Statement of the Functions of the Inspection Service Including the Divisions Under It Down to Section Level

April 26, 1984 REVENUE ADMINISTRATIVE ORDER NO. 07-84 SUBJECT : Statement of the Functions of the Inspection Service Including the Divisions Under It Down to Section Level TO : All Internal Revenue Officers and Others Concerned I. Objectives : This Order aims to implement more effectively the Reorganization of the Bureau under Executive Order No. 608 by defining, delineating and expanding the functions of the Inspection Service and its divisions pertinent to inspection activities. II. Organization : To attain this objective, the Inspection Service shall have the following divisions and respective sections: casia A. Internal Security Division 1. Investigation Section I (General, PD 807) 2. Investigation Section II (Anti-Graft & Corrupt Practices and Illegal Enrichment) 3. Special Operations Section B. Personnel Inquiry Division 1. Hearing Panel I (Anti-Graft & Corrupt Practices) 2. Hearing Panel II (PD 807) 3. Hearing Panel III (General) C. Fiscal Control Division 1. Fiscal Audit Section 2. Special Operations Section III. Functions : The Inspection Service shall have the following functions: 1. Perform staff, advisory and consultative functions relating to fiscal control and inspection activities; aisa dc 2. Formulate and recommend policies, guidelines, standards and procedures relative to fiscal control and inspection activities; 3. Conduct an independent and continuing review and appraisal of the activities and performance of revenue personnel; 4. 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; 5. Exercise technical supervision over inspection activities in the field offices; 6. Supervise the fiscal audit program of the bureau; 7. Recommend necessary tax legislations and regulations based on its own operations and experiences which serve as inputs to the tax planning and research effort of the Planning and Policy Service; cdt 8. Direct and supervise the activities of the divisions under the Service; and 9. Perform such other related functions as may be assigned. A. The Internal Security Division shall have the following functions: 1. Develop and administer the internal security program of the Bureau; 2. Set up standards, guidelines and procedures for the investigation and prosecution of administrative cases against Bureau personnel; 3. Gather and collate evidence or data against Bureau personnel for administrative investigation purposes; 4. Evaluate evidence, confer with witnesses and secure affidavit for the prosecution of administrative cases; 5. Investigate illegal enrichment cases against Bureau personnel, including the audit and investigation of their income tax returns connected with the illegal enrichment investigation; and cd 6. Perform such other related functions as may be assigned. The following shall be the functions of the sections under the Internal Security Division: A-1 Investigation Section I (General and PD 807) a) Investigate all complaints against Bureau employees involving administrative aspects under the Civil Service Act (PD 807) and revenue laws, rules, regulations, memoranda and circulars and submit report of investigation; b) Gather, collate and evaluate evidence or information against Bureau personnel for administrative investigation purposes; c) File administrative charges against erring officials/employees on the basis of prima facie evidence; d) Forward to Personnel Inquiry Division the formal charges filed for formal hearing; cdt e) Confer with witnesses and prosecute the administrative cases filed; and f) Perform such other related functions as may be assigned. A-2 Investigation Section II (Anti-Graft & Corrupt Practices & Illegal Enrichment) a) Investigate alleged illegal enrichment cases against Bureau personnel, including the examination of Income Tax Returns and assets and liabilities in connection thereto; b) Submit report of findings and recommendations on illegal enrichment cases for administrative investigation purposes; c) Investigate and file formal charges against Bureau personnel involving cases on violation of the Anti-Graft and Corrupt Practices Act insofar as the administrative aspect is concerned and forward the same to the Personnel Inquiry Division for proceedings; Refer said cases to the Tanodbayan for criminal prosecution; d) Testify in cases under the Anti-Graft and Corrupt Practices Act involving BIR personnel brought to the Sandiganbayan through the Tanodbayan; and e) Perform such other related functions as may be assigned. A-3 Special Operations Section a) Conduct continuing surveillance on the activities of all revenue personnel; b) Conduct a spot-check of all revenue offices and establishments where revenue personnel are assigned particularly to check compliance with civil service law and rules on office attendance and office decorum; c) Coordinate with other law enforcement agencies in gathering information involving the conduct, honesty or integrity of revenue employees or those concerning security matters of the Bureau; and d) Perform such other related functions as may be assigned. B. The Personnel Inquiry Division shall have the following functions: 1. Develop and recommend guidelines and procedures pertaining to the hearing of administrative cases; 2. Evaluate legal activities such as admission of evidence, objections of counsel, etc. relative to the hearing of administrative cases to determine adherence to established guidelines and procedures; 3. Recommend appropriate actions/decisions on administrative cases heard; and 4. Perform such other related functions as may be assigned. acd The following shall be the functions of the sections under the Personnel Inquiry