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DOF REVIEW OF CIR's ADVERSE RULINGS

Description.

All rulings and issuances of the Commissioner of Internal Revenue that pertain to the implementation and interpretation of the Tax Code of 1997 and other tax laws are valid. However, the Secretary of Finance has the power to affirm, revise, modify or set aside rulings and issuances of the Bureau of Internal Revenue (BIR) concerning such implementation and application of the provisions of the Tax Code of 1997 and other tax laws.

The exercise of such power under Section 4 of the Tax Code of 1997, however, does not cover disputed assessments, refunds of internal revenue taxes, fees or other charges, and penalties imposed in relation thereto, or other matters arising under the Tax Code or other laws or portions thereof administered by the BIR. In these instances, the Court of Tax Appeals has the exclusive appellate jurisdiction pursuant to the second paragraph of the same Section 4.

Neither shall the power be exercised to apply to rulings that are deemed void ab initio because they contradict duly issued Revenue Regulations, Revenue memorandum Orders, Revenue Memorandum Rulings, and Revenue Memorandum Circulars.

It is important to note that only the final adverse decision of the Commissioner may be brought to the Department of Finance (DOF) for review. These rulings, therefore, refer to those issued by the Commissioner, or by the Deputy Commissioner for Legal and Inspection Group, Assistant Commissioner for Legal Service, or by the Regional Directors, as may be appropriate according to each one's delegated authority under pertinent issuances.

For this purpose, the requesting taxpayer shall pay a certification in the amount of ten pesos (P10.00) for every page of the complete records on file that shall be reproduced and certified to be a true and authentic copy thereof. Any and all amounts paid as certification fee are non-refundable and shall be forfeited in case the taxpayer finally decides not to seek a review by the Secretary of Finance.

Notwithstanding, the Secretary of Finance may review motu proprio the rulings and issuances of the Bureau of Internal Revenue concerning such implemetation and application of the provisions of the Tax Code of 1997 and other tax laws.

Codal Reference.

First paragraph of Section 4, tax Code of 1997


Procedures and Compliance Requirements.

1. Within 30 days from receipt of an adverse ruling by the Commissioner, the taxpayer may seek the DOF Secretary's review. Administrative remedies must be exhausted in the case of rulings by delegates, e.g., adverse rulings of Regional Director are subject to review by the Assistant Commissioner (ACIR) for Legal Service and by the Deputy Commissioner (DCIR) for Legal and Inspection Group.

2. File with the Office of the Commissioner, for endorsement to the ACIR-Legal Service (ACIR-LS), a copy of the request for review of the Ruling.

3. Request from the ACIR-LS for an authenticated and certified true copy of the complete docket or records on file.

4. Pay the certification fee to the authorized agent bank having jurisdiction over the taxpayer or the place of business of the taxpayer, using Payment Form 0605.

5. Present to the ACIR-LS the original copy of the official receipt that evidences payment of the certification fee, and submit a photocopy thereof to form part of the docket or records of the case.

6. Within 5 days from the payment of the fee, true copies of the records of the case shall be prepared and authenticated by the ACIR-LS.

7. The ACIR-LS shall, under authority of the Commissioner, sign the endorsement letter to the DOF, submitting to the Commissioner a monthly report of all such endorsements made, copy furnished the DCIR for Legal and Inspection Group.

8. The authenticated and certified true copy of the docket or records of the case, including the endorsement thereof to the Secretary of Finance, through the BIR Operations Group, shall be released to the holder of the original copy of the official receipt evidencing payment of the certification fee.

A taxpayer who receives an adverse ruling from the Commissioner may, within 30 days from the date of receipt of such ruling, seek its review by the Secretary of Finance, either by himself/itself or through his/its duly accredited tax agent or representative. The request for review shall be in writing and under oath, and must comply with the conditions stated in Revenue Administrative Order No. 3-2001 dated October 22, 2001.

Tax Forms.

No specific BIR numbered form shall be used. The duplicate copy of the records on file with the BIR pertaining to the taxpayer's request will need to be authenticated and certified by the BIR.


Related Revenue Issuances and Other Issuances.

