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CM 101.2 - PAYMENT THROUGH AAB FOR OTC TRANSACTIONS - COLLECTION REPORTING

The amount of tax collections reported is indicative of the level of performance of the BIR. Proper reporting should be observed to accurately reflect collection information. The collection reporting processes involve data entry by the AAB branch, in accordance with the MOA between the BIR, the BTr and the concerned banks; the uploading of tax payment data into the ITS database by the Revenue Data Center (RDC); the retrieval of tax returns, payment and returns processing, and the reporting of collections by the RDOs. A consolidated monthly statistical report of revenue collections is then prepared on a monthly basis.

Collection Data Entry

The AAB branch shall:

  1. Batch tax returns by 50s, prepare Batch Control Sheet (BCS-A) in triplicate copies, and attach the original and duplicate copies of BCS-A to the physical returns; and
  2. Encode the payment information [date of transaction, name of taxpayer, TIN of taxpayer, tax type that is being paid for, return period for the tax type being paid for, amount of tax paid, name of the drawee bank and check number (for tax payments through checks)] into the LBDE System and transmit via Electronic Data Transmission (EDT) to the concerned BIR RDC within forty-eight (48) hours from the time of collection on regular days and seventy-two (72) hours during tax deadlines. The AAB branch shall also send the daily collection reports to the concerned AAB-HO for consolidation.

Uploading of Tax Payment Data

The RDC shall:

  1. Receive tax payment information and upload payment data transmitted by the AAB branch to the EDT server;
  2. Run the payment batch validation in the EDT server. In case of invalid data, inform immediately the concerned AAB branch of the existence of such error in the transmitted flat file;
  3. Upload the data contained in the flat file to the Collection and Bank Reconciliation (CBR) System-Integrated Tax System (ITS) database via nightly batch validation. Once uploaded and the payment data is tagged as “POSTED”, the collection data is automatically posted to the taxpayer’s ledger;
  4. Generate, on a daily basis, the payment suspense report, and forward the same to the concerned RDO for appropriate resolution;
  5. Generate the daily summary of uploaded collection reports and transmit the same immediately to the RDO/LTDO/other concerned offices for validation; and
  6. Generate the Consolidated Monthly Statistical Report of Revenue Collections (BIR Form No. 12.09) and forward the same to concerned RDO for validation not later than the 10th day of the following month.

The RDO shall:[1]

  1. Collection Section

Retrieval of Tax Returns

  • Revenue Officer (Retriever)
    • Retrieve, on a daily basis from each AAB branch, the duly accomplished BCS-A, the original and duplicate copies of machine-validated tax returns/forms/declarations, together with all attachments, and the duplicate copies of the machine-validated deposit slips;
    • Check the completeness of the physical tax returns/forms/declarations against the number of payment transactions reflected in the BCS-A within the premises of the AAB branch. In case of incomplete documents, require the AAB branch to instantaneously submit the missing/lacking documents; and
    • Forward all the documents retrieved from the AAB branch to the RDO’s Receipt and Control Data Controller.
  • Revenue Officer (Receipt and Control Data Controller)
    • Receive from the Revenue Officer (Retriever) all the documents retrieved from the AAB branch;
    • Log the BCS-A and the tax returns/forms/declarations in the Documents Received from AABS Worksheet by recording the date of collection, name of AAB, bank code, and the total collection per BCS-A. Provide the Bank Liaison Officer a photocopy of the said worksheet on a weekly basis;
    • Check the sequence of the retrieved BCS-A number to ensure that there are no missing BCS-A. In case of any missing BCS-A number, require the concerned AAB to submit the hard copy of the unsubmitted BCS-A and transmit the payment data through EDT.

Where the discrepancy or the gap in the BCS-A series arose from simple error by the concerned AAB branch, require the AAB to adjust/rectify the error committed; and

  • Photocopy the BCS-A for file/record purposes, and forward the original and duplicate copies of BCS-A as well as the original and duplicate copies of the tax returns/forms/declarations and all the attachments thereto, if any, and the duplicate copies of the deposit slip to the Collection and the Bank Reconciliation (CBR) Preprocessing Data Controller.

