RMO No. 34-2004: Prescribes the guidelines and procedures in the processing, matching, dissemination, utilization and monitoring of importation data from the Bureau of Customs for audit and enforcement purposes

Key points

1. System enhancements. The Integrated Tax System (ITS) was enhanced to handle BOC data and fully automate its matching with return information in the Limited Returns Processing System (LRPS). The Third Party Information (TPI) – BOC Data Warehouse Facility handles the voluminous data, and its discrepancy reports let management gauge non-compliance and set guidelines for investigating deliberate misdeclaration of importations.
2. Data categories. Data from the TPI-BOC DWF is either Processed BOC data, matched with LRPS return information based on a pre-defined threshold, or Preprocessed BOC data, which shows individual import transactions with registration information matching.
3. Systems Operations Division outputs. The SOD generates the list of taxpayers with discrepancies within the management-approved threshold for Letter Notices. It also generates system-generated Letter Notices plus Details of Importation with Return Information Matching (DIRIM).
4. Threshold recommendation. The AITEID, through the Assessment Service, may recommend to the DCIR, Operations Group a threshold for annual variance between quarterly input tax per VAT declarations in the LRPS and VAT paid per BOC import entry.
5. Access to Preprocessed data. Requests need a Letter Request approved by the Regional Director or the Assistant Commissioner of Large Taxpayers Service or Enforcement Service. Access is limited to taxpayers with Letters of Authority, Audit Notices or Tax Verification Notices. Where none was issued and the case is handled by the National Investigation Division or a Special Task Force, access needs the noting of DCIR-LIG or DCIR-OG.
6. Use and confidentiality. BOC data is used only for investigations, and its use is fully disclosed in the investigation report, with office heads responsible for data given to their officers. The data and other AITEID information are strictly confidential for internal revenue tax purposes only, and divulging or retrieving them is ground for administrative sanctions and charges.

Who is affected

• BIR revenue officers and offices handling audit and enforcement
• Taxpayers with Letters of Authority, Audit Notices or Tax Verification Notices