1. BIR at 99 Strengthening Tax Administration for a STRONG REPUBLIC

2. AREAS OF TAX ADMINISTRATION REGISTRATION AUDIT & ENFORCEMENT DECLARATION PAYMENT TP INFO. & EDUC.

3. PROBLEM Difficulty in getting timely, accurate and consistent tax information Impact Taxpayers are discouraged/unable to voluntarily comply with tax requirements Result Low taxpayer registration/compliance SOLUTION Make tax information easily accessible to taxpayers Intensify taxpayer awareness activities TAXPAYER INFORMATION & EDUCATION

4. TAXPAYER INFORMATION & EDUCATION BIR Website Provides updated tax information (i.e. rulings, issuances, etc.), downloadable tax forms and access to BIR e- Services

5. TP Contacts BIR Knowledge DB Call Center Agent responds to questions Fax On Demand Emailing Web Interface Telephone TAXPAYER INFORMATION & EDUCATION Contact Center First and single point of contact where TP’s queries and feedback can be accurately and consistently handled PARTNERS: ePLDT, Philcox, CIDA/PTTAF

6. TAXPAYER INFORMATION & EDUCATION eRaffle (Bayan, I-txt ang Resibo) Aims to encourage consumers to habitually ask for invoices/receipts PARTNERS: Globe, Smart, Red Ribbon, Starbucks, Enchanted Kingdom, Jollibee, Shoe Mart, TV networks

7. TAXPAYER REGISTRATION TAXPAYER REGISTRATION PROBLEM Numerous documentary requirements Many signatories in documents Complicated procedures Difficulty in monitoring taxpayer compliance with registration requirements Impact Low number of registrants Result Low taxpayer base SOLUTION Simplification of processing of ONETT transactions Prescribing uniform procedures in evaluating applications for CAS Conduct of tax mapping activities TIN application via BIR website Provide venue to report establishments who are not issuing valid receipts or invoices

8. TIN Inquiry given the taxpayer’s full name and birth date TP Display of Registration Form on the internet (to enable taxpayer to perform online registration) TAXPAYER REGISTRATION eTIN Web-based application system that allows taxpayers to secure/inquire on their TINs on-line PARTNER: Oracle Phils. Your application has been received. You,, are now registered with the BIR. You Tax Identification Number is 300-000-285-000. Automatic issuance of TIN to new registrant

9. TAXPAYER REGISTRATION eRaffle (Bayan, I-txt ang Resibo) Leads to identification of business establishments and professionals who are not registered with BIR Leads to identification of business establishments and professionals who are not registered with BIR PARTNERS: Smart, Globe, Red Ribbon, Starbucks, Enchanted Kingdom, Jollibee, Shoe Mart, TV networks

10. BIR RO checks document Text TIN, Inquiry or Violation Code to BIR Receives text messages Sends validation results TIN Verification RR / Issuance Inquiry Red Army Monitoring System TAXPAYER REGISTRATION Mobile Revenue Officers On-the-spot check of tax compliance of business establishments wherein Revenue Officers can report instantly via SMS taxpayer violations PARTNER: Smart-MDI

11. TAX DECLARATION PROBLEM Difficulty in filing tax information with the BIR System unavailability of EFPS during tax deadlines Impact Taxpayers are discouraged/unable to file tax returns Result Low number of tax returns filed SOLUTION Electronic filing of tax returns via eFPS Expansion of coverage of eFPS to include more BIR Forms and more taxpayers Enhancement of eFPS capacity through full outsourcing

12. Awarding to AyalaPort April 23, 2003 eFiling and ePayment for Top 1000 of 43 Computerized RDOs by Dec 31, 2003 eFiling and ePayment of Top 1000 Taxpayers of All RDOs by Dec 31, 2004 eFiling and ePayment of all Taxpayers by 2005 Migration to the Internet Data Center by Aug 1, 2003 Review and Design of new eFPS June 30, 2003 Deployment of the New Expanded EFPS by Oct 31, 2003 TAX DECLARATION eFPS Full Outsourcing Enhancement and expansion of eFPS coverage and capacity through full outsourcing PARTNER: AyalaPort

13. Export Community BIR Website Allows the electronic submission of BIR requirements, such as tax returns, alphalist of compensation earners, list of payees covered by expanded withholding tax and schedules of Sales, Receipts and Purchases via the BIR Website Taxpayer 1 Taxpayer 2 Taxpayer n eSubmission TAX DECLARATION PARTNERS: PEZA, E-KONEK, SEIPI

14. Web-based automation of the preparation, transmittal and processing of the removal application for excise tax products PARTNER: E-KONEK TAX DECLARATION eExcise

15. PROBLEM Difficulty in paying taxes (i.e. not enough AABs, strict payment venue requirement, etc.) Tax payment diversion Impact Taxpayers are discouraged to pay taxes Taxes paid do not go to govt. coffers Result Low revenue collection registered SOLUTION Electronic payment of taxes Inclusion of more banks in eFPS through use of Payment Gateway Notification of taxpayers on tax payments made TAX PAYMENT

