Implementing the Updated Code of Conduct for Bureau of Internal Revenue Officers and Employees

June 1, 1998 REVENUE MEMORANDUM ORDER NO. 50-98 SUBJECT : Implementing the Updated Code of Conduct for Bureau of Internal Revenue Officers and Employees TO : All Internal Revenue Officers, Employees and Others Concerned This updated Code of Conduct for Bureau of Internal Revenue Officers and Employees (Annex A) is intended to promote and implement the Constitutional mandate that public office is a public trust and that public officers and employees must at all times be accountable to the people, serve them with utmost responsibility, integrity, loyalty and efficiency, act with patriotism and lead modest lives (Section 1, Article XI, 1987 Constitution of the Republic of the Philippines). It is mandated that each and every Revenue Officer and Employee should read thoroughly and imbibe the provisions of this Code of Conduct and at the same time show compliance therewith. It is to be stressed that this Code of Conduct is a set of rules that every Revenue Officer and Employee must keep and possess for his/her information and guidance to attain efficient performance. This Order which takes effect immediately supersedes the Code of Conduct for Bureau of Internal Revenue Employees issued in 1987 (RMO 16-87) as well as other issuances inconsistent herewith. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue ANNEX A THE UPDATED CODE OF CONDUCT FOR BUREAU OF INTERNAL REVENUE OFFICERS AND EMPLOYEES TABLE OF CONTENTS Section No. CHAPTER I GENERAL PROVISIONS 1 Declaration of Policy 2 Norms of Conduct of Revenue Officials and Employees 3 Bases and Sources 4 Definition of Terms CHAPTER II EMPLOYEES CONDUCT 5 Responsibility of Administrators and Supervisors 6 Responsibility of Employees Concerning Code of Conduct 7 Official Relations with the Public 8 Duties of Revenue District Officers and Other Internal Revenue Officers (Sec. 11 of Tax Reform Act of 1997) CHAPTER III OFFICIAL ACTIVITIES 9 General 10 Performance of Duty 11 Post of Duty Changes 12 Observance of Duty Hours 13 False Statements 14 Accountability for Money and Property 15 Care of Official Documents 16 Use of Government Time, Property and Facilities 17 Statement of Assets and Liabilities 18 Loyalty and Strikes 19 Appearance 20 Use of Badges and Identification Cards 21 Computers' Security Chapter IV PERSONAL ACTIVITIES 22 Basic Policy 23 Conflicts of Interest 24 Financial Interests Restricted 25 Outside Employment and Business Activity 26 Influencing Legislation or Petitioning Congress 27 Purchase of Government Property 28 Disposition of Government Property 29 Use of Government-Owned or Leased Vehicles 30 Use, Protection and Conservation of Government Money and Property 31 Exposure of Firearms 32 Gifts or Gratuities 33 Soliciting, Selling, Canvassing, or Advertising 34 Association with Disreputable Persons 35 Use of Intoxicants/Prohibited Drugs or Substance Abuse 36 Gambling, Betting and Lottery Chances 37 Tax Obligations 38 Political Activity 39 Night Clubs, Bars and Other Places of Entertainment Chapter V RIGHTS OF EMPLOYEES 40 In Active Duty 41 After Separation from the Service Chapter VI GROUNDS FOR DISCIPLINARY ACTION 42 General Chapter VII OFFENSES, PENALTIES AND LIABILITIES 43 General 44 Grave Offenses 45 Less Grave Offenses 46 Light Offenses 47 Infractions' Classification Chapter VIII GRIEVANCE MACHINERY (RMO 32-93) 48 Scope of Grievance Mechanism 49 Basic Policies 50 Composition of the Grievance Committee 51 Grievance Procedures 52 Decision Implementation 53 Responsibilities APPENDICES Annex I LIST OF BIR EMPLOYEES ISSUED with CODE OF CONDUCT FOR BUREAU OF INTERNAL REVENUE OFFICERS AND EMPLOYEES under RMO No. _____ Annex II Memorandum of Receipt for Code of Conduct FOREWORD The basic mission of the Bureau of Internal Revenue is to foster, to the fullest extent possible, voluntary compliance with all revenue laws and regulations and to efficiently perform its primary function of collecting the correct tax from all taxpayers. In the performance of this function, it must be stressed that we are all public servants and therefore at whatever cost, our duties must be carried out diligently, firmly, honestly and impartially but at the same time with humility, understanding and patience. Confidence in this Bureau and faith in its dependability and integrity are factors having a vital impact in our ability to carry out our purpose. We can maintain the public confidence only to the extent that everyone of our contacts with the public reflects the highest ethical and moral standards. Each of us has an important public relations role to play. Not only must we act with complete propriety, but we must be sure that none of our actions can be interpreted otherwise. Courtesy, fairness and competence must mark all our relationships with the public. We must be reasonable and as ready to recognize the rights of the taxpayer as we are to protect the rights of the Government. The purpose of this Code of Conduct is to lay down all the norms that are to be followed to attain our ends. Considering how the Bureau has gone so far, it is surely expected that a grateful nation would come out in the open and say that in the midst of doubt, corruption and self-interest, here is a circle of public servants who by their performance have proven that the Filipinos are not only worth dying for but likewise worth living and working for. But at all times, let us keep the BIR vision always alive in us. Our vision is that "The BIR, the Philippines' premier tax administration agency, is a model in customer service, whose delivery systems and management practices are world class and whose people, having been empowered to serve, are highly respected for their integrity and professionalism. With its impressive achievements in revenue collections, the BIR propels the nation's progress, enabling the government to make the Philippines an economic miracle in the region and in the world, uplifting the quality of life of every Filipino." cdll LIWAYWAY VINZONS-CHATO Commissioner Chapter I General Provisions Sec. 1. Declaration of Policy Public office is a public trust. Public Officers 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. Sec. 2. Norms of Conduct