Sei sulla pagina 1di 4

NOTES IN ORGANIZATION AND FUNCTIONS OF THE

BUREAU OF INTERNAL REVENUE


1. Powers and Duties of the Bureau of Internal Revenue
The Bureau of the Internal Revenue is the under the control and supervision
of the Department of Finance and its powers and duties include the
assessment and collection of all national internal revenue taxes, fees and
charges; the enforcement of all forfeitures, penalties, and fines; and the
execution of judgments in all cases decided in its favor by the Court of Tax
Appeals and the ordinary courts.
2. Chief Officials of the Bureau of Internal Revenue
The Bureau of Internal Revenue is headed by a chief known as the
Commissioner, with 4 assistants known as Deputy Commissioners.
3. Powers of the Commissioners
a. Power of the Commissioner to interpret tax laws and to decide tax cases
b. Power of the Commissioner to obtain information; and to summon and to
take testimony of persons (Authority to administer oath)
c. Power of the Commissioner to make assessments and prescribe additional
requirements for tax administration to and enforcement.
4. Power of the Commissioner to make assessments and prescribe additional
requirements for tax administration to and enforcement, includes:
a. Authority to examine returns and determine tax due
b. Authority to conduct inventory-taking, surveillance and to prescribe
presumptive gross sales and receipts
c. Authority to terminate taxable period
d. Authority to prescribe real property values
e. Authority to inquire into bank deposit accounts
Authority to Terminate Taxable Period
When it comes to the knowledge of the Commissioner that a taxpayer is
retiring from business subject to tax; is intending to leave the Philippines;
intending to remove his property from the Philippines; or intending to hide or
conceal his property; or is performing any act tending to obstruct the
proceedings for the collection of the tax, the Commissioner may declare the
tax period of such taxpayer terminated at any time and shall send the
taxpayer a notice of such decision, together with a request for the immediate

payment of the tax for the period so declared terminated and the tax for the
preceding year or quarter, and shall be subject to all the penalties, unless
paid within the time fixed in the demand made by the Commissioner.
Authority to Prescribe Real Property Values
The Commissioner is authorized to divide the Philippines into different zones
or areas and shall determine the fair market value of real properties located
in each zone or area.
For purpose of computing any internal revenue tax, the value of the property
is whichever the higher is of:
1. The fair market value as determined by the Commissioner or
2. The fair market value as shown in the schedule of values of the Provincial
and City Assessors.
Authority to Inquire Into Bank Deposit Accounts
Notwithstanding any contrary provision of Republic Act No. 1405 (Bank
Secrecy Law) and other general or special laws, the Commissioner is
authorized to inquire into the bank deposits of:
1. A decedent to determine his gross estate; and
2. Any taxpayer who has filed an application for compromise of his tax
liability by reason of financial incapacity to pay his tax liability.
In case a taxpayer files an application to compromise the payment of his tax
liabilities on his claim that his financial position demonstrates a clear liability
to pay the tax assessed, his application shall not be considered unless he
waves in writing his privilege under Republic Act No. 1405 or under other
general or special laws, and such waiver shall constitute the authority of the
Commissioner to inquire into the bank deposits of the taxpayer.
Issuance and Rulings of the Bureau of Internal Revenue
Revenue Regulations (RRs) are issuances signed by the secretary of Finance,
upon recommendation of the Commissioner of Internal Revenue, which
specify, prescribe or defines rules and regulations for the effective
enforcement of the provisions of the National Internal Revenue Code (NIRC)
and related statutes.
Revenue Memorandum Orders (RMOs) are issuances that provide directives
or instructions; prescribe guidelines; and outline processes, operations,

activities, workflows, methods and procedures necessary in the


implementation of stated policies, goals, objectives, plans and programs of
the Bureau in all areas of operations, except auditing.
Revenue Memorandum Rulings (RMRs) are rulings, opinions and
interpretations of the Commissioner of Internal Revenue with respect to the
provisions of the Tax Code and other tax laws, as applied to a speci8ric 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. BIR Rulings, therefore, cannot
contravene duly issued RMRs, otherwise, the Ruling are null and void abs
initio.
Revenue Memorandum Circular (RMCs) are issuances that publish pertinent
and applicable portions, as well as amplifications, of laws, rules, regulations
and precedents issued by the BIR and other agencies/offices.
Revenue Bulletins (RB) refer to periodic issuances, notices and official
announcements of the Commissioner of Internal Revenue that consolidate the
Bureau of Internal Revenues position on certain specific issues 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.
BIR Rulings are official position of the Bureau to queries raised by taxpayers
and other stakeholders relative to clarification and interpretation of tax laws.
5. Delegation of Power
The Commissioner may delegate the powers vested in him under the Tax
Code to any or such subordinate officials with the rank equivalent to a
division chief or higher. The following powers of the Commissioner may not
be delegated:
a. The power to recommend the promulgation of rules and regulations by the
Secretary of Finance;
b. The power to issue rulings of first impression or to reverse, revoke or
modify any existing ruling of the Bureau;
c. The power to compromise or abate any tax liability: Provided, however,
that assessments issued by the regional offices involving basic deficiency
taxes of P500,000 or less, and minor criminal violations, discovered by
regional and district officials, may be compromised of the Regional

Director as Chairman, the Assistant Regional director, the heads of the


Legal, Assessment and Collection Divisions and the Revenue District
Officer having jurisdiction over the taxpayer, as members;
d. The power to assign or reassign internal revenue officers to
establishments where articles subject to excise tax are produced or kept.

6. Authority to Internal Revenue Officers to make arrests and seizures


The Commissioner, the Deputy Commissioners, the Revenue Regional
Directors, the Revenue District Officers and other internal revenue officers
have the authority to make arrests and seizures for the violation of any penal
law, rule or regulation administered by the Bureau of Internal Revenue.
7. Collection Agents (Internal Revenue Taxes)
a. The Commissioner of Customs and his subordinates with respect to the
collection of national internal revenue taxes on imported goods;
b. The head of the appropriate government office and his subordinates with
respect to the collection of energy tax;
c. Banks duly accredited by the Commissioner with respect to receipt of
payments of internal revenue taxes.
8. Sources of Revenue
a.
b.
c.
d.
e.
f.
g.

Income Tax
Estate and Donors Taxes
Value-Added-Tax
Other Percentages Taxes
Excise Taxes
Documentary Stamp Taxes
Other taxes imposed and collected by the Bureau of Internal Revenue

Potrebbero piacerti anche