Organization and Functions of the Enforcement and Advocacy Service Including the Divisions Under it Down to Section Level

February 9, 2009 REVENUE ADMINISTRATIVE ORDER NO. 010-09 SUBJECT : Organization and Functions of the Enforcement and Advocacy Service Including the Divisions Under it Down to Section Level TO : All Internal Revenue Officials and Employees I. OBJECTIVE: This Order defines the organization and functions of the Enforcement and Advocacy Service including its divisions and their sections pursuant to the Rationalization Plan of the Bureau. SaAcHE II. ORGANIZATION: The Enforcement and Advocacy Service shall be under the direct supervision of the Deputy Commissioner for Legal Group. It shall be headed by an Assistant Commissioner and shall be composed of the following divisions with their respective sections: A. Litigation Division 1. Litigation Section I 2. Litigation Section II B. Regular Prosecution Division 1. Regular Prosecution Section I 2. Regular Prosecution Section II C. Special Prosecution Division 1. Special Prosecution Section I 2. Special Prosecution Section II D. National Investigation Division 1. Intelligence Section 2. Investigation Section 3. Special Criminal Investigation Section III. FUNCTIONS: ENFORCEMENT AND ADVOCACY SERVICE 1. Performs staff, advisory and consultative functions relative to tax fraud & intelligence operations, litigation & prosecution matters and development and investigation of tax cases under the Run After Tax Evaders (RATE) Program of the BIR; 2. Formulates policies and administers work programs, standards, guidelines and procedures including forms relative to the abovementioned functions; 3. Provides policy guidance and operational directions to all divisions under the Service relative to the abovementioned functions; 4. Establishes database for criminal violations of internal revenue laws and all court decisions on cases filed and all approved revenue issuances prepared by the Service/Divisions under it for regular updates of the Legal Information System; 5. Monitors and/or coordinates the activities of the Legal Division in the Regional Offices with respect to litigation and prosecution work; 6. Coordinates with proper offices in the implementation of the abovementioned functions; 7. Monitors, evaluates and improves programs and activities under the responsibility of the Service; 8. Reviews, recommends and/or approves all reports and other actions of the divisions under the Service; 9. Consolidates and/or prepares prescribed reports for submission to the offices concerned; and 10. Performs such other related functions as may be assigned. A. Litigation Division 1. Formulates policies, work programs, standards, guidelines and procedures including forms relative to the litigation work on the civil aspect of internal revenue cases under the NIRC of 1997 and other related laws and regulations; cDIHES 2. Submits to the Service all court decisions on civil cases filed and all approved revenue issuances prepared by the Division for regular updates of the Legal Information System; 3. Conducts studies and researches relative to the abovementioned functions; 4. Coordinates with proper offices in the implementation of the abovementioned functions; 5. Prepares prescribed reports for submission to the offices concerned; 6. Prepares revenue issuances relative to the abovementioned functions; and 7. Performs such other related functions as may be assigned. Litigation Sections I and II 1. Institutes civil actions involving internal revenue cases; 2. Represents the Commissioner of Internal Revenue in the hearing/trial involving internal revenue cases; ESTCHa 3. Acts on petitions for review filed by taxpayers in the Court of Tax Appeals, Court of Appeals, Supreme Court or in Regional Trial Courts and administrative bodies involving internal revenue cases; 4. Prepares all pleadings, briefs and memoranda to be filed with the Supreme Court, Court of Appeals, Court of Tax Appeals, Regional Trial Courts, and other courts and offices in connection with internal revenue cases pending before said courts; 5. Interviews witnesses and evaluates evidence in connection with internal revenue cases; 6. Prepares digest of court decisions on internal revenue cases filed; 7. Represents revenue officials and personnel in civil cases brought against them in connection with the lawful performance of their official functions; 8. Prepares monthly accomplishment report involving cases heard before the Court of Tax Appeals (CTA), Supreme Court, Department of Justice, Regional Trial Courts (RTCs) and other administrative matters on the following: a. Cases pending in courts involving refund and assessments. b. Filed petitions for review, comments, answers, motions, reply memo en banc on assessment, refund and other cases before the CTA; c. Hearings attended by Litigation Lawyers; d. Received decisions involving refunds and assessment of cases for and against the government. 