Statement of Functions of the Intelligence and Investigation Service Including the Divisions Under it Down to Section Level

December 5, 1995 REVENUE ADMINISTRATIVE ORDER NO. 12-95 SUBJECT : Statement of Functions of the Intelligence and Investigation Service Including the Divisions Under it Down to Section Level TO : All Internal Revenue Officers and Others Concerned I. OBJECTIVE : To define the organizational set-up and functions of the Intelligence and Investigation Service created under Executive Order No. 132 dated October 26, 1993 streamlining the Bureau of Internal Revenue, as implemented by RAO No. 4-93 dated December 1,1993. II. ORGANIZATION : The Intelligence and Investigation Service (IIS) which is attached directly to the Office of the Commissioner shall have the following Divisions with their respective Sections: A. Tax Fraud Division 1. Intelligence Section 2. Investigation Section 3. BIR Laboratory Section B. Internal Security Division 1. Anti-Graft and Investigation Section 2. Security Section III. FUNCTIONS : The INTELLIGENCE AND INVESTIGATION SERVICE shall: 1. Perform staff, advisory and consultative functions relative to tax fraud investigations and intelligence operations as well as the investigation and prosecution of administrative cases against Bureau personnel: 2. Develop and recommend policies, work programs, standards, guidelines and procedures for tax fraud investigations, intelligence operations and investigation of administrative cases against revenue personnel; 3. Recommend the enactment of necessary tax legislations and regulations on the basis of its operations and experiences which will enhance the fraud investigation and intelligence operation as well as the prosecution of criminal violations of internal revenue laws and regulations; 4. Establish database for criminal violations of internal revenue laws and regulations as well as information for the measurement of the effectiveness of the investigation and prosecution processes; 5. Review and analyze reports and findings in tax fraud investigation and intelligence operation; 6. Review and evaluate the reports and other actions of the Tax Fraud Division and the Internal Security Division; 7. Monitor tax fraud investigations, intelligence operations involving taxpayers and investigation and prosecution of illegal enrichment and other malfeasance cases filed against revenue personnel; 8. Exercise functional supervision over the Special Investigation Divisions of the Regional Offices; 9. Develop, review and revise, if necessary, the records management and reporting system of all investigation units relative to tax fraud investigations and intelligence operations as well as on the investigation and prosecution of administrative cases against revenue personnel; 10. Consolidate reports submitted by Revenue Regions on the implementation of tax fraud investigation and intelligence programs by the Special Investigation Divisions for submission to the Commissioner; 11. Undertake physical and chemical analysis of articles subject to internal revenue taxes; 12. Prepare and submit to top management necessary reports relative to the implementation of tax fraud investigation, intelligence and internal security programs of the Bureau; 13. Develop, implement and monitor a bureauwide security plan and program to ensure the safety of the BIR personnel, properties, documents/information and work activities; and 14. Perform such other related functions as may be assigned. A. TAX FRAUD DIVISION shall : 1. Recommend policies and work programs and set up standards, guidelines and procedures for the effective implementation of the tax fraud investigation and intelligence program of the Bureau; 2. Adopt a system of information retrieval and analysis obtained through access to records of government and private entities as authorized under Section 7 of the NIRC and other applicable laws and regulations; 3. Investigate tax fraud and/or policy cases as may be referred and/or approved by the Commissioner and those developed by the Division; 4. Prepare and recommend manuals on methods and techniques of investigating tax fraud cases; 5. Conduct periodic briefings for field personnel performing tax fraud investigation work and intelligence operations; 6. Review and analyze management reports and findings in tax fraud investigation and intelligence operation; 7. Undertake the physical and chemical analysis of articles subject to internal revenue taxes; 8. Conduct researches and study procedures on methods of analysis for effective enforcement of all excise tax laws/regulations; 9. Prepare and submit periodic accomplishment reports; 10. Maintain systematic records of the tax fraud cases handled by the Division; and 11. Perform such other related functions as may be assigned. A-1. Intelligence Section shall : 1. Assist in the development of and recommend policies, work programs, standards, guidelines and procedures on the conduct of intelligence operations; 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 obtained through access to records of government and private entities as authorized under Section 7 of the NIRC and other applicable laws and regulations; 4. Recommend to the Intelligence and Investigation Service the dissemination of intelligence information on revenue matters to BIR officials concerned and other branches of government involved; 5. Conduct overt or covert surveillance on identified and suspected persons engaged in activities in violation of NIRC and other pertinent laws and regulations; 6. Coordinate with the Special Investigation Divisions all intelligence operations including those on activities pertaining to smuggling, syndicated crimes and the use of fake BIR accountable forms; 7. Conduct liaison activities with other intelligence, police and investigative agencies for the conduct of arrests, raids and seizures in cases referred/approved by the Commissioner; 8. Supervise the safekeeping of confidential documents of the division and control all data and communications received pertinent to cases handled; and 9. Perform such other related functions as may be assigned. A-2. Investigation Section shall : 1. Assist in the development of standards, guidelines and procedures and recommend policies and work programs relating to tax fraud investigations of suspected criminal violators of internal revenue laws and regulations; 2. Investigate tax fraud and/or policy cases, as may be referred and/or approved by the Commissioner and those