of Revenue Officials and Employees Every Revenue Official and Employee shall observe the following standards of conduct in the discharge and execution of official duties: a. Uphold the Constitution, laws and regulations of the Republic of the Philippines and never be a party to their evasion; b. Put loyalty in the revenue service to the highest moral principles and to country above loyalty to persons, party or government office; c. Give a full day's labor for a full day's pay, giving to the performance of his duties conscientious effort and best thought; d. Never discriminate unfairly by the dispensing of special favors or privileges to anyone, whether for remuneration or not, and never accept, for himself or his family, favors or benefits under circumstances which might be construed by reasonable persons as influencing the performance of his governmental duties; e. Seek to find and employ more efficient and economical ways of getting tasks accomplished; f. Make no private promises of any kind binding upon the duties of his office, since a government employee has no private word which can be binding on public duty; g. Must not engage in business with the Government, either directly or indirectly, which is inconsistent with the conscientious performance of his governmental duties; h. Never use any information coming to him confidentially in the performance of governmental duties as a means for making private profit; i. Expose corruption whenever discovered; j. Be conscious at all times that public office is a public trust; k. Always uphold the public interest over and above personal interest; l. Use government resources and powers efficiently, honestly and economically to avoid wastage in public funds and revenues; m. Perform and discharge duties with the highest degree of excellence, professionalism, intelligence and skill; n. Respect the rights of others; o. Refrain from doing acts contrary to law, good morals, good custom, public policy, public order, public safety and public interest; p. Never dispense or extend undue favors on account of his office to his relatives except with respect to appointments of such relatives to positions considered strictly confidential or as members of his personal staff whose terms are co-terminous with his; q. Provide service to anyone without unfair discrimination and regardless of party affiliations or reference; r. Extend prompt, courteous and efficient service to the public; s. Provide information on policies and procedures in clear and understandable language, ensure openness of information, public consultations and hearings whenever appropriate, encourage suggestions, simplify and systematize policy, rules and procedures, and avoid red tape; t. Commit to the democratic way of life and values and maintain the principle of public accountability; and u. Lead modest life appropriate to his position and income and shall not indulge in extravagant or ostentatious display of wealth in any form. Sec. 3. Bases and Sources This Code of Conduct supersedes RMO 16-87 , embodies the pertinent rules of the Revised Civil Service Law and Rules, Constitution, Laws passed by Congress, Presidential Issuances, Court Rulings, International Law and Ruling, Bureau Policies, and incorporates by reference Sections 269 , 270 , 271 , 272 and 273 of the National Internal Revenue Code , as amended, to wit: "Sec. 269. Violations Committed by Government Enforcement Officers . Every official, agent or employee of the Bureau of Internal Revenue or any other agency of the Government charged with the enforcement of the provisions of this Code, who is guilty of any of the offenses herein below specified shall, upon conviction for each act or omission, be punished by a fine of not less than Fifty thousand pesos (P50,000.00) but not more than One hundred thousand pesos (P100,000.00) and suffer imprisonment of not less than ten (10) years but not more than fifteen (15) years and shall likewise suffer an additional penalty of perpetual disqualification to hold public office, to vote and to participate in any public election: a. Extortion or willful oppression through the use of his office or willful oppression and harassment of a taxpayer who refused, declined, turned down or rejected any of his offers specified in paragraph (d) hereof; b. Knowingly demanding or receiving any fee, other or greater sums than are authorized by law or receiving any fee, compensation or reward, except as by law prescribed, for the performance of any duty; c. Willfully neglecting to give receipts, as by law required, for any sum collected in the performance of duty or willfully neglecting to perform any other duties enjoined by law; d. Offering or undertaking to accomplish, file or submit a report or assessment on a taxpayer without the appropriate examination of the books of accounts or tax liability, or offering or undertaking to submit a report or assessment less than the amount due the Government for any consideration or compensation, or conspiring or colluding with another or others to defraud the revenues or otherwise violate the provisions of this Code; e. Neglecting or by design permitting the violation of the law by any other person; f. Making or signing any false entry or entries in any book, or making or signing any false certificate or return; g. Allowing or conspiring or colluding with another to allow the unauthorized retrieval, withdrawal or recall of any return, statement or declaration after the same has been officially received by the Bureau of Internal Revenue; h. Having knowledge or information of any violation of this Code or any fraud committed on the revenues collectible by the Bureau of Internal Revenue, failure to report such knowledge or information to their superior officer, or failure to report as otherwise required by law; and i. Without the authority of law, demanding or accepting or attempting to collect, directly or indirectly, as payment or otherwise any sum of money or other thing of value for the compromise, adjustment or settlement of any charge or complaint for any violation or alleged violation of this Code. Provided, That the provisions of the foregoing paragraph notwithstanding, any internal revenue officer for which a prima facie case of