9. Prepares inventory of disputed assessment cases with deficiency taxes, cases involving claims for refund of 20% discount to senior citizens and taxes upheld on appeal, won/lost refund cases and won/lost assessment cases; 10. Prepares list of banks with assessment cases regarding DST (industry issue) pending in court; and 11. Performs such other related functions as may be assigned. B. Regular Prosecution Division 1. Formulates policies, work programs, standards, guidelines and procedures including forms relative to the criminal prosecution of violations of the NIRC of 1997 and related statutes involving basic deficiency taxes of less than One Million Pesos (P1,000,000.00); aCASEH 2. Coordinates with other BIR Offices and/or external offices for the successful prosecution of violations of internal revenue laws and regulations; 3. Submits to the Service all court decisions on criminal cases filed and all approved revenue issuances prepared by the Division for regular updates of the Legal Information System; 4. Conducts studies and researches relative to the abovementioned functions; 5. Coordinates with proper offices in the implementation of the abovementioned functions; 6. Prepares prescribed reports for submission to the offices concerned; 7. Prepares revenue issuances relative to the abovementioned functions; and 8. Performs such other related functions as may be assigned. Regular Prosecution Sections I and II 1. Institutes criminal actions against persons violating internal revenue laws and other tax laws administered by the Bureau of Internal Revenue; 2. Evaluates cases referred to it with the view of having them properly documented and substantiated to ensure successful prosecution thereof under the NIRC of 1997; 3. Conducts preliminary investigation of violation of internal revenue laws and regulations for filing in courts; 4. Evaluates report on preliminary findings of fraud involving taxes below One Million Pesos (P1,000,000.00) submitted by the Revenue Officers for purposes of determination of civil or criminal fraud liability of taxpayers; 5. Interviews witnesses and evaluates evidence in connection with cases filed for violation of tax laws; 6. Summons, examines and takes testimony of persons pursuant to Sec. 5 of the NIRC of 1997 and other applicable laws of negotiations; 7. Represents the Commissioner of Internal Revenue in the prosecution of criminal cases involving tax evasion below One Million Pesos (P1,000,000.00) and/or violations of internal revenue laws, rules and regulations including other laws administered by the BIR; 8. Submits to the Service data for criminal violations of internal revenue laws, rules and regulations as well as information on the effective enforcement of the prosecution processes for regular updates of Legal Information System; 9. Prepares subpoena testificandum /subpoena duces tecum, five (5) days VAT compliance notice and closure orders; 10. Receives and verifies compliance of taxpayers to Subpoena Duces Tecum; 11. Recommends deportation of alien taxpayers and/or inclusion in the Hold Order List of persons prosecuted for violation of internal revenue laws, rules, regulations and other related laws and make necessary representation as government counsel before the Deportation Board; HETDAa 12. Refers cases for the filing of criminal action to Ombudsman; 13. Issues certificate of no pending case to applicants for tax accreditation; 14. Prepares digest of court decisions on criminal cases filed; 15. Represents revenue officials and personnel in criminal cases brought against them in connection with the lawful performance of their official functions; and 16. Performs such other related functions as may be assigned. C. Special Prosecution Division 1. Formulates policies, work programs, standards, guidelines and procedures including forms relative to the criminal prosecution of violations of the NIRC of 1997 and related statutes involving basic deficiency taxes of One Million Pesos (P1,000,000.00) and above and other tax cases arising from the implementation of the RATE (Run After Tax Evaders) Program of the BIR; 2. Coordinates with the BIR offices and/or external offices for the successful prosecution of violations of internal revenue laws and regulations under the RATE Program of the BIR; 3. Submits to the Service all court decisions on criminal cases filed and all approved revenue issuances prepared by the Division for regular updates of the Legal Information System; 4. Conducts studies and researches relative to the abovementioned functions; 5. Coordinates with proper offices in the implementation of the abovementioned functions; 6. Prepares prescribed reports for submission to the offices concerned; 7. Prepares revenue issuances relative to the abovementioned functions; and 8. Performs such other related functions as may be assigned. Special Prosecution Sections I and II 1. Institutes civil and criminal actions against persons violating internal revenue laws and other tax laws administered by the BIR under the RATE Program of the BIR; 2. Evaluates tax fraud cases covered by the RATE program referred to it by the Large Taxpayers Service, Excise Taxpayers Service and the Regional Offices to determine if the cases are properly documented and substantiated to ensure successful prosecution thereof under the NIRC of 1997; 3. Interviews witnesses and evaluates evidence in connection with the RATE cases filed for violation of tax law; 4. Represents the Commissioner of Internal Revenue in the prosecution of criminal cases involving tax evasion of One Million Pesos (P1,000,000.00) and above and/or violations of internal revenue laws, rules and regulations including other laws administered by the BIR; 5. Acts on petitions for review filed by the taxpayers in the Court of Tax Appeals, Supreme Court and other judicial and administrative bodies relative to fraud cases under the RATE Program of the BIR; 6. Prepares all pleadings, briefs, and memoranda to be filed with the Supreme Court, Court of Appeals, and other regular courts and offices relative to tax fraud cases under the RATE Program of the BIR; 7. Submits to the Service data for criminal violators of internal revenue laws, rules and regulations as well as information on the effective enforcement of the prosecution processes under the RATE Program of the BIR for regular