16. Taxpayer in his office /home/eCafe BIR eFPS Banks Payment Confirmation Internet Mandatory payment of tax via eFPS for identified large and non-large taxpayers TAX PAYMENT Mandatory eFPS PARTNER: AyalaPort eFPS was cited for Excellence in E-Governance (E-Payment category) in the E- Government Award

17. eBroadcasting Automatic confirmation of payments made by taxpayers to BIR thru Accredited Agent Banks (AABs) within 48 hours from transaction date via e-mail, mobile phone and the BIR Website BIR TP views own payment confirmation by entering TIN and PIN BIR WEB FACILITY (publishes payment confirmation in BIR Website) BIR MESSAGING FACILITY (sends machine to machine payment data to TP mobile number) TP receives payment confirmation thru text messaging TP receives payment confirmation thru eMail BIR EMAIL FACILITY (sends eMail to TP of tax payment details) PARTNERS: BAP, Smart, Globe, Oracle Phils., Sun Microsystems Phils. and e-Science Corp. TAX PAYMENT

18. Sends Uploading Feedback Thrift Bank accepts Tax Payment & returns eMail /Text Payment Report to BIR Upload Payment Data to BIR Mobile RO (for Thrift Banks) TAX PAYMENT Authorization of thrift banks to accept tax returns and payments PARTNER: Smart-MDI

19. Use of Bancnet ATM Gateway for on-line interface with eFPS *Allied Bank *China Bank (BPI/ Citytrust) *Metrobank *Equitable PCI Bank *RCBC *Security Bank *Union Bank/Interbank ABN Amro Bank Bangko Kredito Centennial Bank Citystate Savings Bank East West Bank Malayan Bank Orion Bank Plantersbank PS Bank RCBC Savings Bank Asia United Bank Banco Filipino *Bank of Commerce (Panasia) *Chinatrust Bank Citibank N.A. Export & Industry Bank First E-Bank (PDCP Bank) Global Bank (Philbank) Manila Bank Merchants Bank (Orient Bank) *PBCom *Philtrust Bank *Standard Chartered Bank *United Overseas Bank FILINGFILING PAYMENTPAYMENT BIR eFPS Payment Gateway TAX PAYMENT PARTNER: BANCNET

20. PROBLEM Need to build TPI data for investigation purposes Benchmarking of taxpayer performance with industry performance Complaints by some taxpayers of harassment Impact Difficulty in monitoring level of taxpayer compliance as well as processing of data from taxpayers Result Actual collection falls below the tax potential SOLUTION Require quarterly submission of Summary Lists of Sales and Purchases Establish linkages with external agencies to build TPI data No contact audit thru establishment of industry benchmarks TAX AUDIT & ENFORCEMENT

21. TAX AUDIT & ENFORCEMENT TAX AUDIT & ENFORCEMENT eReport Card Generate CEO Report Automatic Letter Generation Automatic Emailing BIR Datawarehouse Taxpayer Centric Informati on XXXX Tax Payment Tax Declaration Third Party Information Web Interface Notification of taxpayer’s performance vs. pre-defined industry benchmark PARTNER: SAS

22. TAX AUDIT & ENFORCEMENT Sample of eReport Card

23. TAX AUDIT & ENFORCEMENT Data Warehousing Building of TPI database for cross-referencing with tax declarations to detect possible under-declaration of revenues PARTNER: SAS

24. TAX AUDIT & ENFORCEMENT TAX AUDIT & ENFORCEMENT Text Mining Analyze “Text Messages” : - patterns of data - classify unusual behaviors for suspect fraud text message - group bus. establishments/professionals that do not issue valid receipts Classify establishments/professionals with invalid TIN by RDO Utilize sales information of texter to countercheck sales declared by establishments/professionals Investigate business establishments and professionals who do not issue valid receipts, including those with invalid TIN SMART Text Entries Globe Text Entries RESIBO Mike Sy * TIN of OR * OR Num * Amount NO OR ABC Store Bacobo St. Malate BIR Regional District Offices Captures in BIR eRaffle database business establishments/professionals who are not issuing valid receipts/invoices PARTNER: SAS

25. CONTINUOUS ENHANCEMENT TAXPAYER INFORMATION AND EDUCATION Extension of BIR text raffle promo Hard launch of BIR Contact Center BIR Portal implementation TAXPAYER REGISTRATION E-payment of Registration Fees Issuance/delivery of Plastic TIN Card and COR TIN issuance for other types of individual taxpayers Update of registration information Accreditation of accounting firms for CAS registration Accreditation of POS suppliers Link with private organizations for provision of data capture of registration forms

26. TAX DECLARATION eFPS full outsourcing eFPS enhancements TAX PAYMENT Other mode of tax payments (i.e. ATM, Debit Card, etc.) TAX AUDIT LA/LN Monitoring CONTINUOUS ENHANCEMENT

27. STRONG TAX ADMINISTRATION THRUST DESIRED RESULT Taxpayers well-informed about their tax obligations   Enhanced voluntary compliance Streamlined registration procedures   Increased taxpayer base Convenient tax filing and payment   Increased number of filers/tax payments Tax payments properly accounted for   No diversion of tax payments No contact audit   Enhanced transparency / no opportunity for corruption

28. STRONG TAX ADMINISTRATION INCREASED TAX COLLECTIONS STRONG REPUBLIC