Institutionalization of the Management Committee and Delineation of its Functions and Duties

February 23, 1998 REVENUE MEMORANDUM ORDER NO. 15-98 SUBJECT : Institutionalization of the Management Committee and Delineation of its Functions and Duties TO : All Internal Revenue Officials and Employees I. OBJECTIVE: This Order is being issued for the following purposes: 1. To institutionalize the Management Committee (hereinafter referred to as MANCOM); and prcd 2. To delineate the scope of MANCOM's duties and responsibilities, such that the performance of the various functions of MANCOM may serve to: a. Improve process flows between the four (4) major functional Groups of the Bureau; b. Encourage well-informed decision making by calling on the expertise of each MANCOM Member; and c. Prevent organizational conflicts by enhancing coordination among the four major functional Groups of the Bureau. II. POLICIES AND GUIDELINES: A. Creation and Composition of MANCOM 1. Pursuant to Section 7 of the National Internal Revenue Code of 1997 relative to the authority of the Commissioner to "delegate the powers vested in him under the pertinent provisions of [the] Code," there is hereby created the Bureau of Internal Revenue Management Committee, hereinafter referred to as MANCOM. 2. MANCOM shall be composed of the Commissioner of Internal Revenue as Chairman, and the four (4) Deputy Commissioners of the Bureau's functional Groups as Members. B. Conduct of MANCOM Meetings 1. MANCOM shall be convened once a week, or as often as the Commissioner deems necessary. 2. The presence of the Chairman (the Commissioner) and at least two (2) Members shall constitute a quorum for the purpose of convening MANCOM, provided that all Members shall have received an official Notice of Meeting for the convening of MANCOM . 3. The Commissioner shall have the authority to designate any Member of MANCOM to act as Chairman in his/her absence. 4. MANCOM shall endeavor to arrive at a consensus in all matters raised to the Committee for its decision. In the event that a consensus cannot be reached by the Members the Commissioner, in his/her capacity as Chairman of MANCOM, shall render a decision on the issue at hand. However, for purposes of decisions mentioned in III(1) hereof, a simple majority of the Members constituting the quorum shall be necessary. 5. Each MANCOM Member may designate a rapporteur from his/her technical staff. The official Minutes of each MANCOM Meeting shall be prepared and consolidated by the rapporteurs of the MANCOM Members. prLL 6. The Minutes of any MANCOM Meeting must be approved by all Members prior to submission to the Commissioner. The Minutes shall be considered as part of the official records of the Bureau, and may be used as references for any decision reached by MANCOM . 7. Any decision reached by MANCOM shall be strictly implemented by the concerned Bureau offices. Clarifications or questions involving any MANCOM decision shall be referred directly to MANCOM. On no account should any revenue official introduce modifications to any document, procedure, issuance or proclamation of MANCOM. III. DUTIES AND FUNCTIONS OF MANCOM: 1. MANCOM shall have the authority to render decisions on: a. Offers of compromise for cases involving basic tax assessments exceeding FIVE HUNDRED THOUSAND PESOS (P500,000.00), or where the settlement offered is less than the prescribed minimum rates; b. Applications for abatement or cancellation of tax liabilities involving basic tax assessments exceeding FIVE HUNDRED THOUSAND PESOS (P500,000.00), when the tax, or any portion thereof, appears to be unjustly or excessively assessed, or the administration and collection costs involved do not justify the collection of the amount due; 2. MANCOM shall advise and/or recommend to the Commissioner the following: a. Approval of claims for tax credits or refunds of taxes erroneously or illegally received, or penalties imposed without authority exceeding TEN MILLION PESOS (P10,000,000.00); b. Accreditation, disaccreditation, or imposition of sanctions on Authorized Agent Banks (AABs) c. Issuance of: c.1 Revenue Memorandum Orders for the implementation or modification of operational procedures; and c.2 Revenue Regulations prescribing the policies and guidelines for the implementation of tax legislation; d. Selection, promotion and assignment of officials for/to the positions of Deputy Commissioner (DCIR), Assistant Commissioner (ACIR), Regional Director, and Revenue Data Center Head; e. Creation of ad-hoc committees, projects, teams and other groups involving the temporary assignment of personnel; f. Acquisition and allocation of major capital assets, such as land, buildings, office space, computer hardware, and vehicles; g. All proposed Tax Computerization Project (TCP) Change Notices; h. Press releases concerning any and all aspects of the Bureau's operations; i. Any issue involving two (2) or more functional Groups, as well as any issue that the Commissioner may raise for discussion. 2. MANCOM shall have the privilege, and the right, to be informed of any of the following: a. The Bureau's monthly collection performance, at both the Regional and District level; b. All proposed legislative measures emanating from the Legal and Enforcement Group; c. Any legal action raised by third parties questioning the legality of any revenue issuance; d. Any issue involving the performance, reputation and image of the Bureau as a public service agency; e. Any legislation or court decision that shall affect the operational policies and processes of the Bureau; and f. Any other matters as may be referred to MANCOM by the Commissioner or any of the Members. IV. EFFECTIVITY: This Order shall take effect immediately. LibLex LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue