The Senior Deputy The Senior Deputy Commissioner of the BIR:Commissioner of the BIR:

Advocate for Advocate for Institutional BuildingInstitutional Building

The critical situation• Increasing need for tax revenues

• Global and local economic slow down

• Tax revenue losses arising from recent legislation

• Policy on no new tax measures

• Growing sophistication of taxpayers

• Tremendous pressure on BIR and its leadership to collect taxes

The over stressed BIR

• Increasing tax collection targets

• Increasing work load

• Inadequate resources

• Focus on routinary day to day work

• Limited attention to institutional building

Institutional building paralysis• Inability to cope up with current and future trends and requirements

• Focus is short term and immediate solutions

• Longer term and high impact undertakings not pursued

• Worsening Tax Administration Efficiency Gap

The hard realities

•There is a need for the current tax collection efforts

•There is a need for BIR institutional building

To address the needs

•Current tax administration leadership and personnel to focus on current tax collection efforts

•Office of the Senior Deputy Commissioner has been created to focus on BIR institutional building

Office of the SDCIR• New office created under EO 827

• Second in command office needed to push encompassing initiatives

• New office will allow CIR to concentrate on tax collection initiatives

• Office of SDCIR will complement existing structure and initiatives

Executive Order 827• Executive Order signed by the President on

August 14, 2009

• EO creates the Office of the Senior Deputy Commissioner of Internal Revenue (OSDCIR)

• EO provides both broad and specific mandates of the OSDCIR

• OSDCIR will report accomplishments to the Finance Secretary and BIR Commissioner

Mandate of the OSDCIR

•Build up the BIR as an institution by enhancing its image and capability

•Undertake activities to improve the administration of the three P’s: People, Process, and taxPayers

People improvement activities• Formation of a Tax Academy or Training Institute

• Regular conduct of proficiency examination for revenue personnel

• Organizing regular learning fora for BIR officials in coordination with the private sector

• Upgrading the research and knowledge data base of the BIR , including setting up a BIR Information Resource Center

• Formation of Junior Executive Development Program

Process improvement activities

• Rationalization of the implementation of investment incentives laws

• Prescribing internationally accepted tax administration trends and practices, including an appeals arbitration for conflict resolution

• Mandating new taxpayer disclosure requirements, including a statement of management responsibility

• Putting in place an environmental scanning system

• Adoption of viable technology in tax administration processes

• Improvement of the withholding tax system to cover more offshore transactions and the consolidation of all pertinent issuances

taxPayer interaction improvement activities• Enhancing taxpayer service , including institutionalizing the “Handang Maglingkod” program and Taxpayer Resolution Office

• Re-invigorating the tax practitioner accreditation program

• Improving the level of servicing to and the tax payments of the Large Taxpayers, including setting up an Industry Champion and Most Important Priorities programs

• Pinpointing transactions that have significant tax potential and plugging any arising leakages and undertaking special enforcement projects

Enhancing image of the BIR• Implementation of a communication plan that will project the positive developments in the BIR

• Conduct of regular assessments of public perception of BIR activities

Institutionalizing the Institutionalizing the measuresmeasures

• Creation of a webpage on the initiatives

• Organizing road shows to inform stakeholders of the measures

• Legislation of the measuresLegislation of the measures

In summary• The over stressed BIR is in a critical situation

• BIR needs to concentrate on tax collection

• There is equally important need to focus on institutional building

• To take up the slack in the institutional building, the OSDCIR has been created

• The OSDCIR shall enhance the image and capability of the BIR by pursuing People, Process and taxPayer initiatives

The BIR contributes more than 75% of government revenues

It is time that Institution Building is pursued by the BIRBIR deserves nothing less We deserve nothing less