grave misconduct has been established shall, after due notice and hearing of the administrative case and subject to Civil Service Laws, be dismissed from the revenue service: Provided, further, That the term ' grave misconduct ', as defined in the Civil Service Law, shall include the issuance of fake letters of authority and receipts, forgery of signature, usurpation of authority and habitual issuance of unreasonable assessments. "SEC. 270. Unlawful Divulgence of Trade Secrets . Except as provided in Section 71 of this Code and Section 26 of Republic Act No. 6388, any officer or employee of the Bureau of Internal Revenue who divulges to any person or makes 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 in the discharge of his official duties, shall, upon conviction for each act or omission, be punished by a fine of not less than Fifty thousand pesos (P50,000.00) but not more than One hundred thousand pesos (P100,000.00) or suffer imprisonment of not less than two (2) years but not more than five (5) years, or both. "SEC. 271. Unlawful Interest of Revenue Law Enforcers in Business . Any internal revenue officer who is or shall become interested, directly or indirectly, in the manufacture, sale or importation of any article subject to excise tax under Title VI of this Code or in the manufacture or repair or sale, of any die for printing, or making of stamps, or labels shall, upon conviction for each act or omission, be punished by a fine of not less than Five thousand pesos (P5,000.00) but not more than Ten thousand pesos (P10,000.00), or suffer imprisonment of not less than two (2) years and one (1) day but not more than four (4) years, or both. "SEC. 272. Violation of Withholding Tax Provision . Every officer or employee of the Government of the Republic of the Philippines or any of its agencies and instrumentalities, its political subdivisions, as well as government-owned or controlled corporations, including the Bangko Sentral rig Pilipinas (BSP), who, under the provisions of this Code or rules and regulations promulgated thereunder, is charged with the duty to deduct and withhold any internal revenue tax and remit the same in accordance with the provisions of this Code and other laws is guilty of any offense herein below specified shall, upon conviction for each act or omission be punished by a fine of not less than Five thousand pesos (P5,000.00) but not more than fifty thousand (P50,000.00) or suffer imprisonment of not less than six (6) months and one (1) day but not more than two (2) years, or both: a. Failing or causing the failure to deduct and withhold any internal revenue tax under any of the withholding tax laws and implementing rules and regulations; b. Failing or causing the failure to remit taxes deducted and withheld within the time prescribed by law, and implementing rules and regulations; and c. Failing or causing the failure to file return or statement within the time prescribed, or rendering or furnishing a false or fraudulent return or statement required under the withholding tax laws and rules and regulations. "SEC. 273. Penalty for Failure to Issue and Execute Warrant . Any official who fails to issue or execute the warrant of distraint or levy within thirty (30) days after the expiration of the time prescribed in Section 207 or who is found guilty of abusing the exercise thereof by competent authority shall be automatically dismissed from the service after due notice and hearing. Sec. 4. Definition of Terms Unless the specific words of the text or the context as a whole, or a particular statute shall require a different meaning, the words mentioned hereunder shall mean: a. " Extortion " is the unlawful taking by any officer, by color of his office, of any money or thing of value that is not due to him or more than is due or before it is due. ( U . S . v . Deaver , (1882) 14 Fed . 595 ; see U . S . v . Harned , (1899) 43 Fed . Stat . Ann ., 2 nd , 992 ). To constitute extortion, there must be the receipt of money or something of value. It is extortion and oppression for an officer to take money for the performance of his duty, even though it be in the exercise of a discretionary power. ( Bouvier ' s Law Dictionary , Vol ., I , p . 1167 ) b. " Oppression " is an act of cruelty, severity, unlawful exaction, domination or excessive use of authority. ( Ochate vs . Deling , 105 Phil . 390 ) c. " Bribery " may be classified into: 1. Direct Bribery is the performance by a public officer of an act constituting a crime, in connection with the performance of his official duties, in consideration of any offer, promise, gift or present received by such officer, personally or through the mediation of another. 2. Indirect Bribery refers to the acceptance of gifts offered to a public officer by reason of his office. d. " Dishonesty " the concealment or distortion of truth in a matter of fact relevant to one's office or connected with the performance of his duties ( Sec . 8 , P . D . No . 971 ). An absence of integrity, a disposition to betray, cheat, deceive or defraud, bad faith. ( Area vs . Lepanto Consolidated Mining Co ., 17679-R . Nov . 24 , 1958 ) e. " Neglect of Duty " the omission or refusal, without sufficient excuse, to perform an act or duty, which it was the officer's legal obligation to perform. ( Sec . 8 , PD 971 ); or the failure to give due attention, especially to the performance of a task or duty. ( Magallanes vs . Provincial Board , 66 OG 7839 ) f. " Misconduct " a transgression of some established and definite rule of action, more particularly, unlawful behavior by the public officer. It implies malice or a wrongful intent and not mere error of judgment. g. " Grave " means a wanton and capricious exercise of discretion. ( Caoile vs . Puno , SP 00221 , June 19 , 1971 ). h. " Gross " flagrant, shameful. ( Camus vs . Civil Service Board of Appeals , 112 Phil 306 ). i. " Gross Negligence " the want of even slight care and diligence. Such entire want of care as to raise a presumption that the person in fault is conscious of the probable consequence of carelessness, and is indifferent, or worse, to the danger of injury to person or property of others. Such negligence as amounts to a reckless disregard of the safety of person or property ( Amedo vs . Rio y Olabarrieta Inc ., 95 Phil 37 ). j. " Immoral Conduct " that conduct which is willful, flagrant, or shameless, and which shows a moral indifference to the opinion of the good and respectable members of the community ( Arciga vs . Maniwang , Administrative Case No . 