Creating a Department of Finance (DOF) Audit Team to Monitor the Collection Performance of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) to Maximize Realization and Attainment of Programmed Revenue Targets

March 20, 2007 DOF DEPARTMENT ORDER NO. 009-07 CREATING A DEPARTMENT OF FINANCE (DOF) AUDIT TEAM TO MONITOR THE COLLECTION PERFORMANCE OF THE BUREAU OF INTERNAL REVENUE (BIR) AND THE BUREAU OF CUSTOMS (BOC) TO MAXIMIZE REALIZATION AND ATTAINMENT OF PROGRAMMED REVENUE TARGETS WHEREAS , the Department of Finance is mandated to fulfill the crucial task of generating sufficient revenues to finance the various activities and projects of the National Government, including necessary expenditures for basic and fundamental public services; WHEREAS , the National Government's revenue collection effort is spearheaded by the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), which are separately assigned yearly collection targets; WHEREAS , it is thus imperative for the BIR and the BOC to achieve, if not, exceed, their respective yearly collection targets, to ensure an uninterrupted and robust revenue stream sufficient to meet the needs of the National Government, and, possibly, provide for a healthy surplus, consistent with the initiative to reduce the existing deficit and, eventually, attain a balanced National Budget; WHEREAS , to this end it is important to institutionalize a system of performance checks to periodically monitor and evaluate the respective revenue collection performance of the BIR and BOC, such that variances between actual collections, as against assigned collection targets, may be analyzed, corrected, and rectified expeditiously. SECTION 1. Establishment of a Tax Audit Team. A Tax Audit Team is hereby created and organized, to be composed of the following named officials and personnel, as follows: CAIHTE 1. Undersecretary Gil S. Beltran Head 1. n Ms. Lina D. Isorena Member (NTRC) 2. Ms. Stela B. Montejo Member (DFG-DOF) 3. Ms. Rowena S. Sta. Clara Member (DFG-DOF) 4. Mr. Rogaciano Buenviaje Member (RIO-DOF) 5. Atty. Chris Allan P. Zafra Member (ROG-DOF) Apart from the foregoing complement, the Tax Audit Team may likewise seek the assistance of such other officials and personnel as may be necessary in the performance of its mandate and assigned tasks. SECTION 2. Functions and Responsibilities. The Tax Audit Team shall discharge the following functions and responsibilities: 1. Review, on a quarterly basis, or at such other interval/s as may be deemed most appropriate in the circumstances, the respective revenue collection performance of the BIR and the BOC; 2. Analyze emerging trends in the actual collection performance of the BIR and BOC ( i.e. , by type of tax, revenue district, or customs port of entry) to determine the relative strengths/weaknesses in the respective revenue collection efforts of each bureau; 3. Determine the relevant cause/s of existing shortfalls in the respective revenue collections of the BIR and BOC vis--vis assigned targets, taking into consideration such legitimate and verified justifications, if any, advanced by the BIR and the BOC; 4. Prepare and submit to the Secretary of Finance periodic reports on its tax audit findings and recommended remedial measures; and 5. Prepare and submit to the Secretary of Finance an Action Plan detailing the specific steps to be undertaken and corresponding timetable/s to carry out its functions. SECTION 3. Access to Information. The BIR and BOC shall seasonably furnish the Tax Audit Team, upon request, with such pertinent data and other information as may be necessary to effectively chart and monitor the respective revenue collection performance of each bureau, which, in due course, shall be evaluated against third party sources of information to ensure the independence, integrity, and accuracy of the findings and recommendations of the Tax Audit Team. SECTION 4. Relationship with the Revenue Performance Evaluation Boards. It is understood that, in the discharge of its functions and responsibilities, the Tax Audit Team, as herein created, shall in no way prejudice, impair, and or impinge on the statutory jurisdiction and mandated tasks of the Revenue Performance Evaluation Boards (RPEB) created by virtue of Republic Act (RA) No. 9335, otherwise known as, the "Attrition Act of 2005." DETACa SECTION 5. Confidentiality. The findings and recommendations of the Tax Audit Team, including all records, data, and supporting information gathered in the discharge of its functions, shall not be released, disseminated, or otherwise made public without the prior written clearance of the Secretary of Finance. SECTION 6. Repealing Clause. All orders, circulars, memoranda, and other issuances, or parts thereof, which are inconsistent with this Department Order, are hereby repealed or modified accordingly. SECTION 7. Effectivity. This Department Order shall take effect immediately. (SGD.) MARGARITO B. TEVES Secretary of Finance n Note from the Publisher: Copied verbatim from the official copy.