EXECUTIVE ORDER NO. 175
EXECUTIVE ORDER NO. 175 -
ORGANIZATIONAL RESTRUCTURING OF THE BUREAU OF INTERNAL REVENUE TO
IMPROVE ADMINISTRATIVE CONTROL OVER CERTAIN CATEGORIES OF TAXPAYERS
WHEREAS,
increased revenue collection is urgently needed to finance vital
economic and developmental programs of the government and, to attain
fiscal stability in the midst of the current Asia’s economic
crisis;
WHEREAS, pursuant to these goals, a further streamlining of the
organizational structure of the Bureau of Internal Revenue is in order
to reinforce the tax administration and enforcement capabilities of the
Bureau;
WHEREAS, certain deficiencies in the structure of the Bureau under
Executive Order No. 430 require further strengthening and refinement
through a focus on core operational functions such as collection,
assessment and enforcement, including regulatory functions relative to
excise tax administration;
WHEREAS, there is a need for a well-defined institutional structure for
dealing with large taxpayers in order to strengthen control over large
taxpayers;
WHEREAS, this streamlining of the organizational structure of the
Bureau is intended to truly transform the Bureau into an effective and
efficient revenue collecting agency;
WHEREAS, Sec. 3, Article XVIII of the Philippine Constitution,
grants the President of the Philippines the continuing authority to
reorganize the national government, which includes the power to group,
consolidate bureaus and agencies, to abolish offices, to transfer
functions, to create and classify functions, services and activities;
and which authority was upheld by the Supreme Court in G.R. No. 112745
relative to Presidential Decree Nos. 1416 and 1792, [October 16, 1997];
WHEREAS, under Sec. 78 of the General Provisions of Republic Act No.
8522 or the General Appropriations Act, FY 1998, organizational changes
may be authorized when the President of the Philippines so directs;
WHEREAS, under Sec. 20, Book III of the Revised Administrative Code
of 1987, the President is empowered to exercise such other powers and
functions vested in him which are provided for under the laws;
NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic
of the Philippines, by virtue of the power vested in me by law, do
hereby order:
Section 1. Organizational Structure. — The
organizational structure of the BIR shall be as follows:
1.
The National Office shall develop and formulate broad national tax
administration policies and programs, for efficient and effective
implementation of internal revenue laws and regulations and establish
general direction, guidance and control of the entire operations of the
internal revenue service
1.1
The following Services shall be placed directly under the Office of the
Commissioner:
1.1.1
The Enforcement Service, which shall be headed by an Assistant
Commissioner, shall be composed of two (2) divisions namely: Tax Fraud
Division and Policy Cases Division.
1.1.2 The
Policy and Planning Service, which shall be headed by an Assistant
Commissioner, shall be composed of four (4) divisions namely: Planning
Division, Management Division, Statistics Division and Corporate
Communications Division.
1.1.3 The
Large Taxpayers Service, which shall be headed by an Assistant
Commissioner, shall be composed of five (5) divisions in the National
Office namely: Large Taxpayers Assistance Division, Large Taxpayers
Collection and Enforcement Division, Large Taxpayers Assessment
Division, Large Taxpayers Programs Division and Large Taxpayers
Document Processing and Quality Assurance Division. Likewise, Large
Taxpayers Division under the direct supervision of Large Taxpayers
Service shall be established in Regional Offices with identified Large
Taxpayers.
1.2 The
Operations Group, which shall be supervised by a Deputy Commissioner,
shall be composed of the following Services:
1.2.1
The Taxpayer Assistance Service, which shall be headed by an Assistant
Commissioner, shall be composed of two (2) divisions namely: Taxpayer
Information and Education Division and Taxpayer Service Programs and
Monitoring Division.
1.2.2 The
Assessment Service, which shall be headed by an Assistant Commissioner,
shall be composed of three (3) divisions namely: Assessment Programs
Division, Audit Information, Tax Exemption and Incentives Division and
Asset Valuation Division.
1.2.3 The
Collection Service, which shall be headed by an Assistant Commissioner,
shall be composed of four (4) divisions namely: Collection Programs
Division, Withholding Tax Division, Revenue Accounting Division and
Collection Enforcement Division.
1.2.4 The
Excise Taxpayers Service, which shall be headed by an Assistant
Commissioner, shall be composed of four (4) divisions namely: Excise
Taxpayers Assistance Division, Excise Taxpayers Operations Division,
Excise Taxpayers Programs Division and Excise Taxpayers Document
Processing and Quality Assurance Division.
1.3
The Legal and Inspection Group, which shall be supervised by a Deputy
Commissioner, shall be composed of the following Services:
1.3.1
The Legal Service, which shall be headed by an Assistant Commissioner,
shall be composed of five (5) divisions namely: Law Division, Appellate
Division, Litigation Division, Prosecution Division and International
Tax Affairs Division.