1608 , Aug . 14 , 1981 ; 106 SCRA 594 ) k. " Notoriously Undesirable " presupposes on the part of the official or employee a history of disciplinary infractions meriting the sobriquet of notorious ( Viray vs . GSIS , CV-01890 , March 10 , 1996 ) l. " Inefficiency " implies negligence, incompetence, ignorance and carelessness ( Suroza vs . Honrado , Adm . Matter No . 2026-CFI , Dec . 19 , 1981 ; 10 SCRA 396 ). m. " Incompetence " the manifest lack of adequate ability and fitness for the satisfactory performance of official duties by reason of the officer's vice or vicious habits. This has reference to any physical, moral or intellectual quality, the lack of which substantially incapacitates one to perform the duties of an officer. n. " Moral Turpitude " an act of baseness, vileness, shameful, wickedness or depravity in the private and social duties which a man owes his fellowmen, or to society in general, contrary to the accepted and customary rule of right and duty between man and man, or conduct contrary to justice, honesty, modesty or good morals ( Tak Ng vs . Republic , 106 Phil 730 ). o. " Falsification " 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 likewise refers to the commission of a deliberate falsehood with the intent to deceive. ( People vs . Bacalso , 1899-R , July 24 , 1950 ). p. " Official Document " is a document which is issued by a public official in the exercise of the functions of his office. q. " Public Document " a document created, executed or issued by a public official in response to the exigencies of the public service, or in the execution of which a public official intervened ( U . S . vs . Asensi , 34 Phil . 765 ). It includes any instrument authorized by a notary public or a competent public official, with the solemnities required by law. r. " Malversation " a crime committed by a public officer who, by reason of the duties of his office, is accountable for public funds and property, appropriates or consents or through abandonment or negligence, permits any person to take such public funds or property, wholly or partially. (This does not include TECHNICAL MALVERSATION) s. " Technical Malversation " is the application by a public officer of public fund/property under his administration, to a public use other than that for which such fund or property has been appropriated/intended by law. t. " Insubordination " a quality or state of not submitting to authority; Disobedience of a lawful order ( Lejano vs . Mayaga , 16826-R January 29 , 1957 ). u. " Habitual Drunkenness " the habit of excessively using intoxicating drinks. The habit should be actual and confirmed, but it is not necessary that it be continuous or of daily occurrence ( People vs . Amenamen , 37 OG 2325 ). v. " Prohibited Drugs " refers to those substances enumerated in the Dangerous Drug Act, which have the physiological effects of a narcotic or a hallucinogenic drug, which includes opium and its active components and derivatives like 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 and chemical preparations, whether natural or synthetic. w. " Sexual Harassment " is an act, actual or implied, committed by any employer, employee, manager, supervisor, agent of the employer, or any other person who, having authority, influence or moral ascendancy over another in work, demands, requests or otherwise requires any sexual favor from another, regardless of whether the demand or request is accepted by the object of said act. It also includes acts of lasciviousness as defined under the Revised Penal Code. x. " Nepotism " a situation where appointments are made in favor of a relative of the appointing or recommending authority, or of the chief of the bureau or office, or of the person exercising immediate supervision over the appointee. As used in this definition, the word "relatives" refer to those related to the appointing authority within the third degree either of consanguinity or of affinity. y. " Employee " when used with reference to a person in the public service, includes any person in the service of the government or any of its agencies, political subdivisions or instrumentalities. z. " Person " includes natural and juridical persons, unless the context indicates otherwise. aa. " Gift " refers to a thing or a right disposed of gratuitously, or any act of liberality, in favor of another who accepts it, and shall include a simulated sale or an ostensibly onerous disposition thereof. It shall not include an unsolicited gift of nominal or insignificant value not given in anticipation of, or in exchange for, a favor from a public official or employee. bb. " Receiving any Gift " the act of accepting, directly or indirectly, a gift from a person other than a member of the public officer's immediate family, in behalf of himself or of any member of his family or relative within the fourth civil degree, either by consanguinity or affinity, if the value of the gift is under the circumstances manifestly excessive. Receiving gifts on occasions of Christmas, birthdays, etc. which are not of considerable value do not fall under this term. cc. " Family of Public Officials " means their spouses and unmarried children under eighteen (18) years of age. dd. " Conflict of Interest " arises when a public official or employee is a member of a board, an officer or a substantial stockholder of a private corporation or owner or has a substantial interest in a business and the interest of such corporation or business, or his rights or duties therein, may be opposed to or affected by the faithful performance of official duty. ee. " Relatives " refers to any and all persons related to a public official or employee within the fourth civil degree of consanguinity or affinity, including bilas , inso and balae . ff. " Complaint " means an employee's expressed (written or spoken) feelings of dissatisfaction with some aspects of his working conditions, relationships or status which are outside his control. gg. " Grievance " refers to a complaint in writing which has, in the first instance and in the employee's opinion, been ignored, overridden or dropped without due consideration. hh. " Grievance Procedure " refers to the method of determining and finding the best way to remedy the specific cause or causes of the complaint or grievance. ii. " Conciliation " refers to the process whereby a third party (conciliator) brings the parties together, encourages them to discuss their differences and assists them in developing their own proposed solutions. jj. " Mediation " refers to the process whereby a third party (mediator) is more active in assisting the parties reach acceptable solutions to the problems and help the disputing parties develop or come out with an acceptable solution. He can even submit his own proposals for the settlement of disputes. kk. " Arbitration " refers to the process whereby a third party (individual arbitrator, board of arbitrators or an arbitration court) is empowered to make a decision which disposes of the dispute. Chapter II Employees Conduct Sec. 5. Responsibility of Administrators and Supervisors A. All Deputy Commissioners, Assistant Commissioners, Regional Directors, Assistant Regional Directors, Chiefs of Divisions, Assistant Chiefs of Divisions, Revenue District Officers and Section Chiefs are responsible for ensuring that proper information and guidance on this Code of Conduct is disseminated to all employees. B. The supervisors should hold themselves up as models for their subordinates to emulate, particularly in attendance and decorum, and be responsible for providing proper information and guidance with respect to acceptable conduct and for seeking necessary clarification from the Personnel Division or higher authority. C. It will be the responsibility of the Chief, Personnel Division and heads of offices to see to it that each and every revenue employee receives a copy of this Code of Conduct. Each head of office shall prepare and submit the LIST OF BIR EMPLOYEES ISSUED WITH CODE OF CONDUCT FOR BUREAU OF INTERNAL REVENUE OFFICERS AND EMPLOYEES (Annex I) to the Internal Affairs Service whereas every individual revenue employee shall sign on the prescribed Memorandum Receipt (Annex II) to be submitted by the head of office to the Personnel Division. The Personnel Division's copy shall form part of the employee's 201 file and will be considered by the Bureau as a proof that the employee has read the entire contents of the Code. Sec. 6. Responsibility of Employees Concerning Code of Conduct A. General In meeting his obligation to do his part in maintaining public confidence in and high esteem of the Bureau, the revenue employee is required to: 1. know the Code of Conduct and its application to his case; 2. seek information from his superior in case of doubt or misunderstanding in the application of the Code of Conduct; 3. abide by the Code of Conduct; and 4. be aware of the consequences of violation of the laws, rules and regulations regarding conduct. B. Reporting Allegations or Information of Employee's Misconduct 1. Any allegation or information that the Code of Conduct or any tax law has been violated, or crime or misconduct has been committed must be promptly reported to the Assistant Commissioner Internal Affairs Service especially where the allegation or information concerns serious criminal matters such as embezzlement, solicitation of bribes, extortion, fraud against the government or conspiracy to defraud the government. 2. Information reported to the Internal Affairs Service which requires knowledge, consideration or possible action by other units of the Bureau will be promptly referred by said Revenue Service to the units concerned at the Regional or National Office level, consistent with security requirements deemed necessary in proper investigation. Information received by the Internal Affairs Service will be disclosed only to those entitled to receive it. Confidential sources of information will be protected. C. Reporting Attempted Bribery 1. Attempts by outsiders to bribe revenue employees constitute flagrant attacks on the integrity of the service. An attempt to bribe is an offer to give something of value with intention to have the recipient do something improper or fail to do something he should do, in discharging the duties of his position. Such an offer made to an employee of the Service is a criminal offense penalized under the Revised Penal Code. 2. Bribe offers are often made indirectly or subtly, rather than in a direct fashion. Employees must be perceptive and alert in recognizing such bribe overtures and must promptly report them so that trained personnel can evaluate the facts and initiate investigation when sufficient evidence warrants. Any employee who has reasonable grounds for believing that an attempt to bribe him has been or will be made has the duty to: a. Avoid any statement or implication that will or will not accept the bribes, and try to hold the matter in abeyance; llcd b. Immediately report the matter to the Internal Affairs Service and thereafter to submit a memorandum to said Service stating the full circumstances concerning the matter; and c. Thereafter, cooperate fully in any ensuing investigation and avoid any unnecessary discussion of the case with anyone. D. Reporting Unethical Practices or Misconduct by Tax Practitioners Information concerning unethical practice by tax practitioners which also involves either alleged misconduct by an employee or attempt by the practitioner to corrupt an employee must be reported directly to the Internal Affairs Service for appropriate action. E. Reporting Law Suits Related to Official Duties Employees who are sued civilly or charged with violation of any local or international law as a result of the performance of their official duties are entitled to be represented by an attorney of the Solicitor General's Office or of the Bureau of Internal Revenue. Employees will promptly report such matter through supervisory channels to permit timely official determination of a proper cause of action in the interest of the Government and the employee concerned. F. Reporting Violations of Revenue Laws Employees must report to the Internal Affairs Service any knowledge or