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. 

Definition of Different BIR Issuance such as RR, RMO, etc.

 REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

April 2, 2012

REVENUE ADMINISTRATIVE ORDER NO. 1-2012

SUBJCT:                Identifying the Revenue Issuances Required to be Filed with the University of the Philippines Law Center

TO:                         All Internal Revenue Officers and Other Concerned

BACKGROUND

               Chapter 2, Book VII of Executive Order No. 292, the “Administrative Code of 1987” pertinently provides:

“SEC. 3. Filling- (1) Every agency shall file with the University of the Philippines Law Center three (3) certified copies of every rule adopted by it. Rules in force on the date of the effectivity of this code which are not filed within three (3) months from that date shall not be thereafter be the basis of any sanction against any party or persons.

(2) The records officer of the agency, or his equivalent functionary, shall carry out the requirements of this section under pain of disciplinary action.

(3) A permanent register of all rules shall be kept by the issuing agency and shall be open to public inspection.”

As provided above, every rule adopted by an agency shall be filed with the University of the Philippines Law Center (hereinafter referred to as the “Center”).

The term “rule” mentioned above is defined in Section (2) (2), Chapter 1 of the said Code as follows:

                                “Rule” means any agency statement of general applicability that implements or interprets a law, fixes and describes the producers in or practice requirements of, an agency, including its regulations. The term includes memoranda or statements concerning the internal administration or management of an agency not affecting the rights of, or procedure available to, the public.”

From the foregoing definition, there are two categories of rule, namely:

1.       Any agency statement of general applicability that implements or interprets a law, fixes and describes the procedures in, or practice requirements of, an agency, including its regulations.

2.       Memoranda or statements concerning the internal administration or management of an agency not affecting the rights of, or procedure available to, the public.

This Revenue Administrative Order is issued to identify the revenue issuances that are required to be filed with Center based on the definition of rule in the said Code.

Section 1. Classification/Description of Revenue Issuances. – Aside from Revenue Regulations, which are issued by the Secretary of Finance upon recommendation of the Commissioner of Internal Revenue, under Revenue Administrative Order No. 1-2003, the revenue rulings and issuances that implement or interpret tax laws are classified and described as follows:

a)      Rulings of first impression. - These refer to the rulings, opinions and interpretations of the Commissioner of Internal Revenue with respect to the provisions of the Tax Code and other tax laws without established precedent, and which are issued in response to the specific request for ruling filed by a taxpayer with the Bureau of Internal Revenue. Provided, however, that the term shall include reversal, modification or revocation of any existing ruling.

b)      Rulings with established precedents. - These refer to mere reiteration of previous rulings, opinions and interpretations of the Commissioner, which may be delegated by the Commissioner from time to time at his/her sole discretion to duly authorized internal revenue officers (i.e., Deputy Commissioner, Legal and Inspection Group; Assistant Commissioner, Legal Service; Regional Directors) that are issued in response to a specific request for ruling filed by a taxpayer with the Bureau of Internal Revenue.

c)       Revenue Memorandum Rulings (RMR). – These refer to the rulings, opinions and       interpretations of the Commissioner of the Internal Revenue with the respect to the provisions of the Tax code and other tax laws, as applied to a specific set of facts with or without established precedents, and which the Commissioner may issue from time to time for the purpose of providing taxpayers guidance on the tax consequences in specific situations.

d)      Revenue Bulletins (RB). – These refer to periodic issuances, notices and official announcements of the Commissioner of Internal Revenue that consolidated the Bureau of Internal Revenue’s position on certain specific issue of law or administration in relation to the provisions of the Tax Code, relevant tax laws and other issuances for the guidance of the public.

e)      Revenue Travel Assignment Orders (RTAO). – These orders assign revenue personnel to specific functions in specific units. Travel assignment orders specifically mention the names of revenue personnel concerned.

f)       Revenue Special Orders (RSO). – Instructions or directives for the accomplishment of special assignments or missions of significance which are temporary in nature or for a definite period of time. These issuances specifically mention the personnel or units of organization concerned.

g)      Revenue Memorandum Circulars (RMC). – These issuances shall disseminate and embody pertinent and applicable portions, as well as amplifications of the rules, precedents, laws, regulations, opinions and other orders and directives issued by or administered by the Commissioner of Internal Revenue, and by offices and agencies other than the Bureau of Internal Revenue, for the information, guidance or compliance of revenue personnel.

