Implementation of Executive Order No. 608, Reorganizing the Bureau of Internal Revenue, issued on August 1, 1980

October 2, 1980 REVENUE ADMINISTRATIVE ORDER NO. 02-80 SUBJECT : Implementation of Executive Order No. 608, Reorganizing the Bureau of Internal Revenue, issued on August 1, 1980 TO : All Revenue Service Chiefs, Regional Directors, Division Chiefs and All Others Concerned In accordance with the provisions of Executive Order No. 608 dated August 1, 1980, new offices are hereby created and some organizational units of the Bureau relocated from one supervisory authority to another for the purpose of making the Bureau of Internal Revenue more responsive to the requirements of efficiency, effectiveness and economy in the administration and implementation of internal revenue and other tax laws. cd I. ORGANIZATION A. The Bureau of Internal Revenue shall have the existing FINANCIAL AND MANAGEMENT SERVICE; Administrative Service renamed PERSONNEL AND ADMINISTRATIVE SERVICE; DATA PROCESSING CENTER; INSPECTION SERVICE; Assessment Service renamed NATIONAL ASSESSMENT OFFICE; Specific Tax Service renamed SPECIFIC TAX OFFICE; Legal Service renamed LEGAL OFFICE; Collection Service renamed COLLECTION OFFICE; and a PLANNING AND POLICY SERVICE and a SECTOR OPERATIONS OFFICE which are hereby created. A service, office or center in the Central Office shall be headed by a Revenue Service Chief who shall be assisted by an Assistant Revenue Service Chief except the Sectoral Operations, Legal and National Assessment Offices which shall have two Assistant Revenue Service Chiefs. B. In order to effect closer supervision and located allied organizational units under a single supervisory authority, the following offices or units are hereby transferred/created as indicated hereunder (Refer to attached Organization Chart, Annex "A"): 1. The Revenue Attache Section of the International Operations Division is constituted as a separate unit and transferred to the Office of the Commissioner. 2. A position for a Press Relations Officer, who shall also be the Chief of the Tax Information and Education Division is hereby created in the Office of the Commissioner. 3. The Financing, Real Estate and Transfer Tax Division, Investment Incentives Division, Manufacturing Division (which is now divided into two divisions), Agriculture and Natural Resources Division, Service & Miscellaneous Taxes Division and International Operations Division, all under the Office of the Commissioner are transferred to the Sector Operations Office. 4. The Special Projects Office is hereby abolished and its functions are transferred to the Planning and Policy Service. 5. A Government and Tax Exempt Corporation Division is created to form part of the Sector Operations Office. 6. The Direct Taxes Division is renamed Sector Audit Review Division and is transferred to the Sector Operations Office. 7. The Indirect Taxes Division is renamed National Audit Review Division and shall remain under the National Assessment Office. 8. The Delinquent Returns Division is renamed Collection Performance Control Division. 9. The Performance Control Division is hereby abolished and its functions are transferred to the Collection Performance Control Division under the Collection Office and the Assessment Performance Control Division under the National Assessment Office. 10. The Withholding Tax Division is transferred to the Collection Office. 11. The Enforcement Section of the Withholding Tax Division shall be renamed Tax Refund Audit Division and shall remain under the jurisdiction of the National Assessment Office. 12. The Tax Information and Education Division under the Office of the Commissioner is transferred to the Financial & Management Service. 13. The Career Development Division under the Financial & Management Service is transferred to the Personnel and Administrative Service. 14. The Seized and Forfeited Properties Section of the Property Division is transferred to the Collection Enforcement Division. 15. The Appellate Conference Staff shall be constituted as an Ad Hoc body under the Legal Office by the Commissioner upon recommendation of the Deputy Commissioner concerned, as the need arises. II. DELEGATION OF SUPERVISORY JURISDICTION In order to relieve the Commissioner of Internal Revenue of minor supervisory details and enable him to concentrate more on major policy and decision-making activities, supervisory jurisdiction over the following services and offices of the Bureau is hereby delegated to each of the two Deputy Commissioners, viz .: A. One Deputy Commissioner shall exercise supervisory jurisdiction over the following: 1. SECTORAL OPERATIONS OFFICE, which shall have the following divisions: aisa dc a. Sector Audit Review Division b. Financing, Real Estate and Transfer Tax Division c. Investment Incentives Division d. Manufacturing Division I e. Manufacturing Division II f. Agriculture & Natural Resources Division g. Service and Miscellaneous Taxes Division h. International Operations Division i. Government and Tax Exempt Corporations Division 2. LEGAL OFFICE, which