Statement of Functions of the Intelligence and Investigation Office including the Sections Under It

January 21, 1988 REVENUE ADMINISTRATIVE ORDER NO. 04-88 SUBJECT : Statement of Functions of the Intelligence and Investigation Office including the Sections Under It TO : All Internal Revenue Officers and Others Concerned I. Objective : This Order aims to define the functions of the Intelligence and Investigation Office specifically in its investigative activities relative to the program thrust and goal of the Bureau's reorganization under Executive Order 127. II. Statement of Policy : The coverage of the investigation function of the Intelligence and Investigation Office (IIO) shall be limited to the collation, gathering and compilation of evidences, documentary or otherwise which shall be used in the criminal or civil prosecution of fraud cases of taxpayers for specific violations of the NIRC. In pursuance of this undertaking, the IIO will not conduct audit or assessment functions in its investigative activities. Accordingly, the Intelligence Officers and/or Special Investigators assigned in the IIO shall not be issued Letters of Authority (LAs) which are issued to Revenue Enforcement Officers who are authorized to conduct assessment work . cd i III. Organization : The Intelligence and Investigation Office shall be under the direct supervision of the Commissioner of Internal Revenue and shall have the following Sections: A. Intelligence Operations Section B. Investigation Section C. Research and Analysis Section The Intelligence and Investigation Office shall have the following functions: 1. Develop and recommend policies and work programs and set up standards, guidelines and procedures for the effective implementation of the tax fraud investigation and intelligence programs of the Bureau; 2. Adopt a system of information retrieval and analysis through access to records of government and private entities authorized under Section 7 of the NIRC and through access to records of the Bureau and the Revenue Computer Center (RCC); 3. Evaluate, review and take appropriate actions on all reports of tax cases from all investigation units, Regional and Central Offices of the Bureau, where there are findings of fraud involving criminal and/or civil liabilities of the taxpayers concerned; 4. Develop tax fraud cases and conduct intelligence operations to detect, prevent and neutralize individuals and organizations involved in syndicated crimes, smuggling and use of fake BIR accountable forms as referred to the Division by: a) The Commissioner and other officials of the Bureau; and b) The Investigating Units of the Regional and Central Offices of the Bureau; 5. Coordinate with the Economic Intelligence and Investigation Bureau of the Department of Finance in the performance of its intelligence and investigative functions within the general framework and guidelines to be provided by the aforementioned agency, pursuant to the authority granted to it under Executive Order No. 127; 6. Coordinate with the Special Investigation Branches of the Revenue Regions and other units of the Bureau in the development of cases with tax fraud potentials for criminal prosecution or civil fraud cases where the evidence to be gathered is located outside the jurisdiction of the Regional Office, or where the IIO is in a better position to gather the evidence by reason of the circumstances of the case; 7. Determine and recommend to the Commissioner the unit that shall undertake the tax fraud investigation where multiple tax probes are being conducted by two or more Regions (without one unit knowing of the other's investigation); 8. Maintain a systematic record of tax fraud cases handled by Regional Offices so that investigations conducted by two or more investigation units on the same taxpayer can be easily detected; cdt 9. Consolidate reports submitted by Revenue Regions on the status of tax fraud cases being handled by Special Investigation Branches for submission to the Commissioner; 10. Supervise the safekeeping of confidential documents of the Division and control all data and communications received pertinent to cases handled; 11. Prepare manuals on methods and techniques of investigating tax fraud cases and conduct periodic briefings for field personnel performing tax fraud investigation work; 12. Coordinate and integrate all intelligence activities of the Central, Regional and District Offices of the Bureau; 13. Perform the following functions auxiliary to coordinating and establishing working relationship with other units of the Bureau: a) Refer to the Internal Security Division, Inspection Service any prima facie administrative case disclosed in the course of intelligence work; b) Monitor and coordinate operations in the regions and districts or activities pertaining to smuggling (in collaboration with other concerned agencies of government) and the use of fake BIR accountable forms; and 14. Perform such other related functions as may be assigned to it. The following shall be the functions of the Sections under the Intelligence and Investigation Office: A. Intelligence Operations Section 