h)      Revenue Memorandum Orders (RMO). – These are directives or instructions outlining procedures, techniques, methods, processes, operations, activities, work flow, and like the, which are necessary to carry out programs or to achieve policy goals and objectives. These issuances may be of general or of limited scope yet in any case require definite compliance by those concerned. They are not addressed to any particular group of employees or offices because they are for general information, but those directly concerned with the compliance of these provisions are either definitely stated, or unmistakably implied threat.

i)        Revenue Audit Memorandum Orders (RAMO). -  These refer to the uniform audit procedures to be observed by revenue officers in the conduct of audit of tax cases and in their submission of reports of investigation.

j)        Revenue Delegation of Authority Orders (RDAO). – These refer to the functions delegated by the Commissioner to revenue officers in accordance with law.

k)      Revenue Administrative Orders (RAO). – These refer to matters that deal strictly with more or less permanent administrative set-up of the Bureau. Delineation of organizational structures, statements of functions and/or responsibilities, definitions and delegations of authority, staffing and personnel requirements, standards of performance, establishment of Bureau-wide programs installation of system, and the like, are most likely subject matter of Revenue Administrative Orders. These issuances are for general guidance, compliance and/or information.

Section 2. Revenue Issuances Required to be filed with the Center.The following revenue issuances are required to be filed with the Center:

a)      Revenue Regulations are required to be filed since they implement the provisions of the Tax Code and other tax laws.

b)      Revenue Memorandum Rulings are required to be filed since they are interpretations of the provisions of the Tax Code and other tax laws which are of general applicability.

c)       Revenue Memorandum Orders which fix and describe the procedures in, or practice requirements of the Bureau to be observed by the public are required to be filed since they are of general applicability.

d)      Revenue Memorandum Circular which clarify or amplify rules, precedents, laws, regulations and other orders issued by the Commissioner are required to be filed if they are of general applicability.

e)      Revenue Bulletins are required to be filed since they are issued for the guidance of the public, hence, of general applicability.

Section 3. Revenue Issuances Not Required to be Filed with the Center. – The following revenue issuances are not required to be filed with the Center:

a)      Rulings, whether of first impression or with established precedents, are not required to be filed since they are issued in response to a specific request of a particular taxpayer which are not general applicability.

b)      Revenue Memorandum Orders which fix and describe the procedures in, and practice requirements of, the Bureau to be observed by Bureau personnel only are not required to be filed since they are not of general applicability.

c)       Revenue Memorandum Circulars which disseminate various information to Bureau personnel for their guidance and compliance are not required to be filed since they are not of general applicability.

d)      Revenue Audit Memorandum Orders are not required to be filed since they prescribe the procedures to be observed by revenue officers in the conduct of audit of tax cases which are not of general applicability.

e)      Revenue Travel Assignment Orders and Revenue Special Orders are not required to be filed since they are directed to bureau personnel which are not of general applicability.

f)       Revenue Delegation Authority Orders and Revenue Administrative Orders refer to the functions delegated by the Commissioner to revenue officers in accordance with law and to matters that deal strictly with more or less permanent administrative set up to the Bureau, respectively. They are not required to be filed since they are not of general applicability, their observance and compliance are confined only to revenue officers and employees.

Section 4. In care of doubt on whether a revenue issuance should be filed with the Center, the Chief, Records management Division, who is tasked to undertake the filing, shall seek the opinion of the Deputy Commissioner, Legal and Inspection Group.

Section 5. Effectivity. – This Revenue Administrative Order shall take effect immediately.

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HOW TO DISMISS A CRIMINAL CASE DUE TO BIR SDT

Minimum Corporate Income Tax (MCIT): Presentation and Computation

What I understand.

On November 11, 2016, I received a letter dated October 17, 2016 from the Office of the BIR Chief (attached).

His letter stated that the computation of the Minimum Corporate Income Tax should follow the International Accounting Standards instead of following the language of the law, that is the Tax Code. Furthermore, if I will follow the language of the law, the collection of the MCIT will be lower as it is compared to the use of IAS.

I am not persuaded.

The law creates the obligations that we must extinguish without mental reservation and purpose of evasion. It extends fairness and justice to all. In fact, the Philippine Constitution guarantees that the rule of taxation shall always be UNIFORM, EQUITABLE AND PROGRESSIVE. 

IAS is not and will never be a law of this Republic. Why follow it when it really contradicted the law and the Constitution or even if it is in accordance with the law? We have to follow the law and nothing else.

Furthermore, under Section 269, Tax Code and in relation to Article 213, Revised Penal Code, it is a crime to collect an amount of taxes more than what the law requires. Have you forgotten the legal doctrine ‘solutio indebiti’? Thus, to require a corporation to pay more MCIT amount than the law mandates because there is an IAS principle that must be obeyed and is allegedly superior to the rule of taxation is a act that is contrary to the law and the Constitution.