shall have the following divisions: a. Law Division b. Prosecution Division c. Appellate Division d. Litigation Division e. Appellate Conference Staff which shall have an Ad Hoc Membership 3. PLANNING AND POLICY SERVICE, which shall have the following divisions: a. Planning and Research Division b. Legislation and Regulations Division 4. FINANCIAL & MANAGEMENT SERVICE, which shall have the following divisions: a. Budget Division b. Management Division c. Accounting Division d. Statistical Analysis Division e. Tax Information and Education Division 5. DATA PROCESSING CENTER, which shall have the following divisions : a. Systems and Programming Division b. Document Analysis Control Division c. Machine Operations Division d. DPC Support Services Division B. One Deputy Commissioner shall exercise supervisory jurisdiction over the following: 1. NATIONAL ASSESSMENT OFFICE, which shall have the following divisions: a. National Audit Review Division b. Assessment Performance Control Division c. Refund Audit Division 2. COLLECTION OFFICE, which shall have the following divisions: a. Receivable Accounts Division b. Collection Enforcement Division c. Collection Performance Control Division d. Withholding Tax Division 3. SPECIFIC TAX OFFICE, which shall have the following divisions: a. Alcohol Tax Division b. Gasoline & Miscellaneous Tax Division c. Tobacco Inspection Division d. Manufactured Tobacco Tax Division 4. INSPECTION SERVICE, which shall have the following divisions: a. Internal Security Division b. Personnel Inquiry Division c. Fiscal Control Division 5. PERSONNEL AND ADMINISTRATIVE SERVICE, which shall have the following divisions: casia a. Personnel Division b. General Services Division c. Accountable Forms Division d. Property Division e. Records Division f. Career Development Division 6. 17 REVENUE REGIONAL OFFICES, which as a general rule shall have the following units: a. Assessment Branch b. Administrative Branch c. Collection Branch d. Legal Branch e. Specific Tax Branch f. Revenue District Offices, which as a general rule shall have the following units: (i) Administrative Unit (ii) Assessment Unit (iii) Collection Unit III. DEFINITION OF FUNCTIONS In order to eliminate overlapping and duplication of functions, clarify functional lines of authority and integrate allied functions in the Bureau, the following functional arrangements among the Services and Offices and the Divisions affected by this reorganization are indicated hereunder: A. OFFICE OF THE COMMISSIONER 1. PRESS RELATIONS OFFICER Acts as liaison officer for the Bureau to establish harmonious and friendly relations with the press and the broadcast media; Releases to the Media policy statements of the Commissioner, information on new tax laws and implementing regulations, circulars and other issuances, tax deadlines and other important announcements of the Bureau. 2. INTELLIGENCE DIVISION Develop policies, set up standards, guidelines and procedures to effectively implement the intelligence and security program of the BIR; Conduct substantive intelligence operations such as sleuthing, detection, apprehension and investigation of cases involving syndicated crimes on smuggling and fake BIR accountable forms; Collect and collate information relative to the enforcement of internal revenue tax laws and regulations and transmit such information to BIR management and other units to support their respective missions; Conduct background investigation on the suitability and fitness of applicants for BIR employment and revenue personnel; and coordinate with members of the Intelligence Community. 3. TAX FRAUD DIVISION Plan, develop and implement the tax fraud program of the Bureau; Recommend policies for the effective investigation and development of tax fraud cases for original prosecution except those involving syndicated crimes, smuggling and fake BIR accountable forms. 4. REVENUE ATTACHE'S UNIT Plan, formulate and implement policies, procedures and guidelines on the revenue extension service of the Bureau in foreign countries or posts; Supervise and coordinate the Revenue Attaches and Representatives relative to their tax service, information gathering and intelligence activities. B. PLANNING AND POLICY SERVICE Plan, develop, formulate and conduct research studies on internal revenue tax administration including tax treaty negotiations, tax conventions, investment agreements and similar matters; Prepare rules and regulations to implement internal revenue tax laws, policies, tax treaties, etc. as well as the necessary guidelines, standards and procedures for the approval of the Commissioner; Formulate plans in coordination with NEDA for the preparation of the national development objectives; Direct and supervise the activities of the divisions under the Service; Perform such other related functions as may be assigned by higher authorities . 