Powers and Authority of the BIR Enforcement and Advocacy Service

REPUBLIC OF THE PHILIPPINES

DEPRTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

Quezon City

                                                                                                                June 20, 2012

REVENUE ADMINISTRATIVE ORDER NO. 2-2013

SUBJECT       :             ORGANIZATION AND FUNCTIONS OF THE ENFORCEMENT AND   ADVOCACY SERVICE, ITS DIVISION AND SECTIONS

TO                 :                All Internal Revenue Officials and Employees

I.                    OBJECTIVE:

This Order defines the organization and functions of the Enforcement and Advocacy Service including its division and their sections pursuant to the Rationalization Plan under Executive Order No. 366.

II.                  ORGANIZATION:

The Enforcement and Advocacy Service shall be under the direct supervision of the Deputy Commissioner for Legal Group. It shall be headed by an Assistant Commissioner and shall be composed of the following divisions with their respective sections:

A.      Litigation Division

1.       Litigation Section I

2.       Litigation Section II

B.      Prosecution Division

1.       Prosecution Section I

2.       Prosecution Section II

C.      National Investigation Division

1.       Intelligence Section

2.       Investigation Section

3.       Criminal Investigation Section

III.                FUNCTIONS:

ENFORCEMENT AND ADVOCACY SERVICE

1.       Performs staff, advisory and consultative functions relative to tax fraud & intelligence operations, litigation & prosecution matters and development & investigation of tax case including those under the Run After Tax Evaders (RATE) Program.

2.       Processes Claims for Informer’s Reward;

3.       Formulates policies and administers work programs, standards, guidelines and procedures including forms relative to its functions;

4.       Provides policy guidance and operational directions to all divisions under the Service relative to its function;

5.       Establishes database for criminal violations of internal revenue laws and all court decisions on cases filed and all approved revenue issuances prepared by the Service/Divisions under it for regular updates of the Legal Information System;

6.       Supervises and/or coordinates the activities of the Legal Division in the Regional Offices with respect to litigation and prosecution work;

7.       Supervise and/or coordinates the activities of the Regional Investigations Division in the Regional Offices with respect to development of cases under the RATE Program.

8.       Coordinates with proper offices in the implementation of its functions;

9.       Monitors, evaluates and improves programs and activities under the responsibility of the Service;

10.   Reviews, recommends and/or approves all reports and other actions of the Divisions under the Service;

11.   Consolidates and/or prepares prescribed reports for submission to the offices concerned; and

12.   Performs other functions as may be assigned.

A.      Litigation Division

1.       Formulates policies, work programs, standards, guidelines and procedures including forms relative to the litigation work on the civil aspect of internal revenue cases under the National Internal revenue Code (NIRC) of 1997, as amended, and other related laws and regulations;

2.       Submits to the Service all court decisions on civil cases filed and all approved revenue issuances prepared by the Division for regular updates of the Legal Information System;

3.       Conduct studies and researches relative to its functions;

4.       Coordinates with proper offices in the implementation of the abovementioned functions;

5.       Actively coordinates and extends all possible assistance to the Office of the Solicitor General (OSG) with regard to the cases of the Bureau of Internal revenue being handled/represented by the OSG;

6.       Prepares prescribed reports for submission to the offices concerned;

7.       Prepares revenue issuances relative to its functions; and

8.       Performs other functions as may be assigned.

                                            Litigation Section I and II

1.       Institute civil actions involving internal revenue cases;

2.       Represents the Commissioner of Internal Revenue in the hearing/trial and related proceedings involving internal revenue cases;

3.       Acts on petitions for review filed by taxpayers in the Court of Tax Appeals, Regional Trial courts, and administrative agencies involving internal revenue cases;

4.       Prepares all pleadings, briefs and memoranda to be filed with the Court of Tax Appeals, Regional Trial Courts, and other courts and administrative agencies connection with internal revenue cases pending before the same;