Finally, in implementing and monitoring the law, a revenue officer should always be law-abiding and not IAS-abiding. To do the former is divine while to do the latter is a criminal act punishable by law.

What must be done.

Since the presentation shown in BIR Form Nos. 1702-RT, 1702-MX and 1702-EX are contrary to the law of this Republic because it either promote the underpayment or overpayment of MCIT, it is imperative and under the obligation created by law that the BIR should revised them so the users thereof will not violate the rule of taxation but more importantly, they will compute and pay the true and correct tax due to this Republic.

Conclusion. 

 The BIR is required to prepare the forms to be used by all taxpayers and according to the Tax Code, these forms should contain the form and substance that it requires. Therefore, please do not include an information and data that came from the outsider which may be corrupted and tainted with mistakes.

 Please help the taxpayers exercise their legal rights and extinguish their legal obligations pursuant to the language of the law and not to any other form of languages.

Prayers. 

 I encourage the BIR including its authorised revenue officers and other concerned government officials to pray with me and ask the Almighty God that (a) this shall be accepted and acknowledged upon presentment; (b) all the available and legal reliefs and remedies that favour me shall knowingly and willingly be dispensed without mental reservation and purpose of evasion; and (c) all the correct, admissible and relevant actions to be accomplished in reply to the legal issues and simple requests herein presented should consciously be made in writing and delivered to me, within five (5) days from receipt hereof.

Signature and date hereof.

 To attest my personal belief and conviction, I affix my signature below.

 Oath of the governmental receiving person.

I affix my signature and/or had stamped my office’s official receiving emblem hereof to attest that I actually received/read/understood this, its attachments are clear, correct and complete and I am honourably committed to obey the implementing rules of Republic Act No. 6713.

Pages and Counterparts. 

 This privileged communication has four (4) pages and seven (7) counterparts.

Office of the Ombudsman.

 Pursuant to RAs 6770 and 6713, your help and assistance on this matter will be highly appreciated. 

Civil Service Commission.

 Pursuant to the Civil Service Law, your help and assistance on this matter will be highly appreciated.

YOU ALONE

ONE CAN STOP THE BIR HARASSMENT

All taxpayers who are not only preparing their financial statements in conformity with either the Generally Accepted Accounting Principles (GAAP) or Philippine Financial Reporting Standards (PFRS) but also permitting their chosen external auditors to prepare and issue an Auditors' Report using the Generally Accepted Auditing Standards (GAAS) or Philippine Standards on Auditing (PSA) find themselves in a challenging and stressful tax audit examination.

The reason behind this abnormality can be traced to what the BIR's officials and employees think about the PFRS, GAAP, GAAS and PSA. Revenue officers and employees see and believe that this taxpayers' popular preference is an advertisement of being IGNORANT OF THE TAX LAW and its rules and regulations.

Although the Philippine Supreme Court and the tax-law-obedient BIR's officials and employees already voiced out publicly the SUPREMACY OF THE TAX ACCOUNTING RULES OVER AND ABOVE THE FINANCIAL ACCOUNTING STANDARDS AND MANAGERIAL ACCOUNTING POLICY DIRECTIONS, the current Certified Public Accountants (CPA), including their clients and staff, are still knowingly embracing the awful side effects of choosing and using such standards, principles and policy directions. Some of them resulted to a big and unbearable deficiency tax assessment, stressful tax harassment, closure and cessation of business, loss of employment to many employees, etc.

The difference between the Tax Accounting, on one hand and the financial accounting and managerial accounting, on the other hand, dwell solely on the purposes in which each of them pursues.

The financial accounting standards insist in protecting your investors and creditors' interests. Although, such purpose is so valid and acceptable in certain degree, it cannot be taken for granted the purpose of the tax accounting. Your consistent violation and disregard thereof have a greater impact on your public image and character. Your livelihood and liberty may also be at risk for your failure or refusal to follow it diligently. Finally, your freedom and legal rights will suffer seriously and may be damaged forever.

In fact, if you will be jail-staying for six (6) years because you disobeyed the tax accounting rules, your investors and creditors' money and interests surely will go to a trash bin.

However, the benefits of using the tax accounting rules in keeping the prescribed documentations, making the correct entries in the books of accounts and preparing the correct returns and reports consistently and consciously are freedom from surcharges, interest and civil liabilities. Moreover, you deprive the BIR to publicly humiliate and brand you and the members of your family as tax evaders, deprive the uniformed policemen to knock on your doors, escort you to the waiting police car and bring you to their police station for questioning, and finally, deprive the Department of Justice's prosecutors to file a criminal case against you in the Court of Tax Appeals.

