RAO No. 02-2013 — Defines the organization and functions of the Enforcement and Advocacy Service, its divisions and sections

BURDAU OY INVERNAL. NEVENUE

BUREAU OF INTERNAL REVENUF REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE RECOIDS MGT DIVISYON MAR 6 : 2013 UMa

Quezon City RECEIVEL

June 20, 2012

REVENUE ADMINISTRATIVE ORDER NO. &-3D13

SUBJECT ORGANIZATION ENFORCEMENT AND AND AdVoCACY SerVICE, Its FUNCTIONS OF THE

DIVISIONS AND SECTIONS

TO Atl Internal Revenue Officials and Employees

I OBJECTIVE:

This Order defines the organization and functions of the Enforcement and Advocacy Service including its divisions and their sections pursuant to the Rationalization Plan under Executive Order No. 366.

I ORGANIZATION:

The Enforcement and Advocacy Service shall be under the direct supervision of the Deputy Commissioner for Legal Group. It shall be headed by an Assistant Commissioner and shall be composed of the following divisions with their respective sections:

A. Litigation Division 2. Litigation Section t 1. Litigation Section I

B. Prosecution Division

2. Prosecution Section II 1. Prosecution Section !

C. National Investigation Division 1. Intelligence Section

2. Investigation Section 3. Criminai Investigation Section

FUNCtions:

ENFORCEMENT AND ADVOCACY SERVICE

1. Performs staff, advisory and consultative functions relative to tax fraud &

intelligence operations, litigation & prosecution matters and development & investigation of tax cases including those under the Run After Tax Evaders (RATE) Program;

2. Processes Claims for Informer's Rewards;

3. Formulates policies and administers work programs, standards, guidelines

and procedures including forms relative to its functions;

4. Provides policy guidance and operationai directions to all divisions under

the Service relative to its functions;

5. Establishes database for criminal violations of internal revenue iaws and

all court decisions on cases filed and all approved revenue issuances prepared by the Service/Divisions under it for regular updates of the Legal Information System:

6 Supervises and/or coordinates the activities of the Legal Division in the

Regional Offices with respect to litigation and prosecution work;

7 Supervises and/or coordinates the activities of the Regional Investigation Division in the: Regional Offices with respect to deveiopment of cases

under the RATE Program;

8. Coordinates with proper offices in the implementation of its functions;

9. Monitors, evaluates and improves programs and activities under the

responsibility of the Service;

10. Reviews, recornmends and/or approves all reports and other actions of the

divisions under the Service;

11.Consolidates and/or prepares prescribed reports for submission to the

offices concerned; and

12. Performs other functions as may be assigned.

A Litigation Division

1. Formuiates policies, work programs, standards, guidelines and

procedures including forms relative to the litigation work on the civi aspect of internal revenue cases under the National internal Revenue Code (NIRC) of 1997, as amended, and other related laws and regulatioris;

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2. Submits to the Service all court decisions on civil cases filed and all approved revenue issuances prepared by the Division for regular updates of the Legal Information System;

3. Conduct:s studies and researches relative to its functions:

4. Coordinates with proper offices in the implementation of the abovementioned functions:

5. Actively coordinates and extends ali possible assistance to the Office of the Solicitor General (OSG) with regard to the cases of the Bureau of Internal Revenue being handled/represented by the OsG:

6. Prepares prescribed reports for submission to the offices concerned:

7. Prepares revenue issuances relative to its functions; and

8. Performs: other functiors as may be assigned

Litigation Sections I and II

1. Institutes civil actions involving internal revenue casesi

2. Represents the Commissioner of Internal Revenue in the

hearing/trial and related proceedings involving internal revenue cases:

3. Acts on petitions for review filed by taxpayers in the Court of Tax Appeals, Regional Trial Courts and administrative agencies involving internal revenue cases;

4. Prepares ali pleadings, briefs and memoranda to be filed with the Court of Tax Appeals, Regional Trial Courts, and other revenue cases pending before the same; courts and administrative agencies in connection with internal

5. interviews/prepares witnesses and evaluates evidence in corinection with internal revenue cases:

6. Summons, examines and takes testimony of persons pursuant

to Sec. 5 of the NIRC of 1997, as amended, and other applicable laws;

7. Prepares digests of decisions rendered by the courts and other

administrative agencies on cases involving internal revenue taxes;

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8. Represents revenue officials and personnel in -/civil cases

brought against them in connection with the iawful performance of their official functions;

9. Prepares monthly accomplishment report involving cases being

handled before the Court of Tax Appeals (CTA), Supreme Court Department of Justice (DOJ), Regional Trial Courts (RTCs) and other administrative agencies on the following:

a. Cases pending in courts involving refund and

b. Petitions for review, comments, answers, motions, reply assessments.

memo en banc on assessment, refund and other cases before the CTA which were filed; c. Hearings attended by Litigation Lawyers; and d. Received decisions involving refunds and assessment & other civil cases for and against the government which

Were received.

