Mandatory TIN in Government Transactions

Executive Order No. 98 is grounded on the rule that a TIN is prescribed for all taxpayers under Section 236 (J) of the National Internal Revenue Code.
Executive Order No. 98 treats the TIN as a vital information for tracing taxable transactions under a computerized tax administration system.
Executive Order No. 98 frames its policy around enhancing revenue collection to finance infrastructure requirements and support poverty alleviation projects.
Executive Order No. 98 states that tax monitoring and improved compliance will be achieved if the TIN becomes a mandatory requirement in government permitting, licensing, clearing, and issuance of official documents.

Section 1 directs all covered entities to incorporate the TIN in all forms, permits, licenses, clearances, official papers and documents that they issue to persons transacting business with them.
Section 1 mandates TIN inclusion for transactions with both natural persons and judicial persons.
Section 2 requires covered agencies, GOCCs, and LGUs to develop procedures so that permits, licenses, and clearances are not issued to persons or entities without a duly issued TIN where applicable.
Section 2 requires that, in the same procedures, persons with a TIN or valid TIN cards receive priority or preferential action in their transactions with government offices.

Section 3 assigns the Bureau of Internal Revenue (BIR) the duty to assign a permanent TIN.
Section 3 requires the BIR to supply permanent TIN cards to all taxpayers within two (2) years from April 28, 1999.
Section 3 provides that a valid TIN card produced by a person is sufficient for identification purposes in all official dealings with government.
Section 3 allows a person who still has no TIN or TIN card to comply by presenting his application for registration through BIR Form 1901/1902/1903, duly stamped by the BIR, for purposes of this Executive Order.

Section 4 provides that the TIN serves as the common secondary reference index of all government agencies in all official transactions with the public.
Section 4 requires computerized agencies to encode the TIN as part of the data in their official records.
Section 4 requires computerized agencies to transmit electronically the encoded records to revenue authorities as may be required by law or regulations.

Section 5 makes any person who fails to comply with the Executive Order subject to the appropriate sanctions under the National Internal Revenue Code and other pertinent laws and regulations.
Section 5 expressly includes “the parties involved in transactions where a TIN is prescribed” among those subject to appropriate sanctions.
Section 5 expressly includes the government functionary involved in monitoring or regulating these transactions among those subject to appropriate sanctions.

Section 6 requires that, when necessary or desirable, the Secretary of Finance shall promulgate rules and regulations for effective implementation upon recommendation of the Commissioner of Internal Revenue.
Section 6 states that absence of such regulations does not exempt any government agency from complying with Executive Order No. 98.
Section 7 requires the Secretary of the Department of Budget and Management to give preferential budgetary support to the Bureau of Internal Revenue to enable it to supply permanent TIN cards to all taxpayers.

Executive Order No. 98 contains no separability, repealing, or sunset clause.