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CM 101.3 - MONITORING OF PERFORMANCE OF AABs

The performance of the AAB as a collection agent of the BIR is evaluated regularly, in accordance with existing regulations and in compliance with the terms and conditions of the triplicate MOA among the AAB, BIR and BTr, the significant provisions of which are shown in Annex 100-2 hereof.

The Large Taxpayer Document Processing and Quality Assurance Division (LTDPQAD)/Large Taxpayer District Office (LTDO)/RDO, through the LTS and the Regional Collection Division, shall:

  1. Prepare and submit to the CPD the accomplished BIR Form No. 28.41 together with the LBDE Exception Reports, List of Late Batches, and the Report on Frequently Erring Banks not later than the twenty-eight (28th) day of the Following month; and
  2. Inform RAD of AAB violations, more particularly on the remittance of tax collections to BTr, if any.

The RAD shall:

  1. Receive reconciliation queries from the LTDPQAD/LTDO/RDO on AAB discrepancies, more particularly on remittances;
  2. Validate the remittance violations of AAB-HO, as reported by the LTDPQAD/LTDO/RDO;
  3. Reconcile the collection reports reflected in BCS-A against the information in the CRDC to determine possibility of late reporting/ remittance of collections by AABs that were not reported to RAD by the LTDPQAD/LTDO/RDO;
  4. Compute the applicable penalties for late reporting and remittance of collections by AABs, if any;
  5. Send Notification Letter to the AAB signed by the Assistant Commissioner-Collection Service (ACIR-CS) for late reporting and remittance of collection within ten (10) days upon discovery of the violation;
  6. Issue Demand Letter to AAB, if the request for waiver of penalties was denied by the Management Committee (MANCOM), upon recommendation by the Bank Accreditation Committee (BAC), or if the AAB did not respond within ten (10) days rom receipt of the Notification Letter;
  7. Prepare a letter/communication, for signature by the ACIR-CS, informing the AAB of the approval/denial of its request for waiver or cancellation of penalties for committed violations;
  8. Prepare Payment Order (PO), in duplicate copies, for signature of the Chief of RAD, upon presentation of the demand letter and the payment of penalties of the AAB;
  9. Forward the copies of the PO, to the General Service Division (GSD) for the issuance of Official Receipt (OR) for AAB’s payment of penalties imposed on violations committed; and
  10. Receive from the concerned AAB the photocopy of the OR issued by GSD and manually tag the same in the case docket as proof of settlement of the assessed penalties against the AAB.

The CPD shall:

  1. Receive, analyze and evaluate the BIR Form No. 28.41, Exception Reports, and the List of Late Batches received from the LTDPQAD/LTDO/RDO;
  2. Prepare and send Notification Letter signed by the ACIR-CS to the concerned AAB-HO for late submission/transmission of collection report/data, and procedural/encoding errors committed by the concerned AAB branch within 30 days from receipt of the exception and discrepancy reports;
  3. Receive, analyze and evaluate AAB’s response to the issued Notification Letter and prepare communication to the LTDPQAD/LTDO/RDO for validation of the AAB’s explanation on late submission/transmission of collection report/data and procedural/encoding errors;
  4. Elevate to the BAC all the requests for waiver of penalties from AABs for evaluation and recommendation;
  5. Compute the penalties for late submission/transmission of collection report/data and procedural/encoding errors, in accordance with the Schedule of Penalties embodied in Annex A-2 of RR No. 2-2008;[1]
  6. Issue Demand Letter to AAB, if the request for waiver of penalties was denied by the MANCOM, upon recommendation by the BAC, or if the AAB did not respond within (fifteen) 15 days from receipt of the Notification Letter;
  7. Prepare a letter/communication, for signature by the ACIR-CS, informing the AAB of the approval/denial of its request for waiver or cancellation of penalties for committed violations;
  8. Cancel the penalty assessment in the AAB Ledger, if the request for waiver of penalties is approved by the MANCOM;
  9. Prepare the Payment Order (PO) in duplicate copies, for signature of the Chiefs of CPD and RAD, upon presentation of the demand letter and the payment for the penalties of the AAB;
  10. Forward the copies of the PO to the General Service Division (GSD) for the issuance of Official Receipt (OR) for AAB’s payment of penalties imposed on violations committed;
  11. Receive from the concerned AAB the photocopy of the OR issued by the GSD and manually tag the same in the case docket as proof of settlement of the assessed penalties against the AAB;
  12. Post the payment of penalties by the AAB to the AAB Ledger maintained by the CPD; and
  13. Act on issues and concerns of AABs relative to the imposition of penalties, as recommended by the BAC and/or as decided by MANCOM.

The AAB-HO shall:

  1. Receive Notification Letter/Demand Letter from the CPD/RAD on violations committed;
  2. Prepare and send reply/request for waiver, at its option, to the BIR’s notice of violations committed within fifteen (15) days from receipt of such notification letter;
  3. Pay the penalties demanded by the BIR within thirty (30) days upon receipt of the Demand Letter; and
  4. Provide CPD/RAD with photocopy of the OR issued by GSD as proof of payment for the demanded penalties.

The General Service Division (GSD) shall:

  1. Accept payment of penalties from AABs on late reporting and remittance, violations on late submission/transmission of collection reports/data, and procedural/encoding errors;
  2. Issue OR to evidence receipt of payment from AABs on assessed penalties for violations committed;
  3. Deposit to the Authorized Government Depository Bank (AGDB), for the account of the Treasurer of the Philippines, the amount collected from AABs not later than the day immediately following the date of actual collection; and
  4. Prepare and submit to RAD and BTr the Monthly Report of Collections and Deposits.

The Bank Accreditation Committee (BAC) shall:

  1. Deliberate on the issues and concerns elevated by the BAC Secretariat headed by the Chief, CPD;
  2. Evaluate and recommend appropriate action on the issues and concerns raised to the Committee;
  3. Elevate to MANCOM, for approval, the BAC’s recommended action on the AAB’s request for waiver of penalties, if any; and
  4. Inform the CPD on the action taken by MANCOM, for appropriate action.

The MANCOM shall:

  1. Deliberate on the issues and concerns elevated by the BAC; and
  2. Approve/Disapprove the recommendations by the BAC.

[1] Annex 100-2 of this Chapter – Schedule of Penalties.