developed by the Division; 3. Plan, organize and conduct inventory taking and 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, upon mission orders issued by the Commissioner; 4. Prepare a plan on the conduct of tax fraud investigation of tax cases in coordination with the Intelligence Section; 5. Conduct periodic briefings of field personnel performing tax fraud investigation work; 6. Maintain systematic records of tax fraud cases handled by the Section; and 7. Perform such other related functions as may be assigned. A-3. BIR Laboratory Section shall : 1. Undertake physical and chemical analysis of articles subject to internal revenue taxes, for purposes of identification, grade determination and classification of imported and local articles such as distilled spirits, wines, flavoring extracts, essences, petroleum products and other chemicals, (industrial and pharmaceutical uses); 2. Develop and recommend standards for denaturants; 3. Undertake researches and study procedures on unfamiliar or unclassified articles or materials for identification and proper classification of articles relative to enforcement of tax laws and regulations; 4. Conduct analysis on BIR stamps such as documentary stamps, internal revenue labels and other accountable forms referred by the Accountable Forms Division, Litigation and Prosecution Division and other government agencies/taxpayers, to determine their authenticity; 5. Perform field activities involving technical matters: a. Court cases appear as government witness in court hearings on matters within their competence in coordination with the Litigation and Prosecution Division; b. Calibration/re-calibration of tanks in distillery plants conduct the calibration of storage tank in coordination with the Regional Offices, to determine its actual volume content and issue certificate of calibration/re-calibration; c. Verification and inspection of rectifying equipment of distilleries (test run) determine the percentage recovery of alcohol thru rectification process; d. Supervise and witness the denaturing of distilled spirits in coordination with Regulatory Operations Monitoring Division and conduct spot analysis of denaturing materials in the distillery plant; e. Conduct sampling of flavoring extracts and essences used by the industrial and pharmaceutical entities for chemical analysis, whether or not such articles are subject to excise tax; 6. Maintain systematic records of all assigned activities undertaken by the Section; and 7. Perform such other related functions as may be assigned. B. INTERNAL SECURITY DIVISION shall : 1. Develop and recommend policies, work programs, standards, guidelines and procedures for the investigation and prosecution of administrative cases filed against revenue personnel; 2. Instill discipline among revenue personnel in accordance with established norms of integrity, efficiency and competence in the Civil Service thru the investigation and prosecution of cases filed against revenue personnel involving violation of the Anti-graft and Corrupt Practices Acts (Republic Act 3019), the Administrative Code of 1987 (Executive Order 292)and the Omnibus Rules Implementing Book V of said Code, the Code of Conduct and Ethical Standards of Public Officials and Employees (Republic Act 6713) and other allied administrative issuances, regulations and directives; 3. Develop and implement physical security policies and measures to safeguard the personnel, records, materials, equipment and installation of the Bureau; 4. Maintain systematic records of all administrative cases handled by the Division; 5. Prepare and submit periodic accomplishment reports; and 6. Perform such other related functions as may be assigned. B.1. Anti-Graft and Investigation Section shall : 1. Evaluate the merits of all denunciations/complaints filed against revenue officials and employees involving offenses under Anti-graft and Corrupt Practices Act (RA 3019), Administrative Code of 1987 (EO 292) or the Omnibus Rules Implementing Book V of said Code or the Code of Conduct and Ethical Standards of Public Officials and Employees (RA 6713) and any other allied administrative issuances and directives and conduct the necessary investigation and surveillance thereon; 2. Collate and evaluate evidence gathered during the investigation, and if prima facie evidence exists, prepare the appropriate Formal Charge/s and Preventive Suspension Order/s, if warranted, against revenue personnel for violation of the Anti-graft and Corrupt Practices Act (RA 3019)or Administrative Code of 1987 (EO 292) or the Omnibus Rules Implementing Book V of said Code or the Code of Conduct and Ethical Standards of Public Officials and Employees (RA 6713) or any other allied administrative issuances, regulations and directives, if warranted, for the approval of the Commissioner of Internal Revenue; 3. Cause the service of the approved Formal Charge/s and Preventive Suspension Order/s to the respondent/s; 4. Refer dockets of administrative cases filed against revenue personnel to the Assistant Commissioner, Legal Service for the formal investigation, evaluation and/or filing appropriate criminal action with the Ombudsman, if warranted; and act as prosecutor in the administrative charges filed against revenue personnel in the Bureau; 5. Conduct spot-checking on the attendance of revenue personnel to ascertain compliance with Civil Service laws and regulations; and 6. Perform such other related functions as may be assigned. B.2. Security Section shall : 1. Implement work plans and programs in relation to the physical security activities of the Bureau; 2. Provide physical security measures for the safeguarding of the personnel, materials, equipment and installations of the Bureau most especially documents, materials and other communications of the Bureau; 3. Supervise the private security agents assigned in the Bureau in accordance with the contract entered into between the BIR and the private security agency; 4. Verify reports submitted by the private security agency; 5. Conduct security inspections within the premises of the Bureau; 6. Coordinate with other government agencies on security matters; 7. Maintain a records system in the Section; and 8. Perform such other related functions as may be assigned. IV. REPEALING CLAUSE : This Order supersedes all revenue issuances or portions thereof inconsistent herewith. V. EFFECTIVITY : This Order shall take effect immediately. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue