EXECUTIVE ORDER NO. 114
EXECUTIVE ORDER NO. 114 -
RESTRUCTURING OF THE BUREAU OF INTERNAL REVENUE TOWARDS A
TAXPAYER-FOCUSED ORGANIZATION
WHEREAS,
increased revenue collection is urgently needed to finance and sustain
vital economic and developmental programs of the government;
WHEREAS, pursuant to this goal, a restructuring in the Bureau of
Internal Revenue (BIR) is in order to reinforce its tax administration
and enforcement capabilities;
WHEREAS, this restructuring of the BIR is intended to truly transform
the BIR into an effective and efficient taxpayer-focused
revenue-collecting agency;
WHEREAS, under Sec. 74 of the General Provisions of Republic Act No.
9162 or the General Appropriations Act, FY 2002, organizational changes
may be authorized when the President of the Philippines so directs;
WHEREAS, under Presidential Decree No. 1416, as amended by Presidential
Decree No. 1772, the President of the Philippines has continuing
authority to reorganize the National Government;
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic
of the Philippines, by virtue of the powers vested in me by law, do
hereby order:
Section 1. Organizational Structure. — The
organizational structure of the BIR shall be as follows:
1.
The Office of the Commissioner, which shall have direct supervision
over the following services, each of which shall be headed by an
Assistant Commissioner;
1.1
The Internal Audit Service, which shall be composed of four (4)
divisions, namely: Information Systems Audit Division, Fiscal Audit
Division, Performance Audit Division, and Personnel Investigation
Division.
1.2 The
Corporate Planning and Development Service, which shall be composed of
three (3) divisions, namely: Strategic Management Division, Economic
Research and Revenue Forecasting Division, and Business Intelligence
Division.
1.3 The
Corporate Communications Service, which shall be composed of three (3)
divisions, namely: Employee Communications Division, Public Affairs
Division, and Taxpayer Communications Division.
1.4 The
Finance Service, which shall be composed of three (3) divisions,
namely: Budget Division, Disbursement Accounting Division, and Revenue
Accounting Division.
2. The Legal
Affairs Group, which shall be supervised by a Deputy Commissioner,
shall be composed of the following services, each of which shall be
headed by an Assistant Commissioner:
2.1
The Legal Service, which shall be composed of three (3) divisions,
namely: Law Division, International Tax Affairs Division, and Appellate
Division.
2.2 The
Litigation and Prosecution Service, which shall be composed of two (2)
divisions, namely: Litigation Division, and Prosecution Division.
2.3 The
Legislative and Research Service.
3. The
Information Systems Group, which shall be supervised by a Deputy
Commissioner, shall be composed of the following offices:
3.1
The Information Systems Operations Service, which shall be headed by an
Assistant Commissioner and shall be composed of four (4) divisions,
namely: Systems Operations Division, Systems Support Division, Security
Management Division, and Systems Standards and Technology Management
Division.
3.2 The
Information Systems Project Management Service.
3.3 The
Revenue Data Centers (RDCs) shall report to the Deputy Commissioner for
Information Systems Group and shall coordinate with the regional and
district offices that they service. Each RDC shall be headed by a
Revenue Data Center Head. It shall be composed of two (2) divisions,
namely: Computer Operations, Network and Engineering Division and
Facilities Management Division.
4. The Human
Resource and Administrative Group, which shall be supervised by a
Deputy Commissioner, shall be composed of the following services, each
of which shall be headed by an Assistant Commissioner:
4.1
The Human Resource Development Service, which shall be composed of four
(4) divisions, namely: Recruitment, Selection and Placement Division,
Compensation, Benefits and Welfare Division, Training and Development
Division, and Career and Performance Management Division.
4.2 The
Administrative Service, which shall be composed of three (3) divisions,
namely: Procurement Division, Accountable Forms Division, and
Properties and Records Management Division.
5. The
Operations Group, which shall be supervised by a Deputy Commissioner,
shall be composed of the following services, each of which shall be
headed by an Assistant Commissioner, and all regional offices:
5.1
The Large Taxpayers Service, which shall be composed of two (2)
divisions, namely: Banks, Insurance and Service Sectors Division, and
Manufacturing, Industry and Agricultural Sectors Division. Likewise,
the Large Taxpayers Service shall have direct supervision over all
Large Taxpayers District Offices in regions with identified large
taxpayers.