10. Prepares inventory of civil cases, including disputed assessment

cases with deficiency taxes, cases involving claims for refund of taxes upheld on appeal, won/lost refund cases and won/lost assessment cases; and

11. Performs other functions as may be assigned.

B. /Prosecution Division

F Formulates policies, work programs, standards, guidelines and

procedures including forms relative to the /criminal prosecution of violations of the NIRC of 1997, as amended, and related iaws and regulat:ons;

2 Represents the Commissioner of Internal Revenue before the DOJ and the: Courts in the preliminary investigation/hearing/trial of RATE

cases and other criminal cases involving violations of NIRC of 1997. as amended, rules and regulations including other laws administered by the BIR:

3 Evaluates complaints of tax evasion and swears-in qualified affiants to the Affidavit of Confidential Information:

4 Evaluates Claims for Informer's Rewards and determines whether the informer is entitled to it;

D Coordinates with other BIR offices and/or external offices for the

successful prosecution of violations of internal revenue laws and regulations;

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6. Submits to the Service all court decisions on criminal cases filed

regular updates of the Legal Information System; and all approved revenue issuances prepared by the Division for

I Conducts studies and researches relative to the criminal violation of

the NIRC of 1997, as amended;

8. Actively coordinates and extends all possible assistance to OsG in revenue laws, rules " and regulations including other laws administered by the BIR before the Courts; case the OSG represents the Bureau/People of the Philippines on criminal cases involving tax evasion and/or violations of internal

9. Coordinates with proper offices in the implementation of the abovementioned functions;

1O. Prepares prescribed reports for submission to the offices

concerned;

11. Prepares revenue issuances relative to the abovementioned functions; and

12. Performs other functions as may be assigned

Prosecution Sections I and II

1. Institutes criminal actions against persons violating: internal Internal Revenue: revenue laws and other tax laws administered by the Bureau of

2. Evaluates tax fraud cases referred by the National Investigation successful prosecution thereof under the RATE Program; Division (NID), Regional Investigation Division,Large Taxpayers Service (LTS) and other offices involving a basic deficiency tax of at least-One Million Pesos (P1,000,000.00) with the view of having them properly documented and substantiated to ensure

3. Recommends and files complaints for preliminary investigation laws and regulations; to the Office of the City Prosecutor or the Office of the Secretary of Justice, as the case may be, on violation/s of internal revenue

4. Interviews/prepares witnesses and evaluates evidence in connection with cases filed for violation of tax laws;

5. Summons, examines and takes testimony of persons pursuant to Sec. 5 of the NIRC of 1997, as amended, and other applicable laws;

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6. Evaluates and receives confidential information filed by informants in reiation to Section 282 of the NIRC of 1997, as

amended;

7. Represents the Commissioner of Internal Revenue in the

prosecution of criminal cases involving tax evasion and/or violations of internal revenue laws, rules and regulations including other laws administered by the BIR;

8. Acts on petitions for review filed by the taxpayers in the

Department of Justice, Court of Tax Appeals and other judicial and administrative agencies relative to fraud cases under their jurisdiction;

9. Prepares all pleadings, briefs and memoranda to be filed with

the Department of Justice, Court of Tax Appeals, regular courts and administrative agencies relative to tax fraud cases; l

10. Submits to the Service data or materials relative to criminal

violations of internal revenue laws, rules and regulations as weil as information on the effective enforcement of the prosecution processes for regular updates of Legal Information System;

11. Prepares subpoena ad testificandum / subpoena duces tecum

five (5) days VAT compliance notices, and closure orders upon request of concerned offices;

12. Receives documents and verifies compliance of taxpayers with

Subpoena Duces Tecum;

13. Recommends deportation of alien taxpayers and/or inclusion in

the Hold Order List and Watch List of persons prosecuted for violation of internal revenue laws, rules, regulations and other related laws and makes necessary representation as government counsei before the Deportation Board;

14. Refers cases for the filing of criminal action to the Ombudsman;

15. Evaluates and processes claims for reward of confidential

informers;

16. Prepares digest of court decisions involving criminal cases filed;

17. Prepares monthly accomplishment reports on cases being

handled;

18. Represents revenue officials and personnel in criminal cases

brought against them in connection with the lawful performance of their official functions; and

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19. Performs other functions as may be assigned.

