Title
Creation of Large Taxpayers Division BIR
Law
Executive Order No. 83
Decision Date
Apr 24, 1993
Executive Order No. 83 establishes a Large Taxpayers Division within the Bureau of Internal Revenue in the Philippines to monitor and analyze tax payments made by large taxpayers, ensuring compliance and facilitating collection of overdue accounts.

Questions (EXECUTIVE ORDER NO. 83)

Executive Order No. 83 cites (1) Republic Act No. 7646, which authorized the Commissioner of Internal Revenue to prescribe the place of payment of internal revenue taxes by large taxpayers, and (2) Section 62 of Republic Act No. 7645 (General Appropriations Act of 1993), which allows the President to direct the creation of an organizational unit in a department, bureau, office, or agency.

To facilitate monitoring and analyzing the tax payments of large taxpayers—ensuring immediate follow-up of overdue accounts and enabling statistical analysis of payment patterns for developing criteria for selective audit.

It is composed of a Chief, an Assistant Chief, and a sufficient number of personnel to perform the assigned functions.

The order specifies positions and salary grades, including: 1 Chief Revenue Officer IV (SG 24); 1 Chief Revenue Officer III (SG 22); 2 Revenue Officer IV (SG 19); 2 Revenue Officer III (SG 16); 7 Revenue Officer II (SG 13); 1 Statistician I (SG 11); 1 Economist I (SG 11); 2 Computer Operator II (SG 9); 1 Stenographer II (SG 6); 2 Clerks (SG 4); 1 Driver I (SG 3); 1 Messenger (SG 2).

It must closely monitor large taxpayers’ compliance with filing and payment requirements.

It must maintain a system of recording tax data that provides basic information on non-filers and filers among large taxpayers and other related information.

It must undertake necessary follow-ups to ensure immediate compliance by large taxpayers identified as delayed filers and/or non-filers.

It must consolidate, tabulate, and analyze tax data on large taxpayers and submit management reports on their revenue contribution in proportion to total revenue.

It refers delinquent large taxpayers to the proper office for appropriate action.

Under Section 3(f), the division is tasked to recommend to the Commissioner of Internal Revenue any modification of the criteria for determining a Large Taxpayer.

The necessary funds for initial implementation shall be charged against the Contingent Fund authorized under Republic Act No. 7645 (1993 General Appropriations Act).

Subsequent sums needed for continued implementation shall be included in the annual General Appropriations Act.

It takes effect upon its approval.

All prior instructions, orders, and existing executive issuances (or portions thereof) inconsistent with Executive Order No. 83 are amended or modified accordingly.

RA 7646 authorizes the Commissioner of Internal Revenue to prescribe the place of payment of internal revenue taxes by large taxpayers and is tied to institutional strengthening through monitoring and analyzing large taxpayers’ tax payments; thus, the division is created to operationalize that monitoring/analysis and follow-up mechanism.


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