By making your returns and reports to be user-friendly to all BIR's officials and employees, you help the Philippine Government save money. It will definitely know that to examine your books of accounts and other accounting records will not result in a deficiency assessment. Thus, it will become costly on its part to visit you and meddle with your business affairs and operations.

Having extensively said so, the compliance with the tax accounting rules needs your personal engagement and involvement. Clearly, its delegation to an inexperienced bookkeepers, undereducated CPAs and untrained lawyers may not bring favourable results or admissible excuses.

The Philippine Government requires you to extinguish your legal obligations that the tax accounting rules created. Else, it will not entertain a second thought of imposing a severe sanction for your continuous failure and refusal to comply with its rules and regulations. Its penalty may include closure of your business (livelihood), criminal prosecution (liberty) and publication of your name as a tax evader in social media (life). Would you ruin your kids' name, treasure and livelihood? EmelinoTMaestro.com thinks otherwise.

For this purpose, below are some of the ideas, subjects and concepts that may be discussed in our TAX ACCOUNTING BOOKKEEPING PROGRESSION*: 

1. Accounting 

a. Types

b. Bases

c. Levels

2. Documents 

a. Official Receipt

b. Invoices

c. Other Adequate Records

3. Books of Accounts

a. General Requirements

b. Optional Requirements

4. Chart of Accounts

a. Uniform Guidelines: When to Debit and Credit

b. Types of Book Entries

5. Working Papers

a. SAWT

b. MAP

c. VSL-P

d. VSL-I

e. VSL-S

f. Inventory List

6. Reports

a. Statement of Management's Responsibility for AITR and FS

b. CPA Report

c. Statement of Assets, Liabilities and Network

d. Revenue and Expenses Statement

e. Earnings Statement (for Corporation)

f. Notes to Annual Income Tax Return (AITR)

7. Returns

a. BIR Form No. 1601C

b. BIR Form No. 1601E

c. BIR Form No. 1601F

d. BIR Form No. 1603

e. BIR Form No. 1701Q (for Individual)

f. BIR Form No. 1701 (for Individual)

g. BIR Form No. 1702Q (for Corporation)

h. BIR Form No. 1702 (for Corporation)

i. BIR Form No. 1901

j. BIR Form No. 1902

k. BIR Form No. 1903

l. BIR Form No. 1905

m.BIR Form No. 2305

n. BIR Form No. 2304

o. BIR Form No. 2307

p. BIR Form No. 2316

q. BIR Form No. 2551

r. BIR Form No. 2550M

s. BIR Form No. 2550Q

t. BIR Form No. 1604CF and Alphalist

u. BIR Form No. 1604E and Alphalist

v. BIR Form No. 2000

*subject to change without notice and obligation

**please be guided accordingly.

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Tax Agent Orientation for Unsuccessful CPA examinees and other interested Taxpayers

Legal basis.  

Section 6(G), NIRC. (G) Authority to Accredit and Register Tax Agents. - The Commissioner shall accredit and register, based on their professional competence, integrity and moral fitness, individuals and general professional partnerships and their representatives who prepare and file tax returns, statements, reports, protests, and other papers with or who appear before, the Bureau for taxpayers. Within one hundred twenty (120) days from January 1, 1998, the Commissioner shall create national and regional accreditation boards, the members of which shall serve for three (3) years, and shall designate from among the senior officials of the Bureau, one (1) chairman and two (2) members for each board, subject to such rules and regulations as the Secretary of Finance shall promulgate upon the recommendation of the Commissioner. Individuals and general professional partnerships and their representatives who are denied accreditation by the Commissioner and/or the national and regional accreditation boards may appeal such denial to the Secretary of Finance, who shall rule on the appeal within sixty (60) days from receipt of such appeal. Failure of the Secretary of Finance to rule on the Appeal within the prescribed period shall be deemed as approval of the application for accreditation of the appellant.

Tax Agents defined. 

Those who are engaged in the regular preparation, certification, audit and filing of tax returns, information returns or other statements or reports required by the Code or Regulations; those who are engaged in the regular preparation of requests for ruling, petitions for reinvestigation, protests, requests for refund or tax credit certificates, compromise settlement and/or abatement of tax liabilities and other official papers and correspondence with the Bureau of Internal Revenue, and other similar or related activities; or those who regularly appear in meetings, conferences, and hearings before any office of the Bureau of Internal Revenue officially on behalf of a taxpayer or client in all matters relating to a client's rights, privileges, or liabilities under laws or regulations administered by the Bureau of Internal Revenue, shall be deemed to be engaged in tax practice and are required to apply for accreditation. 

