Republic of the Philippines
Congress of the Philippines
Metro ManilaThirteenth Congress
First Regular SessionBegun and held in Metro Manila, on Monday, the twenty-sixth day of July, two thousand four.
Republic Act No. 9335
AN ACT TO IMPROVE THE REVENUE COLLECTION PERFORMANCE OF THE BUREAU OF INTERNAL REVENUE (BIR) AND THE BUREAU OF CUSTOMS (BOC) THROUGH THE CREATION OF A REWARDS AND INCENTIVES FUND AND OF A REVENUE PERFORMANCE EVALUATION BOARD AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Short Title. – This Act shall be known as the "Attrition Act of 2005".
Section 2. Declaration of Policy. – It is the policy of the State to optimize the revenue-generation capability and collection of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) by providing for a system of rewards and sanctions through the creation of a Rewards and Incentives Fund and a Revenue Performance Evaluation Board in the above agencies for the purpose...
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Amended by
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Republic Acts
Attrition Act of 2005
Republic Act No. 9335
Title: Attrition Act of 2005 (Republic Act No. 9335)
Declaration of Policy (Section 2):
- Optimize revenue generation and collection of the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) through a system of rewards and sanctions.
Coverage (Section 3):
- Covers all BIR and BOC officials and employees with at least 6 months of service, regardless of employment status.
Rewards and Incentives Fund (Section 4):
- Created from excess collections over revenue targets set by the Development Budget and Coordinating Committee (DBCC).
- Percentage of excess collection accruing to the Fund:
- 30% or below excess: 15% of excess
- More than 30% excess: 15% of first 30% plus 20% of remaining excess
- Automatically appropriated and released the following fiscal year.
- Allocated proportionally based on contribution to excess collection.
Incentives to District Collection Offices (Section 5):
- If BIR/BOC misses target by less than 10%, districts exceeding allocated targets get 10% of excess as incentive.
- Excludes districts that deliberately forego collection to avoid higher targets.
Revenue Performance Evaluation Board (Section 6):
- Created in BIR and BOC, chaired by DOF Secretary/Undersecretary.
- Composed of DBM, NEDA, BIR/BOC representatives, and employee representatives.
Powers and Functions of the Board (Section 7):
- Prescribe rules for allocation, distribution, and release of the Fund.
- Set criteria and procedures for removing underperforming officials/employees (below 7.5% of target).
- Terminate personnel based on criteria, subject to due process.
- Prescribe performance evaluation system.
- Submit annual report to Congress.
Liability (Section 8):
- BIR/BOC officials, examiners, and employees liable for losses due to violations, negligence, or failure to exercise diligence.
Right to Appeal (Section 9):
- Terminated officials/employees may appeal to Civil Service Commission or Office of the President.
Performance Report (Section 10):
- BIR/BOC Commissioners to file regular reports on collection status, shortfalls/surpluses, and recommendations.
- Year-end report to include names for termination or reward.
- Reports submitted to Board, Congress, and President.
Rules and Regulations (Section 11):
- To be jointly issued by DOF, DBM, NEDA, BIR, BOC, and CSC within 30 days of effectivity.
Joint Congressional Oversight Committee (Section 12):
- Composed of 7 Senators and 7 Representatives, including minority members.
- To approve implementing rules and regulations.
Separability Clause (Section 13)
Repealing Clause (Section 14)
Effectivity (Section 15): 15 days after publication in at least 2 newspapers of general circulation.
Declaration of Policy (Section 2):
- Optimize revenue generation and collection of the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) through a system of rewards and sanctions.
Coverage (Section 3):
- Covers all BIR and BOC officials and employees with at least 6 months of service, regardless of employment status.
Rewards and Incentives Fund (Section 4):
- Created from excess collections over revenue targets set by the Development Budget and Coordinating Committee (DBCC).
- Percentage of excess collection accruing to the Fund:
- 30% or below excess: 15% of excess
- More than 30% excess: 15% of first 30% plus 20% of remaining excess
- Automatically appropriated and released the following fiscal year.
- Allocated proportionally based on contribution to excess collection.
Incentives to District Collection Offices (Section 5):
- If BIR/BOC misses target by less than 10%, districts exceeding allocated targets get 10% of excess as incentive.
- Excludes districts that deliberately forego collection to avoid higher targets.
Revenue Performance Evaluation Board (Section 6):
- Created in BIR and BOC, chaired by DOF Secretary/Undersecretary.
- Composed of DBM, NEDA, BIR/BOC representatives, and employee representatives.
Powers and Functions of the Board (Section 7):
- Prescribe rules for allocation, distribution, and release of the Fund.
- Set criteria and procedures for removing underperforming officials/employees (below 7.5% of target).
- Terminate personnel based on criteria, subject to due process.
- Prescribe performance evaluation system.
- Submit annual report to Congress.
Liability (Section 8):
- BIR/BOC officials, examiners, and employees liable for losses due to violations, negligence, or failure to exercise diligence.
Right to Appeal (Section 9):
- Terminated officials/employees may appeal to Civil Service Commission or Office of the President.
Performance Report (Section 10):
- BIR/BOC Commissioners to file regular reports on collection status, shortfalls/surpluses, and recommendations.
- Year-end report to include names for termination or reward.
- Reports submitted to Board, Congress, and President.
Rules and Regulations (Section 11):
- To be jointly issued by DOF, DBM, NEDA, BIR, BOC, and CSC within 30 days of effectivity.
Joint Congressional Oversight Committee (Section 12):
- Composed of 7 Senators and 7 Representatives, including minority members.
- To approve implementing rules and regulations.
Separability Clause (Section 13)
Repealing Clause (Section 14)
Effectivity (Section 15): 15 days after publication in at least 2 newspapers of general circulation.