information they may have of the violation of any revenue law or fraud against the Government by any person under any revenue law. G. Reporting Loss or Damage of Official Records and Property Employee will promptly report to their supervisor/superior the loss of any accountable government property such as identification card, receipts, books, etc. They will similarly report the loss or mutilation of any official record or document such as tax returns, informant letters, reports, etc. and damage or loss of government equipment such as automobile, jeep, office machines, etc. Sec. 7. Official Relations with the Public A. General The manner in which employees conduct themselves in their official relationships with the public will either build or tend to destroy public confidence in and esteem for the Bureau. B. Courtesy, Fairness, Impartiality and Appearance Employees are expected to conduct themselves in their official relations with the public in a manner which will enhance public respect for and confidence in the employee as a public servant and the Bureau as a whole. Employees must be courteous, business-like, fair, diplomatic and tactful. They must not only perform their duties in a wholly impartial manner but also avoid any appearance of acting otherwise. They must wear the prescribed uniform. C. Self-Disqualification from Certain Assignments When an officer or employee receives an assignment involving a person acting either as principal or agent, with whom he has bad social, business or other relationships of a nature that might impair or give the appearance of impairing the employee's impartiality or independence, he will discuss with his supervisor the possible need to have the matter reassigned. This applies particularly to assignments involving investigation, tax examination and adjudication of matters at issue between a taxpayer and the Bureau. D. Criticism of Attorney, Accountants and Accounting System Adverse or antagonistic criticism of the work of accountants and attorneys employed by taxpayers must be avoided at all times. If the employee finds, during the course of his examination, that the taxpayer failed to comply substantially with the law and regulations in maintaining the necessary records, the employee will discuss the matter with his supervisor and follow the prescribed procedure for reporting his findings. E. Recommending Attorneys, Accountants Employees must not recommend or suggest, specifically or by implication, to a taxpayer any attorney or accountant or firm of attorneys or accountants in connection with any official business which involves or may involve the Bureau. F. Irregular Arrangements in Examining Taxpayers' Books Employees are cautioned against making any improper arrangements with taxpayers or their representatives for conducting the examination of their books or records. Some of the irregular arrangements which should be avoided are: 1. Borrowing the key to a taxpayer's office; 2. Remaining at a taxpayer's place of business after office hours without the presence of the taxpayer or his representative; 3. Removing books of accounts or private records from a taxpayers office for the purpose of examining them in greater detail without the taxpayer's permission or due process of law. G. Conferences to be in Accordance with Established Procedures All official conferences with taxpayers or their representatives must be conducted in accordance with prescribed instructions. Strict observance of the prescribed procedure is necessary in view of the confidential nature of such conferences. H. Financial Transactions with Taxpayers and their Representatives An employee may not engage in any business or financial transaction with a taxpayer, or his representative, under circumstances which might reasonably be construed as influencing or improperly relating to past, present or future performance of his governmental duties. I. Disclosure of Official or Confidential Information Any officer or employee of the Bureau of Internal Revenue may not divulge to any person or make 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 in the discharge of his official duties, unless otherwise authorized by law or by competent authority. J. Service Operations not to be Disclosed The contents of any internal management documents designated, "official use only," are not to be disclosed without authority. Information concerning investigations by the Bureau must not be disclosed in an unauthorized manner. As a pre-caution against improper disclosure of information, employees should not engage in loose talk concerning the business of the service. They should consult their supervisors whenever there is any question as to the propriety of releasing any specific information. K. Private Stenographers/Secretaries not to be Used Employees should not utilize the services of private stenographers or secretaries or other personnel who are not revenue employees for assistance on official matters unless duly authorized by competent authority. L. Testimony in Court Employees are prohibited from giving out any official records or any copies thereof to private persons or to other government officers, or to produce such records or copies thereof in any court except in compliance with the subpoena duly issued for the purpose and allowed under existing laws (Opinion of Ministry of Justice, Series of 1989) and only after securing the advice or assistance of the Legal Service or Legal Division, as the case may be. M. Engagements to Speak or Write a. Public addresses and articles for publication dealing with internal revenue operations or matters of revenue policy must be cleared in advance with the Commissioner of Internal Revenue. An employee may not accept compensation, or permit his expenses to be paid by sources other than the National Government for speaking engagements or writings performed as official duties, unless the Commissioner's approval is obtained. b. Unless specific approval of the Commissioner is obtained, no employee shall receive an honorarium or compensation for speaking or participating in a tax forum or writing for publication on internal revenue matters. However, the acceptance of nominal courtesies normally extended in the spirit of hospitality is permitted. N. Visitors Visitors normally will not be allowed in workrooms except in connection with official business. However, instructive visits by individuals or groups may be permitted when such visits contribute to taxpayer service and good public relations, and they do not violate security requirements. Sec. 8. Duties of Revenue District Officers and Other Internal Revenue Officers (Sec . 