Who are covered. 

Individual tax practitioners engaged in private practice who are Certified Public Accountants

CPA-Lawyers who issue/sign auditor's certificates or otherwise perform functions exclusively pertaining to a CPA

Partners of a General Professional Partnership engaged in the practice of taxation, accountancy, and/or auditing and their duly authorised officers or representatives who regularly appear or otherwise engage in tax practice before the BIR

General Professional Partnership engaged in the practice of taxation, accountancy and auditing who regularly appears or otherwise engaged in tax practice before the BIR

Officers or duly authorised representatives of incorporated business entities engaged in accounting, auditing or tax consultancy services. 

Individuals other than CPAs who meet the prescribed qualifications.

Exceptions.

Individual-taxpayers acting on their own behalf, provided they present satisfactory identification 

Members of the Philippine Bar not suffering from suspension/disbarment. However, they may at their option, apply for accreditation

Other individuals presenting satisfactory proof of identification or authority in any one of the following circumstances of limited practice or special appearances:

An individual representing a member of his or her immediate family

A regular full-time employee representing an individual employer

A bona fide officer or a regular full-time employee in representation of his employer-corporation, association or organised group

A trustee, receiver, guardian, administrator, executor or regular full-time employee in representation of a trust, receivership, guardianship or estate 

An officer or a regular employee of a government unit, agency, or instrumentality representing said unit, agency or instrumentality in the course of his or her official duties

Minimum qualifications.

Certified Public Accountants

 With current professional license from the Professional Regulation Commission

 Must demonstrate or present convincing proof of special competence in tax matters or tax practice, e.g., previously acquired experience; at least eighteen (18) credit hours of special training, seminars, short-term courses, etc., in taxation obtained not more than one (1) year prior to the application for accreditation, subject to evaluation and approval by the Board

 Must be of good moral character as certified to under oath by at least two (2) disinterested persons who are either members of the Philippine Bar or Certified Public Accountants in good standing 

 Must not have been charged with and convicted by final judgment of a crime involving moral turpitude, or 

 Must not have been found guilty of any act or omission penalised under the Tax Code, or 

 Must not have been found guilty of aiding or abetting or causing the commission of any such offense by another 

  Must be a citizen of the Philippines

 Have completed at least six (6) hours per year or a total of eighteen (18) hours for the three years of continuing professional education in taxation from trainings/seminars conducted by the BIR or from private institutions where the number of training hours earned are printed on the certificates and obtained not more than a year prior to the application/renewal for accreditation 

Lawyers

 With a degree in Law, Juris Doctor or its equivalent

 Must demonstrate or present convincing proof of special competence in tax matters or tax practice, e.g., previously acquired experience; at least eighteen (18) credit hours of special training, seminars, short-term courses, etc., in taxation obtained not more than one (1) year prior to the application for accreditation, subject to evaluation and approval by the Board

 Must be of good moral character as certified to under oath by at least two (2) disinterested persons who are either members of the Philippine Bar or Certified Public Accountants in good standing 

 Must not have been charged with and convicted by final judgment of a crime involving moral turpitude, or 

 Must not have been found guilty of any act or omission penalised under the Tax Code, or 

 Must not have been found guilty of aiding or abetting or causing the commission of any such offense by another 

  Must be a citizen of the Philippines

 Have completed at least six (6) hours per year or a total of eighteen (18) hours for the three years of CPE in taxation from trainings/seminars conducted by the BIR or from private institutions where the number of training hours earned are printed on the certificates and obtained not more than a year prior to the application/renewal for accreditation 

Non-CPA, Non-lawyer

 With a Bachelor's degree in Arts, Commerce, or Business Administration with at least eighteen (18) units in accounting and/or taxation in a college or university recognised by the Department of Education, Culture and Sports/Department of Education/Commission on Higher Education or in a foreign school of known repute or one duly recognised by its government. 