1) Recommend plans and programs to implement intelligence operations activities of the Bureau as well as for intelligence research and analysis activities; 2) Conduct researches and studies and acquire pertinent reference materials as required for intelligence missions; 3) Monitor, infiltrate/penetrate criminal and syndicated groups as well as identified and suspected personalities engaged in activities directed against the BIR; 4) Conduct liaison activities with other intelligence, police and investigative agencies for the conduct of arrest, raids and seizure; 5) Assist in the investigation and prosecution of persons arrested by law enforcement agencies and/or the BIR in connection with violations of the NIRC; 6) Countercheck the printing, storage, distribution, accounting and use of BIR accountable forms, such as regular and auxiliary labels, documentary stamps, official receipts and other similar forms; 7) Recommend the dissemination of intelligence information or data on revenue matters to proper BIR officials and to other branches of government; 8) Prepare oral or written briefings and periodic intelligence reports; and 9) Perform such other related functions as may be assigned to it. B. Investigation Section 1) Evaluate, review and take appropriate actions on all reports of tax cases from all investigation units, Regional and Central Offices of the Bureau, where there are findings of fraud involving criminal and/or civil liabilities of the taxpayers concerned; 2) Develop tax fraud cases and conduct intelligence operations after a thorough review of the evidences against individuals and organizations involved in syndicated crimes, smuggling and use of fake BIR accountable forms as referred to the Section; 3) Coordinate with the Special Investigation Branches of the Revenue Regions and other units of the Bureau in the development of cases with tax fraud potentials for criminal prosecution or civil fraud cases where the evidence to be gathered is located outside the jurisdiction of one Regional Office, or where the IIO is in a better position to gather the evidence by reason of the circumstances of the case; 4) Analyze evidences which will justify the conduct of an investigation or re-investigation of a taxpayer to be referred to the proper assessment unit that will conduct the audit of the tax return; 5) Determine and recommend the unit that shall undertake the investigation of cases with indications of fraud where two or more non-adjacent Regions are involved; 6) Forward to the proper authorities the report with the recommendations of the special investigators on the investigations of cases with fraud potentials; 7) Plan, organize and supervise surveillance work in order to establish a prima facie fraud case on the basis of a tax assessment, pursuant to Section 16 of the NIRC; 8) Prepare outline of procedures or guidelines for the conduct of investigation in coordination with the Research and Analysis Section; 9) Prepare a summary report of monthly activities of special investigations on the progress of cases being worked upon, including the number of cases received, disposed and pending; and 10) Perform such other related functions as may be assigned to it. C. Research and Analysis Section 1) Evaluate and review all reports of cases initiated by the Division or referred to the Division by other investigating units in the National or Regional Offices; 2) Gather, consolidate and interpret intelligence information relating to tax fraud matters from all available sources; 3) Maintain and adopt a system of information retrieval and analysis through access to records of the Bureau and Revenue Computer Center (RCC) whereby information retrieved will serve as basis for investigation of tax fraud cases; 4) Maintain a systematic record of tax fraud cases handled including information and denunciations received by Regional Offices so that investigations conducted by two or more investigating units on the same taxpayer can be easily detected; 5) Maintain journals, worksheets, situation maps as well as files of target personalities and organizations to be used for intelligence activities; 6) Consolidate reports submitted by Revenue Regions on the status of tax cases being handled by Special Investigation Branches for submission to the Commissioner; acd 7) Develop and recommend a system of proper coordination with the Regional Offices and/or Divisions in the National Office; 8) Require the Central and Regional Offices of the Bureau, to supply and submit leads, information and records gathered necessary for tax fraud investigation of the Special Investigation Branches (SIBs); and 9) Perform such other related functions as may be assigned to it. IV. Repealing Clause : This Order supersedes the provisions of Revenue Administrative Order No. 8-84 dated May 24, 1984 and Revenue Administrative Order No. 10-86 dated August 1, 1986 insofar as it pertains to the above-stated functions and all revenue issuances or portions thereof inconsistent with the provisions of this Order. acd V. Effectivity : This Order shall take effect immediately. BIENVENIDO A. TAN, JR. Commissioner