RMO No. 36-2016: Prescribes the policies and procedures in the decentralization of recording and reporting of internal revenue taxes to all Regional Finance and Collection Divisions

Summary

RMO No. 36-2016 decentralizes the reconciliation, recording and reporting of internal revenue taxes collected across all payment channels to the Regional Finance and Collection Divisions of the Revenue Regions.

Key points

1. Who records collections. Regional Finance Divisions record taxes from taxpayers registered in their Revenue Region. Recording for Large Taxpayers Service taxpayers stays with the Revenue Accounting Division (RAD), which keeps a separate subsidiary ledger for each LTS RDO. RDOs first evaluate and reconcile collections, and the Collection Divisions or RAD review and validate them, with no Journal Entry Voucher prepared without written recommendation.
2. Basis of recognition. Collections are recognized by collection date, the date the BIR actually receives the payment, and not by booking date, the date of upload or encoding in ITS-CBR/eTIS-CRR. RMC No. 17-2012 governs recording by collection date. Undeposited RCO collections are disclosed as a footnote in the monthly Statement of Internal Revenue Collection.
3. Deposit and encoding requirements. RCOs must fill in deposit slips clearly and make sure the bank validation is readable. SARO and BSP direct crediting transactions are encoded by RDOs from BTr JEVs and supporting documents from RAD. RDOs are responsible for timely and correct upload or encoding of collections and coordinate with the concerned RDC on non-uploading.
4. Bank reports and reconciliation. AAB Head Offices’ manually submitted daily collection reports are electronically transmitted to the RDOs, RCDs and RFDs within two (2) days from receipt. RAD reconciles the BSP List of Remittances monthly, and DWSOD generates a bi-monthly Transfer In and Transfer Out Collection Report as of the 15th and month end, sent not later than three (3) days after the fifteen-day period. RAD sends the BTr Daily Report within five (5) days from receipt of BTr JEVs.
5. Account codes and reports. RAD and RFDs use UACS account codes under COA Resolution No. 2014-003 dated January 24, 2014. If a report cannot be completed by its deadline in meritorious cases, a tentative report is submitted and an amended report follows within fifteen (15) days after the deadline.
6. Coverage and 2015 data. The Order covers tax collections received upon its effectivity, and reconciled January 1, 2016 to June, 2016 collections through AABs, direct crediting and SAROs are transferred from RAD to the RFDs through JEVs. Previously reconciled 2015 collections are re-transmitted by RAD, and adjustments to 2015 and prior years validated with the BTr are communicated in writing.

Who is affected

• Regional Finance Divisions
• Revenue Collection Divisions
• Revenue Accounting Division
• RDOs and LTS offices
• Revenue Collection Officers

Deadlines and effectivity

• Manually submitted bank reports transmitted: within two (2) days from receipt
• Transfer In and Transfer Out report: not later than three (3) days after the fifteen-day period
• Amended financial report: within fifteen (15) days after the deadline

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.