EXECUTIVE ORDER NO. 132 October 26, 1993
APPROVING THE STREAMLINING OF THE BUREAU OF INTERNAL REVENUE
WHEREAS, there is an urgent need for increased and efficient tax collection to support the economic development and growth of the Philippines;
WHEREAS, to achieve this goal, it is imperative that the Bureau of Internal Revenue, the government office tasked with the administration and enforcement of Philippine tax laws, be strengthened in order to establish public confidence in, and obtain maximum voluntary compliance with, Philippines tax laws and their administration;
WHEREAS, the streamlining of the organization and operations of the Bureau of Internal Revenue is necessary to decentralize its line functions, thereby strengthening its Regional and Revenue District Offices in the implementation and enforcement of tax laws;
WHEREAS, under Section 20, Book III of Executive Order No. 292, (Revised Administrative Code), the President is empowered to exercise such other powers and functions vested in him which are provided for under the laws;
WHEREAS, the President is empowered to approve changes in the...
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Executive Orders
Approving the Streamlining of the Bureau of Internal Revenue
Executive Order No. 132
Summary of Executive Order No. 132
Streamlining of the Bureau of Internal Revenue
• To increase and improve tax collection to support economic development and growth in the Philippines. (Whereas clauses)
• To strengthen the Bureau of Internal Revenue (BIR) to establish public confidence and obtain maximum voluntary compliance with tax laws. (Whereas clauses)
• To streamline the organization and operations of the BIR by decentralizing its line functions and strengthening its Regional and Revenue District Offices. (Whereas clauses)
Organizational Changes in the BIR
• The National Office shall develop and formulate broad national tax administration policies and programs. (Section 1.1)
- The Legal Service is restructured and placed directly under the Office of the Commissioner, along with the Law Division, Appellate Division, Litigation and Prosecution Division, and Personnel Inquiry Division. (Section 1.1.1)
- The Intelligence and Investigation Office and Inspection Service are abolished, and an Intelligence and Investigation Service is created under the Office of the Commissioner, along with the Tax Fraud Division and Internal Security Division. (Section 1.1.2)
• The Assessment and Collection Group is renamed as the Operations Group and supervised by a Deputy Commissioner. (Section 1.2)
- The Assessment Service is created with new divisions like Assessment Programs Division, Asset Valuation Division, and Audit Data Bank Division. (Section 1.2.1)
- The Collection Service is created with new divisions like Collection Programs Division, Withholding Agents Monitoring Division, and Revenue Accounting Division. (Section 1.2.2)
- The Performance Monitoring Service is created under the Operations Group, with divisions like Assessment Performance Audit Division and Collection Performance Audit Division. (Section 1.2.3)
- The Exercise Tax Service, Special Operations Service (except International Tax Affairs Division), and their divisions are abolished, and their functions are decentralized to the Revenue District Offices. (Section 1.2.4)
- The Revenue Offices and Revenue District Offices shall report to the Operations Group. (Section 1.2.5)
• The Information Systems Group is created and supervised by a Deputy Commissioner, with the Information Systems Operations Service and Information Systems Development Service. (Section 1.3)
• The Resource Management Group is created and supervised by a Deputy Commissioner, with the following services: (Section 1.4)
- Management Planning Service (formerly Planning and Research Service)
- Financial and Administrative Service (merger of Financial Service and Administrative Service)
- Human Resource Development Service (with Personnel Division, Training Division, Medical and Dental Division, and Career Management Division)
- The Computer Information System Service and its divisions are abolished.
