FURTHER STREAMLINING THE BUREAU OF INTERNAL REVENUE IN LINE WITH ITS COMPUTERIZED INTEGRATED TAX SYSTEM

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WHEREAS, the BIR is undertaking a major transformation to fulfill its vision
and mission and achieve its strategic goals;

WHEREAS, the BIR has to provide and prepare for the full implementation of
the Computerized Integrated Tax System (CITS) within the years 1997 and 1998
and therefore has to institute simultaneously the changes in its processes,
values, skills and structure;

WHEREAS, under Section 20, Chapter 7, Title I, Book III of Executive Order
No. 292 (Administrative Code of 1987), the President of the Philippines is
empowered to exercise such powers and functions vested in him, which are
provided for under the laws;

WHEREAS, under Section 76 of the General Provisions of Republic Act No.
8250 (FY 1997 General Appropriations Act), the President may direct changes in
the organization and key positions in any department, bureau or agency;

WHEREAS, under Section 78 of the General Provisions of RA 8250, heads of
departments, bureaus and agencies are directed to scale down, phase out or
abolish activities no longer essential in the delivery of public services;

NOW, THEREFORE, I, FIDEL V.
RAMOS, 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 define clearly the functions and responsibilities of the National
Office and those of the Regional Offices and Revenue District Offices, and
other units in the field, 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
operations of the internal revenue service. For this purpose, the
organizational changes indicated hereunder are adopted:

1.1 The existing functional
groups in the BIR are modified to effect the reorientation and realignment of
the different services and other units under them.

1.2 The Commissioner of
Internal Revenue, hereinafter referred to as the Commissioner, shall be the
Chief Executive Officer of the BIR and shall be appointed by the President upon
the recommendation of the Secretary of Finance, hereinafter referred to as the
Secretary. For consistent interaction with both the internal and external
stakeholders, the following services are hereby created directly under the
Office of the Commissioner:

1.2.1 Policy and Planning
Service which shall be responsible for the formulation of policies and
guidelines on strategic and operational planning; establishment of performance
evaluation measures; monitoring and evaluation of accomplishments and changes
in policies, plans and programs; allocation of annual revenue goal; evaluation
of the impact of new tax measures; monitoring of macro-economic performance;
and such other related functions as may be assigned to it by the Commissioner.

1.2.2 Internal Affairs
Service which shall be responsible for the spot-checking of cash and
property accountabilities of all accountable officers; inspection of procured
supplies and services in compliance with approved specifications and standards;
conduct of audit of personnel performance and internal systems, as well as
computer systems; formulation of the internal security program; and such other
related functions as may be assigned to it by the Commissioner.

1.3 The Operations Group,
which shall be headed by a Deputy Commissioner to be appointed by the President
upon recommendation of the Commissioner, shall be composed of the following
Services:

1.3.1 Collection Service
which shall be responsible for the formulation of policies and programs on
collection activities; administration of a nationwide collection program;
determination of compliance and measurement of performance with set programs;
monitoring of collection accountabilities; and such other related functions as
may be assigned to it by the Commissioner.

1.3.2 Assessment Service
which shall be responsible for the formulation of policies and programs
relative to assessment activities; administration of a nationwide assessment
program; determination of compliance and measurement of performance with set
programs, and such other related functions as may be assigned to it by the
Commissioner.

1.3.3 Taxpayers Assistance
Service which shall be responsible for the provision of one-stop-shop
services to taxpayers’ information and education program; maintenance of
customers’ feedback mechanism; analysis and evaluation of ways to improve
services to taxpayers; conduct of studies on new service requirements of
taxpayers; and such other related functions as may be assigned to it by the
Commissioner.

1.4 The Legal and
Enforcement Group, which shall be headed by a Deputy Commissioner who
shall be appointed by the President upon recommendation of the Commissioner,
shall be composed of the following Services:

1.4.1 Legal Service
which shall be responsible for the formulation of policies and guidelines on
the processing of requests for tax exemptions and claims for informer’s reward;
preparation of rulings and opinions of first impression; preparation of tax
legislations, regulations and other issuances; drafting and interpretation of
tax treaties; and such other related functions as may be assigned to it by the
Commissioner.

