BIR at 99

Strengthening Tax
Administration for a
STRONG REPUBLIC

AREAS OF TAX ADMINISTRATION

REGISTRATION

AUDIT &
ENFORCEMENT

TP INFO.
& EDUC.

PAYMENT

DECLARATION

TAXPAYER INFORMATION & EDUCATION

PROBLEM
Difficulty in getting
timely, accurate and
consistent tax
information
Impact
Taxpayers are
discouraged/unable to
voluntarily comply with
tax requirements
Result
Low taxpayer
registration/compliance

SOLUTION
Make tax information
easily accessible to
taxpayers
Intensify taxpayer
awareness activities

TAXPAYER INFORMATION & EDUCATION

Provides
BIR Website
Providesupdated
updatedtax
tax

information
information(i.e.
(i.e.rulings,
rulings,
issuances,
issuances,etc.),
etc.),downloadable
downloadable
tax
taxforms
formsand
andaccess
accessto
toBIR
BIReeServices
Services

TAXPAYER INFORMATION & EDUCATION

Contact Center
PARTNERS:
ePLDT, Philcox,
CIDA/PTTAF

TP Contacts
BIR

Telephone

Fax On Demand

First
Firstand
andsingle
singlepoint
pointof
of
contact
contactwhere
whereTPs
TPs
queries
queriesand
andfeedback
feedbackcan
can
be
beaccurately
accuratelyand
and
consistently
consistentlyhandled
handled

Call Center
Agent
responds to
questions

Emailing

Web Interface

Knowledge
DB

TAXPAYER INFORMATION & EDUCATION

eRaffle (Bayan, I-txt ang Resibo)

Aims
Aimsto
toencourage
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
allowstaxpayers
taxpayersto
tosecure/inquire
secure/inquireon
on
their
theirTINs
TINson-line
on-line
TP

TIN Inquiry
given the
taxpayers
full name
and birth
date

PARTNER:
Oracle Phils.

Your application has been

received.

Display of
Registration Form
on the internet (to
enable taxpayer to
perform online
registration)

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 REGISTRATION
eRaffle (Bayan, I-txt ang Resibo)
Leads
Leadsto
toidentification
identification
of
of business
business
establishments
establishmentsand
and
professionals
professionalswho
whoare
are
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
checkof
oftax
taxcompliance
complianceof
ofbusiness
businessestablishments
establishmentswherein
wherein
On-the-spot
RevenueOfficers
Officerscan
canreport
reportinstantly
instantlyvia
viaSMS
SMStaxpayer
taxpayerviolations
violations
Revenue
Receives text messages

BIR RO
checks
document

Text TIN,
Inquiry or
Violation Code
to BIR
TIN Verification
RR / Issuance Inquiry
Red Army Monitoring
System

Sends validation results

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
Review and Design of new eFPS
June 30, 2003
Migration to the Internet Data Center
by Aug 1, 2003

Enhancement
Enhancementand
and
expansion
expansionof
ofeFPS
eFPScoverage
coverage
and
andcapacity
capacitythrough
throughfull
full
outsourcing
outsourcing

Deployment of the New Expanded

EFPS by Oct 31, 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

PARTNER:
AyalaPort

TAX DECLARATION
eSubmission
Allowsthe
theelectronic
electronicsubmission
submission
Allows
ofBIR
BIRrequirements,
requirements,such
suchas
astax
tax
of
returns,alphalist
alphalistof
of
returns,
compensationearners,
earners,list
listof
of
compensation
payeescovered
coveredby
byexpanded
expanded
payees
withholdingtax
taxand
andschedules
schedulesof
of
withholding
Sales,Receipts
Receiptsand
andPurchases
Purchases
Sales,
viathe
theBIR
BIRWebsite
Website
via

BIR
Website

PARTNERS:
PEZA, E-KONEK,
SEIPI

Taxpayer 1

Export
Community

Taxpayer 2

Taxpayer n

TAX DECLARATION
eExcise

Web-based
Web-basedautomation
automationof
ofthe
the
preparation,
preparation,transmittal
transmittaland
and
processing
processingof
ofthe
theremoval
removal
application
applicationfor
forexcise
excisetax
taxproducts
products

PARTNER:
E-KONEK

TAX PAYMENT
PROBLEM
Difficulty in paying taxes
(i.e. not enough AABs,
strict payment venue
requirement, etc.)
Tax payment diversion
Impact
Taxpayers are
discouraged to pay taxes
Taxes paid do not go to
govt. coffers
Result
Low 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 PAYMENT
Mandatory eFPS
Mandatory
Mandatorypayment
paymentof
oftax
tax
via
viaeFPS
eFPSfor
foridentified
identifiedlarge
large
and
andnon-large
non-largetaxpayers
taxpayers