updates of Legal Information System; 8. Recommends deportation of alien taxpayers and/or inclusion in the Hold Order List of persons prosecuted for violation of internal revenue laws, rules and regulations and other related laws and makes necessary representation as government counsel before the Deportation Board; 9. Prepares digest of court decisions on criminal cases filed; and 10. Performs such other related functions as may be assigned. D. National Investigation Division 1. Formulates policies, work programs, standards, guidelines and procedures including forms relative to the investigation of tax fraud cases, the conduct of intelligence work and cases under the RATE Program; 2. Evaluates/investigates confidential information filed by informants with the BIR; 3. Arrests and seizes taxpayer found violating any penal law, rule or regulation administered by the BIR as provided under Section 15 of the NIRC of 1997; 4. Conducts audit of policy cases and prepares audit manuals as a result of the audit conducted; 5. Coordinates and integrates all intelligence activities of Regional Offices; 6. Maintains systematic records of all cases handled by the Division; 7. Coordinates with the proper offices in the implementation of the abovementioned functions; 8. Prepares prescribed reports for submission to the offices concerned; 9. Prepares revenue issuances relative to the abovementioned functions; and 10. Performs such other related functions as may be assigned. 1. Intelligence Section 1.1. Sets-up work programs, standards, guidelines and procedures relative to the conduct of intelligence work; EHSADc 1.2. Assists the Investigation Section by drawing up an effective intelligence operations; 1.3. Identifies vital third party information needed in the implementation of the RATE Program and requests such information from concerned office; 1.4. Obtains information on a regular basis from third parties thru access to records ; 1.5. Summons, examines and takes testimony of persons pursuant to Sec. 5 of the NIRC of 1997 and other applicable laws and regulations; TaHDAS 1.6. Conducts surveillance on persons identified and suspected to be involved in activities in violation of the NIRC as amended to establish prima facie case on the basis of a tax assessment pursuant to Sec. 5 of the NIRC of 1997; 1.7. Consolidates and interprets intelligence information relating to tax fraud matters from all available sources; 1.8. Conducts liaison activities with other intelligence, police and investigative agencies for the conduct of arrests, raids and seizures in cases referred/approved by the Commissioner; 1.9. Coordinates with the Regional Investigation Division concerned all intelligence operations including those on activities pertaining to smuggling, syndicated crimes and the use of fake BIR accountable forms; 1.10. Supervises the safekeeping of confidential documents of the Division and controls all data and communications received pertinent to cases handled; and 1.11. Performs such other related functions as may be assigned. 2. Investigation Section 2.1. Sets-up work programs, standards, guidelines and procedures relative to the conduct of investigation of tax fraud cases; 2.2. Prepares specific plans in the conduct of tax fraud investigation of suspected criminal violators of internal revenue laws and regulations in coordination with the Intelligence Section; ICDSca 2.3. Investigates tax fraud cases other than cases covered by the RATE Program, as may be referred and/or approved by the Commissioner and those developed by the Division; 2.4. Investigates violations of the provisions of NIRC committed by the taxpayers; 2.5. Plans, organizes and conducts inventory taking and surveillance work in order to establish a prima facie fraud case on the basis of a tax assessment pursuant to Section 5 of the NIRC of 1997, upon mission orders issued; 2.6. Develops and investigates criminal cases for prosecution; 2.7. Assists in the prosecution of criminal cases; 2.8. Maintains systematic records of tax fraud cases handled by the Section; and 2.9. Performs such other related functions as may be assigned. 3. Special Criminal Investigation Section 3.1 Sets-up work programs, standards, guidelines and procedures relative to the investigation of tax fraud cases under the RATE Program of the BIR; 3.2 Prepares specific plans in the conduct of tax fraud investigation of suspected criminal violators of internal revenue laws and regulations in coordination with the Intelligence Section relative to the implementation of the RATE Program; 3.3 Investigates tax fraud cases covered by the RATE Program, as may be referred and/or approved by the Commissioner and those developed by the Division; 3.4 Investigates violations of the provisions of NIRC covered by the RATE Program committed by taxpayers; 3.5 Plans, organizes and conducts inventory taking and surveillance work in order to establish a prima facie fraud case on the basis of a tax assessment pursuant to Section 5 of the NIRC of 1997, upon mission orders issued; 3.6 Develops and investigates criminal cases for prosecution under the RATE Program of the BIR; 3.7 Assists in the prosecution of criminal cases; 3.8 Maintains systematic records of tax fraud cases handled by the Section; and 3.9 Performs such other related functions as may be assigned. IV. REPEALING CLAUSE: All issuances or portions thereof not consistent with the provisions of this Order are hereby repealed or amended accordingly. V. EFFECTIVITY: This Order shall take effect immediately. (SGD.) SIXTO S. ESQUIVIAS IV Commissioner of Internal Revenue Approved: (SGD.) MARGARITO B. TEVES Secretary of Finance