11 of the Tax Reform Act of 1997) "It shall be the duty of every Revenue District Officer or other internal revenue officers and employees to ensure that all laws, and rules and regulations affecting national internal revenue are faithfully executed and complied with, and to aid in the prevention, detection and punishment of frauds or delinquencies in connection therewith. It shall be the duty of every Revenue District Officer to examine the efficiency of all officers and employees of the Bureau of Internal Revenue under his supervision, and to report in writing to the Commissioner, through the Regional Director, any neglect of duty, incompetency, delinquency, or malfeasance in office of any internal revenue officer of which he may obtain knowledge, with a statement of all the facts and any evidence sustaining each case." Chapter III OFFICIAL ACTIVITIES Sec. 9. General This concerns official activities which are most likely to affect the public confidence in the Bureau and the integrity of its employees. Sec. 10. Performance of Duty Employees must conscientiously perform their duties to the Government and to the public. They are required to respond readily to the direction of their supervisors, to cooperate fully with all properly constituted authorities and to dispose of their work promptly and accurately. All relations with fellow employees and others must be conducted in a manner which will not needlessly cause dissension or discord among employees or disrupt official business. Sec. 11. Post of Duty Changes Fluctuating workloads, improved procedures, new requirements, special assignments, personnel imbalances or other causes, may at times require employees to change posts of duty or assignments. The Commissioner has the authority to transfer employees whenever necessary to meet workload conditions, while Regional Directors shall have the same authority, with the approval of the Commissioner, to transfer employees between local offices within their respective jurisdictions and employees must accede to changes in posts of duty or assignments as notified. Sec. 12. Observance of Duty Hours A. Employees must observe designated duty hours which is eight hours of work a day from eight o'clock (8:00 a.m.) in the morning to twelve o'clock noon (12:00 noon) and from one o'clock (1.00 p.m.) to five o'clock (5:00 p.m.) in the afternoon for five days a week or a flexible schedule as approved by the Commissioner for a total of forty (40) hours a week, exclusive of time for lunch; and be punctual in reporting for work and returning from coffee breaks and lunch periods. Tardiness without acceptable excuse can result in employees being placed in a charge against their vacation leaves, if any, or in a nonpay status as the case may be. When charges against leave or compensatory time or placing an employee in a nonpay status do not eliminate habitual tardiness, supervisors shall initiate procedures for appropriate disciplinary action. B. A daily record of attendance shall be required of all officers and employees, including those serving in the field, and where bundy clocks are available, the same shall be used by the employees in addition to signing the daily record of attendance. In case of conflict, the daily record of attendance shall prevail. In case there are no bundy clocks, employees shall accomplish the daily time record (C.S. Form 48), and shall submit the same to the Chief of Office, Division or Unit at the end of each month. The time indicated in the daily time record must tally with the Daily Record of Attendance, duly certified by the Assistant Chief of the Office, Division or Unit. The Assistant Commissioners down to the Assistant Division Chiefs, in the Central Office, and Regional Directors, Division Chiefs, Assistant Division Chiefs, Revenue District Officers and Assistant Revenue District Officers, in the Regional Offices, are not required to time in on the time sheets of their respective offices, but they should submit to their immediate Chiefs their daily time records (C.S. Form 48) for each month. Except in case of illness or unavoidable emergency, employees must arrange in advance to obtain authorization for absence from duty. Where absence from duty results from illness or unavoidable emergency, the employee is required to notify his supervisor or other appropriate person, as soon as possible. When an employee fails to properly notify his supervisor, he may be considered as not entitled to leave and the absence may be charged as unauthorized leave. Extenuating circumstances preventing an employee from giving such notification shall be considered before denying leave or charging unauthorized absence. C. Unauthorized absence without adequate excuse, or recurring or continued unauthorized absence, is cause for disciplinary action including separation. D. Sick leave may be granted to employees on account of sickness or the sickness of any member of their immediate family which shall be limited only to any relative living under the same roof and dependent upon them for support. It may also be granted when the employee needs to obtain medical, dental or optical examination or treatment. Use of sick leave other than for the designated purpose is forbidden. Ordinary application for sick leave already taken not exceeding five days need not be accompanied by a medical certificate. Every employee requesting permission to go on partial leave (undertime) shall file a partial leave form duly approved by the head of office concerned indicating the time of departure and the actual time of return to the office. A supervisor who leaves the office for a personal or official business shall notify his higher supervisor relative thereto. Sec. 13. False Statements Falsification or irregularities in the keeping of time records will render the guilty officer or employee liable to dismissal from