For business organizations, January is a perfect time to determine the targeted goals for the year and the ways and means and how to achieve such goals.

Government offices are no exception. Just recently, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) 5-2019, providing for the agency’s priority programs for 2019. Besides the continuing priority programs from previous years, i.e., “Run After Tax Evaders” and “Oplan Kandado,” as well as intensified BIR audit and investigation, the circular features current developments involving tax administration, namely the “Tax Reform Acceleration and Inclusion (Train) Program,” and the ongoing institutionalization of policies and guidelines in support of Republic Act (RA) 11032 (“Ease of Doing Business and Efficient Government Service Delivery Act”) and RA 10173 (“Data Privacy Act”).
We provide below some of the salient priority programs discussed under RMC 5-2019:

– e-Invoicing/e-Receipting and eSales reporting. The BIR is developing a system for e-Invoicing/e-Receipting and eSales reporting to be used by taxpayers. The e-Invoicing/e-Receipting System is an electronic platform capable of processing and storing electronic invoices and receipts issued by taxpayers on a real time basis. As for the eSales reporting system, this is an electronic platform that can summarize electronic invoices and receipts, as well as generate tax-related reports.

– Train program. The BIR will monitor taxpayers’ compliance with the new policies and tax
payment/remittance systems brought about by the Train law. Specifically, the bureau will conduct a pre-audit of percentage tax payments by taxpayers who have changed their BIR registration from value-added tax (VAT) registered, to non-VAT registered. To this end, appropriate revenue issuances will be issued to clarify any issued raised in the implementation of Train.

– Tax education campaign/Public awareness program. The BIR will develop standard information materials, such as brochures and pamphlets, on its tax reform packages that are easily understood by taxpayers.

– Implementation of the Ease of Doing Business and Efficient Government Service Delivery Act. The Bureau will streamline its frontline services by adopting a “Single Window Policy” (sort of a one-stop-shop) in processing applications of new business registrations at the Revenue District Offices.

– Sustained compliance with the Data Privacy Act. With the sheer amount of taxpayer information it receives, the BIR will continually ensure that its employees are aware and are compliant with its duties and responsibilities under the Data Privacy Act. As such, “IT Security Compliance” audits will be conducted on all BIR offices.

– Data-sharing agreements with other government agencies. Consistent with the Data Privacy Act, the BIR will implement information sharing agreements with other government agencies to secure information on taxpayer activities for internal revenue purposes.

Manila Times Source

ATTY. PEACHES ARANAS

Managing Partner LMA LAW