Question & AnswerQ&A (Republic Act No. 9335)
Republic Act No. 9335 is known as the Attrition Act of 2005.
The main policy objective is to optimize the revenue-generation capability and collection of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) by providing a system of rewards and sanctions through the creation of a Rewards and Incentives Fund and a Revenue Performance Evaluation Board.
All officials and employees of the BIR and the BOC, regardless of employment status, with at least six months of service are covered.
The Fund is created and sourced from the collections of the BIR and the BOC in excess of their respective revenue targets as determined by the Development Budget and Coordinating Committee (DBCC). The percentage of excess collection accruing to the Fund depends on the amount of excess collection over the revenue targets.
If the excess collection is 30% or below over the target, 15% of the excess collection goes to the Fund. If it is more than 30%, the Fund receives 15% of the first 30% plus 20% of the remaining excess.
Districts that exceed their allocated revenue target shall be entitled to district incentives amounting to 10% of the excess over its allocated target.
The Board is composed of the Secretary of the Department of Finance (or Undersecretary) as Chairman, Secretary of the Department of Budget and Management (or Undersecretary), the Director General of NEDA (or Deputy Director General), and as non-voting members the Commissioners (or Deputy Commissioners) of the BIR and BOC, two representatives of rank-and-file employees, and one representative from officials, all nominated by their recognized organizations.
The Board prescribes rules for fund allocation and distribution, sets criteria and procedures to remove officials or employees whose collection falls short by at least 7.5%, terminates personnel accordingly, prescribes performance evaluation systems, issues rules for its functions, and submits annual reports to Congress.
Removal can occur if their revenue collections fall short by at least 7.5% of their target, taking into consideration exemptions such as newly-created districts, recent transferees not due to nonperformance, or districts affected by natural or economic calamities subject to Board review and due process.
They shall be held liable for any loss or injury suffered by businesses or taxpayers due to violation of the Act, negligence, abuses, malfeasance, misfeasance, or failure to exercise extraordinary diligence in their duties.
They may appeal to the Civil Service Commission or the Office of the President as applicable, in accordance with pertinent laws, rules, and regulations.
They must file semi-annual and annual reports to the Board stating collection status, sources of shortfalls or surpluses, responsible personnel, explanations, and recommendations for actions including terminations or rewards. Copies are submitted to Congress, and separate reports to the Office of the President may be required in case of national shortfall.
The Committee, composed of members from both the Senate and House of Representatives, approves the implementing rules and regulations of the Act and ceases to exist once this task is done.
The Act takes effect fifteen (15) days after its publication in at least two newspapers of general circulation.