CBR Processing

  • Revenue Officer (CBR Pre-processing Data Controller)
    • Receive the original and duplicate copies of BCS-A, the tax returns/forms/declarations and all the attachments thereto, if any, and the duplicate copies of the deposit slips from the Receipt and Control Data Controller. Acknowledge the receipt of tax returns/forms/declarations on the photocopied BCS-A;
    • Return the photocopy of the BCS-A to the Receipt and Control Data Controller where the acknowledgement receipt was properly reflected;
    • Affix the BCS number on each and every copy of the tax return/form/declaration;
    • Verify existence of bank procedural errors on the BCS-A and the tax returns/forms/declarations, and accomplish the Bank Branch Performance Statistics (BIR Form No. 28.41) (Annex 100-1.5); and
    • Forward all the original and duplicate copies of the BCS-A, tax returns/forms/declarations, and all the attachments thereto, if any, and the duplicate copies of the deposit slips and the duly accomplished BIR Form No. 28.41 to the CBR Data Verifier.
  • Revenue Officer (CBR Data Verifier)
    • Receive from CBR Pre-Processing Data Controller the original and duplicate copies of the BCS-A, tax returns/forms/declarations and all the attachments thereto, if any, and the duplicate copies of the deposit slips and the duly accomplished BIR Form No. 28.41;
    • Verify on CBR-BCS-CRDC Reconciliation Inquiry Screen if the BCS has been uploaded. If not yet uploaded, coordinate with the RDC why the subject BCS was not yet uploaded. If uploaded, match the individual entry with the physical returns/forms/declarations. Coordinate with AAB the discrepancies on the BCS-A and the tax returns for procedural/return errors and the duly accomplished BIR Form No. 28.41;
    • Encode the information in BIR Form No. 28.41 and forward the same to the Bank Document Analyst, together with the original and duplicate copies of the BCS-A/tax returns/ forms/declarations with procedural/ return errors; and
    • Forward the BCS-A and tax returns/forms/declarations without procedural and return errors to the Data Processing Section (DPS of the RDO for returns processing.

1.3.        Revenue Officer (Bank Document Analyst)

1.3.1      Receive from the CBR Data Verifier the original and duplicate copies of BCS-A and tax returns/forms/declarations with procedural/encoding errors together with the encoded BIR Form NO. 28.41;

1.3.2      Verify the reported discrepancies by comparing BCS-A against CRDC;

1.3.3      Photocopy the BCS-A and the tax returns/forms/declarations with procedural/encoding errors and attach these to the LBDES Exception Report;

1.3.4      Prepare the preliminary notice of violations related to timeliness in the submission/transmission of collection report data and accuracy of the collection information submitted by the AABs; and

1.3.5      Forward the verified BCS-A, tax returns/forms/declarations, BCS Summary Report, LBDES Exception Report (Annex 100-1.6), List of Late Batches Report (Annex 100-1.7), and the preliminary notice of violations to the Bank Liaison Officer.

               1.4         Revenue Officer (Bank Liaison Officer)

1.4.1      Receive and compare the accomplished Document Received from AABs worksheet on a weekly basis from the Receipt and Control Data Controller and the weekly report on Transmitted Collection Data from the Computer Operations Network Engineering RDC;

1.4.2      Receive from the Bank Document Analyst the verified BCS-A, tax returns/forms/declarations, BIR Form No. 28.41, LBDES Exception Report, BCS Summary Report, List of Late Batches Report, and the preliminary notices of violations;

1.4.3      Send the preliminary notice of violations to the concerned AAB together with the LBDES Exception Report, List of Late Batches Report and photocopies of BCS and tax returns/forms/declarations with error;

1.4.4      Evaluate AAB responses to the issued preliminary notices of violations. Report to the Collection Programs Division (CPD) of the Collection Service the AABs who fail to comply with the preliminary notices of violation; and

1.4.5      Forward the original and duplicate copies of BCS-A and tax returns/forms/declarations with procedural/encoding errors to the Returns Processing System (RPS) Pre-processing Data Controller.