DOF Department Order No. 23-01 - (Implementing rules of the first paragraph of Section 4 of the Tax Code of 1997)

Revenue Memorandum Circular (RMC) No. 44-2001 - (Circularizing Department Order No. 23-01)

Revenue Administrative Order No. 2-2001 - (Implementing the provisions of Department Order No. 23-01)

Revenue Administrative Order No. 3-2001 - (Implementing further Department Order No. 23-01)


Other Matters.

Department Order No. 23-01 repealed Department Order No. 005-99 and Revenue Administrative Order No. 1-99.


 

 

Quezon City
 
October 22, 2001


REVENUE ADMINISTRATIVE ORDER NO. 2-2001

SUBJECT : Implementing the Provisions of Department Order No. 23-01

TO : All Internal Revenue Officers and Others Concerned
_______________________________________________________________________________

STATEMENT OF POLICY:

It is the recognized policy under this Order that the power to interpret the provisions of the Tax Code of 1997 (Tax Code) and other tax laws is under the exclusive and original jurisdiction of the Commissioner of Internal Revenue, subject to review by the Secretary of Finance, as provided for in Section 4 of the Tax Code.

The Bureau of Internal Revenue is under the supervision and control of the Department of Finance as provided for in Section 2 of the Tax Code and Book IV, Title II, Chapter 4, Section 18 of the Administrative Code of 1987.

There is a need for uniformity of rulings and issuances in the interpretation and application of the provisions of the Tax Code and other tax laws.

SECTION 1. Scope - This Revenue Administrative Order (RAO) shall, in general, apply to all revenue rulings and issuances of the Bureau of Internal Revenue that pertain to the implementation of the provisions of the Tax Code and other tax laws, and shall include the following:

a) Rulings of first impression;
b) Rulings with established precedents;
c) Revenue Memorandum Ruling (RMR);
d) Revenue Travel Assignment Order (RTAO);
e) Revenue Special Order (RSO);
f) Revenue Memorandum Circular (RMC);
g) Revenue Memorandum Order (RMO);
h) Revenue Audit Memorandum Order (RAMO);
i) Revenue Delegation of Authority Order (RDAO); and
j) Revenue Administrative Order (RAO).

SECTION 2. Review Power of the Secretary of Finance - In accordance with Section 4 of the Tax Code, the Secretary of Finance shall have the power to affirm, revise, modify or set aside rulings and issuances of the Bureau of the Internal Revenue concerning the implementation and application of the provisions of the Tax Code and other tax laws.

SECTION 3. Classification of BIR Rulings and Issuances - The following terms shall have the meaning described below:

a) Rulings of first impression - These refer to the rulings, opinions and interpretations of the Commissioner of Internal Revenue with respect to the provisions of the Tax Code and other tax laws without established precedent, and which are issued in response to a specific request for ruling filed by a taxpayer with the Bureau of Internal Revenue. Provided, however, that the term shall include reversal, modification or revocation of any existing ruling.

b) Rulings with established precedents - These refer to mere reiteration of previous rulings, opinions and interpretations of the Commissioner, as delegated to duly authorized internal revenue officers (i.e., Deputy Commissioner, Legal and Inspection Group; Assistant Commissioner, Legal Service; Regional Directors) that are issued in response to a specific request for ruling filed by a taxpayer with the Bureau of Internal Revenue.

c) Revenue Memorandum Rulings (RMR) - These refer to the rulings, opinions and interpretations of the Commissioner of Internal Revenue with respect to the provisions of the Tax Code and other tax laws, as applied to a specific set of facts, with or without established precedents, and which the Commissioner may issue from time to time for the purpose of providing taxpayers guidance on the tax consequences in specific situations.

d) Revenue Travel Assignment Orders (RTAO) - These orders assign revenue personnel to specific functions in specific units. Travel assignment orders specifically mention the names of revenue personnel concerned.

e) Revenue Special Orders (RSO) - Instructions or directives for the accomplishment of special assignments or missions of significance which are temporary in nature or for a definite period of time. These issuances specifically mention the personnel or units of organization concerned.

f) Revenue Memorandum Circulars (RMC) - These issuances shall disseminate and embody pertinent and applicable portions, as well as amplifications of the rules, precedents, laws, regulations, opinions and other orders and directives issued by or administered by the Commissioner of Internal Revenue, and by offices and agencies other than the Bureau of Internal Revenue, for the information, guidance or compliance of revenue personnel.

