Statement of Functions of the Inspection Service including the Divisions Under it Down to Section Level

January 04, 1988 REVENUE ADMINISTRATIVE ORDER NO. 01-88 SUBJECT : Statement of Functions of the Inspection Service including the Divisions Under it Down to Section Level TO : All Internal Revenue Officers Concerned I. Objective : This Order aims to implement more effectively the reorganization of the Bureau under Executive Order 127 by defining and expanding the functions of the Inspection Service and its divisions . cd i II. Organization : To attain the above objective, the Inspection Service shall have the following Divisions with their respective Sections: A. Internal Security Division 1. Investigation Section 2. Anti-Graft Section B. Personal Inquiry Division 1. Hearing Panel I 2. Hearing Panel II 3. Hearing Panel III C. Fiscal Control Division 1. Audit Section 2. Special Operations Section III. Functions : The Inspection Service shall have the following functions: 1. Perform staff, advisory and consultative functions relating to fiscal control and inspection activities; 2. Formulate and recommend policies, guidelines, standards and procedures relative to fiscal control and inspection activities; casia 3. Conduct an independent and continuing review and appraisal of the activities and performance of revenue personnel; 4. Direct and supervise the investigation of illegal enrichment and other malfeasance or misfeasance cases of revenue personnel; 5. Supervise the audit of income tax returns of revenue personnel, including their assets and liabilities; 6. Exercise technical supervision over inspection activities in the field offices; 7. Supervise the fiscal audit program of the Bureau; 8. Recommend necessary tax legislations and regulations based on its own operations and experiences which serve as inputs to the tax planning and research effort of the Planning and Research Service; 9. Develop, implement and monitor a bureauwide security plan and program to insure the safety of BIR personnel, properties, documents/information and work activities; and 10. Perform such other related functions as may be assigned to it. A. The Internal Security Division shall have the following functions: 1) Develop and administer the internal security program of the Bureau; 2) Set up standards, guidelines and procedures for the investigation and prosecution of administrative cases against Bureau personnel; cd i 3) Gather and collate evidence or data against Bureau personnel for administrative investigation purposes; 4) Evaluate evidence, confer with witnesses and secure affidavit for the prosecution of administrative cases; 5) Investigate illegal enrichment cases against Bureau personnel; and 6) Perform such other related functions as may be assigned to it. A-1 Investigation Section a) Investigate all complaints against Bureau employees involving administrative aspects under the Civil Service Act (PD 807) and revenue laws, rules, regulations, memoranda and circulars and submit reports of investigation; b) Gather, collate and evaluate evidence or information against Bureau personnel for administrative investigation purposes; c) File administrative charges against erring officials/employees on the basis of the prima facie evidence; d) Forward to Personnel Inquiry Division the formal charges filed for formal hearing; e) Confer with witnesses and prosecute the administrative cases filed; cd i f) Conduct surveillance and spot-checking of the activities of all revenue personnel in all revenue offices and establishments where they are assigned to check compliance with civil service laws and rules on office attendance and decorum; g) Conduct character and background investigation on revenue personnel and applicants to establish suitability, loyalty and integrity in coordination with other law enforcement agencies; and h) Perform such other related functions as may be assigned to it. A-2 Anti-Graft Section a) Investigate alleged illegal enrichment cases against Bureau personnel; cd b) Submit report of findings and recommendations on illegal enrichment cases for administrative investigation purposes; c) Investigate and file formal charges against Bureau personnel involving cases on violations of the Anti-Graft and Corrupt Practices Act insofar as the administrative aspect is concerned and forward the same to the Personnel Inquiry Division for proceedings; refer said cases to the Tanodbayan for criminal prosecution; d) Testify in cases under the Anti-Graft and Corrupt Practices Act involving BIR personnel brought to the Sandiganbayan through the Tanodbayan; and e) Perform such other related functions as may be assigned to it. B. The Personnel Inquiry Division shall have the following functions : 1) Develop and recommend guidelines and procedures pertaining to the hearing of administrative cases; 2) Evaluate legal activities such as admission of evidence, objections of counsel, etc. relative to the hearing of administrative cases to determine adherence to established guidelines and procedures; 3) Recommend appropriate actions/decisions on administrative cases heard; and 4) Perform such other related functions as may be assigned to it. B-1 Hearing Panel I a) Conduct hearing of administrative charges, formally filed by the Internal Security Division, involving illegal enrichment cases against revenue personnel and violations of Anti-Graft and Corrupt Practices Act insofar as the