Statement of Functions of the Tax Fraud Division Down to Section Level

May 24, 1984 REVENUE ADMINISTRATIVE ORDER NO. 08-84 SUBJECT : Statement of Functions of the Tax Fraud Division Down to Section Level TO : All Revenue Officials 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 Tax Fraud Division pertinent to the tax fraud investigation program of the BIR. II. Organization : By authority of Executive Order No. 608, as implemented by RAO No. 2-80 dated October 2, 1980, the Tax Fraud Division which is directly under the Office of the Commissioner shall have the following sections: cdt 1. Retrieval, Analysis and Evaluation Section 2. Investigation Section 3. Administrative Section III. Functions : The Tax Fraud Division 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 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 Information Systems Services, Inc. (RISSI); aisa dc 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 for criminal prosecution, except those involving syndicated crimes, smuggling and fake BIR accountable forms, after a thorough review of the evidence of the following cases: a) Initiated and developed by the Division; b) Referred to the Division by investigation units, Regional and Central Offices of the Bureau; c) Referred to the Division by the Commissioner and higher officials of the Bureau; and d) Referred to the BIR from other branches of government and of Committees and Task Forces composed of different branches of government, where the BIR is a member, such as the Presidential Anti-Dollar Salting Task Force, etc . 5. Coordinate with Special Investigation Units of 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 Division is in a better position to gather the evidence by reason of the circumstances of the case; 6. Investigate tax fraud cases where two or more non-adjacent Regions are involved; 7. Determine and recommend to the Commissioner the unit that shall undertake tax fraud investigations where multiple tax probes are being conducted by two or more Regions or by the Tax Fraud Division and another Region (without one unit knowing of the other investigation); 8. 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 investigation units on the same taxpayer can be easily detected; cd 9. Consolidate reports submitted by Revenue Regions on the status of tax fraud cases being handled by Special Investigation Units for submission to the Commissioner; 10. Prepare manuals on standard audit procedures, methods and techniques of investigating tax fraud cases and conduct periodic briefings for field personnel performing tax fraud investigation work; and 11. Perform such other related functions as may be assigned. The following shall be the functions of the sections under the Tax Fraud Division : A. Retrieval, Analysis and Evaluation Section 1. Evaluate and review all reports of cases initiated by the Division or referred to the Division by other investigating units, Regional or Central Offices; 2. Gather, consolidate and interpret intelligence information relating to tax fraud matters from all available sources; 3. Maintain a system whereby information can be retrieved which will serve as basis for investigation of tax fraud cases; 4. Develop and recommend a system of coordinating with Regional Offices and/or divisions in the National Office and require the submission to the Tax Fraud Division leads and information or records necessary for tax fraud investigation activities; 5. Prepare the recommendation which shall designate the unit that shall undertake the fraud investigation where multiple tax probes are being conducted by two or more Regions or by the Tax Fraud Division and another Region (without one unit knowing of the other investigation); 6. Supply the Investigation Section with all leads, information and records gathered; and 7. Perform such other related functions as may be assigned. B. Investigation Section 1. Monitor and supervise the investigation work of field personnel; 2. Review and evaluate all reports submitted by field personnel: a) Analyze the evidence which will justify the conduct of an investigation or reinvestigation of a taxpayer; b) Review all completed reports of investigation before transmittal of same to the Retrieval, Analysis and Evaluation Section; and c) Take action on recommendations of field personnel on investigations of cases with fraud potentials. 3. Coordinate with the Retrieval, Analysis and Evaluation Section and prepare outline of procedures or audit guidelines for the conduct of field investigations; cd i 4. Plan, organize and supervise surveillance work when necessary in order to establish a prima facie fraud case on the basis of a tax assessment, pursuant to Section 16 of the NIRC; 5. Recommend the investigation of cases with indications of fraud where two or more non-adjacent Regions are involved; 6. Prepare a summary report of monthly activities of fieldmen on the progress of cases being worked upon, including the number of cases received, disposed and pending; and 7. Perform such other related functions as may be assigned. C. Administrative Section 1. Supervise the safekeeping of dockets while they are in the possession of the division and control all data and communications received pertinent to cases handled; 2. Maintain a systematic record of tax fraud cases handled including information and denunciation received by Regional Offices so that investigations conducted by two or more investigating units on the same taxpayer can be easily detected; 3. Consolidate reports submitted by Revenue Regions on the status of tax fraud cases being handled by Special Investigation Units for submission to the Commissioner; 4. Control the requisition of Accountable Forms and Supplies, including Letters of Authority (L/A) and oversee the receipt, safekeeping, preservation, economical utilization and continuing replenishment thereof; 5. Devise a system for the effective recording of all transactions and actions taken by the division; acd 6. Attend to all general administrative matters of the division such as daily routine clerical activities, preparation of periodic reports and efficiency ratings of all personnel, recording of attendance and others; and 7. Perform such other related functions as may be assigned. IV. Repealing Clause : This Order supersedes the provisions of Revenue Administrative Order Nos. 2-68 dated August 26, 1968, 12-70 dated July 7, 1970 and 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. V. Effectivity : This Order shall take effect immediately. (SGD.) RUBEN B. ANCHETA Acting Commissioner