Promulgation and Implementation of the Revised Code of Conduct for Bureau of Internal Revenue Officials and Employees

June 11, 2010 REVENUE MEMORANDUM ORDER NO. 053-10 SUBJECT : Promulgation and Implementation of the Revised Code of Conduct for Bureau of Internal Revenue Officials and Employees TO : All Internal Revenue Officials, Employees and Others Concerned As a public service institution and premier tax administration agency, the Bureau of Internal Revenue (BIR) is mandated to uphold the Constitutional principle that a public office is a public trust such that all public officials and employees must at all times be accountable to the people, serve them with utmost responsibility, integrity, loyalty and efficiency, act with patriotism and justice, and lead modest lives. CIaDTE In this regard, the Revised Code of Conduct for Revenue Officials and Employees (Annex "A") is hereby promulgated in order to promote and observe said Constitutional fiat, as well as reflect existing and recent developments in the area of administrative discipline vis--vis the BIR's exclusive mandate of administering the country's tax laws. Henceforth, to ensure faithful compliance and observance of the Code of Conduct, everyone is directed to read and be familiar with all its provisions. An electronic copy of this Code shall be posted in the BIR website for reference by all parties. There shall be a discussion of the contents of the Code during the staff meetings and other similar events of all BIR offices. This RMO supersedes the Updated Code of Conduct for BIR Officials and Employees as implemented by RMO No. 50-98 dated June 1, 1998, as well as other issuances inconsistent thereto. This Order shall take effect immediately. (SGD.) JOEL L. TAN-TORRES Commissioner of Internal Revenue ANNEX A REVISED CODE OF CONDUCT FOR BUREAU OF INTERNAL REVENUE OFFICIALS AND EMPLOYEES FOREWORD The history of taxation is colored by the diverse attitudes and perceptions people have had about taxes, tax administrators and taxation in general. For centuries, the prevailing image of taxation was one of oppression, coercion and subjugation. Happily, the past century has seen the evolution of taxation into the primary avenue for people's involvement in the economic development of the state. aDIHTE The continuing evolution of taxation, however, is a journey that can only be carried on if the men and women of the tax agency itself can constantly uphold a standard of excellence in their service to the agency, and to the people. Such a standard is best upheld through the observance of a Code of Conduct that shall prescribe the norms of behavior and ethical standards that every employee, regardless of rank or position, must observe. It is in this regard that I am gratified and pleased that this Code of Conduct for the Officials and Employees of the Bureau of Internal Revenue (BIR) has now been prepared for dissemination to all organizational units of the BIR. From the quality of work performed and the competence to be accorded every duty and responsibility, to the courtesy and respect that is to be extended to every taxpayer, the Code of Conduct represents the touchstone by which every revenuer shall measure his or her service to the people, and the benchmark against which all of us shall evaluate our success in encouraging the general public to appreciate and support the objectives and ideals of taxation. In a time when the need to "do things right" is consistently emphasized, focused as organizations are in the attainment of goals and targets, we must never lose sight of the equally important need to "do the right thing".Let it never be forgotten that true public service is as much a matter of competent and efficient service, as it is a testament to honesty, integrity and the ethical principles that are at the foundation of the moral order of society. It is my great hope, therefore, that this Code of Conduct will be read, appreciated, and ultimately taken to heart by every revenuer. Ours is a challenging, yet profoundly meaningful duty that is at the foundation of every endeavor to foster the economic growth of our country. As we have reached our 105th year of service to the Filipino people and to our beloved country, let us fulfill this duty under the guidance and direction of the Code and the ideals it upholds, inspired always by the enduring quest for excellence that is at the heart of the legacy of service whose flame we shall pass on with pride, hope and trust. (SGD.) JOEL L. TAN-TORRES Commissioner of Internal Revenue TABLE OF CONTENTS CHAPTER I GENERAL PROVISIONS Section 1 Title 2 Declaration of Policy 3 Purpose of the Code EHTIDA 4 Framework for the Code 5 Jurisdictional Coverage of the Code 6 Breach of the Code 7 Dissemination of the Code 8 Definition of Terms 9 Principles and Norms of Conduct for Revenue Officials and Employees CHAPTER II RESPONSIBILITY TO THE BUREAU 10 Support and Loyalty to the BIR 11 Enforcement of BIR Policies and Programs 12 Responsibility as Head of Office and Other Revenue Employee A. Accountability for Government/BIR Money and Property B. Use of Government/BIR Time, Property and Equipment C. Use of Government/BIR-Owned or Leased Vehicles D. Integrity and Security of Official Documents and Information E. Protection and Safekeeping of Government/BIR Money and Property F. Turn-over of Government/BIR Money and Property 13 Compliance with Tax Obligations for Revenue Officials and Employees Engaged in Business and/or Exercise of Profession CHAPTER III RESPONSIBILITY TO THE PUBLIC 14 Performance of High Quality Service 15 Demonstration of Integrity ACEIac 16 Proper Exercise of Discretionary Powers 17 Maintenance of Good Public Relations A. Courtesy, Fairness and Impartiality B. Uphold Courtesy and Respect in Dealing with Lawyers and Accountants of Taxpayers 18 Prohibition Against Conflict of Interest and Partiality A. Conflict of Interest B. Requirement for Validity of Divestment of Interest C. Prohibition Against Financial and Material Transactions D. Prohibition Against Outside Employment and When Allowed E. Prohibited Acts Constituting Conflict of Interest and Partiality F. Inhibition from Certain Assignments G. Prohibition Against Acting as Lawyer/Legal Counsel, Accountant, Consultant, or Similar Services, in behalf of a Taxpayer H. Official Dealings with Taxpayers according to Prescribed Rules I. Prohibition Against Material Dealings and/or obtaining Financial Gains with Taxpayers and their Representatives J. Prohibition Against Dealings with Taxpayers in the Conduct of Audit and Examination and Similar Requirements K. Harassment of Taxpayers by Revenue Officials or Employee 19 Non-Disclosure of Documents and Confidential Information to the Public and When Allowed A. Illegal or Unauthorized Disclosure/Divulgence of Official or Confidential Information B. Proper Dissemination of Revenue Issuances HITEaS C. Prompt Reply to Official Communications D. Unauthorized Production of Information E. Public Speaking Engagements or Publication of Articles Relating to Service Operations 20 Filing of Statement of Assets, Liabilities and Net Worth and Financial Disclosure of Interest A. Items to be Declared in the SALN B. Information of Existing Business Interests and Financial Connections C. Period Required for the Filing of the SALN D. Manner of Filing of the SALN E. Disclosure of Relatives in the Government 21 Solicitation and Acceptance of Gifts and Benefits 22 Procurement of Revenue Goods and Services, Infrastructure Projects and Consultancy Services 23 Disclosure to Proper Authorities of any Violation, Infraction, Misconduct and Unethical Behavior CHAPTER IV RESPONSIBILITY IN THE WORKPLACE 24 Demonstration of Leadership 25 Observance of Equity, Courtesy and Respect Towards Colleagues in the BIR 26 Contribution Required for the Attainment of Office Goals 27 Observance of Proper Office Attire or Uniform 28 Use and Wearing of BIR Identification Card 29 Punctuality, Observance of Required Office Hours, Habitual Tardiness and Frequent Unauthorized Absences in Reporting for Duty ACTIcS 30 Non-Engagement of the Services of Private Individuals to Perform Legal, Accounting, Secretarial/Clerical Function or like Services 31 Compliance with Revenue Travel Assignment Order and Revenue Special Order 32 Entry of Visitors within the Office Premises CHAPTER V PERSONAL BEHAVIOR 33 Maintaining Public Trust and Confidence 34 Modest and Simple Living 35 Dishonesty as a Ground for Disciplinary Action 36 Prohibition Against Engaging in Illegal Gambling and Betting 37 Prohibition Against the Use of Intoxicants or Prohibited Drugs 38 Observance of No-Smoking Rule 39 Making Oneself Visible in Nightclubs, Bars, and Other Places of Entertainment By Indulging in Lavish Spending 40 Prohibited Association with Disreputable Persons CHAPTER VI RIGHTS OF REVENUE OFFICIALS AND EMPLOYEES 41 Rights of Incumbent Revenue Officials and Employees CHAPTER VII REMOVAL FOR CAUSE, CLASSIFICATION OF OFFENSES AS PRESCRIBED UNDER EXISTING CIVIL SERVICE COMMISSION RULES, AND ADDITIONAL GROUNDS FOR ADMINISTRATIVE DISCIPLINARY ACTION WITH THEIR CORRESPONDING PENALTIES 42 Removal for Cause 43 Classification of Offenses Grave Offenses Less Grave Offenses Light Offenses 44 Additional Circumstances as Grounds for Administrative Disciplinary Action with their Corresponding Penalties Grave Offenses Less Grave Offenses Light Offenses CHAPTER VIII TRANSITORY PROVISIONS 45 Separability Clause 46 Repealing Clause 47 Effectivity Clause APPENDICES Annex I LIST OF BIR EMPLOYEES ISSUED WITH 2010 CODE OF CONDUCT FOR BUREAU OF INTERNAL REVENUE OFFICIALS AND EMPLOYEES under RMC No. ______ Annex II Memorandum of Receipt CHAPTER I General Provisions SECTION 1 . Title. This Code shall be known as the Revised Code of Conduct for Bureau of Internal Revenue (BIR) Officials and Employees. SECTION 2 . Declaration of Policy. Public office is a public trust. It is the policy of the State to promote a high standard of ethics in public service. Public officials and employees shall at all times be accountable to the people and shall discharge their duties with utmost responsibility, integrity, competence and loyalty; act with patriotism and justice; lead modest lives; and uphold public interest over personal interest. 1 SECTION 3 . Purpose of the Code. In order to maintain public confidence in the BIR, as well as in the integrity and professionalism of its personnel, this Code prescribes the standards of required behavior expected in the performance of official duties. The Code envisions to achieve excellence from the services rendered by each and every Revenue Official or Employee as it prescribes the responsibilities and obligations of his/her office. SECTION 4 . Framework for the Code. This Code of Conduct has been adopted in accordance with the 1987 Constitution of the Philippines, National Internal Revenue Code of 1997, as amended, and other relevant laws, and shall be read in conjunction with Civil Service Commission Rules and BIR policies, regulating the conduct of every Revenue Official or Employee. SECTION 5 . Jurisdictional Coverage of the Code. This Code applies to and is binding upon every Revenue Official or Employee. It must be strictly observed from the commencement of his/her official duties with the BIR until resignation, retirement or separation from the revenue service. Strict compliance therewith is mandatory. ECSHAD SECTION 6 . Breach of the Code. This Code relates to both performance and conduct behavior. Failure to abide with the provisions of this Code shall be a ground for administrative disciplinary action. SECTION 7 . Dissemination of the Code. The following revenue officials shall be responsible for ensuring the proper information and dissemination of this Code to every Revenue official and employee: The Commissioner, Deputy Commissioners, Assistant Commissioners and the respective Head Revenue Executive Assistants, with respect to the National Office; or, The Regional Directors and Assistant Regional Directors, with respect to the Revenue Regions; or, The Chiefs of Divisions, their Assistant Chiefs and Section Chiefs, with respect to the Division levels; or, The Revenue District Officers, Assistant Revenue District Officers and Section Chiefs and Unit Heads, with respect to the Revenue District Offices. It shall be the responsibility of the Chief of the Personnel Division and the respective heads of offices of the Bureau to see to it that each and every Revenue Official or Employee receives a copy of this Code. Each head of office shall prepare and submit to the Inspection Service the List of BIR personnel to whom copies of the Code (Annex "1" hereof) were issued. The Memorandum Receipt (Annex "2" hereof), signed by each and every revenue personnel to acknowledge receipt of copy of the Code, shall be submitted by the head of office to the Personnel Division. The Personnel Division's copy shall form part of the Revenue Official or Employee's 201 File and will be considered by the BIR as proof that one has read the entire contents of this Code. Newly hired/appointed revenue personnel shall also be furnished a copy of this Code, in accordance with the aforementioned requirements. SECTION 8 . Definition of Terms. For purposes of this Code, the following terms or phrases shall be defined as follows: a) "Annual Gross Salary" shall refer to all forms of compensation actually received from the BIR, except per diem . 2 b) "Assets" shall refer to any property; or anything which is or may be the object of appropriation or use; or anything by which liabilities can be paid; or anything of value; and any probable future economic benefit obtained or controlled as a result of past transaction or event. 3 c) "Being Notoriously Undesirable" shall refer to an offense based mainly on the general reputation of one's character due to bad attitude, being quarrelsome and/or delinquent by virtue of repeated infractions of office rules or creating trouble in the workplace ( e.g., rumor mongering, quarrelsome attitude, possessing troublesome character). The focus of this offense is the totality of one's conduct in office and not one's liability for the individual acts. 4 d) "Benefits" shall refer to a right, privilege, entertainment, exemption or any other similar act of liberality in favor of another. e) "Bribery" shall be classified into: i. "Direct Bribery" which is committed when one: (1) agrees to perform an unlawful act/duty, in consideration of an offer, promise, gift or present, relating to the performance of one's official functions, personally or through the mediation of another; or (2) accepts a gift in consideration of the execution of a lawful act/duty relating to the performance of one's official functions; or (3) agrees to refrain from doing something which is one's official duty to do, in consideration of a gift or promise. 5 ii. "Indirect Bribery" which is committed when one accepts gifts being offered by reason of one's office. 6 CEDScA f) "Business Interest" shall refer to any existing interest in any business enterprise or entity, whether as proprietor, investor, promoter, partner, shareholder, officer, managing director, executive, creditor, owner, among others, with an expectation of return on capital and industry/service for profit. 7 g) "Close Personal Relation" shall include close personal relationship, social or fraternal connections, and professional employment, all giving rise to intimacy which assures free access to Revenue Official or Employee. 8 h) "Compensation" shall refer to the basic pay or salary received pursuant to one's employment/appointment, excluding per diems, bonuses, overtime pays, and allowances. 9 i) "Complaint" shall refer to a written document subscribed and sworn to by the complainant containing a narration of relevant and material facts which shows the acts and/or omissions allegedly committed. 10 j) "Conduct Prejudicial to the Best Interest of the Service" shall refer to the conduct which will give a bad image to the BIR. 11 k) "Conflict of Interest" shall refer to a situation where a member of a board, or an officer or a stockholder of a private corporation, with a substantial interest in a business, and the interest of such corporation or business, or one's rights or duties therein, may be opposed to or be affected by the faithful performance of official duty. 12 l) "Disgraceful and Immoral Conduct" shall refer to an act which violates the basic norm of decency and morality and is repulsive to normal standards of decency, morality and decorum. It is an act which society abhors and condemns and must be penalized as the conduct requires one to be beyond reproach. 