5.       Interview/prepares witnesses and evaluates evidence in connection with internal revenue cases;

6.       Summons, examines and takes testimony of persons pursuant to Sec. 5 of the NIRC of 1997, as amended, and other applicable laws;

7.       Prepares digests of decisions rendered by the courts and other administrative agencies on cases involving internal revenue taxes;

8.       Represents revenue officials and personnel in civil cases brought against them in connection with the lawful performance of their official functions;

9.       Prepares monthly accomplishment report involving cases being handled before the Court of Tax Appeals (CTA), Supreme Court, Department of Justice (DOJ), Regional Trial Courts (RTCs) and other administrative agencies on the following;

a.       Cases pending in courts involving refund and assessments.

b.      Petitions for review, comments, answer, motions, reply memo en banc on assessment, refund and other cases before the CTA which were filed;

c.       Hearings attended by Litigation Lawyers; and

d.      Received decisions involving refunds and assessment & other civil cases for and against the government which were received.

10.   Prepares inventory of civil cases, including disputed assessment cases with deficiency taxes, cases involving claims for refund of taxes upheld on appeal, won/lost refund cases and won/lost assessment cases; and

11.    Performs other functions as may be assigned.

B.      Prosecution Division

1.       Formulates policies, work programs, standards, guidelines and procedures including form relative to the criminal prosecution of violations of the NIRC 1997, as amended, and relatd laws and regulations;

2.       Represents the Commissioner of Internal Revenue before the DOJ and the Courts in the preliminary investigation/hearing/trial of RATE cases and other criminal cases involving violations of NIRC of 1997, as amended, rules and regulations including other laws administered by the BIR;

3.       Evaluates complaints of tax evasion and swears-in qualified affiants to the Affidavit of Confidential Information;

4.       Evaluates Claims for Informer Rewards and determines whether the informer is entitled to it;

5.       Coordinates with other BIR offices and/or external offices for the successful prosecution of violations of internal revenue laws and regulations;

6.       Submits to the service all court decisions on criminal cases filed and all approved revenue issuances prepared by the Division for regular updates of the Legal Information System;

7.       Conducts studies and researches relative to the criminal  of the NIRC of 1997, as amended;

8.       Actively coordinates and extends all possible assistance to OSG in case the OSG represents the Bureau/People of the Philippines on criminal cases involving tax evasion and/or violations of internal revenue laws, rules and regulations including other laws administered by the BIR before the Courts;

9.        Coordinates with proper offices in the implementation of the abovementioned functions;

10.   Prepares prescribed reports for submission to the offices concerned;

11.   Prepares revenue issuances relative to the abovementioned functions; and

12.   Performs other functions as may be assigned.

                                                   Prosecutions Sections I and II

1.       Institutes criminal actions against persons violating internal revenue laws and other tax laws administered by the Bureau of Internal Revenue;

2.       Evaluates tax fraud cases referred by the National Investigation Division (NID), Regional Investigation Division, Large Taxpayers Service (LTS) and other offices involving a basic deficiency tax of at least One Million Pesos (P1,000,000.00) with the view of having them properly documented and substantiated to ensure successful prosecution thereof under the RATE Program;

3.       Recommends and the files complaints for preliminary investigations  to the Office of the Prosecutor or the Office of the Secretary of Justice, as the case maybe, on violation/s of internal revenue laws and regulations;

4.       Interviews/prepares witnesses and evaluates evidence in connection with cases filed for violation of tax laws;

5.       Summons, examines and tales testimony of persons pursuant to Sec. 5 of the NIRC of 1997, as amended, and other applicable laws;

6.       Evaluates and receives confidential information filed by informants in relation to Section 282 of the NIRC of 1997, as amended;

7.       Represents the Commissioner of Internal Revenue in the prosecution of the criminal cases involving tax  evasion and/or violations of Internal Revenue laws, rules and regulations including other laws administered by the BIR;

8.       Acts on petitions for review filed by the taxpayers in the Department of Justice , Court of Tax Appeals and other judicial and administrative agencies relative to fraud cases under their jurisdiction;