               1.5         CBR Error Handler (For Payment Information)

                              1.5.1      Receive the Payment Suspense Report from the RDC;

1.5.2      Resolve the suspended tax payment transactions. If error arises from wrong encoding of payment information in the LBDES, validate the information from the registration database and modify the information in the CBR Payment Screen. If the payment information cannot be modified as in tax type and the amount of tax paid, cancel the previously encoded data and refer the matter to the RDO for the encoding/adding of the correct data/amount; and

1.5.3      Request for the copy of the tax returns/forms/declarations from the Document Custodian, if necessary.

  1. Document Processing Section

               RPS Processing

  • RPS Pre-processing Data Controller

2.1.1      Receive original and duplicate copies of the following:

  • BCS-A and tax returns/forms/declarations and attachments without procedural/encoding errors from the CBR-Data Verifier; and
  • BCS-A and tax returns/forms/declarations and attachments with procedural/encoding errors from the Bank Document Analyst;
    • Detach the original and duplicate copies of BCS-A from the tax returns/forms/declarations;
    • Forward the original copies of BCS-A to the Administrative Division and file temporarily the duplicate copies of the BCS;
    • Sort, classify and batch tax returns/forms/declarations according to form type on a daily basis; thus, a batch shall not contain returns received on different dates. A batch shall contain not more than fifty (50) documents;
    • Segregate the following tax returns/forms/declarations that will be encoded in RPS:
      • Withholding Tax Returns (BIR Form Nos. 1600, 1601, 1602 and 1606)
      • Income Tax Returns (BIR Form Nos. 1700, 1701, 1701Q, 1702, 1702Q and 1706)
      • Documentary Stamp Tax Returns (BIR Form No. 2000)
      • Value-Added Tax Returns (BIR Form Nos. 2550M and 2550Q)
      • Percentage Tax Returns (BIR Form Nos. 2551M and 2551Q);
    • Assign and indicate the Document Locator Number (DLN) on the original and duplicate copies of each and every tax return/form/declaration by means of rubber stamp or sequential numbering machine, reflecting the following ITS information:

RDO Code

-

3 digits

Location Code

-

1 character (R for returns)

 

Year of Return

-

2 digits

Monthly Filed

-

2 digits

Sequence Number

-

6 digits which shall start with 000001, 000002 and so on regardless of month

                                                            Example: 040R1012008891

                                                            Where:                               

040

Refers to RDO 40-Cubao

R

Refers to Return (e.g. VAT)

10

Refers to the year of return filed

12

Refers to the month of return filed

008891

Refers to the sequential number of returns processed for the month. The Number should be reset to 000001 at the beginning of each year.

  • Segregate the original from the duplicate copy of the tax returns/forms/declarations;
  • Attach Batch Header Form to the batched original and duplicate tax returns/forms/declarations using the updated version of Batch Header Form (BIR Form No. 26.04). The “Date Prepared” and “Batch Header Number” portions shall be filled up in the following manner:

 

Date Prepared

Where:

MM is the month of the year

DD is the day of the month

YYYY is the current year

 

Batch Header Number

Where:

YY is the last two (2) digits of the current year

RDO is the RDO Code

99999 is the sequence number which shall start with 00001, 00002 and so on regardless of month

