Title
Restructuring BIR for Taxpayer Focus
Law
Executive Order No. 114
Decision Date
Jul 29, 2002
Executive Order No. 114 restructures the Bureau of Internal Revenue in the Philippines to enhance tax administration and enforcement capabilities, establishing a new organizational structure and outlining the appointment of officials, redeployment of personnel, funding, implementing authority, assignment of duties, and issuance of implementing rules and regulations.

Law Summary

Organizational Structure of the BIR

  • Office of the Commissioner supervises key services, each led by an Assistant Commissioner:
    • Internal Audit Service (4 divisions: Information Systems Audit, Fiscal Audit, Performance Audit, Personnel Investigation).
    • Corporate Planning and Development Service (3 divisions: Strategic Management, Economic Research and Revenue Forecasting, Business Intelligence).
    • Corporate Communications Service (3 divisions: Employee Communications, Public Affairs, Taxpayer Communications).
    • Finance Service (3 divisions: Budget, Disbursement Accounting, Revenue Accounting).
  • Legal Affairs Group supervised by Deputy Commissioner:
    • Legal Service (3 divisions: Law, International Tax Affairs, Appellate).
    • Litigation and Prosecution Service (2 divisions: Litigation, Prosecution).
    • Legislative and Research Service.
  • Information Systems Group supervised by Deputy Commissioner:
    • Information Systems Operations Service (4 divisions: Systems Operations, Systems Support, Security Management, Systems Standards and Technology Management).
    • Information Systems Project Management Service.
    • Revenue Data Centers (RDCs) with 2 divisions (Computer Operations, Network and Engineering, Facilities Management).
  • Human Resource and Administrative Group supervised by Deputy Commissioner:
    • Human Resource Development Service (4 divisions: Recruitment, Compensation, Training, Career and Performance Management).
    • Administrative Service (3 divisions: Procurement, Accountable Forms, Properties and Records Management).
  • Operations Group supervised by Deputy Commissioner, includes:
    • Large Taxpayers Service (2 divisions: Banks/Insurance/Service Sectors, Manufacturing/Industry/Agricultural Sectors).
    • Excise Taxpayers Service (5 divisions focused on various excise sectors and field operations).
    • Non-Large Taxpayers Service (3 divisions: Banks/Insurance/Service Sectors, Manufacturing/Industry/Agricultural, Emerging Industries/Business).
    • Individual Taxpayers Service (3 divisions: Compensation Earners, Mixed Income Earners, Professionals/Self-Employed/Estates/Trusts).
    • Government and Tax-Exempt Entities Service (3 divisions: Government Agencies, Tax-Exempt Entities, Special Taxpayers).
    • National Investigation Service.
    • Regional Offices (headed by Regional Directors) with multiple divisions responsible for enforcement, supervision, and coordination.

Appointment of Officials

  • Deputy Commissioners, Assistant Commissioners, Regional Directors, Revenue Data Center Heads, and Directors appointed by the President.
  • Appointment requires recommendation by the Commissioner of Internal Revenue and approval of the Secretary of Finance.
  • Based on Section 47, Chapter 10, Book IV of the Administrative Code of 1987.

Redeployment of Personnel

  • Redeployment due to restructuring shall not result in reduced rank or compensation.
  • Civil Service laws and rules must be observed.
  • Commissioner to submit staffing pattern to Department of Budget and Management (DBM) for evaluation and approval.

Funding

  • Financial resources to implement the Order shall be sourced from the BIR's available funds.
  • Total cost of staffing shall not exceed funds allocated for Personal Services.

Implementing Authority and Flexibility

  • Commissioner, with Secretary of Finance approval, to determine number of RDCs, Regional Offices, and Revenue District Offices (RDOs).
  • Authorized to organize divisions under existing Services and Offices subject to DBM evaluation and approval.

Assignment and Reassignment of Personnel

  • Commissioner may assign/reassign officers/employees to special duties without changing rank or salary.
  • Must comply with civil service laws and Secretary of Finance rules.

Rules and Regulations for Implementation

  • Commissioner shall issue necessary rules/regulations with Secretary of Finance's approval for effective implementation.

Effectivity

  • The Executive Order takes effect immediately upon issuance.

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