9.       Prepares all pleadings, briefs and memoranda to be filed with the Department of Justice, Court of Tax Appeals, regular courts and administrative agencies relative to tax fraud cases;

10.   Submits to the Service data or materials relative to criminal  violations of internal revenue laws, rules and regulations as well as information on the effective enforcement of the prosecution processes for regular updates of Legal Information System;

11.   Prepares subpoena ad testificandum / subpoena duces tecum, five (5) days VAT compliance notices, and closure orders upon request concerned offices;

12.   Receives documemts and verifies compliance of taxpayer with Subpoena Duces Tecum;

13.   Recommends deportation of alien taxpayers and/or inclusion in the Hold Order List and Watch List of persons prosecuted for violation of internal revenue laws, rules, regulations and other related laws and makes necessary representation as government counsel before the Deportation Board;

14.   Refers cases for the filing of criminal action to the Ombudsman;

15.   Evaluates and process claims for reward of confidential informers;

16.   Prepares digest court decisions involving criminal cases filed;

17.   Prepares monthly accomplishment reports on cases being handled;

18.   Represents revenue officials and personnel in criminal cases brought against them in connection with the lawful performance of their official functions; and

19.   Performs other functions as may be assigned.

C.      National Investigation Division

1.       Formulates policies, work programs, standard, guidelines and procedures including forms relative to the investigation of tax fraud cases and the conduct of intelligence work;

2.       Conducts preliminary investigation  of confidential information filed by informants of the BIR;

3.       Makes arrest and seizures in relation to the violation of any penal law, rule or regulation administered by the BIR as provided under Section 15 of the NIRC of 1997, as amended;

4.       Conducts audit policy cases and prepares audit manuals as a result of the audit conducted;

5.       Coordinates and integrates all intelligence activities of Regional Offices;

6.       Maintains systematic records of all cases handled by the Division;

7.       Coordinates with the proper offices in the implementation of its functions;

8.       Prepares prescribed reports for submission to the offices concerned;

9.       Prepares revenue issuances relative to the abovementioned functions; and

10.   Performs other functions as may be assigned.

1.       Intelligence Section

1.1   Sets-up work programs, standards, guidelines and procedures relative to the conduct of intelligence work;

1.2   Assists the Investigation Section by drawing up an effective intelligence operations;

1.3   Identifies vital third party information needed in the implementation of tax prosecution programs and requests such information from concerned office;

1.4   Obtains information on a regular basis from third parties through access to records;

1.5   Summons, examines and takes testimony of persons pursuant to Sec. 5 of NIRC of 1997, as amended, and other applicable laws and regulations;

1.6   Conducts surveillance on persons identified and suspected to be involved in activities in violation of the NIRC of 1997, as amended to establish prima facie case of fraud on the basis of a tax assessment pursuant to Sec. 5 of the NIRC of 1997, as amended;

1.7   Consolidates and interprets intelligence information relating to tax fraud matters from all available sources;

1.8   Conducts liaison activities with other intelligence, police and other investigative agencies for the conduct of arrests as well as raids and seizures in cases referred/approved by the Commissioner;

1.9   Coordinates with the Regional Investigation Division concerned on all intelligence operations including those on activities pertaining to smuggling, syndicated crimes and the use of fake BIR accountable forms;

1.10      Prepares prescribed reports and updates/status for submission to the offices concerned;

1.11      Supervises the safekeeping of confidential documents of the Division and controls all data and communications received pertinent to cases handled; and

1.12      Performs other functions as may be assigned.

2.       Investigation Section

2.1   Sets-up work programs, standards, guidelines and procedures relative to the conduct of investigation of tax fraud cases and those involving violations of the NIRC of 1997, as amended;

2.2   Prepares specific plans in the conduct of tax fraud investigation of suspected criminal violators of internal revenue laws and regulations in coordinator wit the Intelligence Section;

2.3   Investigates tax fraud cases as may be referred and/or approved by the Commissioner and those developed by the Division;