  • Retrieve duplicate copies of BCS-A;
  • Forward the duplicate copies of BCS-A and the tax returns/forms/declarations with attached Batch Header Form to the Assessment Section;
  • Check each return/form/declaration as to the completeness of information. Ensure that all mandatory fields have data/values;
  • Access the Registration System database to inquire missing taxpayer information like Taxpayer Identification Number (TIN), accounting period, and tax types. Use pencil in filling up the tax returns/forms/declarations;
  • Check correctness of income, deduction, exemption, tax due, tax credit, advance payment, and other data reflected in the tax returns/forms/declarations;
  • Accomplish the “apron sheets”[2] only for tax returns/forms/declarations with mandatory fields that are not properly filled-up and attach to the tax return/form/declaration. The “apron sheet” contains mandatory fields which, if left empty, may cause the suspension of tax returns/forms/declarations;
  • Refer unresolved cases to the RDO’s Officer-of-the-Day or contact the taxpayer to inquire or verify the tax returns/forms/declarations information; and
  • Forward the pre-processed original tax returns/forms/declarations with Batch Header Form and “apron sheets” to the RPS Data Encoder for data capture.

2.2.        RPS Data Encoder

2.2.1      Receive the original tax returns/forms/declarations from the RPS Pre-processing Data Controller;

2.2.2      Encode the specific information as appearing in the tax returns/forms/declarations. Copy the data/amount from the “apron sheet” for any missing data in the tax returns/corrected values, if applicable;

2.2.3      Return to the RPS Preprocessing Data Controller the tax returns/forms/declarations that are not properly accomplished/ without “apron sheet” attached;

2.2.4      Stamp/Write the word “ENCODED” on the upper right hand side of the Batch Header Form; and

2.2.5      Forward the encoded original tax returns/forms/declarations to the Document Custodian for temporary storage.

               2.3         Document Processor/Document Custodian

2.3.1      Receive the encoded original tax returns/forms/declarations from the RPS Data Encoder;

2.3.2      Arrange and store temporarily for thirty (30) days the encoded tax return/form/declaration per DLN. The original tax returns/forms/declarations shall remain in the custody of the Document Custodian until all suspended original tax returns/forms/declarations in the batch are resolved;

2.3.3      Update the document status, using the Document Tracking Module (DTM) of the Case Monitoring System (CMS);

2.3.4      Retrieve the original tax return/form/declaration needed by other sections upon presentation of the duly approved request form. Update the document status by entering the borrower’s name and the date the document was borrowed into the DTM. Update this again once the document has been returned by entering the return date;

2.3.5      Return to the RPS Data Encoder the batched tax returns/forms/declarations without the word “ENCODED” on the Batch Header Form for encoding; and

2.3.6      Prepare the transmittal letter and forward the original copies of the tax return/form/declaration together with the transmittal letter to the Administrative Division of the Regional Office after thirty (30) days from receipt of the encoded tax returns/forms/declarations in the batch still with the CBR/RPS Error handler for suspense resolution. The other tax returns/forms/declarations on the same Batch Header Form will not be transmitted to the Administrative Division unless all the returns in the batch are complete.

               2.4         RPS Error Handler (For Tax Return/Form/Declaration Information)

                              2.4.1      Receive the Return Suspense Report from RDC; and

2.4.2      Resolve suspended return transactions; request for a copy of the return/form/declaration from the Document Custodian, if necessary.

               Preparation of the Monthly Collection Report

               The RDO shall:

  1. Receive the system-generated collection report from the RDC not later than the 10th day of the following month;
  2. Validate the collection data and, in case of discrepancy, make the necessary adjustment and request for data-fix, in accordance with the existing rules and policies; and
  3. Submit the validated BIR Form No. 12.09 in electronic copy to the Collection Division of the Regional Office and the Statistics Division (through the email account of the Chief) not later than the 15th working day from the end of each month. This report must tally with the report forwarded to the RAD. To ensure veracity and accountability, the BIR Form No. 12.09 report must be sent through the official email account of the RDO.

The Regional Collection Division shall:

  1. Receive the validated BIR Form No. 12.09 from the RDOs;
  2. Review and consolidate the BIR Form No. 12.09 collection reports; and
  3. Transmit to the Statistics Division the consolidated BIR Form No. 12.09 (Annex 100-1.8) submitted by the RDOs not later than the 20th day of the following month.

[1] RMO No. 32-2000.

[2] RMO No. 32-2000.