13 m) "Dishonesty" shall refer to the concealment or suppression of truth relevant to one's office or connected with the performance of one's duties; or an absence of integrity, or a disposition in bad faith intended to betray, cheat, deceive or defraud. It generally implies deceit or intention to deceive or cheat. 14 This Code classifies the offense of Dishonesty depending upon its degree of commission, to wit: (1) Serious Dishonesty, (2) Less Serious Dishonesty, and (3) Simple Dishonesty . n) "Disloyalty to the Republic" shall refer to an act committed when there is abandonment or renunciation of one's loyalty to the government or an act advocating the overthrow of the government. 15 o) "Divestment" shall refer to the manner of transferring and/or divesting oneself of interest or title in a property by voluntarily, completely and actually depriving or dispossessing oneself of such right or title in favor of a person or persons other than one's spouse and relatives as defined by this Code. 16 p) "E-Complaint" shall refer to an electronic system of filing a valid and verifiable complaint, thru the BIR's official website, against one who has failed to act in accordance with the provisions of this Code. 17 q) "Extortion" shall refer to the act of obtaining property from another, induced by wrongful use of actual or threatened force, violence, or fear, or under color of official right. 18 r) "Falsification" shall refer to the misrepresentation of a thing, fact, or condition, certifying that a thing is true when it is not, whether one has the right to make the representation or certification. It also refers to the commission of a deliberate falsehood with the intent to deceive. 19 s) "Financial and Material Interest" shall refer to pecuniary or proprietary interest by which a person will gain or lose something. t) "Financial Connection" shall refer to any existing connection with any business enterprise or entity, whether as lawyer, legal consultant or adviser, financial or business consultant, accountant, auditor, and the like, with an expectation of remuneration for services rendered. 20 u) "Grave Misconduct" shall refer to an act committed which carries with it the elements of corruption, clear intent to violate the law, and/or flagrant disregard of established rule. 21 cHSTEA v) "Gross Neglect of Duty" shall imply wanton negligence and open disregard of one's duties and functions. 22 w) "Frequent Unauthorized Absences" shall refer to an act by one who incurs unauthorized absences exceeding the allowable 2.5 days monthly leave credit under the leave law for at least three (3) months in a semester or at least three (3) consecutive months during the year. 23 x) "Habitual Drunkenness" shall refer to the custom or habit of getting drunk; the constant indulgence in stimulants, whereby intoxication is produced not in the ordinary use, but in the habitual use of them. 24 y) "Habitual Tardiness" shall refer to an act where one incurs tardiness, regardless of the number of minutes or hours, with ten (10) times late every month for at least two (2) months in a semester or at least two (2) consecutive months during the year. 25 z) "Immediate Members of the Family" shall refer to one's spouse and dependent children, not more than twenty-one (21) years of age, unmarried and not gainfully employed or if such dependent regardless of age, is incapable of self-support because of mental or physical defect, and dependent parents. 26 aa) "Incompetence" shall refer to the lack of ability and/or legal qualification or fitness to discharge the required duty, or want of physical, or intellectual and/or moral fitness. 27 bb) "Inefficiency" shall refer to the lack of adequate ability and fitness for the attainment of a satisfactory performance of official duty by reason of vice or vicious habits. There should be present want of physical, moral and/or intellectual quality which substantially incapacitates one to perform the duty of an office. 28 cc) "Insubordination" shall refer to the deliberate and willful refusal to comply with a lawful request and/or order of a higher authority. It involves undue disregard of said lawful order and/or willful disrespect of it. 29 dd) "Just Debts" shall mean: (1) claims adjudicated by a court of law, or (2) claims, the existence and justness of which are admitted by the debtor. 30 ee) "Lobbying" shall mean personal solicitation to induce legislators to vote on certain legislation. It includes the passage or defeat of pending bills which affect one's interest or the interests of one's clients. 31 ff) "Modest and Simple Living" shall refer to a standard required in relation to the lifestyle of living vis--vis one's visible means of income as correctly disclosed in one's income tax returns, annual statement of assets, liabilities and net worth, and other documents relating to financial and business interests and involvements. 32 gg) "Moral Turpitude" shall refer to the act which is contrary to justice, honesty, modesty and/or good morals. 33 hh) "Neglect of Duty" shall refer to the failure to do and/or perform any, some, or all of the duties of one's office and when such failure, from the gravity of the case and/or frequency of the instances, becomes so serious in its character as to endanger or threaten the public welfare, order and/or security. ii) "Nepotism" shall refer to all appointments in the BIR made in favor of a relative within the third degree of consanguinity or affinity of the appointing or recommending authority, or of the Chiefs of office of the BIR, and/or of a Revenue Official exercising immediate supervision over him/her. 34 jj) "Official Document" shall refer to a document which is issued by an authorized/competent Revenue Official in the exercise, or performance of one's official duties. kk) "Oppression" shall refer to an act of cruelty, severity, unlawful exaction, domination and/or excessive use of authority. 35 ll) "Partisan Political Activity" shall refer to an act designed to promote the election or defeat of a particular candidate to a public office and shall include acts enumerated under Section 10 (A) of this Code. CacEID mm) "Procurement" shall refer to the acquisition of goods (all items, supplies, materials and general support services, except consulting services and infrastructure projects, which may be needed in the transaction of the public business or in the pursuit of any of the BIR's undertaking, project or activity, whether in the nature of equipment, furniture, stationery, materials for construction, or personal property of any kind, including non-personal or contractual services, such as repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services, as well as procurement of materials and supplies contracted by the BIR), consulting services, and/or the contracting for infrastructure projects by the BIR. 36 nn) "Prohibited Drug" shall include opium and its active components and derivatives, such as heroin and morphine; coca leaf and its derivatives, principally cocaine; alpha and beta eucaine; hallucinogenic drugs, such as mescaline, lysergic acid diethylamide (LSD) and other substances producing similar effects; Indian hemp and its derivatives; all preparations made from any of the foregoing and other drugs, whether natural or synthetic, with the physiological effects of a narcotic drug. 37 oo) "Prohibited Gift" shall refer to the gift which is given to a Revenue Official or Employee in anticipation of and/or in exchange for a favor. 38 pp) "Public Document" shall refer to a document created, executed or issued by authorized/competent Revenue Officials in response to the exigencies of the public service, or in the execution of which said Revenue Officials intervened. 39 It also refers to any instrument notarized by a notary public or a competent public official, with the solemnities required by law. 40 qq) "Refusal to Perform Official Duty" shall refer to the unjustified refusal under a duty to perform and/or an act signifying an intention not to perform. rr) "Relatives of Revenue Official and Employee" shall refer to any and/or all persons who are relatives within the fourth civil degree of consanguinity (relationship by blood) or of affinity (relationship by marriage),including bilas (husbands of two sisters),inso (wives of two brothers) and balae (parents of husband and wife) . 41 ss) "Revenue Issuances" shall refer to all issuances made by the Commissioner and/or his/her duly authorized representatives such as but not limited to Revenue Regulations (RR), Revenue Memorandum Orders (RMO), Revenue Memorandum Circulars (RMC), Revenue Audit Memorandum Orders (RAMO), Revenue Delegation Authority Orders (RDAO), Revenue Administrative Orders (RAO), Revenue Memorandum Rulings (RMR), Revenue Bulletins (RB), Revenue Travel Assignment Orders (RTAO) and Revenue Special Order (RSO). 42 tt) "Revenue Employees" shall include all revenue personnel other than Revenue Officials, whether permanent, temporary, casual or contractual. uu) "Revenue Officials" shall include the Commissioner, Deputy Commissioners, Assistant Commissioners and Head Revenue Executive Assistants; Regional Directors and Assistant Regional Directors; Division Chiefs, Assistant Division Chiefs and Section Chiefs; Revenue District Officers, Assistant Revenue District Officers and Section Chiefs or Heads of Units. vv) "Salary" shall refer to the fixed amount of money paid to a Revenue Official or Employee as consideration for services rendered, which consists only of the gross salary, without other benefits or emoluments. 43 ww) "Sexual Harassment" shall refer to the act committed by one who, having authority, influence or moral ascendancy over another in a work or training or education environment, demands, and requests or otherwise requires any sexual favor from the other, regardless of whether the demand, request or requirement for submission is accepted by the latter. 44 xx) "Simple Misconduct" shall refer to any unlawful behavior by a public officer in relation to the duties of his office, willful in character. The term embraces acts which the office holder had no right to perform, acts performed improperly and failure to act in the face of an affirmative act or duty. 45 yy) "Smoking" shall refer to the carrying of a lighted cigarette, cigar, pipe or other smoking paraphernalia, whether or not the same is being puffed, inhaled or smoked. 46 IDETCA zz) "Substantial Stockholder" shall refer to one who owns, directly or indirectly, shares of stock sufficient to elect a director of a corporation. 47 aaa) "Transfer of Personnel for Humanitarian Reason" shall mean the transfer/reassignment of a Revenue Official or Employee to another place of assignment due to persistent health problems that require extensive treatment, including one's immediate member of the family, or due to fortuitous events or force majeure .It covers natural disasters or other acts of God (fortuitous event),war or other events beyond the control of man, as well as those unforeseen events caused by acts of man (force majeure) . SECTION 9 . Principles and Norms of Conduct for Revenue Officials and Employees. 48 Every Revenue Official or Employee shall, in the discharge and execution of one's official duties, observe the following Principles and Norms of Conduct: a) At all times, uphold the Constitution and laws of the Republic of the Philippines, and shall place loyalty to country above persons or party; b) Commit to the democratic way of life and values, and maintain the principle of public accountability; c) Uphold public interest over and above personal interest. Disclose one's private and other interests, which may appear to be in conflict with one's official duties, and take all reasonable steps to prevent or resolve such conflict; d) Use all government resources and facilities efficiently, honestly and economically to avoid wastage of public funds and revenues; e) Perform one's responsibilities with utmost dedication to duty and discharge one's duties with the highest degree of integrity, honesty, excellence, professionalism, and impartiality; f) Desist from taking advantage of one's official functions, status, powers or authority in order to avoid personal gain or desist from obtaining any benefit or gain for another person; g) Respect the rights of others and act with courtesy, consideration, sensitivity, fairness and equity in dealings with the public and with one's colleagues; and, h) Abstain from extending undue favors on account of one's office to family or relatives, except with respect to appointments to positions which are considered strictly confidential or as members of one's personal staff whose terms are co-terminous with him/her. CHAPTER II Responsibility to the BIR SECTION 10 . Support and Loyalty to the BIR. Every Revenue Official or Employee shall render his/her services to the BIR with utmost dedication. A. Engaging or participating in any election campaign and partisan political activity is prohibited. Election campaign and partisan political activity shall include the following acts: 49 (1) Forming organizations, associations, clubs, committees or other groups for the purpose of soliciting votes and/or undertaking any campaign for or against a candidate for public office; (2) Holding political caucuses, conferences, meetings, rallies, parades, or other similar assemblies, for the purpose of soliciting votes and/or undertaking any campaign or propaganda; (3) Making speeches, announcements or commentaries or holding interviews for or against the election of any candidate for public office; CcHDaA (4) Publishing or distributing campaign literature or materials designed to support or oppose the election of any candidate for public office; (5) Becoming a delegate to any political convention or member of any political committee or directorate or an officer of any political club or other similar political organizations. Non-compliance therewith shall be considered as Engaging Directly or Indirectly in Partisan Political Activities and shall constitute Grave Offense. 50 B. All Revenue officials and employees must uphold and abide by the Oath of Office which includes provisions on loyalty and prohibition against strikes. Non-compliance therewith shall be considered as Simple Misconduct, and shall constitute a Less Grave Offense. C. As a manifestation of national unity and patriotism and love of country, attendance at the Flag Ceremony every Monday is mandatory and is an integral part of the prescribed regulation on conduct and discipline that must be observed. Thus, failure to attend the Flag Ceremony for two (2) consecutive times in a month and without justifiable cause is an administrative offense. Non-compliance therewith shall be considered as Violation of Office Rules and Regulations and shall constitute a Light Offense. SECTION 11 . Enforcement of BIR Policies and Programs. Every Revenue Official or Employee shall endeavor to implement the BIR's policies and programs promptly, conscientiously, efficiently and effectively, and should do his/her part in supporting the BIR's efforts to attain its goals and objectives. Moreover, he/she is expected to be familiar with the Mission and Vision Statements of the BIR. Non-compliance therewith shall be considered as Inefficiency and Incompetence in the Performance of Official Duties and shall constitute a Grave Offense. SECTION 12 . Responsibility as Head of Office. Every Revenue Official who is a Head of Office shall be held fully accountable for his/her decisions and actions. Similarly, he/she shall be liable for the acts, conduct and/or behavior of those under his/her jurisdiction/supervision, if it is proven that he/she has knowledge of, or ought to have known of, such acts, conduct or behavior. He/She shall likewise be responsible for upholding and enhancing the efficiency of all BIR personnel under his/her supervision, and shall report in writing to the proper authorities any incidence of neglect of duty, incompetence or malfeasance of which he/she may obtain knowledge, with a statement of all the facts and/or any evidence relating to each case. 51 He/She shall also ensure that all pertinent issuances affecting the enforcement of the National Internal Revenue Code and its implementing rules are faithfully complied with and enforced by the BIR personnel under his/her supervision. Non-compliance therewith shall be considered as Simple Neglect of Duty and shall constitute a Less Grave Offense. A. Accountability for Government/BIR Money and Property Every Revenue Official or Employee shall be accountable for any money, property or other thing of value received by, or