2.4   Investigates violations of the provisions of NIRC of 1997, as amended, committed by the taxpayer;

2.5   Plans, organizes and conducts inventory taking and surveillance work in order to establish a prima facie fraud case on the basis of tax assessment pursuant to Section 5 of the NIRC of 1997, as amended, upon mission orders issued;

2.6   Develops and investigates criminal cases for prosecution;

2.7   Assists in the prosecution of criminal cases;

2.8   Prepares prescribed reports and updates/status for submission to the offices concerned;

2.9   Maintains systematic records of tax fraud cases handled by the Section; and

2.10      Performs other functions as may be assigned.

3.       Criminal Investigation Section

3.1   Sets-up work programs, standards, guidelines and procedures relative to the conduct of investigation of tax fraud by the BIR;

3.2   Prepares specific plans in the conduct of tax fraud investigation of suspected criminal violators of internal revenue laws and regulations in coordination with the Intelligence Section;

3.3   Investigates tax  fraud cases as may be referred and/or approved by the Commissioner and those developed by the Division;

3.4   Investigates criminal violations of the provisions of NIRC of 1997, as amended, upon mission orders issued;

3.5   Plans, organizes and conducts inventory taking and surveillance work in order to establish as prima facie fraud case on the basis of tax assessment pursuant to Section 5 of the NIRC of 1997, as amended, upon mission orders issued;

3.6   Develops and investigates criminal cases for prosecution;

3.7   Assists in the prosecution of criminal cases;

3.8   Prepares prescribed reports and updates/status for submission to the offices concerned;

3.9   Maintains systematic records of tax fraud cases handled by the Section; and

3.10      Performs other functions as may be assigned.

IV.  REPEALING CLAUSE;

All issuances or portions thereof not consistent with the provisions of this Order are hereby repealed or amended accordingly.

V.   EFFECTIVITY:

This Order shall take effect immediately

Powers and Authority of the BIR Internal Affairs Services

REVENUE ADMINISTRATIVE ORDER NO. 1-2013

SUBJECT       :       ORGANIZATION   AND   FUNCTIONS   OF   THE   INTERNAL AFFAIRS SERVICES, ITS DIVISION S AND SECTIONS

TO                 :       All Internal Revenue Officials and Employees

I.           OBJECTIVE:

                  This Order defines the organization and functions of the Internal   Affairs Service including its divisions and their sections pursuant to the Rationalization Plan under Executive Order No. 366.

II.         ORAGANIZATION:

             The Internal Affairs Service shall be under the direct supervision of the Deputy Commissioner for Legal Group. It shall be headed by an Assistant Commissioner and shall be composed of the following divisions with their respective sections:

A.      Internal Investigation Division

1.       Anti-Graft and Investigation Section

2.       Security and Inspection Section

B.      Personnel Adjudication Division

1.       Hearing Panel Section I

2.       Hearing Panel Section II

3.       Hearing Panel Section III

III.         FUNCTIONS:

INTERNAL AFFAIRS SERVICE

1.     Performs   staff,     advisory    and    consultative    functions     relative     to

        Preliminary/fact-finding      Investigation     and       prosecution,         formal

 Investigation/hearing     of   administrative    cases   filed   against   revenue

Personnel   and   security    program    of   the    Bureau,    as   well   as     the

Implementation   of   the   anti-corruption   program   under   the   integrity

Development Action Plan (IDAP); 

   

2.    Formulates policies and administers work programs, standards,   guidelines

       And procedures, including forms relative to the abovementioned functions;

3.    Formulates,     Implements       and       monitors       the         anti-corruption

       Programs/projects, including other matters covered under the IDAP;

4.    Conducts   preliminary   fact-finding    investigation    and   prosecution    of

       Administrative cases filed against revenue personnel;

5.    Conducts formal investigation/hearing of administrative charges   formally

       filed against erring revenue personnel;

6.    Prepares and recommends appropriate actions/decisions on administrative

       cases heard;

7.    Implements  physical  security  program  to  safeguard  personnel,  records,

       Equipment, installation and other properties of the Bureau.