1. PLANNING AND RESEARCH DIVISION Plan, develop, recommend policies and conduct research studies on internal revenue tax administration including tax treaty negotiations, tax conventions and similar matters; Undertake the formulation of plans on internal revenue tax administration including project development for the Bureau in coordination with it various units; and serve as its representative in the formulation of internal revenue tax laws administered by the Bureau as well as in the preparation of the national development plan to insure consistency with overall development objectives; Acts as liaison with other government agencies involving internal revenue tax matters. 2. LEGISLATION AND REGULATIONS DIVISION Provide assistance to the Commissioner in the formulation of internal revenue tax legislations or amendments to the NIRC for submission either to the President or to the Batasang Pambansa; Monitor and prepare comments and recommendations on any proposed tax legislative measure that will affect internal revenue collection and administration or which may have tax implications; Prepare and recommend the adoption of such rules and regulations required to implement approved internal revenue tax laws. C. FINANCIAL AND MANAGEMENT SERVICE Perform staff, advisory and consultative functions relative to budgeting, financial control, statistical analysis and management improvement; Formulate and recommend policies, programs, guidelines, standards and procedures for financial and management service activities; Review and evaluate performance of field offices for adherence to policies, procedures and standards; Exercise technical supervision over field offices on financial and management matters; Analyze tax and other data provided by the computerized management information system for use of top management and other agencies; Recommend necessary tax legislations and regulations based on its own operations and experiences which shall serve as inputs to the tax planning and research efforts of the Planning and Policy Service; Direct and supervise the activities of the divisions under this Service; and perform such other related functions as may be assigned by higher authorities. 1. TAX INFORMATION & EDUCATION DIVISION Plan, formulate and implement the tax information and education program of the Bureau to attain the highest degree of voluntary tax compliance and intensify tax consciousness; monitor and analyze public reactions and attitudes towards the Bureau's policies implementing revenue laws, regulations and other issuances; launch an aggressive and continuing tax information and education campaign in coordination with regional offices to maximize potentials on all sources of revenue such as income, business, transfer, specific and miscellaneous taxes and renders tax assistance to taxpayers. cd 2. STATISTICAL ANALYSIS DIVISION Develop and prescribe the nature and content of statistical reports and information bearing on revenue administration and operation; Analyze statistical data on revenue collections; Make statistical projections for decision-making and action; Collate, analyze and present relevant statistical data in an organized usable form for an effective management information system; Support management programs with needed statistical data and information; Develop guidelines and techniques for the operating units to understand and utilize statistical information; Undertake researches for better gathering, presentation, analysis, interpretation and utilization of statistical data; and perform such other functions as may be assigned by the Service Chief. D. PERSONNEL AND ADMINISTRATIVE SERVICE Perform staff, advisory and consultative functions to provide economical, efficient and effective service relative to personnel, equipment and supplies, records and other general services, personnel training and career development; Formulate and recommend policies, guidelines, standards and procedures on administrative services; Review and evaluate performance for adherence to administrative policies, procedures and standards; Exercise technical supervision over field service offices on administrative matters; Recommend necessary tax legislations and regulations based on its own operations and experiences which shall serve as inputs to the tax planning and research efforts of the Planning and Policy Service; and perform such other related functions as may be assigned by higher authorities. 1. PERSONNEL DIVISION Advise management on personnel policy administration; Develop and administer a personnel program of the Bureau which shall include recruitment, selection and placement, classification and pay, performance rating, employee relations and welfare services; Acts on all matters concerning attendance, leaves of absence, appointments, promotions, transfers and other personnel transactions in the Central Office; Maintain personnel records and statistics; Determine and analyze personnel management problems and recommend solutions thereto; Conduct continuing evaluation of personnel management activities to determine adherence to standards, guidelines and procedures; Disseminate information on Civil Service Commission rulings and court decisions concerning employee conduct and disciplinary action; and perform such other related functions as the Service Chief may assign. 