Establishment of a Specific Tax Enforcement Unit in the BIR

July 7, 1964 REVENUE MEMORANDUM ORDER NO. 42-64 1. Pursuant to the provisions of Sections 79(b) and 551 of the Revised Administrative Code, a Specific Tax Enforcement Unit is hereby established in the Bureau of Internal Revenue effective upon approval hereof. cdll 2. The Specific Tax Enforcement Unit shall perform the following duties: a. Counter-check the permissive and enforcement functions of regional districts through spot-checking, inspection and stock-taking of such persons, firms, or establishments manufacturing, producing, possessing, or handling articles subject to specific taxes; b. Conduct appropriate surveillance in the field for the apprehension of fake; counterfeit, spurious, and re-used stamps or labels and the illicit printing or importation of such fake, counterfeit, spurious and re-used labels; or of dies, tags, apparatus or mechanical contrivance for the printing or manufacture thereof or of untaxpaid articles; the affixture of incorrect value of strip stamps or labels to articles subject thereto; or other unlawful processes relative to the payment of specific taxes; c. Conduct periodic examination and/or investigation of the books of accounts and other records of all cigar and cigarette factories, distillers, rectifiers, compounders, and denaturers of alcohol, or other persons or establishments handling or engaged in the manufacture or sale of articles subject to specific taxes, as well as other articles or raw materials used in the production of articles subject to specific taxes; d. Initiate or direct the investigation or reinvestigation of such persons, firms or establishments engaged in the manufacture, production or sale of articles subject to specific taxes (including these possessing or handling such articles and of the raw materials or things used in the manufacture thereof) upon receipt or discovery of sufficient evidence indicating tax fraud or whenever such action is called for or warranted; e. Gather or seize, through legal processes, any evidence which may support deficiency specific taxes and/or any resulting or related deficiency of income, business, fixed or residence taxes or those which may support court action for civil and/or criminal liability for tax evasion in relation therewith against such persons, firms or establishments; f. Recommend the necessary assessment of specific taxes and/or any resulting or related deficiency of income, business, fixed or residence taxes of such persons, firms or establishments without prejudice to the prosecution of all infractors of the law on the matter; g. Upon direction of the Commissioner of Internal Revenue, to review tax cases involving such persons, firms or establishments which have been elevated to the National Office by the Regional Districts involving assessments of specific taxes of P10,000.00 or more; and h. Recommend the promulgation of revenue regulations, office procedures, amendments to existing law or the revision of regulations, policies or instructions designed to achieve a more effective system of control and enforcement of the law and regulations governing the operations of such persons, firms or establishments. 3. The Specific Tax Enforcement Unit shall have at least three sections, namely the Tobacco Tax Enforcement Section, the Alcohol Tax Enforcement Section, and the Miscellaneous Specific Tax Enforcement Section. 4. The Commissioner of Internal Revenue shall by appropriate order designate the assignment of personnel that shall constitute the Specific Tax Enforcement Unit. 5. The Chiefs of the Tobacco and Miscellaneous Tax Division and the Alcohol Tax Division shall extend their full cooperation and shall give all needed data upon request of the Chief of the newly created Specific Tax Enforcement Unit. 6. This Memorandum Order revokes Revenue Memorandum Order No. 59-63 and all Orders, Circulars, instructions or portions thereof inconsistent herewith. LLjur 7. This Memorandum Order shall take effect upon approval. (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue APPROVED: (SGD.) RUFINO G. HECHANOVA Secretary of Finance