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COLLECTION MANUAL INTRODUCTION

The BIR Collection Manual (CM) has been prepared to serve as a reference guide for the officers and employees of the Bureau of Internal Revenue who are tasked to perform activities that are related to the area of collection as one of the Bureau’s core functions. This Manual is intended to provide the revenuers with the necessary knowledge of the basic information on collection-related processes, as well as the updated policies, guidelines and procedures to effectively implement collection enforcement programs and strategies.

This CM is enhancement of the original Collection Manual that was prepared in 1997 and draws initially from the working drafts prepared by the Collection Manual Task Force. It contains updated policies and processes based on existing revenue issuances pertaining to collection functions. It also documents some of the “best” practices on collection processes which are not yet supported by any existing revenue issuances. The CM coverage is extensively expanded, after the thorough review of the collection mandate of the BIR to include certain re-engineered as well as new processes that have not been covered by any implementing guidelines.

This CM is presented in four chapters:

  • Chapter I contains the basic collection processes from payment of taxes by taxpayers, by channels of collection and by modes of payment, the remittance thereof to the Bureau of the Treasury, up to collection reporting.
  • Chapter II discusses collection reconciliation describing the present procedures in reconciling collections recorded by the Bureau of the Treasury vis-à-vis the BIR collection reports. The processes involving reconciliation of collections among the BIR collection units, from the district offices to the regional and national offices, are taken up by channel of collection.
  • Chapter III highlights the handling of delinquent accounts/implementation of collection enforcement strategies (i.e. adoption of remedies relative to the collection of unpaid taxes and the implementation/enforcement of collection summary remedies).
  • Chapter IV focuses on the management of absolutely forfeited properties from the time the seized properties are declared forfeited in favor of the government up to the sale or disposition thereof.

The CM Features discussions and presentation on the following:

  • Overview, definition of terms, extensive discussions of underlying policies and guidelines precedes the presentation of collection processes and strategies in order to provide full understanding of the collection tasks, on a per chapter basis.
  • Detailed narrative step-by-step procedures that outline the tasks of the concerned revenue offices and officers involved in the collection process.
  • Flow charts that visualize the collection process flows in the CM via walk-through approach. The charts present the tasks and steps undertaken by revenue officers in the identified revenue offices and indicating therein the expected outputs in the collection processes.
  • Annexes containing the reportorial requirements and sample format reports and correspondences for better appreciation of the need to make useful reports that can serve as the performance output of the revenue offices and officers.
  • Supplementary information on related revenue issuances [Revenue Regulations (RR), Revenue Memorandum Orders (RMO), Revenue Memorandum Circulars (RMC), Revenue Administrative Orders (RAO), Revenue Delegation Authority Order (RDAO), etc.] as well as some external forms such as the BIR Tax Returns were footnoted on the text manual and were likewise appended as separate items or sections in the CM to make it more informative and user-friendly.

It is hoped that this CM will be a useful guide to all the concerned officials and employees of the Bureau in the latter’s endeavor for a standard implementation of the collection functions, and the development of more enlightened and skilled collection personnel. However, and in order to achieve the maximum benefits of the contents of this CM, all Bureau officials and employees involved in the discharge of collection functions are likewise encourage to continuously hone their skills and expertise by updating their respective knowledge of the pertinent provisions of the Tax Code and its amendments, as well as those information that are covered by the existing revenue issuances and updates thereon. It is expected that the application of these complementary tools in the performance of their respective tasks will ensure more efficient discharge of their functions and effective implementation of collection enforcement strategies.