2. CAREER DEVELOPMENT DIVISION Develop, plan, evaluate and execute the training programs of the Bureau; Set up guidelines and procedures for the training and development of revenue personnel; Conduct researches and studies to determine training needs as well as the most effective and economical training techniques and methods for revenue personnel; Coordinate with other training units of the government as regards the most recent trends on training requirements and techniques; and Take charge of the central office library. 3. PROPERTY DIVISION Take charge of the procurement, distribution, accountability, utilization and maintenance of office equipment, motor vehicles and other facilities; Procure, receive, store and issue upon requisition, all BIR forms needed in the assessment and collection of taxes as well as other forms for administration purposes; Procure, receive store and issue upon requisition all supplies and materials needed by the Central Office; Develop, coordinate, evaluate, execute and control the policies and projects for providing essential support activities to operating and other staff units; Administer the property management program of the Bureau and develop standards and procedures necessary for the effective execution of its responsibilities; and Exercise functional supervision over property management activities in the field services. E. DATA PROCESSING CENTER Perform advisory and consultative functions relative to the computerization of the data processing requirements of the Bureau; Develop, design and maintain a computerized Management Information System of the Bureau; Develop and maintain a national taxpayer file and a taxpayer account number system; Compile and process returns, receipts, accounts receivables and other internal revenue documents; Consolidate the statements of assets and liabilities and analyze the data thereon; Collate data and keep subsidiary records of internal revenue assessments and collections; Recommend necessary tax legislations and regulations on the basis of its operations and experiences which shall serve as inputs to the tax planning and research efforts of the Planning and Policy Service; Direct and supervise the activities of the divisions under the Center; and perform such other related functions as may be assigned by higher authorities. cd 1. S YSTEMS & PROGRAMMING DIVISION Develop, design and maintain a computerized Management Information System for the BIR; design, maintain & control the MIS Data Base; design, program and maintain computer software and establish and enforce standards in the use of the same. Review and analyze software including changes and enhancements to manufacturer-supplied software to derive optimum benefit for the installation. Study, develop and design data processing systems prepare, maintain and update computer programs including documentations. Identify and analyze problems encountered on data processing and recommend solutions thereto. 2. MACHINE OPERATIONS DIVISION Transcribe data into computer acceptable media, plan and schedule machine runs on applications based on established priorities; operate the computer systems; determine and analyze problems on computer operations and data transcription and recommend solutions thereto. 3. DOCUMENT ANALYSIS AND CONTROL DIVISION Prepare source documents for data transcription. Set up procedures and guidelines for the batching, screening, analysis, coding and controlling of documents; determine priorities and schedule in accordance with the work plans; determine the accuracy and completeness of input and output data; maintain and update the national tax register and inform field offices of changes on the same. Maintain subsidiary records of internal revenue assessments and collections; control incoming and outgoing documents, correspondence and reports. 4. DPC SUPPORT SERVICES DIVISION Provide administrative assistance and logistical support to all DPC units; maintain records on equipment, supplies, personnel and performance of DPC; maintain inventory control and use of supplies, equipment and other properties of Data Processing Center; operate auxiliary machines to prepare the computer generated outputs for distribution to users; maintain files of computer generated outputs to provide information to end users; establish and maintain procedures for receipt and control of various documents for computer processing. F. INSPECTION SERVICE Perform staff, advisory and consultative functions relating to inspection activities; Formulate and recommend policies, guidelines, standards and procedures relative to inspection activities; Conduct an independent and continuing review and appraisal of the activities and performance of revenue personnel as a basis for recommending to management the necessary procedures; Direct and supervise the investigation of illegal enrichment and other malfeasance or misfeasance cases of revenue personnel, including the audit of their income tax returns if connected with such investigation; Exercise technical supervision over inspection activities in the field offices; Recommend necessary tax legislations and regulations based on its own operations and experiences which shall serve as inputs to the tax planning and research efforts of the Planning and Policy Service; Direct and supervise the activities of the divisions under the Service; and Perform such other related functions as may be assigned by higher authorities. 