coming into, his/her custody in connection with the discharge of his/her duties and/or relating to enforcement of internal revenue laws, which must be accounted for and deposited, in accordance with established procedures. Non-compliance therewith shall be considered as Gross Neglect of Duty and shall constitute a Grave Offense. B. Use of Government/BIR Time, Property and Equipment Every Revenue Official or Employee shall have the responsibility to protect and conserve all Government/BIR property, including equipment and supplies entrusted or issued to him/her. He/She is prohibited from using government time, property and/or facilities, including equipment and supplies, for conducting personal business or for unauthorized purposes. A Revenue Official or Employee may be held liable for damage and/or loss of Government/BIR property resulting from his/her negligence and/or the unauthorized use of such property. DcCASI Non-compliance therewith shall be considered as Gross Neglect of Duty and shall constitute a Grave Offense. C. Use of Government/BIR-Owned or Leased Vehicles Only authorized Revenue Officials and Employees are allowed the use of Government/BIR-owned or leased motor vehicles for official purpose only. Other Revenue personnel may also be allowed to use such motor vehicles when it is deemed essential to the successful completion of an official mission. Non-compliance therewith shall be considered as Grave Misconduct and shall constitute a Grave Offense. D. Integrity and Security of Official Documents and Information Official records or documents are required to be secured at all times to prevent their loss. In this regard, every Revenue Official or Employee shall maintain the integrity and security of all official documents or information under his/her responsibility and custody. Records and documents that form part of official files are held under strict confidentiality and the same shall not be removed or taken out without any valid reason and after approval from higher authority. It is unlawful to conceal, alter, mutilate, obliterate, or destroy official records or documents or to remove the same without any official purpose or authority. Disposal or destruction of official records and documents shall be made in accordance with established guidelines and procedures. Revenue Officials and Employees shall likewise uphold the security and confidentiality of official records or documents by ensuring against the unauthorized use or unnecessary disclosure of the information or data contained therein or coming from the concerned BIR offices or the Revenue Computer System. A Revenue Official or Employee shall also be accountable for the mutilation, loss, disappearance, or theft of official records or documents or other important data or files due to his/her negligence or undue disregard of the need to ensure the utmost care in the safekeeping thereof. Non-compliance therewith shall be considered as Gross Neglect of Duty and shall constitute a Grave Offense. E. Protection and Safekeeping of Government/BIR Money and Property Protection and safekeeping of all Government/BIR money, property and other accountability entrusted to, or placed under, the revenue official/employee's care and responsibility must be observed strictly. In case of loss and/or damage thereof, due and prompt reporting of the same must be made in accordance with the prescribed rules and guidelines. Non-compliance therewith shall be considered as Gross Neglect of Duty and shall constitute a Grave Offense. F. Turn-over of Government/BIR Money and Property Upon transfer of assignment, resignation, retirement or separation from the revenue service; enforcement of a duly-issued preventive suspension order; or as required by existing rules and regulations, the BIR official/employees concerned shall turn-over properly all Government/BIR money, property and/or accountability under his/her custody or responsibility. Non-compliance therewith shall be considered as Gross Neglect of Duty and shall constitute a Grave Offense. SECTION 13 . Compliance with Tax Obligations for Revenue Officials and Employees Engaged in Business and/or Exercise of Profession. Every Revenue Official or Employee engaged in business and/or the exercise of his/her profession shall file the required tax returns and pay the corresponding taxes due thereon in a timely and proper manner. Non-compliance therewith shall be considered as Willful Failure to Pay Taxes Due to the Government and shall constitute a Light Offense. CHAPTER III Responsibility to the Public SECTION 14 . Performance of High Quality Service. In line with the BIR's guiding principle of Service Excellence with Integrity and Professionalism, every Revenue Official and Employee shall provide services to the public in an equitable, prompt, efficient and professional manner, exercising good judgment in the performance of his/her official duty. Knowledge and expertise are the necessary tools in delivering high quality service, as well as in identifying opportunities and areas for improvement for the benefit of sustained public service. CHEDAc Non-compliance therewith shall be considered as Inefficiency and Incompetence in the Performance of Official Duties and shall constitute a Grave Offense. SECTION 15 . Demonstration of Integrity. Every Revenue Official and Employee shall demonstrate integrity and honesty in the performance of his/her responsibilities, bearing in mind the Oath of Office that he/she had solemnly sworn to uphold and protect. Taking advantage of official position to acquire private gain or benefit, for oneself and/or for the members of one's family or other relatives, friends or associates, shall not be allowed. All Revenue Officials and Employees must uphold dignity, fairness and honesty by not allowing undue pressure and influence to affect his/her decisions or orders. Non-compliance therewith shall be considered as Conduct Prejudicial to the Best Interest of the Service and shall constitute a Grave Offense. SECTION 16 . Proper Exercise of Discretionary Powers. Notwithstanding the fact that the exercise of discretionary powers is allowed under certain circumstances as provided by law, rules and regulations, the exercise thereof should not be abused. Established rules and procedures should be observed by assuring the paramount interest of the BIR over and above personal interest. Non-compliance therewith shall be considered as Inefficiency and Incompetence in the Performance of Official Duties and shall constitute a Grave Offense. SECTION 17 . Maintenance of Good Public Relations. A. Courtesy, Fairness and Impartiality All Revenue Officials and Employees are expected to uphold good public relations in the discharge of their official duties. A Revenue Official/Employee should conduct himself/herself in a manner that will enhance public respect and confidence. Fair, impartial, effective and efficient dealing with the taxpayers and the general public should be upheld without any fear or favor. Non-compliance therewith shall be considered as Gross Discourtesy in the Discharge of Official Functions and shall constitute a Less Grave Offense. B. Uphold Courtesy and Respect in Dealing with Lawyers and Accountants of Taxpayers Should there be any adverse findings against the tax case of a taxpayer in the course of an audit investigation or other forms of inquiry, such findings should be discussed in an equitable manner and resolved in accordance with prescribed procedures. The importance of courtesy and respect; and the observance of the prescribed guidelines and procedures in the conduct of tax audit and examination, as well as tax mapping operations and similar activities, must be strictly upheld, in order to foster and maintain cordial relationships with Attorneys and Accountants of taxpayers. It is likewise important to apprise the taxpayers of their rights embodied in the Taxpayer's Bill of Rights and Obligations, which is posted on the BIR Official website. Non-compliance therewith shall be considered as Discourtesy in the Discharge of Official Functions and shall constitute a Light Offense. SECTION 18 . Prohibition Against Conflict of Interest and Partiality. A. A Conflict of Interest arises: 52 (1) When a Revenue Official or Employee is: (a) a substantial stockholder; or (b) a member of the Board of Directors of a corporation; or (c) an officer of the corporation; or (d) an owner who has substantial interest in a private business; or, (2) When a Revenue Official or Employee is a partner in a partnership; and TCaADS (3) When his/her interests in such corporation or business, or rights or duties therein, are opposed to or affected vis--vis the faithful performance of his/her official duties. B. Requirement for Validity of Divestment of Interest (1) Resignation from one's position in any private business enterprise within thirty (30) days from one's assumption of office and/or within sixty (60) days from becoming a shareholder or holder of rights thereof. The aforesaid rule shall apply with respect to a partnership where one is a partner. (2) If the conditions in Section 18 (A) are present, it shall be mandatory to divest oneself of such interests or participation therein, even if one has already resigned as such stockholder and/or officer of said private entity. (3) Transfer of interests or divestment of one's shares/participations shall be done to any individual, firm, or other entity, except to one's spouse and relatives within the fourth civil degree of consanguinity or affinity. (4) The rule on divestment of interest shall not apply to the following: (a) Any person, firm or other entity which is not covered by law, or is serving the government in an honorary capacity; and/or, (b) Laborers and casual or temporary workers. Non-compliance therewith shall be considered as Failure to comply with the Requirement for Validity of Divestment of Interest and shall constitute a Less Grave Offense. C. Prohibition Against Financial and Material Transactions (1) Every Revenue Official or Employee shall not, directly or indirectly, engage in any financial or material dealings or transactions where the approval/clearance of BIR is required. 53 Revenue Officials and Employees are prohibited from, directly or indirectly, taking part in any bidding or sale of Government/BIR property under the direct control or supervision of the Government/BIR. (2) Government/BIR property or property under the Department of Finance shall not be sold to a Revenue Official or Employee, either directly or indirectly, unless it has been determined that the sale or disposition thereof shall redound to the best interest of the Government/BIR. (3) Before making any acquisition of any Government/BIR property or from any agency of the Government, either directly or indirectly, a disclosure of one's employment status with the BIR and the rules relating to sale of Government/BIR property to government employees must be observed. Non-compliance therewith shall be considered as Violation Against Conflict of Interest and shall constitute a Grave Offense. D. Prohibition Against Outside Employment and When Allowed (1) Employment with the BIR shall be on a full-time capacity and shall constitute as the sole employment of a Revenue Official or Employee. Full-time service to the BIR should be the paramount concern, which should not be subordinated with one's personal interest. Engaging in the practice of a profession or business, outside of one's employment with the BIR, without securing the approval of the proper authority, is prohibited. Moreover, seeking outside employment or engaging in the exercise of a profession or business that would run in conflict with one's official duty and/or likely to affect or compromise one's performance is not allowed. (2) Outside employment may be allowed if the following conditions are present: (a) It shall not be performed during regular working hours; and, (b) It must be in line with one's profession. However, the authority to practice one's profession outside of employment shall not cover private practice, except for duly-licensed instructors, professors, lecturers, resource persons, or notary public, where private practice may be allowed. aITDAE (3) It is prohibited to disclose or make known confidential information obtained in the course of one's employment in the BIR. (4) In relation to Items (2) and (3) above, the following conditions are also required: 54 (a) Section 7, paragraphs (a), (b) and (c) of Republic Act No. 6713, otherwise known as "Code of Conduct and Ethical Standards for Public Officials and Employees" must be strictly observed. (b) The conduct of outside employment shall not run in conflict, or tend to be in conflict, with one's official functions; and (c) Outside employment shall not be done during office hours nor violate the forty (40) hour work week schedule, as required. Non-compliance therewith shall be considered as Violation Against Conflict of Interest and shall constitute a Grave Offense. E. Prohibited Acts Constituting Conflict of Interest and Partiality 55 The following acts and/or transactions are strictly prohibited: (1) Accepting, or having any member of one's family accept employment, in a private enterprise which has a pending official business with him/her, or within one year after the termination of his/her employment with the BIR; (2) Neglecting or refusing, after due demand or request, without sufficient justification, to act within a reasonable time on any matter pending before him/her for the purpose of: (a) obtaining, directly or indirectly, from any person, some pecuniary or material benefit or advantage, or (b) favoring his/her own interest, or giving undue advantage and/or discriminating against any person or other interested party. (3) Entering into, on behalf of the BIR, any contract or transaction manifestly and grossly disadvantageous to said agency, whether or not one has profited or will profit thereby; (4) Having financial or pecuniary interest, directly or indirectly, in any business, contract or transaction in connection with which one intervenes or takes part in one's official capacity, or in which one is prohibited by the Constitution or by any law from having any interest therein; (5) Becoming interested for personal gain, or having a material interest, directly or indirectly, in any transaction or act requiring the approval of a board, panel or group of which one is a member, and for which one exercises discretion in the approval thereof, even if one votes against the same or does not participate in the action of the board, committee, panel or group. Interest for personal gain shall be presumed for cases involving transactions or acts which are manifestly unlawful, inequitable, or irregular; (6) Knowingly approving or granting any registration, award, privilege or benefit in favor of any person not qualified for or not legally entitled to such registration, award, privilege or benefit, or being a mere representative or dummy of one who is not so qualified or entitled; and (7) Capitalizing, exploiting or taking advantage on account of private individual's family or close personal relation/association with one by, directly or indirectly, requesting or receiving any present, gift or material or pecuniary advantage from such individual having some business, transaction, application, request or contract where said revenue personnel has to intervene. Non-compliance therewith shall be considered as Grave Misconduct and Conduct Prejudicial to the Best Interest of the Service and shall constitute a Grave Offense. SHADcT F. Inhibition from Certain Assignments Taking advantage of one's position in the BIR as a result of one's personal relationship with taxpayers, whether social or business, must be avoided. A Revenue Official/Employee must inhibit himself/herself from taking part, actively or through intercession/intervention, in cases involving tax investigations, audit or examination; adjudication of tax cases; rendering of opinions and tax rulings; and other similar requests. The matter must be discussed with one's superior for appropriate guidance and compliance therewith. Non-compliance therewith shall be considered as Conduct Prejudicial to the Best Interest of the Service and shall constitute a Grave Offense. G. Prohibition Against Acting as Lawyer/Legal Counsel, Accountant, Consultant or Similar Services, In Behalf of a Taxpayer No Revenue Official or Employee shall act as Lawyer/Legal Counsel, Accountant, Consultant, Adviser, or similar services, in behalf of a taxpayer, on tax-related matters and involving the discharge of one's official functions, that