Amending Executive Order No. 1042 Entitled "Providing For An Internal Revenue Service Career System In The Bureau Of Internal Revenue And For Other Purposes"

Case Overview and Summary

Summary of Executive Order No. 45

Amending the Internal Revenue Service Career System
- Provides financial incentives to revenue personnel based on performance and collection efficiency to encourage productivity (Whereas clauses)
- Revises the existing incentive system to give real impetus to personnel performance and productivity (Whereas clauses)

Funding for Incentives (Section 1)
- Bureau of Internal Revenue's Personnel Services budget shall be used for implementation
- Any deficiency shall be funded from the BIR Special Fund
- BIR Special Fund is created from the real increase in revenue collections over the preceding year, subject to the following limits:
  - For 1986: 10% of actual collections in excess of 8% of 1985 GNP
  - For 1987: 10% of actual collections in excess of 8.5% of 1987 GNP
  - For 1988: 10% of actual collections in excess of 9% of 1988 GNP
  - For 1989: 10% of actual collections in excess of 9.5% of 1989 GNP
  - For 1990: 10% of actual collections in excess of 10% of 1990 GNP
  - For 1991: 10% of actual collections in excess of 10.5% of 1991 GNP
  - For 1992: 10% of actual collections in excess of 11% of 1992 GNP
  - For 1993: 10% of actual collections in excess of 11.5% of 1993 GNP
  - For 1994 and thereafter: 10% of actual collections in excess of 12% of GNP for the applicable year
- "Real increase" is defined as the actual increase in revenue collections adjusted for inflation, net effect of new tax measures, and other factors set forth in annual budgets approved by the Minister of Finance (Section 1)
- The amount determined shall be automatically appropriated and used for expenses related to the Internal Revenue Service Career System, in addition to the unutilized balance of the previous BIR Special Fund (Section 1)

Other Provisions
- Repeals or modifies inconsistent laws, orders, issuances, rules, and regulations (Section 2)
- Takes effect immediately (Section 3)