DOJ Opinion No. 082, s. 1993

DOJ OPINION NO. 082 , s. 1993 July 5, 1993 Commissioner Liwayway Vinzons-Chato Bureau of Internal Revenue Quezon City M a d a m : This has reference to your request for opinion on whether the Bureau of Internal Revenue (BIR) can effect its reorganization on the basis of the following laws: Title II, Chapter 4, Section 20 (not 18, as stated in the letter-request) of the Administrative Code of 1987 "Sec. 20. Composition of the Bureau of Internal Revenue. The Bureau of Internal Revenue shall be composed of the following: (1) Assessment and Collection Group, headed by a Deputy Commissioner and composed of the following services, each of which shall be headed by a Revenue Chief; (2) Legal and Internal Administration Group, headed and supervised by a Deputy Commissioner and composed of the following services, each of which shall be headed by a Service Chief." Executive order No. 127 "Reorganizing the Ministry of Finance" "SEC. 63. Prohibition Against Change. No change in the reorganization herein prescribed shall be valid except upon prior approval of the President for the purpose of promoting efficiency and effectiveness in the delivery of public services." LLphil Republic Act No. 7645 (General Appropriations Act of 1993) "Sec. 62. Unauthorized Organizational Changes. Unless otherwise created by law or directed by the President of the Philippines, no organizational unit or changes in key position in any department or agency shall be authorized in their respective organization structures and be funded from the appropriations provided by this Act." (see General Provisions) You state that the proposed reorganization is in line with Memorandum Order No. 27 dated August 13, 1992 of the Office of the President, "Mandating all Heads of Departments, Agencies And Instrumentalities Of The National Government To Streamline And Improve Their Operations And Organizations". In connection therewith, you attached to your instant request drafts of an Executive order and a Memorandum Order to implement the intended reorganization and streamlining of the operations of the BIR, apparently seeking the opinion of this Department also on whether the same are in accordance with the subject laws and issuance. At the outset, there is no question that the BIR can invoke Section 63 if E.O. No. 127 and Section 62 of R.A. No. 7645 to serve as the legal bases for effecting structural changes in the organization of the BIR. Both provisions clearly allow organizational changes in a unit of a department or agency if approved by the President. The rule is that where the law speaks in clear and categorical language, there is no room for interpretation. There is only room for application (Cebu Portland Cement Co. vs. Municipality of Naga, Cebu, 24 SCRA 798). However, it is noted that the proposed Executive order would not merely effect "organizational changes" in particular units or offices within the BIR but would in fact reorganize or restructure its entire organizational set-up which, we believe, is already a legislative matter, the power to reorganize offices being essentially a legislative function (De la Llana vs. Alba, 112 SCRA 294). It may be argued that the reorganization of the "Ministry of Finance" was done through an Executive Order, that is, E.O. No. 127. It should be pointed out, however, that said Executive Order was promulgated by then President Corazon C. Aquino in the exercise of her residual legislative power under the 1987 Constitution, and which power she ceased to have upon the convening of the new Congress on July 27, 1987 (see Sec. 6, Art. XVIII, 1987 Constitution). Notwithstanding the foregoing, since, as you state, the proposed reorganization of the BIR will be pursued in line with Memorandum Order No. 27 of the President, you are advised to consult with the Department of Budget and Management (DBM) which is the department tasked to implement the said Memorandum Order, not only with respect to the permissible organizational changes the BIR could undertake thereunder and under pertinent laws, but more so in regard to the technical details involved in the implementation of the said issuance. Besides, any reorganization proposal would inevitably have budgetary implications; hence, the need to consult the DBM on said matter. prcd Pertinently, Section 20 of P.D. No. 1177, (Revising the Budget Process in Order to Institutionalize the Budgetary Innovations of the New Society), provides that a reorganization proposal approved by the President may be reflected in the budget of the department or agency concerned. Section 20 reads: "Sec. 20. Organization Changes . The budget may reflect reorganization proposals, including the rearrangement, reassignment and consolidation of organizational units as approved by the President, which will simplify government procedure, localize decision-making and implementation, and otherwise facilities government service to the public." dctai Accordingly, proposed organizational changes in the BIR, approved by the President, may be implemented through the budget of the BIR. Very truly yours, (SGD.) FRANKLIN M. DRILON Secretary