g) Revenue Memorandum Orders (RMO) - These are directives or instructions outlining procedures, techniques, methods, processes, operations, activities, work flow, and the like, which are necessary to carry out programs or to achieve policy goals and objectives. These issuances may be of general or of limited scope yet in any case require definite compliance by those concerned. They are not addressed to any particular group of employees or offices because they are for general information, but those directly concerned with the compliance of these provisions are either definitely stated, or unmistakably implied thereat.

h) Revenue Audit Memorandum Orders (RAMO) - These refer to the uniform audit procedures to be observed by revenue officers in the conduct of audit of tax cases and in their submission of reports of investigation.

i) Revenue Delegation of Authority Orders (RDAO) - These refer to the functions delegated by the Commissioner to revenue officers in accordance with law.

j) Revenue Administrative Orders (RAO) - These refer to matters that deal strictly with more or less permanent administrative set-up of the Bureau. Delineation of organizational structures, statements of functions and/or responsibilities, definitions and delegations of authority, staffing and personnel requirements, standards of performance, establishment of Bureau-wide programs, installation of systems, and the like, are most likely subject matter of Revenue Administrative Orders. These issuances are for general guidance, compliance and/or information.

SECTION 4. Validity of Rulings and Issuances - All rulings and issuances of the Commissioner of Internal Revenue that pertain to the implementation and interpretation of the Tax Code and other tax laws are valid, unless revoked, reversed, modified, or superseded by the Secretary of Finance pursuant to Department Order No. 23-01.

SECTION 5. Effectivity - This Revenue Administrative Order shall take effect immediately.

 



(Original Signed)
RENÉ G. BAÑEZ
Commissioner of Internal Revenue

 

Quezon City
 
October 22, 2001

REVENUE ADMINISTRATIVE ORDER NO. 3-2001

SUBJECT : IMPLEMENTING FURTHER DEPARTMENT ORDER NO. 23-01 DATED OCTOBER 5, 2001 THAT PROVIDES FOR THE RULES ON THE FIRST PARAGRAPH OF SECTION 4 OF THE TAX CODE OF 1997

TO : ALL INTERNAL REVENUE OFFICERS AND OTHERS CONCERNED
______________________________________________________________________________________

I. OBJECTIVES

To identify the responsibilities of revenue officers and to provide for the procedure for the proper implementation of the first paragraph of Section 4 of the Tax Code of 1997, as implemented by Department Order No. 23-01, that vests in the Secretary of Finance the power to review the interpretation of the Tax Code and other tax laws by the Commissioner of Internal Revenue.

To provide for the certification fees to be paid to the Bureau of Internal Revenue by the taxpayers seeking review of rulings that interpret the provisions of the Tax Code and other tax laws.

II. SCOPE

This Revenue Administrative Order (RAO) covers rulings issued by the Commissioner of Internal Revenue (Commissioner) and by officers (delegatee/s) with duly delegated powers to issue rulings on behalf of the Commissioner under pertinent issuances such as, but not limited to the Commissioner's Memoranda dated June 21, 2000 and October 26, 2000; Revenue Memorandum Order (RMO) No. 75-99; Revenue Memorandum Circular (RMC) No. 10-2001, RMC Nos. 3-2001 and 2-2001, as supplemented by RMC No. 14-2001; and, RMC No. 39-2001.

Particularly, these rulings refer to those issued by the Commissioner, or by his Deputy Commissioner for Legal and Inspection Group, Assistant Commissioner for Legal Service, or by the Regional Directors, as may be appropriate.

This RAO does not cover, however, disputed assessments, refunds of internal revenue taxes, fees or other charges, and penalties imposed in relation thereto, or other matters arising under the Tax Code or other laws or portions thereof administered by the Bureau of Internal Revenue. In these instances, the Court of Tax Appeals has the exclusive appellate jurisdiction pursuant to the second paragraph of the same Section 4 of the Tax Code of 1997.

Neither shall this RAO apply to rulings that are deemed void ab initio because they contradict duly issued Revenue Regulations, Revenue Memorandum Orders, Revenue Memorandum Rulings, and Revenue Memorandum Circulars.

