BIR revises criteria for evaluating personnel subject to attrition
THE BUREAU of Internal Revenue (BIR) said it will revise the criteria for evaluating employees it intends to terminate or retain as it implements a staff attrition campaign.
In Revenue Memorandum 20- 2017 dated Aug. 11 signed by Commissioner Caesar R. Dulay, the BIR said it will adopt new indicators to evaluate employee performance apart from collection eff iciency, amending Item III-6 of Revenue Memorandum Order 82-2010 issued by his predecessor.
“Other relevant factors/key performance indicators (KPIs) shall also be considered by the Commissioner in the evaluation of the performance of officials/employees whose collections fall short of the target,” the memorandum read.
The new KPIs include the number of tax evasion cases filed, the number of closed establishments under its Oplan Kandado program, audit effort, audit eff iciency, collection of arrears, the reduction in Stop-Filer cases, and the increase in number of businesses registered.
They also include budget utilization performance, compliance in the submission of financial statements to the Commission on Audit, liquidation of cash advances granted to officials or employees, and effectivity in recruitment of personnel.
Republic Act No. 9335, or the Attrition Act of 2005, was enacted on Feb. 1, 2005, and came into effect on June 15, 2006 after the issuance of the initial Implementing Rules and Regulations.
It was not until December 2010 when the law was actually implemented at the BIR through Revenue Memorandum Order 822010. The memorandum limits the evaluation of employees to their revenue collection performance against targets.
The law said that revenue officials who fall short of their collection targets by at least 7.5% face dismissal from service while those surpassing their targets will be rewarded with cash and other incentives equivalent to 10% of the excess.
Finance Secretary Carlos G. Dominguez III said earlier that the inclusion of more evaluation measures would encourage the bureau’s front line tax assessors to perform audits effectively.
Legislators have also been calling on the Department of Finance to fully implement the law after several corruption controversies that hit the BIR such as the Del Monte Philippines, Inc. tax deficiency case and the Mighty Corp. tax evasion case. They also said that the implementation of the law would support the tax reform program, as it is expected to boost collection eff iciency.
This year, the BIR — which generates about 80% of total government revenue — is tasked to collect P1.829 trillion. As of July, the tax bureau collected P986.09 billion, which is equivalent to 53.19% of the target.