Amendment to Revenue Administrative Order No. 2-84, Re-defining the Functions and Jurisdiction of the Divisions Under the Specific Tax Office

March 10, 1987 REVENUE ADMINISTRATIVE ORDER NO. 06-87 SUBJECT : Amendment to Revenue Administrative Order No. 2-84, Re-defining the Functions and Jurisdiction of the Divisions Under the Specific Tax Office TO : All Internal Revenue Officers and Others Concerned BASIS : Under Revenue Administrative Order No. 2-84, the four (4) divisions under the Specific Tax Office exercise the same functions over all establishments within their respective territorial jurisdiction as delineated therein. The Field Operations Divisions has jurisdiction over all establishments dealing in articles subject to excise taxes and fees, except those located in Metro Manila up to Apalit, Pampanga in the North and Calamba, Laguna in the South. Some of these establishments at the same time maintain principal offices and bonded warehouses in Metro Manila and, therefore, not within its competence. The Field Operations Division, in the discharge of its duties, more particularly in the conduct of spot checking and stocktaking, however, may require the simultaneous investigation of the records and stocks of their branches or warehouses whereby overlapping of functions becomes inevitable. The same holds true with the other divisions. Establishments under their respective jurisdictions might have branches or bonded terminals in the provinces which are outside of their territorial jurisdictions . cd i Likewise, in the issuance of permits, the different divisions issue permits to establishments located within their territorial jurisdictions, however, such establishments may have branches located in other provinces beyond the competence of the division having jurisdiction over the principal establishment. These and other conflicts spawned confusion among the personnel of the different divisions concerned. In order, therefore, to synchronize the functions of the divisions under the Specific Tax Office and to ensure effective implementation of the laws and regulations affecting excise taxes as well as maintain a sole counter-checking body to oversee the operations of establishments under the jurisdiction of the Specific Tax Office, it is imperative that the functions of the respective divisions be amended in accordance with this Order. casia OBJECTIVE : The Field Operations Division shall have the exclusive authority to conduct audit and investigation, spot checking, counter checking and stocktaking of all establishments engaged in the importation of cigarette paper, leaf tobacco and production of articles subject to excise taxes and fees, while the other divisions under the Specific Tax Office shall, in addition to its functions under Revenue Administrative Order No. 2-84, exercise the functions of the Field Operations Division over establishments located in all revenue regions, except those stated in the foregoing. cd ORGANIZATIONAL SET UP OF THE DIVISION The Division shall be headed by a Chief of Division and two (2) Assistant Chiefs, with the following Sections, namely: 1. Investigation, Stocktaking and Spot Checking Section; 2. Audit and Review Section; and 3. Research, Analysis and Records Section. Each Section shall be headed by a Chief of Section and any additional personnel of the Division shall be drawn from the other divisions. Personnel of the Specific Tax Regional Teams shall remain in their respective posts and shall be supervised by the Chief, Specific Tax Regional Team and/or Officers-in-Charge. All reports required of them to be submitted shall be forwarded to the respective divisions concerned. FUNCTIONS : The Field Operations Division shall exclusively exercise the following functions: 1. Conducts investigation of cases involving reported violations of excise tax laws and regulations and/or non-payment of excise taxes or tobacco inspection fees; 2. Conducts spot checking, surveillance and detection with the end view to apprehend manufacturers, importers and dealers of taxable products and raw materials on the basis of confidential information . aisa dc 3. Conducts regular stocktaking or inventory of raw materials and finished products of establishments subject to excise taxes or as often as the Commissioner may require; 4. Supervises the disposition or disposal of tobacco and cigarette paper wastes as often as the establishments may request; 5. Conducts audit or verification of reports submitted by manufacturers, importers or wholesalers or articles subject to excise taxes, including manufacturers, importers and dealers of leaf tobacco; casia 6. Maintains a file or records of taxpayers audited and/or investigated for reference and data bank purposes; 7. Develops and recommends policies and work programs for an efficient and effective administration of excise taxes and tobacco inspection fees under the jurisdiction of the Division; 8. Collates and compiles statistical reports on establishments with respect to raw materials used in the manufacture of articles subject to excise taxes; and 9. Performs such other related functions as superiors may direct from time to time. REPEALING CLAUSE : Any provision of Revenue Administrative Order No. 2-84, memoranda or instructions inconsistent herewith are hereby revoked or modified accordingly. EFFECTIVITY : This Order takes effect immediately . acd BIENVENIDO A. TAN, JR. Commissioner