Summary
RMO No. 4-2006 sets the guidelines and procedures for benchmarking and adopts the performance benchmarking method in the Revenue District Offices (RDOs).
Key points
- Coverage. Initial coverage is the top 200 taxpayers per line of industry per district, based on the higher of gross sales in tax returns or actual gross sales or receipts from sources inside and outside the Bureau. Coverage grows until all taxpayers of all industries are covered, targeted on or before the end of calendar year 2008.
- How benchmarking is done. Benchmarking is separate for corporations and individuals, and per area, line of industry and tax type. RDOs prepare a taxpayer profile per taxable year to determine the industry target.
- Priority industries for taxable year 2004. These are manufacturing (flour, softdrinks, sugar, cement and plastic), hardware, restaurants, shipping, IT providers, telecommunication, call centers, logistics providers, construction and petroleum.
- Cases with Letters of Authority. Where a Letter of Authority has been issued to a benchmarked taxpayer, the RDO may not close the case without considering the prescribed benchmarks.
- Reports. RDOs submit a Monthly Report on the Status of Benchmarking Activities to the Regional Director through the Regional Committee on or before the 5th day of the following month. The Regional Committee submits a consolidated report to the Deputy Commissioner for Operations on or before the 10th day of the following month.
- False data. Appropriate cases will be filed against taxpayers found to have supplied fabricated data or incorrect information just to meet the benchmark requirements.
Who is affected
- Top 200 taxpayers per line of industry per district
- Revenue District Offices
Deadlines and effectivity
- Full coverage targeted on or before end of calendar year 2008
- RDO monthly report on or before the 5th day of the following month
- Consolidated report on or before the 10th day of the following month
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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