 Must demonstrate or present convincing proof of special competence in tax matters or tax practice, e.g., previously acquired experience; at least eighteen (18) credit hours of special training, seminars, short-term courses, etc., in taxation obtained not more than one (1) year prior to the application for accreditation, subject to evaluation and approval by the Board

 Must be of good moral character as certified to under oath by at least two (2) disinterested persons who are either members of the Philippine Bar or Certified Public Accountants in good standing 

 Must not have been charged with and convicted by final judgment of a crime involving moral turpitude, or 

 Must not have been found guilty of any act or omission penalised under the Tax Code, or 

 Must not have been found guilty of aiding or abetting or causing the commission of any such offense by another 

 Must be a citizen of the Philippines 

 Have completed at least six (6) hours per year or a total of eighteen (18) hours for the three years of CPE in taxation from trainings/seminars conducted by the BIR or from private institutions where the number of training hours earned are printed on the certificates and obtained not more than a year prior to the application/renewal for accreditation

GPP

 Registered with the Securities and Exchange Commission

 Its partners and duly authorised officers or representatives thereof must meet all the qualifications for a CPA, lawyer or Non-CPA, non-lawyer individual

Corporation

 Registered with the SEC

 Its applicant-officers or duly authorised representatives must meet all the qualifications for a CPA, lawyer or Non-CPA, non-lawyer individual

Non-compliance with the accreditation.

Non-compliance with any of the provisions on accreditation shall be a ground for the revocation / cancellation of his/her/its accreditation. An external auditor whose accreditation has been cancelled may re-apply for accreditation after two years. Provided, that no further re-accreditation shall be granted after two (2) cancellations.

Application form & attachments

CPA 

BIR Form No. 1916

Certificate of Registration with the Board of Accountancy 

Current license with the PRC

Current Professional Tax Receipt

Certificate of Membership in Good Standing with the PICPA Chapter or ACCPA

Certificate of Good Moral Character issued by two (2) disinterested persons, who are either member of the BAR or CPA in good standing

A written undertaking under oath to preserve working papers within the period prescribed under Section 235 of the NIRC of 1997, as amended, and making them available to the BIR's authorised representative/s when required or directed to do so.

Non-refundable processing fee of one thousand (1,000) pesos

Certificate of Registration issued by the BIR

Lawyer 

BIR Form No. 1916

Attorney's Roll Number 

Mandatory Continuing Legal Education Compliance Number

Current Professional Tax Receipt

Certificate of Membership in Good Standing with the Integrated Bar of the Philippines 

Certificate of Good Moral Character issued by two (2) disinterested persons, who are either member of the BAR or CPA in good standing

A written undertaking under oath to preserve working papers within the period prescribed under Section 235 of the NIRC of 1997, as amended, and making them available to the BIR's authorised representative/s when required or directed to do so.

Non-refundable processing fee of one thousand (1,000) pesos

Certificate of Registration issued by the BIR

Non-CPA, Non-lawyer 

BIR Form No. 1916

Certified copy of transcript of records from the university or college showing compliance with at least eighteen (18) units in accounting or taxation 

Written certification of CPE units of at least six (6) hours per year or a total of eighteen (18) hours for the three years in taxation conducted by the BIR or from private institutions, where the number of training hours earned are printed on the certificates and obtained not more than a year prior to the application/renewal for accreditation. 

A written undertaking under oath to preserve working papers within the period prescribed under Section 235 of the NIRC of 1997, as amended, and making them available to the BIR's authorised representative/s when required or directed to do so. 

Non-refundable processing fee of one thousand (1,000) pesos

Current business permit or municipal license

Annual registration fee of five hundred (500) pesos

Certificate of Registration issued by the BIR

Effects of accreditation.

All accredited Tax Agents/Practitioners shall be included in a Master List of Accredited Tax Agents/Practitioners. 

Only those Tax Agents/ Practitioners, Partners or Officers of General Professional Partnerships, or Officers or Directors of Corporate entities engaged in tax practice who have been issued certificate of Accreditation or ID card shall be allowed to represent a taxpayer or transact business with the Bureau of Internal revenue in representation of a taxpayer for the purposed(s) defined in these regulations. The Commissioner or his authorised representative shall only consider as valid document/attachments to tax returns, information returns or other statements or reports required by the Code or Regulations, the financial statements prepared, signed and certified by duly accredited tax practitioners. The BIR can refuse to transact official business with tax practitioners who are not accredited before it and shall require that certain official statements such as returns, financial statements, reports, protests, requests for ruling, official correspondence and other statements, paper or documents filed on behalf of a taxpayer be signed or certified to by accredited persons which shall bear the following information below the signature of the latter. 

CPA

Tax Identification Number (TIN)

BIR Accreditation Number, Date of Issue, and Date of Expiry 

Lawyer

TIN

Attorney's Roll Number

MCLE Compliance Number

BIR Accreditation Number, Date of Issue, and Date of Expiry 

Non-CPA, Non-lawyer

TIN

BIR Accreditation Number, Date of Issue, and Date of Expiry

Initial engagement.

Accredited tax agents shall likewise be required to submit the following documents as an attachment to the initial filing of reports, protests, request for ruling, official correspondence and other statements, papers or documents filed on behalf of a particular taxpayer as proof of their authority to represent the concerned taxpayer: 

Copy of current Engagement Letter with clients. 