1.3.2 The
Inspection Service, which shall be headed by an Assistant Commissioner,
is hereby re-established. It shall be composed of three (3) divisions
namely: Internal Security Division, Internal Audit Division and
Personnel Inquiry Division.
1.4
The Information Systems Group, which shall be supervised by a Deputy
Commissioner, shall perform such functions to support the Bureau’s
operations. It shall be composed of the following Services:
1.4.1
The Information Systems Operations Service, which shall be headed by an
Assistant Commissioner, shall be composed of two (2) divisions namely:
Systems Operations Division and Systems Support Division.
1.4.2 The
Information Planning and Quality Service, which shall be headed by an
Assistant Commissioner, shall be composed of three (3) divisions
namely: Security Management Division, Quality Assurance Division and
Systems Standards and Technology Management Division.
1.4.3 The
Information Systems Development Service, which shall be headed by an
Assistant Commissioner, shall be composed of two (2) divisions namely:
Systems Development Division and Systems Maintenance and Support
Division.
1.5 The
Resource Management Group, which shall be supervised by a Deputy
Commissioner, shall perform such functions to support the Bureau’s
operations. It shall be composed of the following Services:
1.5.1
The Human Resource Development Service, which shall be headed by an
Assistant Commissioner, shall be composed of four (4) divisions namely:
Personnel Division, Training Management Division, Training Delivery
Division and Medical, Dental and Welfare Division.
1.5.2 The
Financial and Administrative Service which shall be headed by an
Assistant Commissioner, shall be composed of six (6) divisions namely:
Budget Division, General Services Division, Accounting Division,
Procurement Division, Accountable Forms Division and Records Management
Division.
2. The
Regional Offices (ROs) shall execute and implement the national
policies and programs prescribed by the National Office for the
enforcement of the internal revenue laws of the Philippines. The ROs
shall report to the Deputy Commissioner for Operations
Group.
2.1
Each RO shall be headed by a Regional Director and shall have
supervision and control over all divisions namely: Assessment Division,
Collection Division, Legal Division, Finance Division, Administrative
Division, Special Investigation Division and Revenue District Offices
(RDOs) within the Region. The RO shall be responsible for directing and
coordinating their operations.
2.2 The RDOs
shall have supervision and control over the sections within the
District.
3. The Revenue
Data Centers (RDCs) shall be responsible for the operation, management,
security and maintenance of the distributed information systems; and
ensuring the integrity of payment data transaction upload to the
Integrated Tax System (ITS) database. The RDCs shall report to the
Deputy Commissioner for Information Systems Group and shall coordinate
with the Regional Directors of the revenue regions and Revenue District
Officers of the district offices that they service. Each RDC shall be
headed by a Revenue Data Center Head equivalent to the rank of a
Director I. Its shall be composed of two (2) divisions namely:
Facilities Management Division and Computer Operations, Network and
Engineering Division.
Sec. 2. Appointment of Officials and Personnel. —
All Deputy Commissioners, Assistant Commissioners, Regional Directors,
Revenue Data Center Heads and other holders of Director I position
shall be appointed by the President, upon the recommendation of the
Commissioner, and approval of the Secretary of Finance. All other
personnel appointments shall be made by the Secretary of Finance, based
on but not restricted to the recommendation made by the Commissioner.
Sec. 3. Redeployment of Personnel. — The
redeployment of officials and other personnel on the basis of the
structural realignment embodied in this Executive Order shall not
result in the diminution in rank and compensation of existing personnel
and shall take into account pertinent Civil Service laws and rules.
On the basis of the organizational changes in this Executive Order, the
Commissioner shall, upon approval of the Secretary of Finance, submit
to the Department of Budget and Management (DBM) for evaluation and
final approval the resultant staffing pattern of the BIR.
Sec. 4. Implementing Authority. — With the
approval of the Secretary of Finance, the Commissioner is hereby
authorized to determine the number of Regional Offices, Revenue Data
Centers and Revenue District Offices consistent with the requirements
of the Computerized Integrated Tax System (CITS) and the principles of
economy, efficiency and effectiveness. The Commissioner is likewise
authorized to organize such units under the Services and Offices
authorized under this Executive Order, subject to DBM evaluation.
Sec. 5. Transfer of Presidential Appointees. — The
Commissioner of Internal Revenue is hereby authorized, with the
approval of the Secretary of Finance, to transfer and assign appointees
of the President to positions or assignments of equivalent rank in the
Bureau if the exigencies of the service so require.
Sec. 6. Implementing Rules and Regulations. — The
Commissioner, with the approval of the Secretary of Finance, shall
issue the rules and regulations and other issuances as may be necessary
to ensure the effective implementation of the provisions of this
Executive Order.
Sec. 7. Effectivity. — This Executive Order shall
take effect immediately.
DONE in the City of Manila,
this 3rd day of November, in the year of Our Lord, Nineteen Hundred and
Ninety-Nine.
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