III. PROCEDURE

1. Within thirty (30) days from the date of receipt of the adverse ruling of the Commissioner, the affected taxpayer may seek the review of the ruling by the Department of Finance. In all cases, the adverse ruling that can be brought to the Department of Finance shall only be the final adverse decision of the Commissioner.

In the case of rulings by the Commissioner's delegatees, the taxpayer shall exhaust administrative remedies within the Bureau of Internal Revenue by filing a letter of reconsideration addressed to the Commissioner, but filed with the Office of the Assistant Commissioner for Legal Service (ACIR-LS) in the case of adverse rulings decided by the Revenue Regional Directors or with the Office of the Deputy Commissioner of Internal Revenue for Legal and Inspection Group (DCIR-LIG) in the case of adverse rulings decided by the ACIR-LS within fifteen (15) days from receipt of an adverse ruling, before requesting for a review by the Secretary of Finance;

2. File with the Office of the Commissioner, for endorsement to the ACIR-LS, a copy of the request for review of the Ruling;

3. Request from the ACIR-LS for an authenticated and certified true copy of the complete docket or records on file.

4. Pay the certification fee to the authorized agent bank having jurisdiction over the taxpayer or the place of business of the taxpayer, using Payment Form 0605;

5. Present to the ACIR-LS the original copy of the official receipt that evidences payment of the certification fee, and submit a photocopy thereof to form part of the docket or records of the case;

6. Within five (5) days from the date of payment of the certification fee, the ACIR-LS shall instruct the Division Chief of the Law Division or the International Tax Affairs Division, as the case may be, for each and every page of the records of the case, sequentially numbered, to be photocopied, including a copy of the subject BIR Ruling, and for the complete set to be stamped and signed by the concerned Division Chief to be an authentic and true copy of the original and complete records on file. In the case of rulings made by the Revenue Regional Directors and finally decided by the Commissioner to be adverse to the taxpayer, the ACIR-LS shall certify and authenticate the duplicate copy of the records of the case;

7. The appropriate office shall also prepare the endorsement letter of the Commissioner of Internal Revenue (Annex "A"), which letter shall be signed by the Assistant Commissioner for Legal Service, who is hereby designated as the Commissioner's duly authorized representative. In this regard, the ACIR-LS shall submit to the Commissioner, copy furnished the ODCIR-LIG, a monthly report of cases appealed and certifications made;

8. The authenticated and certified true copy of the docket or records of the case, including the endorsement thereof to the Secretary of Finance, through the Revenue Operations Group, shall be released to the holder of the original copy of the official receipt evidencing payment of the certification fee.

IV. TAXPAYER'S REQUEST FOR REVIEW BY THE SECRETARY OF FINANCE

A taxpayer who receives an adverse ruling from the Commissioner of Internal Revenue may, within thirty (30) days from the date of receipt of such ruling, seek its review by the Secretary of Finance, either by himself/itself or through his/its duly accredited tax agent or representative. The request for review shall be in writing and under oath, and must:

a) be addressed to the Secretary of Finance and filed with the Revenue Operations Group, Department of Finance, DOF Building, BSP Complex, Roxas Boulevard corner Pablo Ocampo Street, City of Manila;
b) contain the heading "Request for Review of BIR Ruling No. _____";
c) allege and show that the request was filed within the reglementary period;
d) allege the material facts upon which the ruling was requested;
e) state that exactly the same set of facts were presented to the BIR;
f) define the issues to be resolved;
g) contain the facts and the law relied upon to dispute the ruling of the Commissioner;
h) be signed by or on behalf of the taxpayer filing the request for review, provided that, only those lawyers engaged by the taxpayer and/or tax agents accredited by the BIR may sign on behalf of the taxpayer;
i) indicate the Taxpayer Identification Number (TIN) of the taxpayer;
j) be accompanied by a copy of the Commissioner's challenged ruling;
k) contain a statement of the Office of the Commissioner of Internal Revenue, indicating that a copy of the request for review of the ruling was received by the Commissioner's Office and;
l) specifically state that the taxpayer does not have a pending assessment or case in any court of justice where the same issues are being considered.

Furthermore, the taxpayer must, at the time of filing of the request for review, submit a duplicate copy of the records on file with the BIR pertaining to his request, which set of records must be authenticated and certified by the BIR.