5.2 The Excise
Taxpayers Service, which shall be composed of five (5) divisions,
namely: Alcohol, Wine and Liquor Sector Division, Tobacco, Cigar and
Cigarette Sector Division, Petroleum, Mineral and Miscellaneous Sector
Division, Data Reconciliation and Analysis Division, and Field
Operations Division. Likewise, the Excise Taxpayers Service shall have
direct supervision over All Large Excise Taxpayers District Offices and
Non-Large Excise Taxpayers District Offices in regions with identified
large and non-large excise taxpayers.
5.3 The
Non-Large Taxpayers Service, which shall be composed of three (3)
divisions, namely: Banks, Insurance and Service Sectors Division,
Manufacturing, Industry and Agricultural Sectors Division, and Emerging
Industries/Business Sector Division.
5.4 The
Individual Taxpayers Service, which shall be composed of three (3)
divisions, namely: Compensation Earners Division, Mixed Income Earners
Division, and Professionals, Self-Employed, Estates and Trusts Division.
5.5 The
Government and Tax-Exempt Entities Service, which shall be composed of
three (3) divisions, namely: Government Agencies Division, Tax-Exempt
Entities Division, and Special Taxpayers Division.
5.6 The
National Investigation Service.
5.7 The
Regional Offices (ROs) shall be directly under the supervision of the
Deputy Commissioner for Operations but shall execute and implement the
policies and programs formulated and prescribed by the Non-Large
Taxpayers Service, Individual Taxpayers Service, and Government and
Tax-Exempt Entities Service for the enforcement of the internal revenue
laws of the Philippines.
Each RO shall be headed by a Regional Director and shall have
supervision and control over all divisions/offices, namely: Assessment
Division, Legal Division, Human Resource Division, Administrative
Division, Finance and Collection Monitoring Division, and Revenue
District Offices (RDOs) within the region. The RO shall be responsible
for directing and coordinating their operations.
Sec. 2. Appointment of Officials. — All Deputy
Commissioners, Assistant Commissioners, Regional Directors, Revenue
Data Center Heads and other holders of Director positions shall be
appointed by the President, upon recommendation of the Commissioner of
Internal Revenue (“Commissioner”) and approval of the Secretary of
Finance, pursuant to Sec. 47, Chapter 10, Book IV of the
Administrative Code of 1987.
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 diminution in rank and/or compensation 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. Funding. — The financial resources needed
to carry out the provisions of this Executive Order shall be taken from
funds available in the BIR: Provided, that the total cost of the
approved staffing pattern at full implementation shall not exceed the
available funds for Personal Services.
Sec. 5. Implementing Authority. — With the
approval of the Secretary of Finance, the Commissioner is hereby
authorized to determine the number of RDCs, ROs and RDOs consistent
with the requirements of a computerized operation and the principles of
economy, efficiency and effectiveness. The Commissioner is likewise
authorized to further organize divisions under the Services and Offices
authorized under this Executive Order, subject to DBM evaluation and
approval.
Sec. 6. Assignment of Internal Revenue Officers
and Other Employees to Other Duties. — The Commissioner may, subject to
the laws on civil service, as well as the rules and regulations
prescribed by the Secretary of Finance, upon the recommendation of the
Commissioner, assign or reassign internal revenue officers and
employees of the BIR, without change in their official rank and salary,
to other or special duties connected with the enforcement or
administration of the revenue laws as the exigencies of the service may
require.
Sec. 7. Implementing Rules and Regulations. — The
Commissioner, with the approval of the Secretary of Finance, shall
issue rules and regulations and other issuances as may be necessary to
ensure the effective implementation of the provisions of this Executive
Order.
Sec. 8. Effectivity. — This Executive Order shall
take effect immediately.
DONE in the City of Manila,
this 29th day of July, in the year of Our Lord, Two Thousand and Two.
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Since 19.07.98.