PARTNER:
AyalaPort

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 EGovernment Award

TAX PAYMENT
eBroadcasting
Automatic
Automaticconfirmation
confirmationof
of
payments
paymentsmade
madeby
bytaxpayers
taxpayersto
toBIR
BIR
thru
thruAccredited
AccreditedAgent
AgentBanks
Banks
(AABs)
(AABs)within
within48
48hours
hoursfrom
from
transaction
transactiondate
datevia
viae-mail,
e-mail,mobile
mobile
phone
and
the
BIR
Website
phone and the BIR Website
BIR MESSAGING FACILITY
(sends machine to
machine payment data to
TP mobile number)

TP receives
payment
confirmation thru
text messaging

BIR EMAIL FACILITY

(sends eMail to TP of
tax payment details)

TP receives
payment
confirmation thru
eMail

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

BIR

BIR WEB FACILITY

(publishes payment
confirmation in BIR
Website)

TP views own
payment
confirmation by
entering TIN and
PIN

TAX PAYMENT
Mobile RO (for Thrift Banks)
Authorization
Authorizationof
ofthrift
thriftbanks
banksto
toaccept
accepttax
taxreturns
returnsand
andpayments
payments

Sends Uploading Feedback

Thrift Bank accepts Tax

Payment & returns

PARTNER:
Smart-MDI

eMail /Text Payment

Report to BIR

Upload Payment Data

to BIR

TAX PAYMENT
Payment Gateway
BIR eFPS

F
I
L
I
N
G

P
A
Y
M
E
N
T

Use
Useof
ofBancnet
BancnetATM
ATMGateway
Gatewayfor
foron-line
on-line
interface
interfacewith
witheFPS
eFPS
PARTNER:
BANCNET

*Allied Bank
*China Bank
(BPI/ Citytrust)
*Metrobank
*Equitable PCI Bank
*RCBC
*Security Bank
*Union Bank/Interbank
ABN Amro Bank
Bangko Kredito
Centennial Bank
Citystate Savings Bank
East West Bank
Malayan Bank
Orion Bank
Plantersbank
PS Bank
RCBC Savings Bank
Asia United Bank
Banco Filipino
*Bank of Commerce (Panasia)
*Chinatrust Bank
Citibank N.A.
Export & Industry Bank
First E-Bank (PDCP Bank)
Global Bank (Philbank)
Manila Bank
Merchants Bank
(Orient Bank)
*PBCom
*Philtrust Bank
*Standard Chartered Bank
*United Overseas Bank

TAX AUDIT & ENFORCEMENT

PROBLEM
Need to build TPI data for
investigation purposes
Benchmarking of taxpayer
performance with industry
performance
Complaints by some taxpayers of
harassment
Impact
Difficulty in monitoring level of
taxpayer compliance as well as
processing of data from taxpayers
Result
Actual collection falls below the tax
potential

SOLUTION
Require 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 & ENFORCEMENT

eReport Card
Notification
Notificationof
oftaxpayers
taxpayersperformance
performancevs.
vs.pre-defined
pre-defined
industry
industrybenchmark
benchmark

Automatic Letter
Generation

Tax
Declaration

Tax
Payment

Third Party
Information

Taxpayer
Centric
Informati
on
XXXX
XXXX
XXXX

BIR
Datawarehouse

Generate
CEO Report

PARTNER:
SAS

Automatic Emailing

Web Interface

TAX AUDIT & ENFORCEMENT

Sample of eReport Card

TAX AUDIT & ENFORCEMENT

Data Warehousing
Building
Buildingof
ofTPI
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/professionalswho
whoare
arenot
not
issuing
issuingvalid
validreceipts/invoices
receipts/invoices

Globe
Text Entries

RESIBO Mike
Sy * TIN of
OR * OR Num
* Amount
NO OR ABC
Store
Bacobo St.
Malate

SMART
Text Entries

PARTNER:
SAS

BIR Regional
District Offices

Investigate
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

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

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

DESIRED RESULT

Taxpayers well-informed
about their tax obligations

Enhanced voluntary
compliance

Streamlined registration
procedures
Convenient tax filing and
payment

Increased taxpayer
base

Increased number of
filers/tax payments

Tax payments properly

accounted for
No contact audit

No diversion of tax
payments

Enhanced
transparency / no
opportunity for
corruption

STRONG REPUBLIC

INCREASED TAX COLLECTIONS

STRONG TAX ADMINISTRATION