V. CERTIFICATION FEE

For this purpose, the requesting taxpayer shall pay a certification fee in the amount of ten pesos (P10.00) for every page of the complete records on file that shall be reproduced and certified to be a true and authentic copy thereof.

Any and all amounts paid as certification fee are non-refundable and shall be forfeited in case the taxpayer finally decides not to seek a review by the Secretary of Finance.

VI. EFFECTIVITY CLAUSE

This Order shall take effect immediately.

 
(Original Signed)
RENÉ G. BAÑEZ
Commissioner of Internal Revenue
 
QUEZON CITY
 

Date:

The Honorable Secretary
Department of Finance

DOF Building, BSP Complex
Roxas Boulevard corner
Pablo Ocampo Street
M a n I l a

Thru : The Revenue Operations Group

Gentlemen:

In compliance with the requirements of Section 3(j) and (k) and of the second paragraph of the same Section 3 of Department Order No. 23-01 dated October 5, 2001, as implemented by BIR Revenue Administrative Order No. ___ dated ___________ , we are respectfully endorsing to your Office the following:

1. A certified true copy of the BIR Ruling No. _________ dated _________ that is the subject of the request for review by the adversely affected party, ___________________; and,
2. A certified and authenticated duplicate copy of the complete docket and records on file with the Bureau of Internal Revenue.

We further state that the copy of the taxpayer's request for review of the above-stated Ruling has been endorsed by the Office of the Commissioner to, and is on file with this Office.

Thank you.

c: msoffice/my docs/ rao dof 23 01/ LSA

Very truly yours,

Commissioner of Internal Revenue
By:


______________________________
Assistant Commissioner, Legal Service

 

Quezon City
 
October 11, 2001

REVENUE MEMORANDUM CIRCULAR NO. 44-2001

SUBJECT: Circularizing Department Order No. 23-01 Providing for the Implementing Rules of the First Paragraph of Section 4 of the National Internal Revenue Code of 1997 and Repealing for this Purpose Department Order No. 005-99 and Revenue Administrative Order No. 1-99

TO: All Internal Revenue Officers and Others Concerned.
_______________________________________________________________________________________

For the information and guidance of the taxpaying public and all internal revenue officers and others concerned, the Department Order No. 23-01, dated October 5, 2001, that provides for the implementing rules of the first paragraph of Section 4 of the National Internal Revenue Code of 1997 (Tax Code of 1997) and for the repeal of Department Order No. 005-99 and Revenue Administrative Order No. 1-99, is hereby circularized as follows:

"DEPARTMENT ORDER NO. 23-01

PROVIDING FOR THE IMPLEMENTING RULES OF THE FIRST PARAGRAPH OF SECTION 4 OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, REPEALING FOR THIS PURPOSE DEPARTMENT ORDER NO. 005-99 AND REVENUE ADMINISTRATIVE ORDER NO. 1-99

WHEREAS, Section 4 of the National Internal Revenue Code of 1997 ("the NIRC") vests with the Commissioner of Internal Revenue exclusive and original jurisdiction to interpret its provisions and other tax laws, subject to review by the Secretary of Finance;

WHEREAS, Department Order No. 005-99, dated January 26, 1999 and Revenue Administrative Order No. 1-99, dated February 5, 1999, implements the power of the Secretary of Finance to review rulings of the Commissioner of Internal Revenue;

NOW, THEREFORE, I, JOSE ISIDRO N. CAMACHO. Secretary of Finance, by virtue of the powers of supervision and control over the Bureau of Internal Revenue granted to me by Section 2 of the NIRC and Book IV, Title II, Chapter 4, Section 18 of the Administrative Code of 1987, do hereby order:

Section 1. Scope of this Order. This Department Order shall apply to all rulings of the Bureau of Internal Revenue (BIR) that implement the provisions of the NIRC and other tax laws.

Section 2. Validity of Rulings. A ruling by the Commissioner of Internal Revenue shall be presumed valid unless modified, reversed or superseded by the Secretary of Finance.

