showed the reorganization would involve 57 personnel ranging from assistant commissioners to revenue district officers.

The office of the assistant commissioner for LTS has been divided into two: an assistant commissioner for excise large taxpayers and another for regular large taxpayers or non excise taxpayers. LTS Assistant Commissioner Zenaida G. Garcia will handle the former while Nestor S. Valeroso, currently the regional director for San Pablo City in Laguna, will take the latter post.

Other ranking BIR personnel to be transferred are Marissa O. Cabreros, head revenue executive of the LTS administrative and enforcement group who will become assistant commissioner for legal service; assistant commissioner for legal service James H. Roldan, who will be moved to the enforcement group; assistant commissioner for human resources Leonor S. Villalon-Rogers, to the policy and planning group; assistant commissioner for policy and planning Carolina G. Pesayco, to the human resource group; assistant commissioner for inspection service Eufrocina S. Casasola, to the financial and administrative service; assistant commissioner for enforcement Margaret Mary C. Lauron, to the inspection group; and assistant commissioner for financial and administrative service Zenaida B. Chang, who was named special assistant to the deputy commissioner for resource management.

Regional officers given new posts were Manila director Arnel S. Guballa who will be reassigned to Caloocan, Makati’s Alfredo V. Misajon who will be transferred to Manila; his post will be given to Caloocan’s Jaime B. Santiago.

Cebu director Rodita B. Galanto will be reassigned to San Pablo City, Laguna while Zamboanga director Glen A. Geraldino will be moved to Iloilo. Tacloban director Araceli L. Francisco will be transferred to Bacolod while Bacolod director Jose N. Tan and Iloilo director Albert B. Alocilja will be moved to Cebu and Tacloban, respectively. Rozil Lozares, who serves as technical assistant to the Deputy Commissioner for Operations has been appointed as Zamboanga regional director.

Olivia O. Lao, head revenue executive assistant (HREA) of the LTS-excise taxpayers, has been designated HREA of the BIR programs and compliance group while Valenzuela revenue district officer Artemio D. Aquino has been appointed chief of the excise taxpayers regulatory division. Conrado C. Lee, chief of the large taxpayers audit and investigation division, has been named assistant regional director for Cebu.

The rest consist of revenue district officers and assistant regional directors who were reassigned to other local offices.

The BIR missed its P810-billion target last year, collecting only P778 billion.

It is tasked to collect P798.5 billion this year and P875.1 billion next year. Officials have admitted that this year’s goal would be missed due to various tax cuts and a slower economy and have urged economic managers to review the 2010 target.

___________________________________________________________________________________

KNOWING YOUR BIR REGULATIONS AND ISSUANCES

Revenue Regulations (RRs)
are issuances signed by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, that specify, prescribe or define rules and regulations for the effective enforcement of the provisions of the National Internal Revenue Code (NIRC) and related statutes

Revenue Memorandum Orders (RMOs) are issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations, activities, workflows, methods and procedures necessary in the implementation of stated policies, goals, objectives, plans and programs of the Bureau in all areas of operations, except auditing.

Revenue Memorandum Rulings (RMRs) are rulings, opinions and interpretations of the Commissioner of Internal Revenue with respect to the provisions of the Tax Code and other tax laws, as applied to a specific set of facts, with or without established precedents, and which the Commissioner may issue from time to time for the purpose of providing taxpayers guidance on the tax consequences in specific situations. BIR Rulings, therefore, cannot contravene duly issued RMRs; otherwise, the Rulings are null and void ab initio

Revenue Memorandum Circular (RMCs) are issuances that publish pertinent and applicable portions, as well as amplifications, of laws, rules, regulations and precedents issued by the BIR and other agencies/offices.

Revenue Bulletins (RB) refer to periodic issuances, notices and official announcements of the Commissioner of Internal Revenue that consolidate the Bureau of Internal Revenue's position on certain specific issues of law or administration in relation to the provisions of the Tax Code, relevant tax laws and other issuances for the guidance of the public.

BIR Rulings are official position of the Bureau to queries raised by taxpayers and other stakeholders relative to clarification and interpretation of tax laws.