CM 208 - VALIDATION OF ADJUSTMENTS TO BE MADE ON THE CONSOLIDATED MONTHLY STATISTICAL REPORT OF REVENUE COLLECTIONS (BIR FORM NO. 12.09)

Validation of Adjustments to be Made on the Consolidated Monthly Statistical Report of Revenue Collections (BIR Form No. 12.09) 

The reconciliation process consists of validating collection data from the various channels of collection as well as the other significant reconciling items that affect the accuracy and integrity of the collection data. These items include the proper accounting by the RDOs concerned of dishonored checks and the over-remittance of the banks; validation of requests by the concerned RDOs for manual transfers in the crediting of collections for out-of-district tax payments; accounting of collections from non-large insurance companies/ stock transactions thru the stock market/stock exchanges; and the appropriate crediting of further adjustments in the monthly tax collection through the various channels of collection as reconciled with the BTr collection figures. These adjustments are made for proper accounting, and crediting of collections to the correct RDO. The adjusted reconciled collection figures shall also be used in the allocation of goal/target to the different BIR implementing offices for the succeeding years.

The LTDPQAD/LTDO/RDO shall:

1. Account daily the collections received net of dishonored check and over remittance made by banks as collection for that particular month;
2. In case of dishonored checks, [1]
   • Receive from the AAB branch BIR Form No. 12.58 – Report of Returned/ Dishonored Checks (Annex 200-1.19) together with the original dishonored checks;
   • Enter/encode dishonored check data into ITS (CBR) under RDO based encoding (CBR Dishonored Check Add Screen);
   • Print and submit to RAD a Monthly List of Dishonored Checks Received (Annex 200-1.20) within 15 days of the following month; and
   • Print and submit to RAD a Monthly List of Dishonored Checks Redeemed (Annex 200-1.21) within 15 days of the following month;
3. Request RAD for the manual transfer of tax collections of out-of-district tax payments, if any. Inform the concerned RDO/LTDO where the collections should be take or to be credited copy furnished the ACIR, Collection Service through the Regional Director, Attention: RAD;
4. Identify collections from one-time transactions that should be included or excluded as the case may ne, in their respective collection performance;
5. Receive RDC-generated collection report not later than the 10^th of the following month;
6. Validate the report relative to any discrepancy in collections through the various channels of collection and for any other discrepancy that may arise due to dishonored checks and out-of-district tax payments as well as any adjustments due to BTr-BIR reconciliation notified by RAD; and
7. Make adjustments and prepare the RDO/LTDO/LTS BIR Form No. 12.09 for transmittal to Statistics Division through the Regional Collection Division/LTS not later than the 15^th day of the following month [Refer to Chapter I – Tax Payment, by Channel of Collection – Collection Reporting].

The RAD shall:

1. Receive from the RDOs/LTDOs/LTS the Monthly List of Dishonored Checks Received;
2. Compare dishonored checks as appearing in BIR Form No. 12.58 attached to the CRDC against the Monthly List of Dishonored Checks Received (Annex 200-1.20) from the RDOs/LTDOs/LTS;
3. Receive Monthly List of Dishonored Checks Redeemed (Annex 200-2.21) from the RDOs/LTDOs/LTS and record redemption of dishonored checks in the Bureau’s books of accounts;
4. Reconcile the RDOs’ report on dishonored checks received and the report on dishonored checks redeemed from the reports submitted by the AABs on file;
5. Coordinate with the concerned RDOs/LTDOs/LTS the total dishonored checks to be deducted from their collections based on reports submitted by AABs to RAD;
6. Inform the concerned RDOs/LTDOs/LTS if there are still dishonored checks which are not yet included in their respective reports; and
7. Inform RDOs/LTDOs/LTS on the adjustments/ deductions made on their respective collections due to the existence of dishonored checks.

In case of out-of-district tax payments:

1. Receive requests for manual transfers of out-of-district tax payments;
2. Require the Systems Maintenance and Support Division (SMSD) of the Information Systems Group (ISG) and RDCs to generate monthly report of auto-transferred collections to determine out-of-district tax collections that were automatically transferred from one district to another in the ITS;
3. Verify the accuracy of the tax collections being requested by the concerned RDOs/LTDOs/LTS for manual transfers (out-of-district tax payments). Validation should be made with the CBR-ITS;
4. Ensure that tax collections that were already auto-transferred will not be taken up again in this manual tax collection transfer process; and
5. Make the necessary adjustments and coordinate the same to the RDOs/LTDOs/LTS.

In case of collections from non-large insurance companies/stocks:

1. Account for the tax collections from non-large insurance companies and stocks listed in the Philippine Stock Exchange (PSE) (Annexes 200-1.22 and 200-1.23); and
2. Credit collections to the appropriate RDOs.

In case of further adjustments due to BTr reconciliation:

1. Inform the concerned RDO/LTDO/LTS of any further adjustments in the monthly tax collection through the various channels of collection as reconciled with the BTr collection figures;
2. Attribute all the adjustments made to concerned RDO/LTDO/LTS; and
3. Coordinate with RDOs/LTDOs/LTS and the Statistics Division the adjustments in BIR Form No. 12.09 collection reports.

The Statistics Division shall:

1. Receive the RDO/LTDO/LTS BIR Form No. 12.09 collection reports and prepare the consolidated BIR Form No. 12.09 collection report (Annexes 200-1.24 and 200-1.25);
2. Receive reports on one-time transactions from RDOs/LTDOs/LTS; and
3. Refine collection database of concerned RDOs/LTDOs/LTS for purposes of goal allocation.

[1] RMO No. 25-2001