Section 3. Rulings Adverse to the Taxpayer. A taxpayer who receives an adverse ruling from the Commissioner of Internal Revenue may, within thirty (30) days from the date of receipt of such ruling, seek its review by the Secretary of Finance, either by himself/itself or through his/its duly accredited agent or representative. The request for review shall be in writing and under oath, and must:

a) be addressed to the Secretary of Finance and filed with the Revenue Operations Group, Department of Finance, DOF Building, BSP Complex, Roxas Boulevard corner Pablo Ocampo Street, City of Manila;
b) contain the heading "Request for Review of BIR Ruling No. _____";
c) allege and show that the request was filed within the reglementary period;
d) allege the material facts upon which the ruling was requested;
e) state that exactly the same set of facts were presented to the BIR;
f) define the issues to be resolved;
g) contain the facts and the law relied upon to dispute the ruling of the Commissioner;
h) be signed by or on behalf of the taxpayer filing the request for review, provided that, only those lawyers engaged by the taxpayer and/or tax agents accredited by the BIR may sign on behalf of the taxpayer;
i) indicate the Taxpayer Identification Number (TIN) of the taxpayer;
j) be accompanied by a copy of the Commissioner's challenged ruling;
k) contain a statement of the Office of the Commissioner of Internal Revenue, indicating that a copy of the request for review of the ruling was received by the Commissioner's Office and;
l) specifically state that the taxpayer does not have a pending assessment or case in any court of justice where the same issues are being considered.

Furthermore, the taxpayer must, at the time of filing of the request for review, submit a duplicate copy of the records on file with the BIR pertaining to his request, which set of records must be authenticated and certified by the BIR.

These are mandatory requirements, and failure to comply with any of the stated substantive requirements shall be sufficient basis for the Secretary of Finance to dismiss with prejudice the request for review.

Section 4. Affirmation, Reversal or Modification by the Secretary of Finance. The Secretary of Finance may affirm, reverse or modify a ruling of the Commissioner of Internal Revenue. The action of the Secretary shall consider only the same set of facts presented to the BIR in the first instance.

In the case of an affirmation, the Secretary of Finance may rely wholly on the reasons stated in the ruling of the Commissioner of Internal Revenue.

Subject to the provisions of Section 246 of the NIRC, a reversal or modification of the ruling shall terminate its effectivity upon the earlier date of the receipt of written notice of such reversal or modification by the taxpayer or by the BIR.

Section 5. Certification Fee to be Imposed by the BIR. For this purpose, the BIR is given the authority to impose appropriate certification fees to carry out the provisions of this order.

Section 6. Repealing Clause. Department Order No. 005-99 and Revenue Administrative Order No. 1-99, as well as all other existing Department Orders and issuances of the Commissioner of Internal Revenue that are inconsistent with this Order, are hereby repealed.

Section 7. Effectivity. This Department Order shall take effect immediately.

Done in the City of Manila this 5th day of October 2001.

 
(Original Signed)
JOSE ISIDRO N. CAMACHO
Secretary"
All internal revenue officers and others concerned are requested to give this Circular as wide a publicity as possible.
RMC-DOF DO 23 01/ LSA

(Original Signed)
EDMUNDO P. GUEVARA
Officer-in-Charge

 

 

Quezon City
 
October 11, 2001

REVENUE MEMORANDUM CIRCULAR NO. 44-2001

SUBJECT: Circularizing Department Order No. 23-01 Providing for the Implementing Rules of the First Paragraph of Section 4 of the National Internal Revenue Code of 1997 and Repealing for this Purpose Department Order No. 005-99 and Revenue Administrative Order No. 1-99

TO: All Internal Revenue Officers and Others Concerned.
_______________________________________________________________________________________

For the information and guidance of the taxpaying public and all internal revenue officers and others concerned, the Department Order No. 23-01, dated October 5, 2001, that provides for the implementing rules of the first paragraph of Section 4 of the National Internal Revenue Code of 1997 (Tax Code of 1997) and for the repeal of Department Order No. 005-99 and Revenue Administrative Order No. 1-99, is hereby circularized as follows:

"DEPARTMENT ORDER NO. 23-01

PROVIDING FOR THE IMPLEMENTING RULES OF THE FIRST PARAGRAPH OF SECTION 4 OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, REPEALING FOR THIS PURPOSE DEPARTMENT ORDER NO. 005-99 AND REVENUE ADMINISTRATIVE ORDER NO. 1-99

WHEREAS, Section 4 of the National Internal Revenue Code of 1997 ("the NIRC") vests with the Commissioner of Internal Revenue exclusive and original jurisdiction to interpret its provisions and other tax laws, subject to review by the Secretary of Finance;

