EXECUTIVE ORDER NO. 1042
EXECUTIVE ORDER NO. 1042 -
PROVIDING FOR AN INTERNAL REVENUE SERVICE CAREER SYSTEM IN THE BUREAU
OF INTERNAL REVENUE AND FOR OTHER PURPOSES
WHEREAS, the Bureau of Internal
Revenue plays a critical and pivotal role in revenue generation
especially during this period of national economic recovery;
WHEREAS, there is an imperative need to adopt and implement a Career
System in the Bureau so as to bring about professionalization in the
internal revenue service, to attract highly qualified persons to join
the Bureau and to maintain a corps of dedicated, competent and
career-oriented personnel necessary for maximum organizational
efficiency and effectiveness;
WHEREAS, the implementation of the system requires the restricting of
the position classification and compensation scheme and the personnel
staffing pattern of the Bureau as well as the granting of additional
financial incentives as authorized in Presidential Decree No. 985;
WHEREAS, there is a need to provide the Commissioner of Internal
Revenue greater flexibility in assigning and/or shifting personnel from
one organizational unit of the Bureau to another to cope with
exigencies and the requirements of the revenue service;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution and by
Presidential Decree No. 1416, as amended do hereby order and direct the
following:
Section 1. There shall be adopted and implemented an
Internal Revenue Service Career System in the Bureau of Internal
Revenue which shall encompass the selection, training, promotion,
assignment, incentives and recognition of personnel.
Sec. 2. The position classes in the BIR shall be
realigned, restructured and upgraded as provided in Annex A which forms
part hereof;.
Sec. 3. There shall be established a standard
staffing pattern in the Bureau, in accordance with Annex B of this
Executive Order; provided, that positions under the Enforcement
Officers and Tax Counselling Occupational groups shall be constituted
into a pool from which assignment to duty in any division, revenue
district office or branch shall be drawn, taking into account existing
and anticipated workloads and the employees’ capabilities and
potential; provided, further, that such assignment shall not involve a
reduction in rank, status or salary.
Sec. 4. There shall be granted to officials and
employees of the Bureau allowances and fringe benefits as follows:
a.
Allowances for cost of living, clothing, transportation and
representation, quarters and similar benefits, including overtime pay
at rates which shall not exceed those for officials and employees of
any government financial institution such as the Central Bank of the
Philippines, Development Bank of the Philippines or Philippine National
Bank;
b.
Reimbursement of actual legal expenses incurred by officials and
employees acting in good faith in suits brought who appear in court and
the Fiscals’ Offices in collaboration with the Solicitor-General and/or
Fiscals concerned at rates to the prescribed by the Commissioner of
Internal Revenue;
c.
Reimbursement of actual and necessary travelling and other expenses
incurred by officers and employees of the Bureau in the course of
official travel, upon approval of the Commissioner of Internal Revenue,
notwithstanding the provisions of Presidential Decree No. 344;
d. Incentive
award for outstanding work performance against them for acts committed
in the performance of their official duties, upon their exoneration
from administrative or criminal liability;
e. Hazard pay
benefits to revenue officials and employees actually assigned in areas
declared by the Ministry of National Defense as strife-torn or danger
zones;
f. Special
Counsel allowance for lawyers of the Bureau or service which
contributes to the efficiency, economy or other improvement or
otherwise results in direct benefits to the Bureau, at an amount to be
fixed by the Commissioner of Internal Revenue.
g. Automatic
one-step salary increase for all officials and employees who will
retire under the compulsory retirement scheme, to be given one year
before they reach the automatic retirement age, provided that officers
and employees already receiving the maximum of the grade of their
positions shall be adjusted to the equivalent of one salary step in
accordance with the Compensation Schedule, and provided, further, that
such officials and employees have rendered satisfactory service for the
immediate past five years prior to retirement.
Sec. 5. The implementation of salary adjustments
and the new staffing pattern shall be governed by the following
guidelines;
a.
The salary adjustments shall be implemented immediately. The
implementation of allowances and fringe benefits as well as the new
staffing pattern shall be phased, depending on availability of funds.
b. The first
step of the salary grade shall be the hiring rate for new
employees.
c. An employee
may be allowed a salary rate higher than the minimum of the graded
allocation of the position in case he had previously received a higher
salary in the government service; provided that such salary rate is
within the grade allocation of the position.
d. If an
employee is promoted from one class to another having an overlapping
salary grade, he shall be entitled to the step next above that at which
he was paid in the lower class.
e. Subject to
certification by the Commissioner of internal Revenue that the
employees’ service are satisfactory, the employee shall be adjusted to
the second step of his salary grade after one year at the first step,
to the fourth step after one year at the third step, to the fifth step,
after two years at the fourth step, to the sixth step after two years
at the fifth step, to the seventh step after two years at the sixth
step and the eighth step after two years at the seventh step.
f.
Notwithstanding the provision of any other rules, no offices or
employee shall receive a salary higher than the salary of his immediate
superior.
g. Officials
and employees presently occupying itemized positions and rendering
continuous service shall be allowed to continue in office pending their
reappointment to positions in the new staffing pattern. No incumbent
officer or employee shall suffer a demotion in rank, change of status
or reduction in salary in the implementation of the staffing pattern.
Sec. 6. Whenever a general increase in salary,
allowances or benefits for government employees is granted, positions
in the BIR shall likewise be automatically granted the same increase,
notwithstanding the ceiling prescribed in this Executive
Order.
Sec. 7. The amount appropriated in the BIR budget
for Personal Services shall be used for the implementation of this
Executive Order. Any deficiency in appropriation shall be funded from
the BIR Special Fund, hereinafter referred to as the Fund, which is
hereby created out of one and a half percent (1-½%) of the
increase in total collections achieved during the immediate preceding
year over that of the previous year.
Sec. 8. The rules and regulations needed to
implement this Executive Order shall be issued by the Commissioner of
Internal Revenue, subject to the approval of the Minister of Finance.
Sec. 9. This Executive Order shall take effect
upon approval.
Done in the City of Manila,
this 30th day of July in the year of Our Lord, nineteen hundred and
eighty-five.