will be prejudicial to, and/or will compromise, the rights and/or interests of the BIR. Non-compliance therewith shall be considered as Conduct Prejudicial to the Best Interest of the Service and shall constitute a Grave Offense. H. Official Dealings with Taxpayers According to Prescribed Rules All official dealings with taxpayers or their representatives must be conducted in accordance with prescribed rules. Strict observance thereof is required in view of the confidentiality of the nature of one's duty. Non-compliance therewith shall be considered as Violation of Reasonable Office Rules and Regulations and shall constitute a Light Offense. I. Prohibition Against Material Dealings and/or Obtaining Financial Gains with Taxpayers and their Representatives No Revenue Official or Employee shall engage in any dealings with taxpayers or the latter's representatives where a conflict of interest would arise and/or obtain for himself/herself material or financial gain and business advantage. Non-compliance therewith shall be considered as Grave Misconduct and shall constitute a Grave Offense. J. Prohibition Against Dealings with Taxpayers in the Conduct of Audit and Examination and Similar Requirements Every Revenue Official or Employee is prohibited from making undue and unauthorized dealings with taxpayers or their representatives in the conduct of audit and examination of their books of accounts or accounting records, such as but not limited to the following acts: (1) Non-observance of the rules and procedures in the conduct of audit/examination of books of accounts or other accounting records; or (2) Non-compliance with prescribed rules relating to: (a) The service of Letters of Authority (LAs)/Tax Verification Notices (TVNs)/Letter Notices (LNs);post reporting notices, assessment notices, and demand letters; (b) The issuance of Certificates Authorizing Registration (CAR);or (c) Other similar activities; or (3) Threatening or intimidating a taxpayer by making unreasonable demands, displaying an abusive attitude and/or disrespectful conduct; or (4) Frequent visitation at a taxpayer's place of business even after office hours and without authority and official business; or (5) Unauthorized disclosure of audit findings that do not bear the approval and conformity of the approving authority, or issuance of audit findings without the accompanying investigation report or in the absence of factual and/or legal basis; or (6) Premature disclosure to taxpayers of audit findings which are not supported by substantial evidence and without following the prescribed procedures; or DHaECI (7) Such other related violations that are applicable under the circumstances. Non-compliance therewith shall be considered as Conduct Prejudicial to the Best Interest of the Service and shall constitute a Grave Offense. K. Harassment of Taxpayers by Revenue Officials or Employees The following may be considered as incidents of Harassment of Taxpayers by a Revenue Official or Employee who is charged with the duty to conduct an audit examination: (1) Improbable and/or arbitrary assessment determined by the Assessment Division in the Regional Office, or by the Assessment Service in the National Office, as the case may be; (2) Arrogance and/or non-observance of punctuality in appointments with taxpayers; (3) Indiscriminate and unauthorized issuance of letter conferences; (4) Unreasonable/unjustifiable delay in the investigation and processing of tax cases; and (5) Requiring the taxpayer to prepare working papers, and other documents which he/she has already filed with the BIR. SECTION 19 . Non-Disclosure of Documents and Confidential Information to the Public and When Allowed. A. Illegal or Unauthorized Disclosure/Divulgence of Official or Confidential Information 56 No Revenue Official or Employee shall disclose or divulge any official information or document obtained in the discharge of his/her official functions, other than those allowed by law or by the proper authority. The unauthorized discussion of revenue service operations is likewise strictly prohibited. It is similarly unlawful to divulge to any person or to make known, in any other manner than as may be provided by law, information regarding the business, income or estate of any taxpayer, the secrets, operation, style or work, or apparatus of any manufacturer or producer, or confidential information regarding the business of any taxpayer, knowledge of which was acquired by him/her in the discharge of official duties, unless otherwise authorized by law or the competent authority. 57 Non-compliance therewith shall be considered as Unauthorized Disclosure/Divulgence of Confidential Information and shall constitute a Grave Offense. B. Proper Dissemination of Revenue Issuances Revenue issuances shall be disseminated/circulated to the BIR's internal and external stakeholders in accordance with prescribed guidelines and procedures, including those relating to the numbering, production and publication thereof. Non-compliance therewith shall be considered as Violation of Reasonable Office Rules and Regulations and shall constitute a Light Offense. C. Prompt Reply to Official Communications Every Revenue Official or Employee is obliged to reply to letters, telegrams, telefaxes, e-mails, text messages and other forms of communications, within fifteen (15) working days from receipt thereof, which reply shall embody the action taken thereon. 58 Non-compliance therewith shall be considered as Violation of Reasonable Office Rules and Regulations and shall constitute a Light Offense. D. Unauthorized Production of Information Every Revenue Official or Employee is prohibited from producing and/or providing any official record, or copies thereof, to private persons and or entities, courts or other government agencies, except in compliance with a duly issued subpoena as may be allowed under existing laws and regulations, 59 or when a clearance therefor has been obtained from the Legal Service or Legal Division, as the case may be. Non-compliance therewith shall be considered as Violation of Reasonable Office Rules and Regulations and shall constitute a Light Offense. E. Public Speaking Engagements or Publication of Articles Relating to Service Operations Approval of the Commissioner must be secured before a Revenue Official or Employee can accept any invitation as lecturer, speaker, trainer and other similar commitments, whether through public engagement, radio and/or television broadcast. EaHDcS All such engagements shall be rendered pro bono and no monetary compensation or any other form of payment shall attach in consideration thereof, except in the form of an honorarium, token of appreciation or a nominal amount that is given as recognition of the services rendered. Non-compliance therewith shall be considered as Violation of Reasonable Office Rules and Regulations and shall constitute a Light Offense. SECTION 20 . Filing of Statement of Assets, Liabilities and Net Worth and Financial Disclosure of Interests. The filing of the Statement of Assets, Liabilities and Net Worth (SALN),using the format prescribed by the Civil Service Commission, is mandatory for all Revenue Officials and Employees, in recognition of the principle that transparency and accountability in public office should be observed. In this regard, the SALN of a Revenue Official/Employee shall disclose therein his/her business interests and financial connections, including those of his/her spouse and the personal data of his/her unmarried children under twenty-one (21) years of age living in his/her households and wholly dependent upon him/her for their chief support. A. Items to be Declared in the SALN 60 (1) Annual Gross Salary (2) Annual Gross Family Income (3) Real Properties and Vehicles of the declarant, spouse, and children living in the household must be declared regardless of value (4) Investments and Other Personal Property (5) Liabilities (6) Business Interests and Financial Connections (7) Relatives in Government (8) Gratuitous Acquisitions of Assets B. Information of Existing Business Interests and Financial Connections 61 The information on existing business interests and financial connections shall cover the following: (1) Matters dealing with one's existing interests in, or any existing connections with any business enterprise or entity, whether as proprietor, investor, promoter, partner, shareholder, officer, managing director, executive, creditor, lawyer, legal consultant, accountant, auditor, and the like; (2) The names and addresses of the business enterprises or entities; (3) The dates when such interests or connections were established; and, (4) Such other details as will show the nature of the interests or connections. C. Period Required for the Filing of the SALN 62 (1) Newly hired Employees within thirty (30) calendar days from assumption of office or earlier, when required by the Personnel Division, to be reckoned from declarant's first day of office. (2) Annual Filing Not later than April 30 of every year, to be reckoned from the day following the cut-off date of the previous SALN declaration, up to December 31 of the reporting period. (3) Retirement/Separation from the service Within 30 days after separation from the BIR. D. Manner of Filing of the SALN 63 The duly-accomplished SALN Form shall be accomplished in quadruplicate and submitted to the Personnel Division and Human Resource Management Units (HRMU),for Revenue Officials and Employees from the National Office and Regional/District Offices, respectively. A copy shall be retained by the Revenue Official or Employee and it shall serve as proof of SALN submission. TEHIaA The Chief of the Personnel Division shall transmit to the Civil Service Commission, on or before June 30 of every year, all original copies of the SALN, with a list of filers arranged in alphabetical order. The HRMU shall transmit the same to the Deputy Ombudsman in the respective regions and shall likewise provide the Personnel Division copies thereof for records and file purposes. Non-compliance therewith shall be considered as Neglect of Duty and shall constitute a Less Grave Offense. E. Disclosure of Relatives in the Government 64 Disclosure of a Revenue Official's/Employee's relatives in the Government/BIR is mandated by providing the names, relationships, positions, and offices/addresses of said relatives, namely: relatives up to the third degree of relationship, either of consanguinity or affinity, including bilas (husbands of two sisters), inso (wives of two brothers) and balae (parents of husband and wife). Non-compliance therewith shall be considered as Neglect of Duty and shall constitute a Less Grave Offense. SECTION 21 . Solicitation and Acceptance of Gifts and Benefits. The BIR is committed in upholding this highest standards of morality in government, guided by the principles that public office is a public trust; that all public officials and employees shall at all times be accountable to the people, and shall discharge their duties with utmost responsibility, integrity, competence and loyalty, act with patriotism and justice, and/or lead modest lives. Every Revenue Official or Employee shall conduct himself/herself in an impartial and professional manner by demonstrating the highest degree of decency and integrity in the performance of his/her duties through the refusal of offers of gifts and/or other inducements. Solicitation, request, acceptance and/or receipt of any gift, benefit, gratuity, favor, service, loan, entertainment or anything of monetary value, for oneself or for others, or from other persons, in the course of his/her official duty or in connection with any official operation or dealing of which he/she is required to pass upon or regulate on any transaction which may be affected by reason of his/her official function, or under circumstance which might reasonably be construed as influencing his/her official duty, whether in reference to past, present or future dealings or transactions, is prohibited. 65 In the course of the performance of his/her official functions, a Revenue Official/Employee is also prohibited from accepting any fee or remuneration beyond what he/she is legally entitled to receive, in accordance with existing laws and regulations. Gifts and/or benefits may be accepted under any of the following circumstances: (1) Unsolicited gifts of nominal or insignificant value not given in anticipation of, or in exchange for a favor or given after the official dealing is completed, or service is required. As to what constitutes a nominal value will depend on the circumstances of each case, taking into account the salary, frequency or infrequency of the giving or the expectation of benefits, and other similar factors; 66 CSIHDA (2) Gifts from a member of family or relatives as defined in this Code, on the occasion of a family celebration, without any expectation of pecuniary gain or benefit; 67 i. Gifts received from a spouse, children, parents, parents-in-law, brothers, sisters and relatives within the 4th civil degree valued at Three Thousand Pesos (Php3,000.00) or more shall be recorded in a Registry Book to be provided by and kept in the custody of the Inspection Service in the National Office, or the Administrative Divisions in the Revenue Regions or Administrative Sections in the Revenue District Offices, as the case may be. Such gift shall not be allowed if given and/or accepted within the BIR premises while the recipient of said gift is in the conduct of his/her official function and duty; (3) Nominal gifts from persons with no pending dealings or transactions with the BIR and without any expectation of pecuniary gain or benefit; 68 (4) Gifts coming from private organizations, whether local or foreign, which is considered and accepted for humanitarian and altruistic purpose and mission; 69 (5) Gifts coming from government to government entities; 70 (6) In the case of gifts or grants coming from foreign governments, Congress should consent to the acceptance and/or retention of: 71 i. Gifts of nominal value tendered and received as a souvenir or a mark of courtesy; ii. Gifts in the nature of a scholarship or fellowship grant or medical treatment; iii. Travel grants or expenses for travel taking place entirely outside the Philippines (such as allowances, transportation, food and lodging) of more than nominal value, if such acceptance is appropriate or consistent with the interest of the BIR, and permitted by the Commissioner; (7) Token gifts of nominal value received from his/her fellow Revenue Official and Employee appropriate to the occasion in which they are made. A gift shall be considered nominal if it has a value of Five Hundred Pesos (Php500.00),or less, on a per giver/recipient basis, or such similar amount as may be appropriate to the position and/or income of the giver. It must be understood, however, that if the aggregate amount of the token or gifts of nominal value received under this section within the calendar year is Two Thousand Pesos (Php2,000.00),the recipient shall cause the same to be recorded in the Registry Book in the custody of the Inspection Service in the National Office, or the Administrative Divisions in the Revenue Regions or Administrative Sections in the Revenue District Offices, as the case may be; (8) Emergency contribution/assistance of reasonable value or amount in cases of death, illness and other similar situations received from fellow Revenue Officials and Employees; (9) Plaques, awards, certificates, souvenirs or other tokens of appreciation or gratitude and/or benefits appropriate to the occasion/ceremonies in which they are given, provided that such plaques, awards, certificates, and/or benefits will not reasonably be perceived as intended to influence a Revenue Official/Employee in the performance of his/her official functions; (10) Gifts and/or benefits received by a BIR office as an institution from individuals, other offices or organizations, including grants and donations. However, if the total value of the gift and/or benefits received is Two Thousand Pesos (Php2,000.00),it shall likewise be recorded in a Registry Book kept in the custody of the Office of the Inspection Service in the National Office, or the Administrative Divisions in the Revenue Regions, or Administrative Sections in the Revenue District Offices, as the case may be; (11) Gifts or cash awards given by the BIR during Anniversary and Christmas celebrations; IHCSTE (12) Performance-based cash rewards, scholarship grants and similar benefits granted by appropriate government agencies, private institutions, or national or international organizations. It shall be unlawful to accept or receive gifts and/or benefits, under any of the following circumstances: (1) Gifts or gratuities to a Revenue Official's/Employee's family and relatives where he/she is prohibited to accept the same by reason of his/her official connection with the giver/donor. Reasonable steps should be taken to ensure that families and relatives of Revenue Officials and Employees are not the recipients of gifts or benefits which could give the appearance of an indirect attempt to secure the official's/employee's influence or favor; (2) Accepting of gifts, gratuities presents, emoluments, offices or titles from foreign governments, except with the consent of Congress; 72 (3) Solicitation of gifts or contributions in any kind from other persons or employees as gifts or presents to superiors, the receipt of which might in any way tend to influence the official concerned; or (4) Request, either for oneself or for others, or acceptance of gifts or other benefits from a subordinate, or from the family and relatives of subordinates. (5) Offer of gifts or other benefits to a superior, or to a superior's family or relatives, save for items of use and of modest value, for the purpose of gaining undue influence and advantage or in exchange of a favor. Non-compliance therewith shall be considered as Unauthorized Solicitation and Acceptance of Gifts and/or Benefits and shall constitute a Grave Offense. SECTION 22 . Procurement of Revenue Goods and Services, Infrastructure Projects and Consultancy Services. 