QuestionsQuestions (EXECUTIVE ORDER NO. 625)
It is an Executive Order issued by the President to amend the BIR’s enforcement structure and procedures—specifically to institutionalize the Run After Tax Evaders (RATE) Program, prioritize tax fraud cases, and strengthen administrative and criminal coordination to combat tax evasion.
The Run After Tax Evaders (RATE) Program.
It is institutionalized as a regular division in the BIR’s Enforcement Service of the Bureau of Internal Revenue.
A Revenue Enforcement Committee is created, to be headed by the Deputy Commissioner for Legal, Inspection and Enforcement Group.
Large Taxpayers is placed under the Office of the Deputy Commissioner for Audit and Fraud Investigation, and RDO Cesar Lim is designated to head the Large Taxpayers Service.
It is “subject to the rules of the Commission on Elections” (COMELEC), indicating compliance with election-related rules for appointments/officer designation.
Each RDO is required to file one RATE case per month.
RATE and tax fraud cases are to be given priority in tax investigations in both the Large Taxpayers Service and the district offices.
It amends EO No. 175 by reverting it to the previous EO No. 430, which promotes industry audit and benchmarking methods in national and special investigations.
Industry audit and benchmarking methods.
The Inspection Group is deputized to proceed administratively against BIR officials and employees with cases under the Revenue Integrity Protection Services (RIPS), alongside the criminal Ombudsman cases of the Department of Finance.
The Inspection Group is deputized to proceed administratively, with cases handled/processed in the Revenue Integrity Protection Services (RIPS).
Eduardo R. Ermita.
BIR shortfalls were cited: P20 billion short for 2006, and P10.3 billion shortfall already in January–February 2007, plus large recorded input VAT refunds affecting collections (over P35 billion for April 2007).
It states April is usually the highest payment of income tax, but collections were already compromised due to recorded input VAT refunds.
RATE and tax fraud cases are given priority in tax investigations in the Large Taxpayers Service and district offices.