Uniformity of Rulings and Issuances in the Interpretation and Application of the Provisions of the NIRC and Other Tax Laws

January 26, 1999 DOF DEPARTMENT ORDER NO . 005-99 NEED FOR UNIFORMITY OF RULINGS AND ISSUANCES IN THE INTERPRETATION AND APPLICATION OF THE PROVISIONS OF THE NATIONAL INTERNAL REVENUE CODE AND OTHER TAX LAWS WHEREAS, the power to interpret the provisions of the National Internal Revenue Code of 1997 (NIRC) 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 NIRC; cdlex WHEREAS, the Bureau of Internal Revenue is under the supervision and control of the Department of Finance as provided for in Section 2 of the NIRC and Book IV, Title II, Chapter 4, Section 18 of the Administrative Code of 1987; WHEREAS, there is a need for uniformity of rulings and issuances in the interpretation and application of the provisions of the National Internal Revenue Code and other tax laws; NOW, THEREFORE, I EDGARDO B. ESPIRITU, Secretary of Finance, by virtue of my power of supervision and control over the Bureau of Internal Revenue, do hereby order: SECTION 1. Scope . This Department Order shall apply to all revenue rulings and issuances of the Bureau of Internal Revenue that pertain to the interpretation and application of the provisions of the NIRC and other tax laws. SECTION 2. Review Power of the Secretary of Finance . The Secretary of Finance inherent in his power to review shall have the power to affirm, revise, modify or set aside rulings and other issuances of the Bureau of Internal Revenue concerning interpretation and application of the provisions of the National Internal Revenue Code and other tax laws. SECTION 3. Procedure . The Bureau of Internal Revenue shall prepare draft ruling or issuance, citing legal bases and/or authority as well as other issuances and submit said draft together with all the files and documents in support of the draft ruling or issuance to the Secretary of Finance for review. SECTION 3. Effectivity of BIR Rulings and Other Issuances . No ruling or issuance by the Bureau of Internal Revenue shall take effect unless it has been reviewed by the Secretary of Finance. SECTION 5. Penalty . Violations of the provision of this Department Order shall be meted with penalty as provided by existing laws, rules and regulations. SECTION 6. Repealing Clause . All Administrative Issuances inconsistent with this Department Order are hereby repealed or modified accordingly. SECTION 7. Effectivity . This Department Order shall take effect immediately. DONE in the City of Manila, this 26th day January, 1999. (SGD.) EDGARDO B. ESPIRITU Secretary of Finance