Special Power of Attorney executed by the client authorising the practitioner to represent him before the BIR. 

Reportorial requirements.

All accredited TAPs shall submit to the RRAB/RNAB on or before the last day of payment of annual registration fee, the following: 

A list of the engagements dealing with any of the BIR Offices for the prior year 

A list of the CPE hours earned by the accredited tax agents/practitioners for the previous year. 

Renewal of accreditation.

Within sixty (60) days prior to the expiration of the accreditation, Tax Agents or Practitioners may apply for renewal of their accreditation. The certified true copies of the following documents must be submitted: 

A. CPA

PRC ID 

Current Certificate of Registration with BOA

Current PTR

Certificate of Membership in Good Standing with his/her/its PICPA Chapter or ACCPA 

Certificate of Membership in Good Standing with IBP

Certificate of Training at least six (6) hours per year or a total of eighteen (18) hours for the three (3) years of CPE in taxation from trainings/seminars conducted by the BIR or from private institutions where the number of training hours earned are printed on the certificates and obtained not more than a year prior to the renewal for accreditation

Expired Certificate of Accreditation issued by the BIR

Annual Registration Fee of P500 per year (current year and past three years)

Alphalist of Taxpayers Audited for the past three (3) years showing the Registered Name,
TIN, engagement period, Letter of Authority (LOA)/Tax Verification Number (TVN), if any

 Sworn Statement that the individual has observed the conditions and
provisions prescribed on accreditation with affixed documentary stamp tax

Income Tax Return (ITR) of the previous two (2) years

B. Lawyer

IBP ID

Current COR with IBP

Current PTR

Certificate of Training at least six (6) hours per year or a total of eighteen (18) hours for the three (3) years of CPE in taxation from trainings/seminars conducted by the BIR or from private institutions where the number of training hours earned are printed on the certificates and obtained not more than a year prior to the renewal for accreditation

Expired Certificate of Accreditation issued by the BIR

Annual Registration Fee of P500 per year (current year and past three years)

Alphalist of Taxpayers Audited for the past three (3) years showing the Registered Name,
TIN, engagement period, Letter of Authority (LOA)/Tax Verification Number (TVN), if any

Sworn Statement that the individual has observed the conditions and
provisions prescribed on accreditation with affixed documentary stamp tax

Income Tax Return (ITR) of the previous two (2) years

C. Non-CPA, Non-lawyer

Current Business Permit or Municipal License

Certificate of Training at least six (6) hours per year or a total of eighteen (18) hours for the three (3) years of CPE in taxation from trainings/seminars conducted by the BIR or from private institutions where the number of training hours earned are printed on the certificates and obtained not more than a year prior to the renewal for accreditation

Expired Certificate of Accreditation issued by the BIR

Annual Registration Fee of P500 per year (current year and past three years)

Alphalist of Taxpayers Audited for the past three (3) years showing the Registered Name,
TIN, engagement period, Letter of Authority (LOA)/Tax Verification Number (TVN), if any

Sworn Statement that the individual has observed the conditions and
provisions prescribed on accreditation with affixed documentary stamp tax

Income Tax Return (ITR) of the previous two (2) years 

Processing of application.

The RRAB shall process the applications and issue the certificates of accreditation of individuals, GPPs and incorporated entities with TAPs of 10 or less persons, while the RNAB shall process the applications and approve the certificates of accreditation for individuals, GPPs and incorporated entities with TAPs of 11 or more persons. In cases where the individuals, GPPs and incorporated entities had previously accredited 10 or less TAPs and shall subsequently apply for accreditation of additional TAPs exceeding the 10 person threshold, said application shall be filed with the RNAB which shall process the application/s and issue the certifications of accreditation. 

The RRAB and RNAB shall act upon all applications for accreditation by verifying the qualifications of an applicant, and the completeness of the required documentation. If an application is determined to be complete, that is, all necessary supporting documentations have been submitted, and the applicant's qualifications found to be in conformity with the provisions of Section 4 of these Regulations, the application shall be stamped "RECEIVED" bearing the date the completed application was received by the RRAB/RNAB. 

In all cases, the RRAB/RNAB shall have the exclusive authority to approve/disapprove applications for accreditation falling within their respective jurisdiction which shall be acted upon within thirty (30) days from receipt of the complete application. 

Applicants whose applications for accreditation have been approved by the RRAB/RNAB shall be issued a Certificate of Accreditation signed by their respective Chairman. Such Certificate shall be valid for a period of three (3) years from the date of issue, unless sooner revoked for cause. For purposes of easy identification, the Commissioner of Internal Revenue shall issue an identification card to each accredited tax agent or practitioner. 