• The Regional Offices shall directly execute national policies and programs for enforcing internal revenue laws, and shall have supervision and control over the Revenue District Offices. (Section 2)
- The Regional Offices shall have divisions like Finance Division, Legal Division, Assessment Division, Collection Division, and Special Investigation Division. (Section 2.1)
- The Revenue District Offices shall implement programs for efficient assessment and collection of internal revenue taxes, following policies and guidelines from the Central Office and Regional Office. (Section 2.2)
Other Provisions
• Redeployment of personnel shall not result in dislocation or diminution of rank and compensation, and shall follow Civil Service Law and rules. The BIR shall submit the realigned staffing pattern to the Department of Budget and Management. (Section 2)
• The BIR shall have a policy of not allowing extension of service beyond the compulsory age of retirement, to avoid disrupting the revenue service career system. (Section 3)
• The Commissioner of Internal Revenue is authorized to transfer and assign Presidential appointees to positions of equivalent rank if the exigencies of the service require it. (Section 4)
• Funds needed to carry out the provisions shall be taken from funds available in the BIR. (Section 5)
• The Commissioner of Internal Revenue, with the approval of the Secretary of Finance, shall issue rules and regulations for effective implementation of the Executive Order. (Section 6)
• The Executive Order shall take effect immediately. (Section 7)
Streamlining of the Bureau of Internal Revenue
• To increase and improve tax collection to support economic development and growth in the Philippines. (Whereas clauses)
• To strengthen the Bureau of Internal Revenue (BIR) to establish public confidence and obtain maximum voluntary compliance with tax laws. (Whereas clauses)
• To streamline the organization and operations of the BIR by decentralizing its line functions and strengthening its Regional and Revenue District Offices. (Whereas clauses)
Organizational Changes in the BIR
• The National Office shall develop and formulate broad national tax administration policies and programs. (Section 1.1)
- The Legal Service is restructured and placed directly under the Office of the Commissioner, along with the Law Division, Appellate Division, Litigation and Prosecution Division, and Personnel Inquiry Division. (Section 1.1.1)
- The Intelligence and Investigation Office and Inspection Service are abolished, and an Intelligence and Investigation Service is created under the Office of the Commissioner, along with the Tax Fraud Division and Internal Security Division. (Section 1.1.2)
• The Assessment and Collection Group is renamed as the Operations Group and supervised by a Deputy Commissioner. (Section 1.2)
- The Assessment Service is created with new divisions like Assessment Programs Division, Asset Valuation Division, and Audit Data Bank Division. (Section 1.2.1)
- The Collection Service is created with new divisions like Collection Programs Division, Withholding Agents Monitoring Division, and Revenue Accounting Division. (Section 1.2.2)
- The Performance Monitoring Service is created under the Operations Group, with divisions like Assessment Performance Audit Division and Collection Performance Audit Division. (Section 1.2.3)
- The Exercise Tax Service, Special Operations Service (except International Tax Affairs Division), and their divisions are abolished, and their functions are decentralized to the Revenue District Offices. (Section 1.2.4)
- The Revenue Offices and Revenue District Offices shall report to the Operations Group. (Section 1.2.5)
• The Information Systems Group is created and supervised by a Deputy Commissioner, with the Information Systems Operations Service and Information Systems Development Service. (Section 1.3)
• The Resource Management Group is created and supervised by a Deputy Commissioner, with the following services: (Section 1.4)
- Management Planning Service (formerly Planning and Research Service)
- Financial and Administrative Service (merger of Financial Service and Administrative Service)
- Human Resource Development Service (with Personnel Division, Training Division, Medical and Dental Division, and Career Management Division)
- The Computer Information System Service and its divisions are abolished.
• The Regional Offices shall directly execute national policies and programs for enforcing internal revenue laws, and shall have supervision and control over the Revenue District Offices. (Section 2)
- The Regional Offices shall have divisions like Finance Division, Legal Division, Assessment Division, Collection Division, and Special Investigation Division. (Section 2.1)
- The Revenue District Offices shall implement programs for efficient assessment and collection of internal revenue taxes, following policies and guidelines from the Central Office and Regional Office. (Section 2.2)
Other Provisions
• Redeployment of personnel shall not result in dislocation or diminution of rank and compensation, and shall follow Civil Service Law and rules. The BIR shall submit the realigned staffing pattern to the Department of Budget and Management. (Section 2)
• The BIR shall have a policy of not allowing extension of service beyond the compulsory age of retirement, to avoid disrupting the revenue service career system. (Section 3)
• The Commissioner of Internal Revenue is authorized to transfer and assign Presidential appointees to positions of equivalent rank if the exigencies of the service require it. (Section 4)
• Funds needed to carry out the provisions shall be taken from funds available in the BIR. (Section 5)
• The Commissioner of Internal Revenue, with the approval of the Secretary of Finance, shall issue rules and regulations for effective implementation of the Executive Order. (Section 6)
• The Executive Order shall take effect immediately. (Section 7)