73 The procurement process at the BIR shall be governed by the established rules and regulations on government procurement, as well as the rules to be prescribed by the BIR. Every Revenue Official or Employee involved in the procurement of the BIR's goods, supplies, or property; consultancy, janitorial, security, and other services, shall be responsible for upholding the transparency, effectiveness and efficiency of the BIR's procurement system. He/She should be mindful of potential conflicts of interest that may arise, and shall not use his/her position to benefit himself/herself or any other person or entity. The following are the guiding principles to be observed in the procurement of goods and services for the BIR: (1) Ensure transparency of the procurement process and implementation of procurement contracts; (2) Ensure the widest dissemination of bid opportunities and the participation of pertinent non-government organizations; (3) Maintain proper documentation of each procurement transaction and availability of such records to proper parties; (4) Conduct a competitive public bidding process that treats bidders equitably and provides fair grounds for competition that would offer more beneficial terms for the BIR; (5) Ensure that value for money is obtained by promoting fair, open and accessible competition when seeking or renewing contracts; (6) Accept responsibility, be fully accountable and maintain sufficient documentation and justifiable selection criteria; (7) Ensure that the processes are transparent, and free from bias or the perception of bias; (8) Ensure that there are no actual or perceived conflicts of interest by including the full disclosure of any past, present or proposed future relationships, connections or interests with bidders; and (9) Act in a way that does not compromise the standing of the BIR. Receipt of collections by, and grant of honoraria to, an official or employee who is involved in procurement activities shall be in accordance with the prescribed guidelines and procedures. Non-compliance therewith shall be considered as Serious Dishonesty and shall constitute a Grave Offense. SECTION 23 . Disclosure to Proper Authorities of Any Violation, Infraction, Misconduct and Unethical Behavior. To ensure that public accountability is strictly observed and to attain the high standard of morality, integrity, honesty and decency in the attainment of good governance, every Revenue Official or Employee shall have the obligation to disclose and/or report to the proper authorities any incident, discovered by, and/or made known to him/her, involving misbehavior or misdemeanor that is illegal or unethical per se and/or otherwise violates the National Internal Revenue Code of 1997 (as amended), tax rules and regulations and this Code of Conduct. The disclosure to be made shall be done in accordance with the rules and procedures to be prescribed by the BIR. Non-compliance therewith shall be considered as Simple Neglect of Duty and shall constitute a Less Grave Offense. SaTAED CHAPTER IV Responsibility in the Workplace SECTION 24 . Demonstration of Leadership. Every Revenue Official/Employee who functions as a Head of Office/Unit shall practice and advocate the qualities of a good and responsible leader, and serve as a role model of the office/unit that he/she represents. He/She should influence, inspire and empower his/her subordinates and co-workers in promoting and supporting the required norms, values, conduct and behavior as embodied in this Code. Non-compliance therewith shall be considered as Violation of Reasonable Office Rules and Regulations and shall constitute a Light Offense. SECTION 25 . Observance of Equity, Courtesy and Respect Towards Colleagues in the BIR. The following rules shall be strictly observed: (1) A working environment that encourages courtesy and respect for one another, treating colleagues as fairly and objectively as may be required, shall be upheld, by ensuring that the atmosphere in the work place is characterized by good working conditions, free from discrimination and harassment. (2) Every Revenue Official and Employee has the right to be treated with fairness and equity. The BIR shall not tolerate discrimination on grounds of regional/cultural diversity, gender, gender preference, age, civil status, pregnancy, parenthood, religious belief or activity, physical disability, political opinion, and such similar beliefs or social, political, religious and cultural preferences and practices. (3) Dignity and respect within the working environment shall be upheld at all times. It is unlawful for an official/employee who has authority, influence, or moral ascendancy over another in the workplace, to demand sexual favors from another, regardless of whether such demand is accepted. 74 Established rules and procedures pertaining to the investigation of sexual harassment cases and the administrative sanctions for violation thereof shall be in accordance with the Administrative Disciplinary Rules to be prescribed on Sexual Harassment Cases in the BIR. "Sexual Harassment" may be classified as a Grave, Less Grave, or Light Offenses, contingent on the attendant conditions, as follows: A. Grave Offenses shall include, but not be limited to, the following: Unwanted touching of private parts of the body (genitalia, buttocks and breasts); Sexual harassment; Malicious touching; Requests for sexual favors in exchange for employment, promotion, local or foreign travels, favorable working conditions or assignments, a passing performance grade/rating, the grant of honors or scholarships, or the grant of benefits or payment of a stipend or allowance; and, Other analogous cases. B. Less Grave Offenses shall include, but not be limited to, the following: Unwanted touching or brushing against the victim's body; Pinching, in a manner that does not fall under the classification of Sexual Harassment as a Grave Offense; Derogatory or degrading remarks or innuendoes directed toward the members of a particular sex, or of a specific sexual orientation, or used to describe a certain individual; Persistent unwanted attentions with sexual overtones; Verbal abuse or threats with sexual overtones; and, Other analogous cases. C. Light Offenses shall include, but not be limited to, the following: Surreptitiously looking, or stealing a look, at a person's private parts or undergarments; Telling sexist/indecent jokes, or sending the same through texts, electronic mail or other similar means of communication, thereby causing embarrassment or offense, and carried out even after the offender has been warned that they are being offensive or embarrassing; or even without such admonition, when the offender is, by nature, being clearly embarrassing, offensive or vulgar; Malicious leering or ogling/staring; The display of sexually-offensive photographs, materials, or graffiti; Unwelcome inquiries or comments about a person's sex life; Unwelcome sexual flirtation, advances and/or propositions; Making offensive hand or body gestures towards an individual; Unwelcome telephone/mobile phone calls with sexual overtones that cause discomfort, embarrassment, offense or insult to the recipient; and, Other analogous cases. Non-compliance with items (1) and (2) above shall be considered as Discourtesy in the Discharge of Official Duties and shall constitute a Light Offense. In the case of item (3),however, non-compliance therewith shall be considered as a Sexual Harassment Case and shall be meted the appropriate penalty that corresponds to the gravity and seriousness of the offense. AEIcSa SECTION 26 . Contribution Required for the Attainment of Office Goals. To attain the prescribed office goals and objectives, it is expected that a Revenue Official/Employee should possess the necessary synergy and innovativeness as part of his/her active involvement therewith. Active participation is mandated, especially in the disposition of a task or mission for good governance. Moreover, an official's/employee's commitment is enjoined, in order to develop new ideas, information and skills aimed at improving the delivery of revenue service. Non-compliance therewith shall be considered as Simple Neglect of Duty and shall constitute a Less Grave Offense. SECTION 27 . Observance of Proper Office Attire or Uniform. In order to be identified as a public official/employee working with the BIR, observance of proper dress code and wearing of prescribed uniform is mandated, in compliance with the Civil Service Memorandum Circulars and established BIR policies and rules. Non-compliance therewith shall be considered as Violation of Reasonable Office Rules and Regulations and shall constitute a Light Offense. SECTION 28 . Use and Wearing of BIR Identification Cards. For security and proper identification purposes, the wearing of the official BIR identification card within the BIR premises ( i.e., National Office, Regional and/or District Offices) is mandatory. Likewise, the official BIR identification card and other similar identification documents must be used solely for the purpose for which they are issued, and shall not be used to take advantage of the same through the privilege, favor or rewards that might be derived from such unauthorized use. Non-compliance therewith shall be considered as Violation of Reasonable Office Rules and Regulations and shall constitute a Light Offense. SECTION 29 . Punctuality, Observance of Required Office Hours, Habitual Tardiness and Frequent Unauthorized Absences in Reporting for Duty. A. The rules on attendance must be observed. Punctuality is required as a way of manifesting the employee's physical presence in the office at all times. The prescribed official time in reporting for duty and leaving work should be strictly observed, from eight o'clock in the morning (8:00 AM) to five o'clock in the afternoon (5:00 PM),for a total of eight (8) hours of work a day, exclusive of the time allotted for lunch period and coffee break, for five (5) days a week, for a total of forty (40) hours a week. The working schedules adopted for offices rendering front line services must also be observed to ensure that all stakeholders who are within the premises prior to the end following official working hours are attended to and served even during lunch break and after regular working hours. 75 Flexi-time arrangement may be allowed in accordance with the rules to be prescribed. B. Habitual tardiness, without any justifiable cause, or irregular office attendance, and/or unjustified absences should not be countenanced. Repeated infractions will result in the deduction of leave credits or salary deduction and/or administrative disciplinary action, in accordance with this Code. C. Frequent Unauthorized Absences exceeding the allowable 2.5 days monthly leave credit specified under the leave law for at least three (3) months in a semester, or at least three (3) consecutive months during the year, are grounds for disciplinary action. D. Applications for leave of absence shall be availed of in accordance with established BIR policies and procedures. The employee concerned should, however, ensure that before such leave of absence becomes effective, the proper turnover of work assignments has been accomplished, in order to avoid disruptions in the work flow of the office. Compensatory services may be availed of outside of regular working hours, except on Sundays, to offset non-attendance or undertimes during the regular office hours subject to the written approval of the head of office. The services rendered during the specified special non-working days may offset future leaves of absence. Such services, however, cannot be added to the leave credits of an employee, nor can it be used to offset the non-attendance or undertimes previously incurred. CETDHA Non-compliance with item (B) above shall be considered as Habitual Tardiness and shall constitute Light Offense. Frequent Unauthorized Absences under item (C) above shall constitute a Grave Offense. SECTION 30 . Non-Engagement of the Services of Private Individuals to Perform Legal, Accounting, Secretarial/Clerical Function or Like Services. All Revenue Officials and Employees, particularly Lawyers, Revenue District Officers, Group Supervisors and other Revenue Officers, are prohibited from employing the services of private individuals to perform legal, accounting, and/or secretarial/clerical functions, or other like services, unless duly authorized by their respective group heads. Non-compliance therewith shall be considered as Conduct Prejudicial to the Best Interest of the Revenue Service and shall constitute a Grave Offense. SECTION 31 . Compliance with Revenue Travel Assignment Order and Revenue Special Order. (1) In pursuit of the exigencies of the revenue service, the Commissioner shall have the authority to transfer any Revenue Official or Employee to a new assignment and/or to assign additional duties and functions to the official/employee. Transfers, assignments, reassignments and temporary designations from one BIR office to another shall be accomplished through the appropriate Revenue Travel Assignment Order (RTAO) or Revenue Special Order (RSO),as the case may be, in accordance with established BIR guidelines and procedures on the movement of personnel. Accordingly, the concerned revenue personnel shall immediately comply with said RTAO/RSO upon official receipt of the same, either through personal or substituted service. The authority to transfer or assign may be delegated by the Commissioner to the Regional Directors for personnel under their respective jurisdictions and authority. (2) In complying with a duly-issued RTAO, the concerned Revenue Official or Employee is mandated to follow the prescribed guidelines and procedures for the issuance of clearance, especially for pending cases covered by Letters of Authority, Tax Verification Notices, Letter Notices and Mission Orders and similar cases. Failure to secure the necessary clearance from the official's/employee's former office shall be considered as sufficient grounds to prohibit him/her from assuming his/her duties at the new place of assignment. In the same manner, the head of office where the revenue personnel will be assigned shall also decline accept him/her without the required clearance obtained from the former office. (3) Transfers for humanitarian reasons shall also be in conformity with established BIR policies and guidelines. Non-compliance with item (1) above shall be considered as Insubordination and shall constitute a Less Grave Offense. Non-compliance with item (2) above shall be considered as Violation of Reasonable Office Rules and Regulations and shall constitute a Light Offense. SECTION 32 . Entry of Visitors Within the Office Premises. For security reason and to regulate the flow of visitors coming in and out of the office premises, only visitors with legitimate and official business with the BIR shall be allowed entry, after securing the proper permit/visitor's pass from authorized persons. The BIR Office concerned shall ensure that this policy is strictly observed by the BIR's duly-contracted security service provider. Non-compliance therewith shall be considered as Violation of Reasonable Office Rules and Regulations and shall constitute a Light Offense. CHAPTER V Personal Behavior SECTION 33 . Maintenance of Public Trust and Confidence. All Revenue Officials and Employees are enjoined to safeguard and uphold public trust and confidence in the BIR. In this regard, they must observe the highest standards of honesty and integrity in dealing with the general public, and with their colleagues in the revenue service. Therefore, becoming involved or engaging in activities that may tarnish or compromise an official's/employee's image as a public servant, and/or the image of the BIR as a public service agency, must be strictly avoided. Non-compliance therewith shall be considered as Simple Misconduct and shall constitute a Less Grave Offense. SECTION 34 . Modest and Simple Living. Every Revenue Official and Employee and his/her immediate family should lead modest and simple lives appropriate to their earning capacity, station in life and/or position in the BIR. They must not indulge in the extravagant or ostentatious display of wealth in any manner or under any circumstance. DHITcS Non-compliance therewith shall be considered as Simple Misconduct and shall constitute a Less Grave Offense. SECTION 35 . Dishonesty as a Ground for Disciplinary Action. 