8.    Provides  guidance   and   operational   directional  direction to all  divisions

       Under the service relative to the abovementioned functions;

9.    Coordinates    with     proper    offices   in    the     implementation    of    the

       Abovementioned functions;

10.  Monitors,   evaluates   and   improves programs and activities under the

        Responsibility of the Service;

11.  Reviews, recommends and/or approves all reports and other actions of

        The division under the Service;

12.   Monitors   and   coordinates   the   activities of the Regional Investigation

         Division of the Regional Offices pertaining to the fact-finding investigation

         Of administrative cases of Bureau personnel;

13.   Consolidates   and/or prepares prescribed   reports for submission to the

        Offices concerned; and

14.   Performs other functions as may be assigned.

A.    Internal Investigation Division

1.       Formulates and implements policies, work programs, standards, guidelines and procedures, including forms, relative to the preliminary/fact finding investigation and prosecution of administrative.

                 

               Cases filed against revenue personnel and the physical security

               program of the Bureau;

2.       Maintains systematic records of all administrative cases handled by the Division, courts and Civil Service Commission decision, resolutions and doctrines on administrative cases;

3.        Coordinates with the proper offices in the implementation of the abovementioned function thru the Assistant Commissioner, Internal Affairs Services;

4.       Prepares prescribed reports for submission to the offices concerned;

5.       Prepares revenue issuances relative to the abovementioned functions; and

6.       Performs other functions as may be assigned.

1.       Anti-Graft and Investigation Section

1.1       Evaluates the merits of all denunciations/complaints  and  reports

Against  revenue  officials  and  employees  involving violations of the  provisions  of  the  Administrative  Code of 1987 (EO 292) and the  Omnibus  Rules  Implementing  Book  V  of  the said Code and related  Civil  Services  Laws,  The  Code   of   Conduct  and  Ethical Standards  of  Public  Officials  and  Employees (RA 6713), the Law on   Sexual   Harassment   (RA 7877),   Anti-Graft   and  Corrupt  as implemented  by   RMO 53-2010,   illegal   enrichment   cases  and other   allied   laws,    administrative   issuances,   regulations  and prosecution thereon;

1.2       Investigates   all   allegations   of   fraud  or  falsification  or  those

Involving   misrepresentation  or  misdeclaration  in  the  personal data  of  BIR  employees  in  their  201  files  such  as   status,  age, educational  qualification,  Board/Bar/Civil Service  eligibility, and other pertinent data as may be referred for investigation;

1.3       Investigates matters regarding the failure  of  concerned  revenue

Personnel to correct and/or submit  his/her  Statement  of Assets, Liabilities  and  Networth  and  Disclosure  of   Business  Interest & Financial Connections as mandated by law;  

1.4     Conducts    integrity    monitoring   and   investigation   as  may  be

        directed    to   determine    whether   the    Bureau   personnel   are

        personally benefiting from taxpayers and their representatives, or

        from suppliers  or others  with whom the Bureau transacts official

        business;

1.5     Conduct     spot-checking    of   revenue    personnel   to   ascertain

        compliance   with   the   Civil   Service   Laws   and  Revised Code of

        Conduct for Revenue Officials and Employees;

1.6     Collates   and   evaluates   pieces   of   evidence  gathered after the investigation;  If  prima facie case exists, prepares the appropriate Formal    Charge/s    and/or   Preventive   Suspension   Order/s,   If warranted,      against      revenue      personnel      concerned    for consideration   and   approval   of   the   Commissioner of Internal Revenue;   If   no   prima   facie   case   exists,   prepares   a closing memorandum   for   consideration   and   approval   of the Deputy Commissioner,   Legal Group,   detailing   therein the facts and the law upon which is based  and  attaching therein pertinent records or documents;

