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REPLTBLIC OF THE PIIILIPPNES l!G'i. ,-ii:i-[.i''jj'i

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DE,PARI'MtrNT OF FINANCE 5 : O O P' T4 ,

BT1REAU GF rr\TERhiAL REyENUE &l',ilf il i eiJi?, +

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REVEI\UE MEMORA]\DU]\4 ORDtrR I\O. IV- TCI?

SUBJECT : Frescribing Policies and Procedures in Monitoring Compliance

of Top Taxpayers in Revenue Regions

TO AII Internal Revenue Officers and Others Concernecl

I. OBJtrCTIVES:

This Order is issued to:

A. Establish a system to rronitor and improve compliance of top taxpal,ers in the
Revenue Regions u,itl-r filing of iirternal revenue tax retlirns ar-rd pay,nrents/rentittances
and other cornpliallce requirements;
B. Define the scope and coverage of the initial implementation of sucir nronitorir-rg
system in terms of taxpayers and Revenue Regions coverecl; and
C. Create and actirrate regional teams u,ho shall anal.vse taxpavers' cor:rpliance anci
1'ecommend measures to be implemented b), coucerued R.evenue District Offices
(RDOs), including nronitoring of perfbrmance of coucerned offices as regards the
impietnentation of compliartce inrpror,enrent procedures tor tireir identified tolt
taxpayers.

TI. SCOPE AND COVERAGE:

Forpurposes of the initial inrplementation of this Ordel tlie follorving shali be coreied:

The ii,velve (12) Revenue i{egious'which contribute the liu'gcst share in the total Bi}{
coilection slrali cor-niri'ise the offices r,r'hich shall adopt the prescribed nror-iitoring
procedures, to ri it:
i. Revenue Region No. 1 - Calasiao. Pangasinan
2. Revenue Region No. 4 - San Fernando, Parlpai"tlta
3. Revenue Region No. 5 - Caioocan Citv
4. F,.:venue ltegion l-'o. 6 l1anila
5. jr, ,'cnrlc ftegicir lio. J -' t , iezoir '.;:.;
6. llct'cti, i,, P,cgic,i^r ,'.1o. 8 - ', iakati t'iL;'
7 . Revenuc I.'"egion ,'.io. 9r\ - CaBa\'iiRr.r
f . i..i'\cnue I{egion N,r. i-i:r(Jrr,\1ar.
f . ij..,,:nlie Regiolr i{o. 12 . ,.icgIo:, ;''i-ti^r,-1 R,:gitttt
10. i(ercri, - i]-i:iriori . ,,". 13 - '..lr:btr C'it-i,
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I .1. ,. ., cl')uc itegiott ll'ro l,' . l:,ll, i''
 B. l-he'i i,1t -50L, ni)ri-i:rrliviclual taxltaYers i,i'tlte iibrjr,: jir:r.'cnlre Il,:r:ic)ns \r, l,lr 5211s1-t, lil,-
l'lteria'f-ot'l.arge'i-ii,".,,,,,'f]'i-. ' ',i1,'r'Il,ei,enue Regulai.;;'tr.; N(r r'l J010. bnt har,c r"iot
L.,ccn notified h:,,the Conit-t-rissioncr-Lri'Internal I{er.enll(' as surcit sital, l-,i-'consiclg'ed.
excei-)i rite firll:.,r ins:
I . Naironal Goireriiiii,:trt Agi'i,,tie s (NG:\s):
:-. L.ocal Government Ljnits (-,.,Us);
3. Goi,ernment Ownetl aird Controllecl Corporations (GOCCs); and
4. State Llnivelsities and Colleges (SUCs).
C. Said toll taxltayel's who shall be monitcirecl [r), their respective Regional Of'fices shall
comprise the ;\4ecliurir T'axltavers segnteltt of ihc Ritreau.

III. I{ATIOI{AL AND RE.GIONAH- hIONITORING TIIAMS

A. A Regional Monitoring 'feam- rvhich sliall be dircctli' under the supervisior-r ot' tirc
Regional Directot', shall be created and perfbrm the following I-nnctions:
1. Monitor tar coirrpiiance and analyze drastic changes in the nronthly tar
payments of tarpayers;
2. lJndertake Profiling of taxpayers by sectoriindustry for Benchmarking:
3. Act on pre-processed data (R.ELIEF, TRS and BIR-BOC), if available:
4. Analyze tax compliance report card;
5. Provide inpr-rts to be used in fbnlulating strategies to maximize taxpaver
compliance;
6. Based on analysis of tax compliance. recomrnend the conduct ol audit and
investigation of taxpayers by the coltcerlled RDOs; and
7 . Submit monthly status reports to the National Moititoring Team

B. A National Monitoring Team shall be created to oversee the perfbrmance of

Regional Monitoring Teams, undertake a national analysis of taxpayer cornpliance.
aud provide specific guiclelines on the operations of the re,eionai teams.

C. The National and Regionai Monitoring Teams shall be created througir the issuance
of a Revenlre Special Order.

IV. EFFECTIVITY:

This Order shall take effect immediately.

--zlF^+q"'ry
CAESAR DULAY
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F.-:'? Commissioner of Internal Revenue
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