76 Dishonesty is the concealment or distortion of truth, and indicates a lack of integrity or a disposition to defraud, cheat, deceive or betray, as well as an intention to violate the truth. The rules embodied herein are parameters that will guide the disciplinary authority in determining when the offense of Dishonesty has been committed. A. The presence of any one of the following attendant circumstances in the commission of the dishonest act shall constitute the offense of Serious Dishonesty and be classified as a Grave Offense. (1) The dishonest act caused serious damage and grave prejudice to the BIR and/or the Government; (2) The respondent gravely abused his authority in order to commit the dishonest act; (3) Where the respondent is an accountable officer, the dishonest act directly involves BIR property, accountable forms or funds with an intent to commit material gain, graft and corruption; (4) The dishonest act exhibits moral depravity on the part of the respondent; (5) The respondent employed fraud and/or falsification of official documents in the commission of the dishonest act related to his/her employment; (6) The dishonest act was committed several times or in various occasions; (7) The dishonest act involves a fake Civil Service eligibility, or a Civil Service examination irregularity such as, but not limited to: impersonation, cheating and use of crib sheets; and, (8) Other analogous circumstances. B. The presence of any of the following attendant circumstances in the commission of the dishonest act shall constitute the offense of Less Serious Dishonesty and be classified as a Less Grave Offense. (1) The dishonest act caused damage and prejudice to the BIR and/or the Government that is not so serious as to qualify under the immediately preceding classification; (2) The respondent did not take advantage of his/her position in committing the dishonest act; and, (3) Other analogous circumstances. C. The presence of any of the following attendant circumstances in the commission of the dishonest act shall constitute the offense of Simple Dishonesty and be classified as a Light Offense. (1) The dishonest act did not cause damage or prejudice to the government; (2) The dishonest act has no direct relation to, or does not involve, the duties and responsibilities of the respondent; (3) Cases involving the falsification of any official document, where the information falsified is not related to his/her employment; (4) The dishonest act did not result in any gain or benefit to the offender; AHDaET (5) Other analogous circumstances. SECTION 36 . Prohibition Against Engaging in Illegal Gambling and Betting. In order to uphold the time-honored principle that every public servant must live modest lives and maintain the highest degree of integrity in public service, the engagement by any Revenue Official or Employee in any form of illegal gambling is strictly prohibited. Gambling within the BIR premises or during office hours shall not be allowed. Entering casinos, cockpits, racing parks and other gambling houses, is not allowed, except when: Required under a mission order; or, By the nature of his/her task, the official/employee is assigned as an undercover agent for a specified purpose and duration; or, By the nature of his/her function, his/her presence at the said gambling places is necessary and required. Illegal gambling shall include, but not limited to the following: (1) Illegal Numbers Game (2) Jueteng (3) Masiao (4) Last Two 77 (5) Other forms of illegal gambling 78 Non-compliance therewith shall be considered as Engaging in Illegal Gambling and shall constitute a Light Offense. SECTION 37 . Prohibition Against the Use of Intoxicants or Prohibited Drugs. Indulging in, bringing or keeping intoxicating drinks or prohibited drugs or substances, during office hours, or while present within the BIR premises, is prohibited. Moreover, to ensure that the daily operations of a BIR office are not unduly impeded, bringing liquor or intoxicating drinks while on official duty is not allowed, except when required by the nature of one's function, or pursuant to a duly issued mission order. The use of prohibited drugs and intoxicants shall be allowed only if the official/employee concerned has been issued the appropriate prescription by a duly-licensed physician, and the same must not affect his/her work performance, otherwise, the matter must be brought to the attention of his/her supervisor/head of office to address the problem. Non-compliance therewith shall be considered as Grave Misconduct and shall constitute a Grave Offense. SECTION 38 . Observance of No-Smoking Rule. To promote a healthy lifestyle and maintain a smoke-free environment and good working conditions at all BIR offices, the policy and guidelines on the No-Smoking Rule shall be strictly observed. Non-compliance therewith shall be considered as Violation of Reasonable Office Rules and Regulations and shall constitute a Light Offense. SECTION 39 . Making Oneself Visible in Nightclubs, Bars and Other Places of Entertainment by Indulging in Lavish Spending. Every Revenue Official and Employee is mandated to lead a simple and modest life. Accordingly, he/she is prohibited from frequenting nightclubs, bars and other places of entertainment where he/she may indulge in lavish spending, except when required to so do in the conduct of an official mission assigned for a special purpose and specified duration, or as an undercover agent with a duly issued mission order. Non-compliance therewith shall be considered as Violation of Reasonable Office Rules and Regulations and shall constitute a Light Offense. SECTION 40 . Prohibited Association with Disreputable Persons. Association with individuals or group that would tend to compromise, directly or indirectly, a Revenue Official's/Employee's character, reputation or integrity, as well as that of the BIR, is discouraged. This includes association with persons or groups with objectionable reputations and/or engaged in illegal, immoral or reprehensible activities or behavior. TCaEAD Non-compliance therewith shall be considered as Violation of Reasonable Office Rules and Regulations and shall constitute a Light Offense. CHAPTER VI Rights of Revenue Officials and Employees SECTION 41 . Rights of Incumbent Revenue Officials and Employees. The following rights, privileges, grants and benefits of incumbents are prescribed by the Constitution, existing laws and BIR rules and regulations: Benefits Commonly Enjoyed: 1. Compensation or Salary 2. Monetary Benefits 79 3. Leave Benefits: a. leave of absence b. commutation of leave credits c. accumulation of leave credits d. rehabilitation leave e. forced leave f. maternity leave 80 g. paternity leave 81 h. vacation and sick leaves 82 i. birthday leave j. funeral/mourning leave k. hospitalization leave l. accident leave m. enrollment leave n. relocation leave o. wedding/anniversary leave p. graduation leave q. terminal leave r. special leave privileges 83 s. parental leave t. sabbatical leave u. transfer of leave privileges when transferring from one government agency to another v. Benefits under the National Internal Revenue Code of 1977 and Republic Act No. 9335 or the Lateral Attrition Act of 2005 w. Other similar benefits allowed under existing law, rules and/or regulations 4. self-organization 84 5. reimbursement and indemnity 85 6. career and employee development (preference in promotion, transfer, training and development) a. Performance Evaluation System b. Merit Promotion c. BIR training programs: cSEDTC i. Orientation programs 86 ii. Technical Training Programs iii. Management and Leadership Training Programs d. BIR Scholarship Programs: i. Local and foreign scholarship programs ii. Study Leave Grant 7. grant of incentives and award for service excellence: a. model employee award b. "gantimpala agad" award c. exemplary behavior award d. model office award e. cost economy measure award f. service award g. star award h. loyalty incentive i. step increment/longetivity award j. productivity incentive k. career and self-development incentive 8. health services or health insurance programs 87 9. employees' compensation programs 88 10. PAG-IBIG or home development mutual fund benefits: a. Multi-purpose loan LLjur b. Dividend benefits c. Return of contribution d. Optional withdrawal of contributions e. Death benefits f. Housing loan g. Double or triple monthly savings 11. Financial assistance from BIREA (Bureau of Internal Revenue Employee Association)/BIRMAG, BIRSALA (Bureau of Internal Revenue Savings and Loan Association) and BIR Multi-Purpose Cooperative 12. Clothing allowance, Year-end benefits, Anniversary bonus, Personnel Economic Relief Allowance (PERA),Additional Compensation Allowance (ACA),Representation and transportation allowance, Retirement gratuity and terminal leave 13. reinstatement and back salary 14. good working conditions 15. dignity and full development of the human person 16. opportunity for increasing and improving job skills, knowledge and abilities 17. security of tenure 18. courteous, fair and just treatment 19. equal job privileges 20. gratuity or retirement pension subject to the Retirement Law 21. medical and dental care which embrace free medical and physical check up 22. communicate worthy and constructive criticisms as well as suggestions to their supervisors especially those which will enhance and promote effectiveness and economy in office operations CHAPTER VII Removal for Cause, Classification of Offenses as Prescribed Under Existing Civil Service Commission Rules, and Additional Grounds for Administrative Disciplinary Action with Their Corresponding Penalties SECTION 42 . Removal for Cause. An official/employee shall not be removed or suspended except for cause as provided by law. 89 SECTION 43 . Classification of Offenses. 90 Administrative offenses with corresponding penalties are classified into grave, less grave or light, depending on their gravity or depravity and effects on the government service as prescribed under existing Civil Service Commission Rules and Regulations. Grave Offenses Penalties Dishonesty 1st Offense, Dismissal Gross Neglect of Duty 1st Offense, Dismissal Grave Misconduct 1st Offense, Dismissal Being notoriously undesirable 1st Offense, Dismissal Conviction of a crime involving moral turpitude 1st Offense, Dismissal Falsification of official document 1st Offense, Dismissal Physical or mental incapacity or disability due to immoral or vicious habits 1st Offense, Dismissal Engaging directly or indirectly in partisan political activities 1st Offense, Dismissal Solicitation and Acceptance of gift or other valuable things in the course of official duties or in connection therewith when such fee, gift or other valuable thing is given in the hope or expectation of receiving a special privilege or better treatment, or committing acts punishable under the anti-graft laws 1st Offense, Dismissal Contracting loans of money or other property from persons with whom they have dealings with the BIR 1st Offense, Dismissal Soliciting or accepting directly or indirectly, any gift, gratuity, favor, entertainment, loan or anything of monetary value in the course of one's official duties or in connection with any operation being regulated by, or any transaction, which may be affected by the functions of one's office. The propriety or impropriety shall be determined by its value, kinship, or relationship between giver and receiver and the motivation 1st Offense, Dismissal Disloyalty to the Republic of the Philippines and to the 1st Offense, Dismissal Filipino People Nepotism 1st Offense, Dismissal Oppression 1st Offense, Suspension (6 mos. 1 day to 1 year) 2nd Offense, Dismissal Disgraceful and immoral conduct 1st Offense, Suspension (6 mos. 1 day to 1 year) 2nd Offense, Dismissal Inefficiency and incompetence in the performance of official duties 1st Offense, Suspension (6 mos. 1 day to 1 year) 2nd Offense, Dismissal Frequent unauthorized absences from duty during regular 1st Offense, Suspension office hours, loafing (6 mos. 1 day to 1 year) 2nd Offense, Dismissal Refusal to perform official duty 1st Offense, Suspension (6 mos. 1 day to 1 year) 2nd Offense, Dismissal Gross Insubordination 1st Offense, Suspension (6 mos. 1 day to 1 year) 2nd Offense, Dismissal Conduct prejudicial to the best interest of the service 1st Offense, Suspension (6 mos. 1 day to 1 year) 2nd Offense, Dismissal Directly or indirectly having financial and/or material interest in any transaction requiring the approval of one's 1st Offense, Suspension office (6 mos. 1 day to 1 year) 2nd Offense, Dismissal Owning, controlling, managing or accepting, employment 1st Offense, Suspension as officer, employee, consultant, counsel, broker, agent, (6 mos. 1 day to 1 year) trustee, or nominee in any private enterprise regulated, supervised or licensed by one's office, unless expressly 2nd Offense, Dismissal allowed by law or regulation Disclosing or misusing confidential or classified information officially known by reason of one's office and not made 1st Offense, Suspension available to the public, to further one's private interests or (6 mos. 1 day to 1 year) give undue advantage to anyone or to prejudice the public interest 2nd Offense, Dismissal Obtaining or using any statement filed under the Code of 1st Offense, Suspension Conduct and Ethical Standards for Public Officials and (6 mos. 1 day to 1 year) Employees for any purpose contrary to morals or public policy or any commercial purpose other than by news and 2nd Offense, Dismissal communications media for dissemination to the general public Recommending any person to any position in a private 1st Offense, Suspension enterprise which has a regular or pending official (6 mos. 1 day to 1 year) transaction with one's office, unless such recommendation or referral is mandated by law, or international 2nd Offense, Dismissal agreements, commitment and obligation, or as a part of the function of one's office Less Grave Offenses Penalties Simple Neglect of Duty 1st Offense, Suspension (1 mo. 1 day to 6 mos.) 2nd Offense, Dismissal Simple Misconduct 1st Offense, Suspension (1 mo. 1 day to 6 mos.) 2nd Offense, Dismissal Gross discourtesy in the course of official duties 1st Offense, Suspension (1 mo. 1 day to 6 mos.) 2nd Offense, Dismissal Violation of existing civil service law and rules of serious 1st Offense, Suspension nature (1 mo. 1 day to 6 mos.) 2nd Offense, Dismissal Insubordination 1st Offense, Suspension (1 mo. 1 day to 6 mos.) 2nd Offense, Dismissal Habitual drunkenness 1st Offense, Suspension (1 mo. 1 day to 6 mos.) 2nd Offense, Dismissal Unfair discrimination in rendering public service due to 1st Offense, Suspension party affiliation or preference (1 mo. 1 day to 6 mos.) 2nd Offense, Dismissal Failure to file Sworn Statements of Assets, Liabilities and 1st Offense, Suspension Net Worth, and Disclosure of Business Interest and (1 mo. 1 day to 6 mos.) Financial Connections, including those of their spouses and unmarried children under twenty one (21) years of 2nd Offense, Dismissal age who are their dependent and living in their households Failure to resign from one's position in private business 1st Offense, Suspension enterprise within