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CM 110.2 - PAYMENT THROUGH TRA - COLLECTION REPORTING

The process involves the acceptance of the tax returns and the TRAs from the NGAs, the encoding by the RDO of tax payments in LBDES or the CBR for uploading into the CBR-ITS by the RDC. CBR and RPS processing of tax returns, as well as the preparation of the collection report, are also undertaken by the RDO in the same manner as in the processing of collections through AAB-OTC. The collections through TRAs are integrated into the consolidated monthly statistical report of revenue collections.

The RDO shall:

  1. Batch the Withholding Tax Returns (WTRs) received in 50s;
  2. Prepare the BCS-A for TRAs in triplicate and attach to the WTRs;
  3. Encode the payment information using PDES, for non-computerized districts, and the CBR “ADD” facility – DEPOSIT SLIP FOR TRANSACTION” of ITS, for computerized districts; and transmit the same to the RDC for uploading to CBR-ITS;
  4. Process the withholding tax returns received in accordance with the procedure for collections through AAB-OTC (Refer to CM 101.1 Payment through AAB for OTC Transactions – Collection Reporting – See CBR and RPS processing);
  5. Receive the stamped copies of WCAs of NGAs/TRAs, and forward the WCAs of NGAs, together with the duplicate copies of the TRAs, to the Regional Finance Division for recording of collections;
  6. Post the date of receipt of the Regional Finance Division on the BTr- received WCAs of NGAs, and transmit copy of the same to the RAD and the Withholding Tax Division (WTD);
  7. Submit WCA of NGAs bearing the receiving stamp of the BTr-PO/RO to RAD and the WTD.

The RDC shall:

  1. Upload the payment data into the CBR-ITS database. Once uploaded and the payment data is tagged as “POSTED”, the collection data is automatically posted to the taxpayer’s ledger; and
  2. Generate the Consolidated Monthly Statistical Report of Revenue Collections (BIR Form No. 12.09) and forward the same to the concerned RDO for validation not later than the 10th day of the following month.

The Regional Finance Division shall:

  1. Receive from the RDOs the WCAs of NGAs, together with the duplicate copies of TRAs bearing the date of receipt by the BTr-RO/PO;
  2. Validate the accuracy of the data in the WCAs of NGAs;
  3. Consolidate the WCA of NGAs submitted by the RDOs within the region;
  4. Forward to RAD and WTD, through e-mail facility the consolidated WCAs of NGAs indicating the date of receipt by the BTr-RO and the Regional Finance Division (Annex 100-1.20);
  5. Prepare the BIR JEV taking up collections through TRAs and record the collections through TRAs on the Journal of Tax Remittance by Government Agencies (JTRGA); and
  6. Prepare and submit to RAD the monthly Trial Balance, together with Statement of Internal Revenue Collections from TRA collections (Annex 100-1.21) on or before the 7th day of the following month.

The RAD shall:

  1. Receive from the RDOs the WCAs of NGAs bearing the receiving stamp of the BTr-PO/RO;
  2. Receive from the Regional Finance Divisions, through e-mail facility, the consolidated WCAs of NGAs indicating the date of receipt by the BTr-RO and the Regional Finance Division;
  3. Prepare the consolidated list of TRAs received during the week, and transmit the same to the BTr-CO for reconciliation with BIR-BTr data. Effect the necessary adjustment, if any; and
  4. Ensure that the payments through TRAs are included in the RDO’s monthly collection reports (BIR Form No. 12.09).

The Withholding Tax Division shall:

  1. Receive from the RDOs the WCAs of NGAs bearing the receiving stamp of the BTr-PO/RO;
  2. Receive from the Regional Finance Division through e-mail facility, the consolidated WCAs of NGAs indicating the date of receipt by the BTr-RO and the Regional Finance Division;
  3. Conduct field verification on compliance by the Regional Offices, RDOs and NGAs with the provisions of the Joint DoF-DBM-COA Joint Circular (JC) No. 1-2000, as amended; and
  4. Prepare management reports on the collections and remittances of taxes withheld through TRAs.

Preparation of the Monthly Collection Report

The RDO shall:

  1. Receive the system-generated collection report from RDC not later than the 10th day of the following month;
  2. Validate the accuracy of the collection data pertaining to payments through the TRAs. In case of any discrepancy noted, make the necessary adjustment thereon and/or request for data-fix, whichever is applicable; and
  3. Submit the validated BIR Form No. 1209 which includes the validated collections through the TRAs not later than the 15th day of the following month to the Statistics Division and the Regional Collection Division.

The Regional Collection Division shall:

  1. Receive the duly validated BIR Form No. 12.09 from the RDOs;
  2. Review and consolidate the BIR Form No. 12.09 collection reports received from the RDOs; and
  3. Submit the consolidated report of collection to the Collection Service not later than the 20th day of the following month, for monitoring and management information purposes.