Question & AnswerQ&A (REVENUE MEMORANDUM CIRCULAR NO. 40-A-2002, MAY 7, 2002)
The primary purpose of Department Order No. 7-02 is to provide the implementing rules of the first paragraph of Section 4 of the National Internal Revenue Code of 1997, specifically regarding the jurisdiction and review of rulings by the Commissioner of Internal Revenue.
The Commissioner of Internal Revenue has the exclusive and original jurisdiction to interpret the provisions of the National Internal Revenue Code and other tax laws.
The Secretary of Finance can review the rulings of the Commissioner of Internal Revenue.
This Department Order applies to all rulings of the Bureau of Internal Revenue that implement the provisions of the National Internal Revenue Code and other tax laws.
A ruling by the Commissioner of Internal Revenue is presumed valid until it is overturned or modified by the Secretary of Finance.
A taxpayer may seek review of the adverse ruling by the Secretary of Finance within thirty (30) days from the date of receipt of such ruling by filing a written and sworn request that meets specified requirements.
The request must be addressed to the Secretary of Finance, filed with the Legal Office of the Department of Finance, contain the heading 'Request for review of BIR Ruling No. ___,' include the taxpayer’s TIN, allege material facts, state that the same facts were presented to the BIR, define the issues, cite facts and law disputing the ruling, be signed by the taxpayer or authorized representative, be accompanied by a copy of the challenged ruling, contain a stamp showing receipt by the Commissioner, and state that there is no pending court case with the same issues.
The Secretary of Finance may affirm, reverse, or modify the ruling of the Commissioner of Internal Revenue.
Yes, the Secretary of Finance may motu proprio review a ruling issued by the Commissioner of Internal Revenue.
The Secretary of Finance may dismiss the request for review with prejudice.
Yes, except for motu proprio reviews under Section 4, the Bureau of Internal Revenue may impose appropriate certification fees for the review of rulings.
Department Order No. 005-99 and Revenue Administrative Order No. 1-99, as well as other existing Department Orders and issuances of the Commissioner of Internal Revenue inconsistent with this Order, are repealed.
Department Order No. 7-02 took effect immediately upon its issuance on May 7, 2002.