Creation of a Specific Tax Branch in Each of the Revenue Regions Except in Revenue Regions Nos. 5, 6, 7 and 8

September 8, 1969 REVENUE ADMINISTRATIVE ORDER NO. 05-69 SUBJECT : Creation of a Specific Tax Branch in Each of the Revenue Regions Except in Revenue Regions Nos. 5, 6, 7 and 8 TO : All Internal Revenue Officers, Employees and Others Concerned After a centralized system of administration and enforcement of the specific tax laws, the Tobacco Inspection Law (Act 2613, as amended) and their implementing regulations has been in operation since January, 1967, the restoration of a decentralized set-up in this particular phase of tax administration has become urgently necessary in order to achieve maximum personnel efficiency and for a more effective supervision of the operations of establishments in the provinces subject to the payment of specific taxes and/or tobacco inspection fees. For the sake of expediency, however, the National Office, through the Specific Tax Department and its subordinate divisions or offices, shall continue to exercise direct control and supervision over all establishments concerned situated in Revenue Regions Nos. 5, 6, 7 and 8 and in the municipalities of San Pedro, Laguna, and Apalit, Pampanga. The proximity of those establishments to the National Office more than justifies their being placed directly under the National Office and thereby, making it more convenient and expeditious for the taxpayers concerned to transact their business with the National Office without having to undertake the usual routing of their papers through any regional office also located within Manila and its environs. In view thereof, a Specific Tax Branch is hereby created in each of the revenue regions, except in Revenue Regions Nos. 5, 6, 7 and 8 to take charge of administration and enforcement of all specific tax laws, the Tobacco Inspection Law(Act 2613, as amended) and their implementing revenue regulations. In the cases of the Specific Tax Branches in Revenue Region No. 4, San Fernando, Pampanga, and in Revenue Region No. 9 San Pablo City, their jurisdiction for purposes of specific taxes and tobacco inspection fees shall not include the municipalities of Apalit, Pampanga, and San Pedro, Laguna, respectively. ORGANIZATION & STAFFING OF THE BRANCH The Specific Tax Branch shall be headed by a Chief, who shall be assisted by an Assistant Branch Chief, a Tobacco & Miscellaneous Tax Supervisor, Alcohol Tax Supervisor, Tobacco Inspection Supervisor and an appropriate number of revenue inspectors and clerical personnel to carry out the functions of said Branch in the revenue region. However, the geographical size of the region, the number of establishments to be supervised and/or the amount of collections in specific taxes and/or tobacco inspection fees shall determine the necessity and the budgetary practicality of constituting a complete staff for each Specific Tax Branch as above-enumerated. Where the business conditions and other pertinent circumstances in any particular region do not warrant the designation of a Chief of Branch and his complete staff of assistants, an officer-in-charge may be designated to head a skeletal force of field and clerical personnel reasonably sufficient to discharge satisfactorily the functions of a regularly constituted branch and shall be called a Specific Tax Unit. The designation and ranking of the officials and other personnel of the Specific Tax Branch or Specific Tax Unit shall be based and determined on their educational qualifications, relevant training and experience in specific tax and/or tobacco inspection laws and regulations, as well as the position title and salary range of the official or personnel concerned. The Chief, Specific Tax Branch, shall also serve as a member of the staff in the regional office and act as the adviser of the regional director in matters relating to the administration and enforcement of existing specific tax and tobacco inspection laws and applicable revenue regulations. In case of absence or incapacity to attend regional staff meetings, said branch chief may designate any of his subordinate officials to represent him during such meetings or conferences. ORGANIZATIONAL FUNCTIONS & PROCEDURES The regional director shall exercise general supervisory and disciplinary powers over all officials and personnel of the Specific Tax Branch or Specific Tax Unit under his jurisdiction. Accordingly, the regional director may initiate appropriate action or proceedings against any erring official or employee of the said Branch in accordance with established civil service rules and office procedures. With the concurrence of the regional director, the Chief, Specific Tax Branch, may initiate or recommend to the Commissioner of Internal Revenue, through the Revenue Operations Head (Specific Tax), any promotion, transfer or reassignment of personnel of the said branch. All papers, correspondence, and other official matters, administrative or operational in nature, addressed to or originating from the Specific Tax Branch shall be coursed through the Office of the Regional Director in accordance with standard operating procedures and established office policies. All applications for reglementary permits for establishments located outside of the direct jurisdictional control and supervision of the National Office shall be submitted to the Regional Director, Attention: The Chief, Specific Tax Branch, for necessary processing or verification by said branch and the papers shall be forwarded with the least practicable delay to the National Office for final action by higher authorities on the basis of the action taken and recommendation made at regional level. The administrative functions of the Specific Tax Branch shall be governed by the same standard operating procedures applicable to the other branches in the regional office. The operational functions of said branch shall be in accordance with those promulgated or established in the National Office relating to the collection of specific taxes and tobacco inspection fees and the supervision of establishments subject to the payment thereof. Any problem relating to the administration and enforcement of existing specific tax and tobacco inspection laws and applicable revenue regulations not covered by previous instructions or established procedures should be immediately elevated to the National Office for appropriate section or decision by proper authorities. Any previous orders, instructions, circulars, memoranda or portions thereof inconsistent herewith are hereby revoked. LexLib This Order takes effect immediately upon approval hereof. (SGD.) MISAEL P. VERA Commissioner of Internal Revenue APPROVED: (SGD.) EDUARDO Z. ROMUALDEZ Secretary of Finance