administrative aspect is concerned; cd i b) Evaluate testimonies taken as well as evidences presented and submitted; c) Conduct researches on questions of law presented during formal investigation/hearing; d) Prepare decisions on administrative cases heard; e) Maintain a systematic compilation of court and administrative decisions and doctrines for reference; and f) Perform such other related functions as may be assigned to it. casia B-2 Hearing Panel II a) Conduct hearing of administrative charges formally filed by the Internal Security Division, involving offenses punishable under Section 36 of PD 807; b) Evaluate testimonies taken as well as evidences presented and submitted; c) Conduct researches on questions of law presented during formal investigation/hearing; d) Prepare decisions on administrative cases heard; e) Maintain a systematic compilation of court and administrative decisions and doctrines for reference; and f) Perform such other related functions as may be assigned to it. B-3 Hearing Panel III a) Conduct hearing of administrative charges formally filed by the Internal Security Division, involving violations of existing revenue laws, rules, regulations, memoranda and circulars; b) Evaluate testimonies taken as well as evidences presented and submitted; c) Conduct researches on questions of law presented during formal investigation/hearing; d) Prepare decisions on administrative cases heard; e) Maintain a systematic compilation of court and administrative decisions and doctrines for reference; and f) Perform such other related functions as may be assigned to it. acd C. The Fiscal Control Division shall have the following functions: 1) Develop and recommend guidelines and procedures for the fiscal audit and control program of the Bureau; 2) Conduct an independent continuing review and appraisal of all fiscal operations of the Bureau; 3) Determine whether all revenues due the government under the revenue laws administered by the Bureau are duly collected and accounted for; 4) Review and appraise methods of acquiring property, supplies and equipment to determine compliance with approved specifications and standards; cdt 5) Determine whether such property, supplies and equipment are properly utilized and maintained and if necessary, recommend measures to prevent or minimize wastage; 6) Conduct audit of income tax returns of revenue personnel, including investigation of their assets and liabilities; 7) Send audit teams periodically to revenue regions and spot-check cash and property accountabilities of all accountable officers; and 8) Perform such other related functions as may be assigned to it. C-1 Audit Section a) Send audit teams to revenue regions to conduct internal audit of revenue accountabilities of Collection Agents/Cash Clerks and Special Disbursing Officers; b) Review and analyze audit reports submitted by audit teams; c) Conduct inventory of property, supplies and equipment handled by all revenue officials and employees; d) Conduct internal audit of the Accountable Forms and Property Divisions; e) Make necessary recommendations to higher authority relative to the findings on audit conducted; f) Prepare transmittal letters/memo and other communication implementing the stated recommendation embodied in audit report submitted by Revenue Officers; and g) Perform such other related functions as may be assigned to it. C-2 Special Operations Section a) Verify the correctness and accuracy of the amount of taxes collected with reports submitted by the Payment Orders Issuing Officer as reflected in the Master List; b) Counter-check serial numbers of Payment Orders (PO), Confirmation Receipts (CR) and Revenue Official Receipts (ROR) issued for use in a particular revenue region with those of the POs, CRs, and RORs allocated to said region per records of the Accountable Forms Division in order to ferret out the fake and/or lost POs and CRs; c) Verify the correctness and accuracy of the amount of collections as reported in the Monthly Report of Collections (BIR Form 12.31) compared to the amount in the taxpayer's copy of revenue official receipts to detect cases of tampering; cdt d) Verify Remittance Advices on file in the Banks or in the Bureau of Treasury to determine whether amounts reflected therein tally with the amounts of remittances shown in the cashbooks; e) Verify from the Bureau of Treasury and/or concerned banks whether or not there are dishonored checks which were not recorded in cashbooks; f) Conduct audit of income tax returns of revenue personnel including their assets and liabilities; g) Verify the accuracy and/or correctness of the prices as well as the quality and quantity of all office supplies and equipment procured by the Bureau in relation to the functions of the Inspection and Acceptance Committee of which the Chief, Fiscal Control Division is the Chairman; h) Supervise the printing of all accountable forms for the Bureau at the General Printing Office, at the APO-NEDA and other printing establishments; and i) Perform such other related functions as may be assigned to it. IV. Repealing Clause : This Order supersedes the provisions of RAO No. 7-84 dated April 26, 1984 insofar as it pertains to the above mentioned functions and all other revenue issuances or portions thereof inconsistent with the provisions of this Order. cd i V. Effectivity : This Order shall take effect immediately. BIENVENIDO A. TAN, JR. Commissioner