thirty (30) days from assumption of (1 mo. 1 day to 6 mos.) public office or already in the service, when conflict of interest arises and/or failure to divest himself/herself of 2nd Offense, Dismissal one's shareholdings or interest in private business enterprise within sixty (60) days from assumption of public office or already in the service Light Offenses Penalties Discourtesy in the course of official duties 1st Offense, Reprimand 2nd Offense, Suspension 1-30 days 3rd Offense, Dismissal Improper or unauthorized solicitation of contributions from subordinate employees 1st Offense, Reprimand 2nd Offense, Suspension 1-30 days 3rd Offense, Dismissal Violation of reasonable office rules and regulations 1st Offense, Reprimand 2nd Offense, Suspension 1-30 days 3rd Offense, Dismissal Frequent unauthorized tardiness (Habitual Tardiness) 1st Offense, Reprimand 2nd Offense, Suspension 1-30 days 3rd Offense, Dismissal Gambling prohibited by law 1st Offense, Reprimand 2nd Offense, Suspension 1-30 days 3rd Offense, Dismissal Refusal to render overtime service 1st Offense, Reprimand 2nd Offense, Suspension 1-30 days 3rd Offense, Dismissal Disgraceful, immoral or dishonest conduct prior to entering the service 1st Offense, Reprimand 2nd Offense, Suspension 1-30 days 3rd Offense, Dismissal Borrowing money by superior officers from subordinates 1st Offense, Reprimand 2nd Offense, Suspension 1-30 days 3rd Offense, Dismissal Lending money at usurious rates of interest 1st Offense, Reprimand 2nd Offense, Suspension 1-30 days 3rd Offense, Dismissal Willful failure to pay just debts or willful failure to pay taxes due to the government 1st Offense, Reprimand 2nd Offense, Suspension 1-30 days 3rd Offense, Dismissal Lobbying for personal interest or gain in the legislative halls and offices without authority 1st Offense, Reprimand 2nd Offense, Suspension 1-30 days 3rd Offense, Dismissal Promoting the sale of tickets in behalf of private 1st Offense, Reprimand enterprises that are not intended for charitable or public welfare purposes and even in the latter cases if there is no 2nd Offense, Suspension prior authority 1-30 days 3rd Offense, Dismissal Failure to act promptly on letters and request within 1st Offense, Reprimand fifteen (15) days from receipt, except as otherwise provided in the rules implementing the Code of Conduct 2nd Offense, Suspension and Ethical Standards for Public Officials and Employees 1-30 days 3rd Offense, Dismissal Failure to process documents and complete action on documents and papers within a reasonable time, except as 1st Offense, Reprimand otherwise provided in the rules implementing the Code of Conduct and Ethical Standards for Public Officials and 2nd Offense, Suspension Employees 1-30 days 3rd Offense, Dismissal Failure to attend to anyone who wants to avail himself/ 1st Offense, Reprimand herself of the services of the office, or act promptly and expeditiously on public transactions 2nd Offense, Suspension 1-30 days 3rd Offense, Dismissal Engaging in private practice of one's profession unless 1st Offense, Reprimand authorized by the constitution, law or regulation, where such practice conflicts with one's official functions 2nd Offense, Suspension 1-30 days 3rd Offense, Dismissal Pursuit of private business, vocation or profession without 1st Offense, Reprimand the permission required by civil service rules and regulations 2nd Offense, Suspension 1-30 days 3rd Offense, Dismissal SECTION 44 . Additional Circumstances as Grounds for Administrative Disciplinary Action with Their Corresponding Penalties. In addition to those prescribed above, this Code provides the following grounds for administrative disciplinary action: Grave Offenses Infractions Penalties Conduct prejudicial to Failure to uphold and demonstrate 1st Offense, Suspension the best interest of the dignity, fairness and honesty for six (6) months and service as defined under one (1) day to one Sections 15, 18 (F) (G) Taking advantage of one's position (1) year (J) and 30 of this Code in the BIR as a result of one's personal relationship with 2nd Offense, Dismissal taxpayers, whether social or business, including failure to inhibit from taking part, actively or through mediation of oneself, for cases involving tax investigation, audit or examination; adjudication of tax cases, rendering of opinion and tax ruling, and other similar request Acting as Attorney, Accountant, Consultant, Adviser, or like services, in behalf of a taxpayer, on tax related matters and involving the discharge of one's official function Undue and unauthorized dealings with taxpayers or their representative in the conduct of audit and examination of their books of account or accounting records, i.e.,non-observance of the rules and procedures in the conduct of audit/examination of books of account or other accounting records; non-compliance with prescribed rules relating to the service of letters of authority/tax verification/ letter notices, post reporting notices, assessment notices, demand letters, issuance of certificate authorizing registration (CAR);threatening or intimidating a taxpayer by making unreasonable demands; frequent visitation at taxpayer's place of business even after office hours; unauthorized disclosure of audit findings that do not bear the approval and conformity of the approving authority; premature disclosure to taxpayer of audit findings which are not supported by substantial evidence Engaging the services of private individuals to perform secretarial/ clerical function Other similar or analogous acts or infractions Violation Against Taking part in any bidding or 1st Offense, Suspension Conflict of Interest as sale of Government/BIR for six (6) months and defined under Section 18 property under the direct control one (1) day to one (C) and (D) of this Code or supervision of the (1) year Government/BIR Failure to disclose one's 2nd Offense, Dismissal employment status with the BIR and observe the rules relating to sale of Government/BIR property before making any such acquisition Engaging in the practice of a profession or business, outside of one's employment with the BIR, without securing the approval of the proper authority Seeking outside employment or engaging in the exercise of profession or business that would run in conflict with one's official duty and/or likely to affect or compromise one's performance Engaging Directly or Forming organizations, 1st Offense, Dismissal Indirectly in Partisan associations, clubs, committees Political Activities as or other groups for the purpose defined under Section 10 of soliciting votes and/or (A) of this Code undertaking any campaign for or against a candidate for public office Holding political caucuses, conferences, meetings, rallies, parades, or other similar assemblies, for the purpose of soliciting votes and/or undertaking any campaign or propaganda Making speeches, announcements or commentaries or holding interviews for or against the election of any candidate for public office Publishing or distributing campaign literature or materials designed to support or oppose the election of any candidate for public office Becoming a delegate to any political convention or member of any political committee or directorate or an officer of any political club or other similar political organizations Other similar or analogous acts or infractions Frequent unauthorized Absences exceeding the 1st Offense, Suspension absences as defined allowable 2.5 days monthly leave for six (6) months and under Section 29 (C) in credit under the leave law for at one (1) day to one (1) relation to Section 8 (w) least three (3) months in a year of this Code semester or at least three (3) consecutive months during the 2nd Offense, Dismissal year Other similar or analogous acts or infractions Grave Misconduct as Failure to observe the time- 1st Offense, Dismissal defined under Sections honored principle that 12 (C) and 18 (I) of Government/BIR-owned or this Code leased motor vehicles are for official purpose only Unauthorized dealings with taxpayers or the latter's representatives where a conflict of interest would arise and/or obtain for himself/herself material or financial gain and business advantage Indulging, bringing or keep intoxicating drinks or prohibited drugs or substance, during office hours, or while being present within the BIR's premises Other similar or analogous acts or infractions Grave Misconduct and Accepting or having any member 1st Offense, Dismissal Conduct Prejudicial to of one's family accept employment the Best Interest of the in a private enterprise which has a Service as defined under pending official business with Section 18 (E) of this him/her or within one year after Code the termination of his/her employment with the BIR; Neglecting or refusing, after due demand or request, without sufficient justification, to act within a reasonable time on any matter pending before him/her for the purpose of obtaining, some pecuniary or material benefit or advantage, or for the purpose of favoring his/her own interest, or giving undue advantage and/or discriminating against any person or other interested party; Entering into, on behalf of the BIR, any contract or transaction manifestly and grossly disadvantageous to said agency; Having financial or pecuniary interest in any business, contract or transaction in connection with which one intervenes or takes part in one's official capacity; Becoming interested for personal gain; or having a material interest in any transaction or act requiring the approval of a board, panel or group of which one is a member, and for which one exercises discretion in the approval; Approving or granting any registration, award, privilege or benefit in favor of any person not qualified for or not legally entitled to such registration; Capitalizing, exploiting or taking advantage on account of private individual's family or close personal relation/association requesting or receiving any present, gift or material or pecuniary advantage from such individual having some business, transaction, application, request or contract where said revenue personnel has to intervene. Other similar or analogous acts or infractions Gross Neglect of Duty as Failure to account for and 1st Offense, Dismissal defined under Section 12 deposit money, property or other (A) (B) (D) (E) and (F) thing of value received by or of this Code coming into his/her custody in connection with the discharge of his/her duties and/or relating to enforcement of internal revenue laws Failure to observe that the use of government time, property and/or facilities including equipment and supplies are not for personal business of unauthorized use Failure to observe that government/BIR-owned or leased motor vehicle are for official purpose only Failure to maintain the integrity and security of official documents and information by unlawful concealment. Alteration, mutilation, obliteration or distraction thereof or by removing the same without any official purpose or authority Failure to observe in the protection and safekeeping of government/BIR money and property resulting into loss and/or damage thereof Failure to turn-over government/ BIR money and property in accordance with existing rules and regulations Other similar or analogous acts or infractions Inefficiency and Failure to enforce and implement 1st Offense, Suspension incompetence in the BIR policies and programs for six (6) months and performance of official Failure to perform high quality one (1) day to one (1) duties as defined under service year Sections 11, 14, and 16 Abuse in the exercise of of this Code discretionary powers 2nd Offense, Dismissal Other similar or analogous acts or infractions Nepotism as defined Appointing or recommending 1st Offense, Dismissal under Section 8 (jj) of this any relative within the 3rd degree Code of consanguinity or affinity of the appointing or recommending authority to any position in the BIR Other similar or analogous acts or infractions Refusal to perform Non-implementation of BIR 1st Offense, Suspension official duty as defined policies and programs for six (6) months and under Section 11 of this Other similar or analogous acts one (1) day to one (1) Code or infractions year 2nd Offense, Dismissal Serious Dishonesty 91 as Failure to establish and maintain 1st Offense, defined under Sections a transparent, effective and Dismissal 92 22 and 35 (B) in relation efficient procurement system in to Section 8 (m) of this the BIR Code Failure to observe potential conflicts of interest Using his/her position to benefit himself/herself being involved in the procurement of BIR's goods, supplies, property, consultancy and services Failure to observe the guiding principles required The presence of any of the attendant circumstances in the commission of the dishonest act Other similar or analogous acts or infractions Sexual Harassment Case Demanding sexual favor from 1st Offense, Dismissal as defined under Section another regardless of whether 25 (3) of this Code such demand for submission is accepted by the object of such sexual favor because of authority, influence or moral ascendancy over the latter in the workplace Other similar or analogous acts or infractions Unauthorized Disclosure of any official 1st Offense, Suspension Disclosure/Divulgence of information or document or for six (6) months and Confidential Information divulgence of any information or one (1) day to one (1) as defined under Section document, obtained by one in the year 19 (A) of this Code discharge of official function, other than those as allowed by 2nd Offense, Dismissal law or by proper authority, including discussion concerning revenue service operation Divulgence to any person or making known, in any other manner than may be provided by law, information regarding the business, income or estate of any taxpayer, the secrets, operation, style or work, or apparatus of any manufacturer or producer, or confidential information regarding the business of any taxpayer, knowledge of which was acquired by him/her in the discharge of official duties Other similar or analogous acts or infractions Unauthorized Solicitation Solicitation, request, acceptance 1st Offense, Dismissal and Acceptance of Gift and/or receiving any gift, benefit, and Benefits for the gratuity, favor, service, loan, purpose of gaining undue entertainment or anything of influence and advantage monetary value, for oneself or for or in exchange of a others, or from other persons, in favor as defined under the course of his/her official duty Section 21 of this Code or in connection with any official operation or dealing of which he/she is required to pass upon or regulate on any transaction Acceptance of any fee or remuneration beyond what he/she is legally entitled to receive Giving of gifts or gratuities to the employee's families and relatives where he/she is prohibited to accept by reason of his/her official connection with the giver/donor Accepting of gifts, gratuities presents, emoluments, offices or titles from foreign governments, except with the consent of Congress Solicitation of gifts or contributions in any kind from other persons or employees as gifts or presents to superiors, the receipt of which might tend to influence the official concerned Accepting of gifts or other benefits from a subordinate, or family and relatives of subordinates, including offering of gifts or other benefits to a superior, or to a superior's family or relatives Other similar or analogous acts or infractions such as Direct Bribery and Indirect Bribery as defined under Section 8 (e) of this Code Less Grave Offenses Infractions Penalties Failure to comply with the Failure to resign from one's 1st Offense, Suspension Requirement for Validity position in any private business for one (1) month and of Divestment of Interest enterprise within thirty (30) days one (1) day to six (6) as defined under Section from one's assumption of office months 18 (B) of this Code and/or within sixty (60) days from becoming a shareholder or 2nd Offense, Dismissal holder of rights thereof. Failure to mandatorily divest oneself of interests or participation, even if one has already resigned as such stockholder and/or officer of said private entity. Failure to transfer of interests or divestment of one's shares/participations to any individual, firm, or other entity, except to one's spouse and relatives within the fourth civil degree of consanguinity or affinity. Other similar or analogous acts or infractions Gross discourtesy in the Failure to observe proper 1st Offense, Suspension course of official duties as courtesy, fairness and