1. INTERNAL SECURITY DIVISION Administer the internal security program of the Bureau; Set up standards; guidelines and procedures for the investigation and prosecution of administrative cases against Bureau personnel; Gather and collate evidence or data against Bureau personnel for administrative investigation purposes; Evaluate evidence, confer with witness and secure affidavits for the prosecution of administrative cases; and Investigate illegal enrichment cases against Bureau personnel, including the audit and investigation of their income tax returns connected with the illegal enrichment investigation. 2. PERSONNEL INQUIRY DIVISION Develop and recommend guidelines and procedures pertaining to the hearing of administrative cases; Conduct hearing of administrative charges formally filed by the Internal Security Division; Evaluate testimonies and evidences presented during the hearing of cases; Recommend decision on administrative cases heard. G. NATIONAL ASSESSMENT OFFICE Perform staff, advisory and consultative functions relating to tax assessment including the package audit system of investigation in the Revenue Regional Offices; Formulate and recommend policies, guidelines, standards and procedures relative to assessment activities in the said Offices; Review and evaluate performance of the field offices relating to assessment activities to determine adherence to policies, procedures and standards; Direct and supervise the activities of the divisions under this Office; Exercise technical supervision over the field offices on assessment matters; Recommend necessary tax legislations and regulations on the basis of its operations and experiences which shall serve as inputs to the tax planning and research efforts of the Planning and Policy Service; and perform such other related functions as may be assigned by the higher authorities. casia 1. ASSESSMENT PERFORMANCE CONTROL DIVISION Plan and develop guidelines and procedures for the evaluation and appraisal of revenue regional assessment performance taking into consideration the objectives, policies, plans and programs of the Bureau on assessment; Evaluate revenue regional assessment performance to determine adherence to standards, guidelines and procedures; Determine and analyze problems on assessment and recommend solutions thereto; Perform staff and advisory functions to the Revenue Service Chief (Assessment); Render technical assistance to the Regional Offices in the implementation of new standards, procedures, guidelines or techniques on assessment; Acts as liaison officer between the national and field offices to facilitate the submission of assessment reports and other data needed by top management. 2. NATIONAL AUDIT REVIEW DIVISION Plan, formulate and recommend policies, procedures and guidelines on assessment work on direct and indirect taxes on cases emanating from the revenue regional offices; Formulate and recommend policies, guidelines, standards and procedures relative to assessment activities in the said offices; Exercise technical supervision over field offices on assessment matters; Evaluate reports of investigation originating from said units for adherence to applicable statutes, standards, guidelines and procedures; Prepare assessment notices and/or demand letters on said cases for the signature of higher authorities. 3. REFUND AUDIT DIVISION Develop policies, programs, guidelines, procedures and techniques relating to the investigation of refundable tax returns; Undertake on a selective basis field or office audit of refundable returns. H. SECTOR OPERATIONS OFFICE Develop, policies, programs, guidelines, procedures and techniques relating to the package audit system of assessment and investigation of industries or firms dealing in such areas as (a) agricultural products and natural resources; (b) financing and real estate, subdivisions and transfer of properties; (c) manufacturing industries; and (d) public utilities, educational and religious institutions and motion pictures; Undertake on a selective basis field audits of tax returns and investigate books of accounts of firms falling under the aforementioned categories for the purpose of upgrading expertise thereby develop an improved audit procedure responsive to current trends for application by field offices; Direct and supervise the activities of the divisions under this Office; Recommend necessary tax legislations and regulations on the basis of its operations and experiences which shall serve as inputs to the tax planning and research efforts of the Planning and Policy Service; and perform such other related functions as may be assigned by higher authorities. 1. SECTOR/AUDIT REVIEW DIVISION Plan, formulate and recommend policies, procedures and guidelines on assessment work on direct and indirect taxes on cases emanating from the Audit Divisions under the Sectoral Operations Office; Evaluate reports of investigation originating from said units for adherence to applicable statutes, standards, guidelines and procedures; Prepare assessment notices and/or demand letters on said cases for the signature of higher authorities. 2. FINANCING, REAL ESTATE & TRANSFER TAXES DIVISION Develop policies, programs, guidelines, procedures and techniques relating to the package audit system of investigation of taxpayers engaged in the business of financing, real estate and subdivisions as well as the audit of tax liabilities arising from transfer of properties. Undertake on a selective basis field audit of tax returns and investigate books of accounts of said taxpayers. cda 3. INVESTMENT INCENTIVES DIVISION Develop policies, programs, guidelines, procedures and techniques relating to the package audit system of investigation of taxpayers granted investment incentives; Administer the investment incentives program of the Bureau; Process and verify application for grant of incentives exemptions and tax credits of taxpayers applying for registration or are registered with the BOI; Act as liaison with BOI and on tax problems arising out of the operation of EPZA; Undertake on a selective basis field audit of tax returns and investigate books of accounts of said taxpayers. 4. MANUFACTURING DIVISION I Develop policies, programs, guidelines, procedures and techniques relating to the package audit system of investigation of taxpayers engaged in the manufacture of (1) food, beverage and tobacco; (2) Chemicals and chemical, petroleum, coal, rubber and plastic products; (3) wood and wood products; (4) Paper and paper products, printing and publishing. Undertake on a selective basis field audit of tax returns and investigate books of accounts of said taxpayers. 5. MANUFACTURING DIVISION II Develop policies, programs, guidelines, procedures and techniques relating to the package audit system of investigation of taxpayers engaged in the manufacture of (1) Textile, wearing apparel and leather products; (2) Non-metallic mineral products except products of mineral and coal; (3) basic metal industry products; and (4) others like jewelry, silverware, pianos, musical organs, string instruments, percussion instruments, sporting and athletic goods, toys, umbrellas, badges, etc. Undertake on a selective basis field audit of returns and investigate books of accounts of said taxpayers. 6. AGRICULTURE & NATURAL RESOURCES DIVISION Develop policies, programs, guidelines, procedures and techniques relating to the package audit system of investigation of taxpayers engaged in Agriculture and the development of Natural Resources; Undertakes on a selective basis field audit of tax returns and investigate books of accounts of said taxpayers. 7. SERVICE & MISCELLANEOUS TAXES DIVISION Develop policies, programs, guidelines, procedures and techniques relating to the package audit system of investigation of taxpayers engaged in the business of rendering services, public utilities and motion pictures, as well as of educational and religious institutions and operators of jai-alai, race tracks, etc.; Undertake on a selective basis field audit of tax returns and investigate books of accounts of said taxpayers. 8. GOVERNMENT & TAX EXEMPT CORPORATIONS DIVISION Develop policies, programs, guidelines, procedures and techniques relating to the package audit system of investigation of government and tax exempt corporations. Undertake on a selective basis field audit of tax returns and investigate books of accounts of said taxpayers. 9. INTERNATIONAL OPERATIONS DIVISION Develop policies, programs, guidelines, procedures and techniques relating to the assessment and collection of taxes from citizens receiving income or doing business abroad and from non-resident aliens deriving income from the Philippines; Undertake field audit of multi-national companies including alien individuals employed by regional or area headquarters of such multi-national corporations. Undertake on a selective basis field audit of tax returns and investigate books of accounts of said taxpayers. acd I. SPECIFIC TAX OFFICE Perform staff, advisory and consultative functions relating to specific taxes; Formulate and recommend policies, guidelines, standards and procedures relative to specific tax; Review and evaluate performance of field offices relating to specific tax to determine adherence to policies, procedures and standards; Direct and supervise the activities of the divisions under this Office; Exercise technical supervision over the field offices on specific taxes; Recommend necessary tax legislations and regulations on the basis of its operations and experiences which shall serve as inputs to the tax planning and research efforts of the Planning and Policy Service; and perform such other related functions as may be assigned by higher authorities. J. LEGAL OFFICE Formulate and recommend policies, guidelines, standards and procedures on activities pertaining to legal work; Perform advisory and consultative functions with respect to the interpretation of revenue laws and regulations and other legal matters; Review pleadings to be filed in court, rulings on tax matters, conduct studies and researches on tax cases; Supervise the prosecution of civil and criminal cases involving taxation and erring revenue personnel; Review administrative decisions on contested tax cases and on claims for tax refund or credit other than those arising from Section 202 of the Tax Code and other general or special incentive laws; Review and evaluate actions of field service offices referred to it pertaining to legal questions for adherence to law, facts, policies, procedures and standards; Recommend tax legislations and regulations on the basis of its operations and experiences which shall serve as input to the tax planning and research efforts of the Planning and Policy Service; Direct and supervise the activities and review the actions taken by the divisions under this Office; and perform such other related functions as may be assigned by higher authorities. 1. LAW DIVISION Develop work methods and techniques for the conduct of legal operations; Render decisions on controverted internal revenue tax cases involving purely questions of law; Prepare rulings or opinions on tax laws and digest and codify such rulings for dissemination; Coordinate the uniform application of tax laws, regulations and court decisions; Review rulings issued by the regional offices and rectify errors, if any; Process informer's reward cases; and Take action on all legal matters referred to it. 2. APPELLATE DIVISION Administer the appellate program of the Bureau; Develop, coordinate and implement policies, plans, programs and procedures relating to appellate work; Set up procedures for administrative appeals on protested tax cases, claims for tax refund and credit other than those arising from Section 202 of the Tax Code and other general or special incentive laws; Act on appeals and protests of taxpayers on disputed tax cases; and Review actions taken by other units on all claims for tax refunds and credits, except refunds of withholding taxes and corporate quarterly income taxes and those arising from Section 202 of the Tax Code and other general or special incentive laws. cdt 3. LITIGATION DIVISION Represent the Commissioner of Internal Revenue in the trial of internal revenue civil cases in collaboration with the Solicitor General; Develop and implement policies, plans, programs and procedures relating to litigation work; Prepare pleadings, briefs memoranda to be filed with the Supreme Court, Court of Appeals, Court of First Instance, Court of Tax Appeals and other courts in connection with tax cases pending before them; Assist the Solicitor General in the preparation and briefing of civil cases filed by the government against delinquent taxpayers; Assist in the supervision and coordination of the legal activities of the different legal branches in the regions with respect to litigation work. 4. PROSECUTION DIVISION Study and take proper action on cases referred to it for criminal prosecution of persons violating internal revenue and other laws administered by the Bureau; Appear before fiscals or other prosecutors as representative of the Commissioner in the prosecution of criminal complaints for violations of internal revenue and other tax laws and regulations administered by the Bureau; Assist the fiscals and other prosecuting officials in the successful prosecution of criminal cases involving tax evasion and/or violation of internal revenue and other tax laws and regulations administered by the Bureau; Study and act on cases involving revenue officials and employees recommended for criminal prosecution and assist fiscals and prosecutors in the prosecution of such officials and employees; Refer minor criminal cases involving violation of tax laws to the revenue region concerned for prosecution, including cases of non-issuance of sales receipts and invoices penalized under PD 1254. 5. APPELLATE CONFERENCE STAFF Formulate policies and procedures for processing protests against all internal revenue assessments; receive, evaluate and deliberate on requests for reconsideration of deficiency assessments involving P500,000 and above; recommend after study and/or hearing the taxpayer's or his representative's appeal and the examiner's or his superior's arguments the reinvestigation or referral of the contested or disputed assessment to the proper department or office for appropriate action in line with its recommendations; Review for the Commissioner proposed decisions on contested cases (including requests for refunds) involving assessments of P500,000 and above. J. COLLECTION SERVICE Perform staff, advisory and consultative functions relating to collection matters; Formulate and recommend policies, guidelines, standards and procedures relative to collection activities; Review and evaluate performance of the field service relating to collection activities to determine adherence to policies, procedures and standards; Direct and supervise the activities of the divisions under this Office; Exercise technical supervision over the field offices on collection matters; Recommend necessary tax legislations and regulations on the basis of its operations and experiences which shall serve as inputs to the tax planning and research efforts of the Planning and Policy Service; and perform such other related functions as may be assigned by higher authorities . 