C. National Irivestigation Division

Formulates poiicies, work programs, standards, guidelines and procedures including forms relative to the investigation of tax fraud cases and the conduct of intelligence work;

3 Conducts preliminary investigation of confidential information filed

by informants with the BIR;

3 Makes arrests and seizures in relation to the violation of any penal Iaw, rule or reguiation administered by the BiR as provided under

Section 15 of the NIRC of 1997, as amended;

4 Conducts audit of policy cases and prepares audit manuals as a result of the audit conducted:

5 Coordinates and integrates all intelligence activities of Regional Offices;

6 Maintains systematic records of all cases handled by the Division;

7 Coordinates with the proper offices in the implementation of its

functions;

8 Prepares prescribed reports for submission to the offices

concerned;

9 Prepares revenue issuances relative to the abovementioned

functions; and

10. Performs other functions as may be assigned.

Intelligence Section

1.1. Sets-up work programs, standards, guidelines and procedures

relative to the conduct of intelligence work:

1.2. Assists the investigation Section by drawing up an effective

intelligence operations;

1.3. Identifies vital third party information needed in the

implementation of tax prosecution programs and requests such information from concerned office:

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1.4. Obtains information on a regular basis from third parties

through access to records:

1.5. Summons, examines and takes testimony of persons pursuant

to Sec. 5 of NIRC of 1997, as amended, and other applicable laws and regulations;

1.6. Conducts surveillance on persons identified and suspected to

be involved in activities in violation of the NIRC of 1997, as amended, to establish prima facie case of fraud on the basis of a tax assessment pursuant to Sec. 5 of the NIRC of 1997, as arriended:

1.7. Consolidates and interprets intelligence information relating to

tax fraud matters from all availabie sources;

1.8. Conducts liaison activities with other intelligence, police and

other investigative agencies for the conduct of arrests as well as raids and seizures in cases referred/approved by the Commissioner;

1.9. Coordinates with the Regional Investigation Division

concerned on ali intelligence operations including those on activities pertaining to smuggling, syndicated crimes and the use of fake BIR accountable forms;

1.10.Prepares prescribed reports and updates/status for submission

to the offices concerned;

1.11. Supervises the safekeeping of confidential documents of the

Division and controis all data and communications received pertinent to cases handled; and

1.12. Performs other functions as may be assigned.

2 Investigation Section

2.1. Sets-up work programs, standards, guidelines and procedures

relative to the conduct of investigation of tax fraud cases and those involving violations of the NIRC of 1997, as amended;

2.2. Prepares specific plans in .the conduct of tax fraud

investigation of suspected criminal violators of internal revenue laws and regulations in coordination with the Intelligence Section;

2.3. Investigates tax fraud cases as may be referred and/or

approved by the Commissioner and those developed by the Division;

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2.4. Investigates violations of the provisions of NIRC of 1997, as

amended, committed by the taxpayers:

2.5. Plans, organizes and conducts inventory taking and

surveillance work in order to establish a prima facie fraud case on the basis of tax assessment pursuant to Section 5 of the NIRC of 1997, as amended, upon mission orders issued;

2.6. Develops and investigates criminal cases for prosecution;

2.7. Assists in the prosecution of criminal cases:

2.8. Prepares prescribed reports and updates/status for submission

to the offices concerned; I

2.9. Maintains systematic records of tax fraud cases handied by

the Section; and

2.10.Performs other functions as may be assigned

3. Criminal Investigation Section

3.1 Sets-up work programs, standards, guidelines and procedures

relative to the conduct of investigation of tax fraud by the BIR;

3.2 Prepares specific plans in the conduct of tax fraud

investigation of suspected criminal violators of internal revenue iaws and regulations in coordination with the Intelligence Section;

3.3 Investigates tax fraud cases as may be referred and/or

approved by the Commissioner and those developed by the Division;

3.4 Investigates criminal violations of the provisions of NIRC of

1997, as amended, committed by taxpayers;

3.5 Plans, organizes and conducts inventory taking and

surveillance work in order to establish a prima facie fraud case on the basis of tax assessment pursuant to Section 5 of the NIRC of 1997, as amended, upon mission orders issued;

3.6 Develops and investigates criminal cases for prosecution;

3.7 Assists in the prosecution of criminal cases:

3.8 Prepares prescribed reports and updates/status for submission

to the offices concerned; l

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3.9 Maintains systematic records of tax fraud cases handled by the Section; and

3.10 Performs other functions as may be assigned

V REPEALING CLAUSE:

this Order are hereby repealed or amended accordingly All issuances or portions thereof not consistent with the provisions of

V EFFECTIVITY:

This Order shall take effect immediately.

Commissioner 6f Internal Revenue KIM S. YO-HENARES

Approved: 012826 T

B2/n|sb CeSaR V. PurISIMA Secretary of Finance Wga 007060 J BUREAU OF INTERNAL REVENUE RECORDS MGT. DIVISION MAK 8.: 2013 IM

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