impartiality for one (1) month and defined under Section 17 in the discharge of one's duties one (1) day to six (6) (A) of this Code Other similar or analogous acts months or infractions 2nd Offense, Dismissal Insubordination as Failure to comply with RTAO 1st Offense, Suspension defined under Section 31 and RSO for one (1) month and (1) of this Code Other similar or analogous acts one (1) day to six (6) or infractions months 2nd Offense, Dismissal Less Serious The presence of any of the 1st Offense, Suspension Dishonesty 93 as defined attendant circumstances in the for six (6) months and under Section 35 (C) commission of the dishonest act one (1) day to one (1) in relation to Section 8 Other similar or analogous acts year (m) of this Code or infractions 2nd Offense, Dismissal 94 Neglect of Duty as Failure to comply with the 1st Offense, Suspension defined under Section requirements for the filing of for one (1) month and 20 of this Code SALN one (1) day to six (6) Other similar or analogous acts months or infractions 2nd Offense, Dismissal Simple Misconduct as Failure to uphold and abide by 1st Offense, Suspension defined under Sections his/her Oath of Office, including for one (1) month and 10 (B),33 and 34 of adherence to loyalty and one (1) day to six (6) this Code prohibition against strikes months Failure to maintain public trust 2nd Offense, Dismissal and confidence in dealing with public and colleagues Failure to lead a modest and simple living appropriate to his/her earning capacity, station in life, and/or position Other similar or analogous acts or infractions Simple Neglect of Duty as Failure to perform his/her 1st Offense, Suspension defined under Sections 12 responsibilities as head of office for one (1) month and par (1),23 and 26 of this Failure to disclosure to Proper one (1) day to six (6) Code Authorities of any Violation, months Infraction, Misconduct and 2nd Offense, Dismissal Unethical Behavior Disregard of necessary synergy and innovativeness required for the attainment of the office goods Other similar or analogous acts or infraction Light Offenses Infractions Penalties Discourtesy in the Failure to uphold courtesy and 1st Offense, Reprimand discharge of official respect in dealing with Attorneys 2nd Offense, functions as defined and Accountant Suspension for one (1) under Sections 17 (b) Failure to observe the prescribed to thirty (30) days and 25 (1) (2) of guidelines and procedures in the 3rd Offense, Dismissal this code conduct of tax audit and examination, as well as tax mapping operations and similar activities Failure to observe fair and object treatment of colleagues and to ensure that working place is conducive for good working environment Discriminating against one's colleagues on grounds of regional/cultural diversity, gender, gender preference, age, civil status, pregnancy, parenthood, religious belief or activity, physical disability and political opinion Other similar or analogous acts or infractions Engaging in Illegal Illegal cockfighting 1st Offense, Reprimand Gambling and betting as Illegal Numbers Game, Jueteng, 2nd Offense, defined and enumerated Masiao, Last Two & other forms Suspension for one (1) under Section 36 of this of illegal gambling involving to thirty (30) days Code betting of anything of value or 3rd Offense, Dismissal any game of chance where there is betting of money Other similar or analogous acts or infractions Habitual Tardiness as Tardiness, without any justifiable 1st Offense, Reprimand defined under Section 29 cause, or irregular office 2nd Offense, (B) in relation to Section attendance Suspension for one (1) 8 (y) of this Code Other similar or analogous acts to thirty (30) days or infractions 3rd Offense, Dismissal Simple Dishonesty 95 as The presence of any of the 1st Offense, Suspension defined under Section 35 attendant circumstances in the for one (1) month and (D) in relation to Section commission of the dishonest act one (1) day to six (6) 8 (m) of this Code Other similar or analogous acts months or infractions 2nd Offense, Suspension for six (6) months and one (1) day to one (1) year 3rd Offense, Dismissal 96 Violation of reasonable Dealing with taxpayers not in 1st Offense, Reprimand office rules and accordance with the prescribed regulations as defined rules 2nd Offense, under Sections 18 (H), Failure to follow the prescribed Suspension for one (1) 19 (B) to (E),24, 27, 28, guidelines in the to thirty (30) days 31 (2),32, 38, 39 and 40 dissemination/circulation of of this Code revenue issuances to stakeholders 3rd Offense, Dismissal Failure to reply to letter, telefax, e-mail, text message within fifteen (15) working days from receipt thereof Unauthorized production of information to private persons, entity, court or other government agencies Acceptance of public speaking engagement or publication of articles relating to service operation without proper authority and unauthorized receipt of monetary compensation or other form of payment during such engagement Failure to demonstrate the quality of a good leader and observe the required norms, values, conduct and behavior Failure to observe proper office attire and uniform Failure to observe the use and wearing of BIR identification card Failure to follow the prescribed guidelines and procedures for the issuance of clearance, especially for pending cases covered by Letters of Authority, Tax Verification Notices, Letter Notices and Mission Orders and similar cases still pending with him Failure to secure the necessary clearance from former office for pending cases covered by LA, TVN, LN, MO and similar cases Failure of the Head of Office to allow his/her transfer without the required clearance Failure of official and employee charged with the duty to enforce/observe the rule that only visitors with legitimate and official business with BIR, after securing the proper permit/visitor's pass Failure to observe the no smoking rule Entering into or making oneself visible in Nightclubs, Bars and Other Places of Entertainment by indulging in lavish spending Association with disreputable persons Former BIR employee transacting with the BIR in behalf of any private firm he is connected with Other similar or analogous acts or infractions Willful failure to pay just Failure to pay just debts 1st Offense, Reprimand debts or willful failure to Non-compliance with Tax pay taxes due to the Obligations for Revenue Officials 2nd Offense, government as defined and Employees Engaged in Suspension for one (1) under Section 13 of this Business and/or Exercise of to thirty (30) days Code Profession Other similar or analogous acts 3rd Offense, Dismissal or infractions CHAPTER VIII Transitory Provisions SECTION 45 . Separability Clause. In case any provision of this Code, or the application thereof, is declared invalid and/or inoperative under a given circumstance, the remaining applicable provisions shall not be affected thereby. SECTION 46 . Repealing Clause. This Code amends and/or supersedes the Updated Code of Conduct for Bureau of Internal Revenue Officials and Employees as implemented by Revenue Memorandum Order No. 50-98 dated June 1, 1998. All revenue issuances contrary to or inconsistent herewith are deemed repealed and/or modified accordingly; Provided, that decisions or resolutions already final and executory at the time of the effectivity of this Code shall not in any way be nullified, modified or affected thereby. SECTION 47 . Effectivity Clause. This Revised Code of Conduct for Bureau of Internal Revenue Officials and Employees shall take effect immediately upon its approval. ANNEX 1 (Office) LIST OF BIR EMPLOYEES ISSUED WITH CODE OF CONDUCT FOR BUREAU OF INTERNAL REVENUE OFFICIALS AND EMPLOYEES UNDER RMO NO. ____ Name of Employee Position/Designation Unit Assigned 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. Submitted by: __________________________________ HEAD OF OFFICE __________________________________ PLACE OF ASSIGNMENT __________________________________ DATE ANNEX 2 MEMORANDUM OF RECEIPT I acknowledge receipt of a copy of the 2010 Code of Conduct for Bureau of Internal Revenue Officials and Employees as implemented by Revenue Memorandum Order No. _______ dated _____________ from _____________________ (Head of Office). It is understood that having received a copy thereof, I am obliged to read its contents and abide thereby. _____________________________ Name of Employee _____________________________ Position/Designation _____________________________ Service/Region-Division/RDO _____________________________ Date Received Submitted by: (SGD.) EUFROCINA SACDALAN-CASASOLA OIC-Assistant Commissioner Inspection Service (SGD.) OSCAR M. ABILGOS Head Revenue Executive Assistant Inspection Service (SGD.) EFREN P. MARTINEZ Chief, Personnel Inquiry Division (SGD.) LORNA M. FERNANDEZ Chief, Internal Audit Division (SGD.) DANIEL T. DE JESUS OIC-Chief, Internal Security Division RECOMMENDING APPROVAL: (SGD.) GREGORIO V. CABANTAC Deputy Commissioner Legal and Inspection Group APPROVED: (SGD.) JOEL L. TAN-TORRES Commissioner of Internal Revenue Footnotes 1. RA No. 6713,Code of Conduct and Ethical Standards for Public Officials and Employees and Article XI, Section 1, 1987 Constitution. 2. CSC Manual on SALN. 3. CSC Manual on SALN. 4. As cited in Laguilles, Cesar P.,CSC Resolution No. 99-0026, January 6, 1999. 5. Article 210, The Revised Penal Code, Luis B. Reyes, 15th Edition, 2001. 6. Article 211, The Revised Penal Code, Luis B. Reyes, 15th Edition, 2001. 7. CSC Manual on SALN. 8. Section 4, RA No. 3019, Anti-Graft and Corrupt Practices Act. 9. Section 2 (i), Presidential Decree No. 1146 (Government Service Insurance Act of 1987). 10. Section 8, Rule II CSC Resolution No. 991936 (Uniform Rules on Administrative Cases in the Civil Service). 11. Grande, Handbook on Investigation of Administrative Disciplinary Cases in the Philippine Civil Service, 2000 Edition. 12. Section 3 (i), RA 6713, Code of Conduct and Ethical Standards for Public Officials and Employees. 13. Ayuste, Gina P.,CSC Resolution No. 00-0185, January 24, 2000 citing Bumalag, Angelo, CSC Resolution No. 94-2477, May 3, 1994. 14. Moreno, Philippine Law Dictionary, 3rd Edition citing Arca vs. Lepanto Consolidated Mining Co., 17679-R, November 24, 1958. 15. Paragraph 7, Section 8, Presidential Decree No. 971, July 27, 1976. 16. Section 3 (j), RA No. 6713. 17. CSC Resolution No. 060538. 18. Black's Law Dictionary, 6th Edition. 19. People vs. Bacalso, 1899-R, July 24, 1950. 20. CSC Manual on SALN. 21. Landrito vs. CSC, 223 SCRA 564 citing In Re: Impeachment of Horilleno, 43 Phil. 212 (1922). 22. As cited in Ventayen, Ferdinand B.,CSC Resolution No. 00-1453, June 16, 2000. 23. Section 22 (q), EO 292, Omnibus Rules Implementing Book V of the Administrative Code of 1987. 24. Black's Law Dictionary, 4th Edition. 25. Section 22 (q),EO 292. 26. Section 35 NIRC. 27. Homecillo, Carmelito V.,CSC Resolution No. 97-0792. 28. BORJA vs. ONGSINGCO, 59 OG 3774. 29. Sobrepea, Carmelita G.,CSC Resolution No. 00-1288, May 30, 2000. 30. Section 23 (i),EO 292. 31. Black's Law Dictionary, 5th Edition, 1979. 32. Section 8, Rule VI, Rules Implementing the Code of Conduct and Ethical Standards for Public Officials and Employees. 33. Zari vs. Flores, 94 SCRA 317. 34. Section 59 (1) Subtitle A, Title I, Book V, EO 292. 35. CSC Resolution No. 95-2125, March 21, 1995. 36. Section 5, Republic Act No. 9184 (Government Procurement Reform Act). 37. Section 2 (e) (1), Republic Act No. 6425 (The Dangerous Drugs Act of 1972). 38. Section 3 (d), Republic Act No. 6713 (Code of Conduct and Ethical Standards for Public Officials and Employees). 39. U.S. vs. Asensi, 34 Phil. 765. 40. Cacnio, et al. vs. Baens, 5 Phil. 742. 41. Section 3 (k), Republic Act No. 6713 (Code of Conduct and Ethical Standards for Public Officials and Employees). 42. RMO No. 13-2005. 43. CSC Manual on SALN. 44. Section 3, RA No. 7877, Anti Sexual Harassment Act of 1995. 45. Maaliw, Willie Fernando S.,CSC Resolution No. 00-1290, June 1, 2000. 46. RMO No. 8-2002. 47. Section 3 (f), RA No. 6713. 48. Section 4 of Republic Act No. 6713. 49. Section 8, Rule XIII, CSC Memorandum Circular No. 40, s. 1998. 50. Rule IV, Section 52, CSC Resolution No. 991936. 51. Section 11, National Internal Revenue Code of 1997, as amended. 52. Rule IX, Rules Implementing the Code of Conduct and Ethical Standards for Public Officials and Employees. 53. Section 7 (a), Republic Act No. 6713. 54. CSC Memo Circular No. 32, Series of 1997. 55. Sections 3 and 4, Republic Act No. 3019. 56. Section 270 of the National Internal Revenue Code of 1997, as amended. 57. Section 3 (k),Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act). 58. Section 5 (a) of Republic Act No. 6713 (Code of Conduct). 59. Opinion of Ministry of Justice, Series of 1989. 60. Statement of Assets, Liabilities and Net Worth Manual (Civil Service Commission). 61. Rule VII, Rules Implementing the Code of Conduct and Ethical Standards for Public Officials and Employees. 62. Statement of Assets, Liabilities and Net Worth Manual (Civil Service Commission). 63. Statement of Assets, Liabilities and Net Worth Manual (Civil Service Commission). 64. Statement of Assets, Liabilities and Net Worth Manual (Civil Service Commission). 65. Section 7, Republic Act No. 6713 (Code of Conduct and Ethical Standards for Public Officials and Employees). 66. Rule X, Rules Implementing the Code of Conduct and Ethical Standards for Public Officials and Employees. 67. Rule X, Rules Implementing the Code of Conduct and Ethical Standards for Public Officials and Employees. 68. Rule X, Rules Implementing the Code of Conduct and Ethical Standards for Public Officials and Employees. 69. Rule X, Rules Implementing the Code of Conduct and Ethical Standards for Public Officials and Employees. 70. Rule X, Rules Implementing the Code of Conduct and Ethical Standards for Public Officials and Employees. 71. Rule X, Rules Implementing the Code of Conduct and Ethical Standards for Public Officials and Employees. 72. 1987 Constitution, Article IX B, Section 8. 73. Republic Act No. 9184 (Government Procurement Reform Act); BIR Procurement Manual. 74. Republic Act No. 7877 (Anti-Sexual Harassment Act of 1995). 75. Section 8 (e) of Republic Act 9485, otherwise known as the Anti-Red Tape Act of 2007. 76. Civil Service Commission Resolution No. 060538 dated April 4, 2006. 77. Republic Act No. 9287 (An Act Increasing the Penalties for Illegal Numbers Games, Amending Certain Provisions of Presidential Decree No. 1602, and for other purposes). 78. Section 1 (a) (1) of Presidential Decree No. 1602 (Prescribing Stiffer Penalties on Illegal Gambling). 79. Republic Act No. 6758 (An Act prescribing a revised compensation and position classification system in the government and for other purposes otherwise known as "Compensation and Position Classification Act of 1989"). 80. C.A. No. 647, as amended by Republic Act No. 1564 (An Act Granting Maternity Leave to Women in Government Service under Temporary Appointment who have rendered less than two years of service). 81. Republic Act No. 8187 (An Act Granting Paternity Leave of Seven [7] Days with full pay to all Married Male Employees in the Private and Public Sectors for the first four [4] deliveries of the Legitimate Spouse with whom he is cohabiting and for other purposes.) 82. Sections 285, 285-A, 286, Revised Administrative Code, as amended by R.A. No. 2625 and No. 1081. 83. Civil Service Commission Resolution No. 966162 dated September 23, 1996. 84. 1987 Constitution, Art. III, Section 8, Art. IX-B, Section 2 (5) and Art. XIII, Section 3 (par. 2). 85. F. MECHEM, op. cit.,note 21 at 588 as cited by De Leon, The Law on Public Officers and Election Law, 2008 Ed. 86. Employee Induction and Office/Agency Orientation, Personnel Orientation Course, Seminar on Code of Conduct. 87. Republic Act No. 7875 (National Health Insurance Act). 88. Presidential Decree No. 626. 89. 1987 Constitution, Art. IX, Section 2 (3). 90. Rule IV, Section 52 of the Uniform Rules on Administrative Cases in the Civil Service, CSC Resolution No. 991936. 91. Civil Service Commission Resolution No. 060538 dated June 5, 2006. 92. Section 2 (a & b), Rules on the Administrative Offense of Dishonesty, CSC Resolution No. 060538, April 4, 2006. 93. Civil Service Commission Resolution No. 060538 dated June 5, 2006. 94. Section 2 (a & b), Rules on the Administrative Offense of Dishonesty, CSC Resolution No. 060538, April 4, 2006. 95. Civil Service Commission Resolution No. 060538 dated June 5, 2006. 96. Section 2 (c), Rules on the Administrative Offense of Dishonesty, CSC Resolution No. 060538, April 4, 2006.