Project Update: RARP

REVENUE ADMINISTRATION REFORM ACTIVITY

Electronic Tax Information System-1 (eTIS-1)

 

  • Preparations underway for live implementation at 13 pilot offices
    • Production, test, training, and data migration environments have been set-up in iGov ICTO, the hosting facility
    • One-time data migration of TRS tested in pre-prod environment
    • Network bandwidth of the pilot offices have been upgraded
    • Infrastructure issues related to unstable network connection are being addressed
    • A secondary network connection is in place
    • An interim backup facility is available
  • Preparatory activities for the nationwide rollout are being conducted
  • Successive versions of eTIS being reviewed
    • eTIS-1.1 – non-priority forms and stop filers
    • eTIS-2 – customization of additional functionalities
  • Assessment study will be conducted to pre-empt technical issues on the scalability of eTIS
    • Actual optimization work to be undertaken
    • Provision of additional infrastructure

 

Automated Auditing Tools (AATs)

  • ACL licenses provided and are used in the Computer-Assisted Audit Tools and Techniques (CAATTs) laboratory in the National Office
  • Training on basic and advance ACL provided to the Large Taxpayer Service of the NO and to other BIR personnel engaged in audit of large taxpayers
  • Sales suppression detection training to be conducted
  • MCC funding being requested to rollout AATs in other regional and district offices to scale-up the program

 

Public Awareness Campaign (PAC) 

  • PAC is envisioned to complement revenue reforms
  • 2014 campaign focused on tax obligations of self-employed and professionals and the burden of the tax evaders to the taxpayers
  • For 2015, theme is nationalistic and “anthemic” with the objective of rousing the taxpayers to pay correct taxes no matter how small the contributions are

 

IMF Initiatives

  • Engaged to inject into the reform program global best practices in specialized areas of revenue administration
  • IMF advisory services and technical assistance continued to provide short term missions on previously reported areas of the 2014 Compliance Improvement Strategy (CIS) and BIR reform program assessment.
  • Substantial gains are reported in the pilot VAT Audit and Arrears Management programs in the Large Taxpayer Service (LTS) and four (4) Metro Manila revenue regions.
  • Reported VAT deficiency identified increased from PHP 2.7 billion as of CY2013 to PHP 9.2 billion as of September 2014, of which PHP 2 billion was already collected as of December 2014.
  • Collection in tax arrears is reported to have reached PHP 4.5 billion representing an 89 percent increase since the start of the pilot program in 2013.
  • The Taxpayer Service Strategy to be piloted in the same revenue regions to further transform how taxpayer services are provided will be implemented in April 2015.
  • BIR has committed to institutionalize these changes to strengthen its business processes.

USDT-OTA

  • Assistance focused on the redesign and transformation of priority tax forms
  • BIR has taken on the work to complete the redesign of the remaining forms.
  • 2014 mission focused on status reviews of the Caloocan, San Pablo and Quezon City DPDs
  • Procurement of Electronic Data Management System (EDMS) by BIR is scheduled on Q3 2015

 

REVENUE INTEGRITY PROTECTION SERVICE 

  • Provided assistance in the capacity-building of RIPS personnel on training related to its functions
  • Provided additional surveillance vehicles and equipment and operating requirements for lifestyle check surveillance operations
  • Development of Case Management System (CMS) and digitization of SALNs, Personal Date Sheet (PDS), 201 files, and case dockets is in progress
  • Inclusion of an Automated Investigation Tool, an analytical anti-graft and corruption tool