WHEREAS, Department Order No. 005-99, dated January 26, 1999 and Revenue Administrative Order No. 1-99, dated February 5, 1999, implements the power of the Secretary of Finance to review rulings of the Commissioner of Internal Revenue;

NOW, THEREFORE, I, JOSE ISIDRO N. CAMACHO. Secretary of Finance, by virtue of the powers of supervision and control over the Bureau of Internal Revenue granted to me by Section 2 of the NIRC and Book IV, Title II, Chapter 4, Section 18 of the Administrative Code of 1987, do hereby order:

Section 1. Scope of this Order. This Department Order shall apply to all rulings of the Bureau of Internal Revenue (BIR) that implement the provisions of the NIRC and other tax laws.

Section 2. Validity of Rulings. A ruling by the Commissioner of Internal Revenue shall be presumed valid unless modified, reversed or superseded by the Secretary of Finance.

Section 3. Rulings Adverse to the Taxpayer. A taxpayer who receives an adverse ruling from the Commissioner of Internal Revenue may, within thirty (30) days from the date of receipt of such ruling, seek its review by the Secretary of Finance, either by himself/itself or through his/its duly accredited agent or representative. The request for review shall be in writing and under oath, and must:

a) be addressed to the Secretary of Finance and filed with the Revenue Operations Group, Department of Finance, DOF Building, BSP Complex, Roxas Boulevard corner Pablo Ocampo Street, City of Manila;
b) contain the heading "Request for Review of BIR Ruling No. _____";
c) allege and show that the request was filed within the reglementary period;
d) allege the material facts upon which the ruling was requested;
e) state that exactly the same set of facts were presented to the BIR;
f) define the issues to be resolved;
g) contain the facts and the law relied upon to dispute the ruling of the Commissioner;
h) be signed by or on behalf of the taxpayer filing the request for review, provided that, only those lawyers engaged by the taxpayer and/or tax agents accredited by the BIR may sign on behalf of the taxpayer;
i) indicate the Taxpayer Identification Number (TIN) of the taxpayer;
j) be accompanied by a copy of the Commissioner's challenged ruling;
k) contain a statement of the Office of the Commissioner of Internal Revenue, indicating that a copy of the request for review of the ruling was received by the Commissioner's Office and;
l) specifically state that the taxpayer does not have a pending assessment or case in any court of justice where the same issues are being considered.

Furthermore, the taxpayer must, at the time of filing of the request for review, submit a duplicate copy of the records on file with the BIR pertaining to his request, which set of records must be authenticated and certified by the BIR.

These are mandatory requirements, and failure to comply with any of the stated substantive requirements shall be sufficient basis for the Secretary of Finance to dismiss with prejudice the request for review.

Section 4. Affirmation, Reversal or Modification by the Secretary of Finance. The Secretary of Finance may affirm, reverse or modify a ruling of the Commissioner of Internal Revenue. The action of the Secretary shall consider only the same set of facts presented to the BIR in the first instance.

In the case of an affirmation, the Secretary of Finance may rely wholly on the reasons stated in the ruling of the Commissioner of Internal Revenue.

Subject to the provisions of Section 246 of the NIRC, a reversal or modification of the ruling shall terminate its effectivity upon the earlier date of the receipt of written notice of such reversal or modification by the taxpayer or by the BIR.

Section 5. Certification Fee to be Imposed by the BIR. For this purpose, the BIR is given the authority to impose appropriate certification fees to carry out the provisions of this order.

Section 6. Repealing Clause. Department Order No. 005-99 and Revenue Administrative Order No. 1-99, as well as all other existing Department Orders and issuances of the Commissioner of Internal Revenue that are inconsistent with this Order, are hereby repealed.

Section 7. Effectivity. This Department Order shall take effect immediately.

Done in the City of Manila this 5th day of October 2001.

 
(Original Signed)
JOSE ISIDRO N. CAMACHO
Secretary"
All internal revenue officers and others concerned are requested to give this Circular as wide a publicity as possible.
RMC-DOF DO 23 01/ LSA

(Original Signed)
EDMUNDO P. GUEVARA
Officer-in-Charge

 

 

 

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