1. COLLECTION ENFORCEMENT DIVISION Administer, implement and enforce all laws and regulations pertaining to the seizure, garnishment, distraint and levy of personal or real property; Plan and develop programs, methods and procedures necessary for the effective enforcement and implementation of all laws and regulations affecting the function of the division; Coordinate with other offices, divisions services and/or other government entities for the proper and effective enforcement of the administrative remedies for the collection of internal revenue taxes against delinquent taxpayers; and Supervise and control all properties forfeited to the government in satisfaction of delinquent taxes. aisa dc 2. WITHHOLDING TAX DIVISION Administer the withholding tax system of the Bureau; set up guidelines, procedures and techniques relative to the effective implementation of the withholding tax system; Process withholding tax returns on wages and at source required under Sections 53 and 54 of the National Internal Revenue Code as well as those under RA 1051 in accordance with existing procedures; Enforce the provisions of Sections 53 and 54 and Chapter IX of Title II of the National Internal Revenue Code and Republic Act 1051 and the implementing rules and regulations. 3. COLLECTION PERFORMANCE CONTROL DIVISION Plan and develop guidelines and procedures for the evaluation and appraisal of revenue regional collection performance taking into consideration the objectives, policies, plans and programs of the Bureau on collection; Evaluate revenue regional collection performance to determine adherence to standards, guidelines and procedures; Determine and analyze problems on collection and recommend solutions thereto; Perform staff and advisory functions to the Revenue Service Chief (Collection); Render technical assistance to the Regional Offices in the implementation of new standards, procedures, guidelines or techniques; Acts as liaison officer between the national and field offices to facilitate the submission of collection reports and other data needed by top management. K. REVENUE REGIONAL OFFICE Administer, implement and enforce in the revenue region, internal revenue and other tax laws administered by the Bureau in accordance with the policies set by the Commissioner; Plan and develop programs, methods and procedures necessary for the efficient, effective and economical assessment and collection of internal revenue taxes in the revenue region in accordance with the standards, and guidelines set by the Commissioner; Coordinate with other regional offices and agencies and the local units in the revenue region for the proper and effective performance of its functions; and Take Action on deficiency tax assessments arising in the revenue region as delineated by the Commissioner. L. REVENUE DISTRICT OFFICE Administer, implement and enforce in the revenue district the internal revenue and other tax laws administered by the Bureau in accordance with the policies set by the Commissioner and the Revenue Regional Director; Plan and develop programs, methods and procedures necessary for the efficient, effective and economical assessment and collection of internal revenue taxes in the revenue district in accordance with the standards and guidelines set by the Commissioner and the Revenue Regional Director; Coordinate with other district offices, agencies and the local units in the revenue district for the proper and effective performance of its functions. IV. GEOGRAPHICAL JURISDICTION OF REVENUE REGIONAL OFFICES AND REVENUE DISTRICT OFFICES . The readjustment of the geographical jurisdiction of revenue regional offices and their respective revenue district offices in such a manner that no one revenue region shall geographically cover more than one standard administrative region defined in the Integrated Reorganization Plan, as amended, shall be effected after a thorough study of the over-all effect on revenue collections. cdt V. DISTRIBUTION AND DEPLOYMENT OF REVENUE PERSONNEL For the proper distribution and deployment of revenue personnel and for the implementation of the career system in the Bureau, holders of field positions in the regions and districts as provided in the General Appropriations Act, shall as much as possible render service in their respective regions or districts, but without prejudice to the Commissioner's reassigning such personnel in accordance with the provisions of Section 13 of the National Internal Revenue Code. IV. EFFECTIVITY This Order takes effect October 1, 1980. RUBEN B. ANCHETA Acting Commissioner