1.7     Refers   the   entire   docket   of   the   administrative    cases   with

Approved   Formal    Charges against revenue   personnel   to the

                        Personnel Adjudication Division and retains certified photocopies

                        of said dockets for the formal investigation of hearing, and acts as

                        Prosecutors in the proceedings of the said administrative cases;

1.8     Refers regional cases to the concerned Revenue Regional Director

         for the  filling  of  the  appropriate  criminal case in case there are

         Factual and legal bases therefor;

1.9     Process   and   issues   clearance   and   certification  of no pending

         Administrative case for revenue personnel; and

               1.10. Performs other functions as may be assigned.     

2.       Security and Inspection Section

2.1     Oversees   the   implementation   of   approved   physical   security

Program   and   measures for the safeguarding of the personnel,

                        Records,   supplies   and   materials, facilities and building of the

                        Bureau,   particularly its computers   and other   communication

                        equipment;

2.2     Ensures  that  the  security  guards assigned in the Bureau perform

        Their duty in accordance with terms and conditions of the

         Contract entered into between the BIR and the private security

         Agency contractor;

2.3      Requires the submission of incident/spot reports by the private

Security agency, If necessary, and validates the same;

2.4     Conducts spot-checking of assigned security guards on duty;

2.5      Verifies the authenticity/correctness of the Summary Report of

Attendance of Security Guards and other related documents for submission to the Accounting Division for Billing Statement purposes;

2.6      Prepares and submit pertinent documents for security service

Contract requirements to the Bids and Awards Committee as requires under R.A. 9184;

2.7     Coordinates with the government agencies on security matters;

And

2.8     Performs other functions as may be assigned.

B.    Personnel Adjudication Division        

      

1.       Formulates and implements policies, work programs, standards, guidelines and procedures, including forms governing formal investigation/hearing of administrative cases of Bureau personnel for speedy, fair and judicious disposition of cases;

2.       Ensures the proper conduct of administrative investigation/hearing without necessarily adhering strictly to the ethical rules of procedure and evidence applicable to judicial proceedings;

3.       Prescribes and enforces rules and regulations to carry out its mandate;

4.       Maintains a systematic compilation and computerized files and digest of decisions and doctrines of court and administrative bodies;

5.       Coordinates with the proper offices and agencies of government in the implementation of the abovementioned functions;

6.        Prepares prescribed reports for submission to the offices concerned;

7.        Prepares revenue issuances relative to the abovementioned function; and

8.       Performs others functions as may be assigned.

       Hearing Panel Sections I, II and III           

1.       Conducts hearing of administrative charges filed by the Regional Offices, Formal charges prepared by the Anti-Graft and Investigation Section and approved by the Commissioner of Internal Revenue, including sworn written complaint by any person involving illegal enrichment cases against revenue personnel, violations of Anti-Graft and Corrupt Practices Act, Offences Punishable under the Administrative Code of 1987 (EO 292), Civil Service laws and regulations and memoranda circulars;

2.        Causes the service of the approved formal charge/s  and/or preventive suspension order/s and other notices to the respondent/s and/or through his/her office;

3.        Evaluates testimonies of witnesses, as well as evidence presented during formal investigation/hearing submitted by the Internal Investigation Division, acting as prosecutors, or those files by respondent/s or his/her lawyer/s;

4.       Conducts studies and researches and issues resolutions on all questions that may arise during formal investigation, including issues on existing jurisprudence and principles on administrative law and adjudication;

5. Prepares and recommends appropriate actions/decisions on administrative cases pending before it;

6.    Serves the approved decision/resolutions to the Internal Investigation Division, respondent/s regional Office, Personnel Division, Accounting Division and other concerned offices;

7.       Processes and issues clearance and certification of employees of pending administrative case; and

8.       Performs other functions as may be assigned.

IV.        REPEALING CLAUSE:

             All issuances or portions thereof not consistent with the provisions of this Order are hereby repealed or amended accordingly.

V.         EFFECTIVITY:

            This Order shall be effect immediately.