Application for accreditation which has been disapproved by the RRAB/RNAB may be appealed to the Commissioner. An adverse decision by the Commissioner may be appealed to the Secretary of Finance, who shall rule on the appeal within sixty (60) days from receipt of such appeal. Failure of the Secretary of Finance to rule on the appeal within the prescribed period shall be deemed as approval of the application for accreditation of the appellant. 

The resignation, retirement, death or incapacity of any partner of a general professional partnership who has been accredited by the RNAB/RNAB shall not result in the cancellation of the partnership's accreditation but only that of the concerned partner's accreditation. The partnership, however, must notify the RNAB, or the RRAB having jurisdiction over the partnership's principal place of business, of such occurrence and shall surrender to the RNAB/RRAB the concerned partner's Certificate of Registration or Identification Card for cancellation. 

Cancellation of accreditation.

The accreditation certificate may be suspended, cancelled or revoked as the case may be, upon petition by a taxpayer or by the PICPA or by the TMAP and other similar professional organisation, or upon petition by any internal revenue officer, or upon motu propio action by the RRAB or RNAB, after due notice and hearing set for the purpose, based on any of the following grounds: 

Conviction of any criminal offense under the National Internal Revenue Code, or of any offense involving dishonesty, or breach of trust

Giving false or misleading information, or participating in any way in the giving of false or misleading information to the Bureau of Internal Revenue or to any officer or employee thereof, in connection with any matter pending before them, knowing such information to be false or misleading.

The use of false or misleading representations with intent to deceive a client or prospective client in order to procure employment, or representing that he can ably obtain special consideration or action from the Bureau of Internal Revenue or officer or employee thereof by improper or unlawful means

Willfully failing to make a tax return in violation of the NIRC, or evading, attempting to evade, or participating in any way in evading or attempting to evade any national internal revenue tax or payment thereof

Knowingly counseling or suggesting to a client or prospective client of an illegal plan to evade taxes or payment thereof, or concealing assets to evade taxes or payment thereof

Misappropriating or failing to remit, funds received from a client for the purpose of payment of taxes

Directly or indirectly attempting to influence, or offering or agreeing to attempt to influence the official action of any officer or employee of the BIR by the use of threats, false accusations, duress or coercion, or by offering any special inducement or promise of advantage or by bestowing any gift, favor or thing of substantial value

Disbarment or suspension from the practice as an attorney or as a certified public accountant

Contemptuous conduct in connection with practice before the BIR, including use of abusive language, making false accusations and statements, knowing them to be false, or circulating or publishing malicious or libelous matter

Giving a false opinion, knowingly, recklessly or through gross incompetence, including an opinion which is intentionally or recklessly misleading, or a pattern of providing incompetent opinions on questions arising under the Tax Code. False opinion includes those which reflect or result from a known misstatement of fact or law; from an assertion of a position known to be unwarranted under existing laws or regulations; from advising or assisting in conduct known to be illegal or fraudulent; from concealment of matters required by law or regulations to be revealed. For purposes of this paragraph, "reckless conduct" is a highly unreasonable omission or misrepresentation involving an extreme departure from the standards of ordinary care that a practitioner should observe under the circumstances arising from non- compliance by the taxpayer-client with existing provisions of the Tax Code, its rules and regulations, including financial accounting standards and tax accounting rules. “Reckless conduct” on the part of the tax agent/practitioner shall be presumed when there is substantial underdeclaration of client-taxpayer’s taxable sales, receipts or income, or a substantial overstatement of its deductions as defined under Section 248 of the NIRC as amended, and such discrepancy is discovered by the Bureau in the conduct of its enforcement activities. A pattern of conduct is a factor that will be taken into account in determining whether a practitioner acted knowingly, recklessly, or through gross incompetence

Failure to comply with the completion of the CPE

Consistent failure to indicate the BIR accreditation number in the documents
filed with the BIR. 

Attend and announce:

Conference: Trabaho at Negosyo for Small and Start-up Accountants, Bookkeepers, Consultants and all unsuccessful CPA examinees and interested Taxpayers

Seminar-training: 63 Fingerprints of Tax Evasion

Lecture-workshop: Tax Accounting Bookkeeping Progression and Tax Accounting Rules

Seminar-training: DIY Wealth Protection and Estate Tax Planning

Seminar-workshop: Audit Procedures and Working Papers for Tax Agents, Accountants and Auditors

Lecture-training: Tax Amnesty Forever

Workshop: Crack the 59 Deficiency Income Tax Assessments