Division: B-1 Hearing Panel I (Anti-Graft & Corrupt Practices Act and Illegal Enrichment) a) Conduct hearing of administrative charges, formally filed by the Internal Security Division, involving illegal enrichment cases against revenue personnel and violations of Anti-Graft and Corrupt Practices Act insofar as the administrative aspect is concerned; b) Evaluate testimonies taken as well as evidences presented and submitted; c) Conduct researches on questions of law presented during formal investigation/hearing; d) Prepare decisions on administrative cases heard; cdt e) Maintain a systematic compilation of court and administrative decisions and doctrines for reference; and f) Perform such other related functions as may be assigned. B-2 Hearing Panel II (PD 807 Civil Service Act) a) Conduct hearing of administrative charges formally filed by the Internal Security Division, involving offenses punishable under Section 36 of PD 807; b) Evaluate testimonies taken as well as evidences presented and submitted; c) Conduct researches on questions of law presented during formal investigation/hearing; d) Prepare decisions on administrative cases heard; e) Maintain a systematic compilation of court and administrative decisions and doctrines for reference; and f) Perform such other related functions as may be assigned. B-3 Hearing Panel III (General) a) Conduct hearing of administrative charges formally filed by the Internal Security Division, involving violations of existing revenue laws, rules, regulations, memoranda and circulars; b) Evaluate testimonies taken as well as evidences presented and submitted; c) Conduct researches on questions of law presented during formal investigation/hearing; d) Prepare decisions on administrative cases heard; e) Maintain a systematic compilation of court and administrative decisions and doctrines for reference; and f) Perform such other related functions as may be assigned. C. The Fiscal Control Division shall have the following functions: 1. Develop and recommend guidelines and procedures for verifications and audit program for fiscal control of the bureau; 2. Administer and direct the fiscal audit program of the bureau; 3. Conduct an independent continuing review and appraisal of all fiscal operations of the bureau; cd i 4. Determine whether all revenues due the government under all revenue laws administered by the Bureau are duly collected and accounted for; 5. Review and appraise methods of acquiring property, supplies and equipment to determine compliance with approved specifications and standards; 6. Determine whether such property, supplies and equipment are properly utilized and maintained and if necessary, recommend measures to prevent or minimize wastage; 7. Verify the accuracy and correctness of income tax returns of revenue personnel; 8. Send audit teams periodically to revenue regions and spot-check cash and property accountability of all accountable officers; and 9. Perform such other related functions as may be assigned. The following shall be the functions of the section under the Fiscal Control Division: acd C-1 Fiscal Audit Section a) Conduct internal audit of the revenue accountabilities of all Collection Agents/Cash Clerks and Special Disbursing Officers; b) Send audit teams periodically to revenue regions; c) Review and analyze audit reports submitted by audit teams; d) Conduct inventory of property, supplies and equipment handled by all revenue officials and employees; e) Conduct internal audit or inventory of the Accountable Forms and Property Divisions; and f) Perform such other related functions as may be assigned. acd C-2 Special Operations Section a) Verify the correctness and accuracy of the amount of taxes collected with reports submitted by the Payment Orders Issuing Officer as reflected in the Master List; b) Counter-check serial numbers of Payment Orders (PO),Confirmation Receipts (CR) and Revenue Official Receipts (ROR) issued for use in a particular revenue region with those of the POs, CRs, and RORs allocated to said region per records of the Accountable Forms Division in order to ferret out the fake and/or lost POs and CRs ; casia c) Verify the correctness and accuracy of the amount of collections as reported in the Monthly Report of Collections (BIR Form 12.31) compared to the amount in the taxpayer's copy of revenue official receipts to detect cases of tampering; d) Verify Remittance Advices on file in the Banks or in the Bureau of Treasury to determine whether amounts reflected therein tally with the amounts of remittances as shown in cashbooks; e) Verify from the Bureau of Treasury and/or concerned banks whether or not there are dishonored checks which were not recorded in cashbooks; f) Verify the accuracy or correctness of income tax returns of revenue personnel not covered by the gross income taxation system ; cd g) Verify the accuracy and/or correctness of the prices as well as the quality and quantity of all office supplies and equipment procured by the Bureau in relation to the functions of the Inspection and Acceptance Committee of which the Chief, Fiscal Control Division is the Chairman; h) Supervise the printing of all accountable forms for the Bureau at the General Printing Office, at the APO-NEDA and other Printing Establishments; and i) Perform such other related functions as may be assigned. IV. Repealing Clause : This Order supersedes the provisions of Revenue Administrative Order No. 2-80 dated October 2, 1980 insofar as it pertains to the above mentioned functions and all revenue issuances or portions thereof inconsistent with the provisions of this Order . acd V. Effectivity : This Order shall take effect immediately. (SGD.) RUBEN B. ANCHETA Acting Commissioner