1.4.2 Enforcement Service
which shall be responsible for the investigation of tax fraud, industry audit
and other policy cases; monitoring and evaluation of regulatory activities;
institution of civil cases for the collection of taxes; filing of criminal
cases on tax evaders; and such other related functions as may be assigned to it
by the Commissioner.

1.5 The Information
Systems Group, which shall be headed by a Deputy Commissioner to be
appointed by the President upon recommendation of the Commissioner, shall be
composed of the following Services and Data Centers;

1.5.1 Information Systems
Development Service which shall be responsible for the development and
acquisition of systems; maintenance and enhancement of existing information
systems; conduct of researches and development programs on information
technology; and such other related functions as may be assigned to it by the
Commissioner.

1.5.2 Information Systems
Operations Service which shall be responsible for the overall operation
of all information systems linking the National Office with the Revenue Data
Centers; maintenance of the data warehouse for various users, as well as
external linkages required; systems management of all technical resources; and
such other related functions as may be assigned to it by the Commissioner.

1.5.3 Information Planning
and Quality Service which shall be responsible for planning of the
information requirements to support the business plan of the Bureau, setting of
policies and standards on information systems and resources; assuring the
quality of systems development and operations; management of the security and
access to all information systems, files and resources; and such other related
functions as may be assigned to it by the Commissioner.

1.5.4 Revenue Data Centers
(RDCs) which shall be responsible for handling the document processing
requirements of the assigned Regional and District Offices; operation and
management of the distributed information systems; ensuring the integrity of
the accounts of taxpayers in the areas covered; and such other related
functions as may be assigned to it by the Commissioner.

1.6 The Resource
Management Group, which shall be headed by a Deputy Commissioner to be
appointed by the President upon recommendation of the Commissioner, shall be
composed of the following Services:

1.6.1. Human Resource
Development Service which shall be responsible for personnel matters,
career management, training, and personnel welfare; and such other related
functions as may be assigned to it by the Commissioner.

1.6.2 Financial Service
which shall be responsible for the preparation of the Bureau’s annual budget;
allocation of the budget appropriation in accordance with the program/project
thrusts of the Bureau; maintenance of accounting records and books of accounts
on expenditures and disbursements; submission of financial reports to management
and other government agencies authorized to receive these reports; and such
other related functions as may be assigned to it by the Commissioner.

1.6.3 Administrative
Service which shall be responsible for the procurement and management
of property and supplies; management of records and forms, and such other
functions as may be assigned to it by the Commissioner.

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 and the Revenue District Offices (RDOs) shall report to
the Deputy Commissioner for Operations.

2.1 Each RO shall have the
supervision and control over the RDOs within the Region and shall be responsible
for directing and coordinating their operations.

2.2 The RDOs shall have
supervision and control over other units within the District.

SEC. 2. Redeployment of
Personnel. The redeployment of officials and
other personnel on the basis of the streamlining 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
concurrence of the Secretary of Finance, submit to the Department of Budget and
Management for approval the resultant organizational structure and staffing
pattern of the BIR.

SEC. 3. 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 available funds for Personal Services.

SEC. 4. Implementing
Authority. With the approval of the Secretary,
the Commissioner is hereby authorized to determine the number of ROs, RDCs and
RDOs consistent with the requirements of the 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.

The authority herein granted to
streamline the BIR shall be exercised only once.

SEC. 5. Implementing Rules
and Regulations. The Commissioner, with the
approval of the Secretary, 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. 6. Effectivity. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 28th day July in the year of Our
Lord, Nineteen Hundred and Ninety-Seven.

(Sgd.) FIDEL V.
RAMOS
President of the Philippines

By the President:

(Sgd.) RUBEN D. TORRES
Executive Secretary

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