the service or to other appropriate disciplinary action, without prejudice to criminal prosecution as the circumstances warrant. Employees should not intentionally make false or misleading statements on matters of official interest. Sec. 14. Accountability for Money and Property Any money, property or other thing of value received by or coming into the custody of an employee in connection with the discharge of duties relating to enforcement of internal revenue laws must be accounted for, deposited, or otherwise disposed of in accord with established procedures. Severe disciplinary action and criminal prosecution can result from the employee's failure to follow these procedures. Sec. 15. Care of Official Documents A. All records and documents in the custody of revenue officers and employees are in their custody for official purpose only. It is unlawful to remove or conceal, after, mutilate, obliterate, or destroy records or documents or to remove with the intent of performing any of the above actions. Employees must not remove records and documents from official files without approval from proper authority. Working papers, copies of reports and other official records and documents shall be promptly sent to file when no longer needed for official purposes. Disposal or destruction of records and documents is to be made in accordance with established requirements. B. Employees shall be held responsible for the loss, disappearance, or theft of official documents when attributable to negligence or carelessness. Employees are cautioned against leaving official documents unprotected in automobiles, leaving them in public conveyances, in rest rooms, in taxpayer's offices, etc. Recovery of documents may not necessarily be a mitigating circumstance after the loss. Sec. 16. Use of Government Time , Property , and Facilities A. Employees are forbidden to use Government time, property, or facilities, including equipment and supplies, for conducting personal business or for other unauthorized personal purpose. B. Employees have a positive responsibility to protect and conserve all government property, including equipment and supplies entrusted or issued to them. C. Employees may be held financially liable for damage or loss of Government property resulting from their gross negligence. They may also be prosecuted for intentional damage or destruction of Government property. Sec. 17. Statement of Assets and Liabilities Every official or employee, except those who serve in an official honorary capacity, without service credit or pay, temporary laborers and casual or temporary and contractual workers, shall file under oath his/her Statement of Assets, Liabilities and Networth and a disclosure of business interest and financial connections including those of his/her spouse and unmarried children under eighteen (18) years of age living in his/her household, in the prescribed form. A. Contents of Statement 1. The Statement of Assets, Liabilities and Networth shall contain information on the following: a. Real property, its improvements, acquisition costs, assessed value, and current fair market value; b. Personal property and acquisition cost; c. All other assets such as investments, cash on hand or in banks, stocks, bonds and the like; and, d. All financial liabilities, both current and long-term. 2. The Disclosure of Business Interests and Financial Connections shall contain information on any existing interests in, or any existing connections with, any business enterprises or entities, whether as proprietor, investor, promoter, partner, shareholder, officer, managing director, executive, creditor, lawyer, legal consultant, or adviser, financial/business consultant, accountant, auditor and the like, the names and addresses of the business enterprises or entities, the dates when such interests or connections were established, and such other details as will show the nature of the interests or connections. B. When to File The above documents under the Code must be filed: 1. Within thirty (30) days after assumption of office statements of which must be reckoned as of his first day of service; 2. On or before April 30 of every year thereafter, statements of which must be reckoned as of the end of the preceding year; or 3. Within thirty (30) days after separation from the service, statements of which must be reckoned as of his last day of office. C. Where to File The Statement of Assets, Liabilities and Networth and the Disclosure of Business Interest and Financial Connections shall be filed by the: Where to File Official/Employee Concerned Deputy Ombudsman in Regional officials and employees of Where to File Official/Employee Concerned Deputy Ombudsman in Regional officials and employees of their respective regions departments, bureaus and agencies of the national government, including the judiciary and constitutional commissions and offices Civil Service Commission All other central officials and employees of departments, bureaus and agencies of the national government including the Judiciary and constitutional commissions and offices as well as government-owned and controlled corporations and their subsidiaries Sec. 18. Loyalty and Strikes Employees must adhere to their oath of office and appointment affidavit which includes provisions of loyalty and prohibitions against strikes. No person may accept or hold office or employment in the Government if he advocates the overthrow of the constitutional form of government, or if he is a member of an organization that advocates the overthrow of the constitutional form of government, knowing that such organization so advocates. Sec. 19. Appearance Employees are expected to groom themselves in a manner fitting to the surroundings of their work assignments. Sec. 20. Use of Badges , Identification Cards , Credential and Authority Credentials and badges issued to employees are for use only in establishing identity or authority in connection with official duties. Such badges, credentials, or an employee's official position, status, or designation, are not to be used to exert influence or obtain, either directly or indirectly, privileges, favors, or rewards for themselves or others, or to improperly enhance their own prestige. Sec. 21. Computers ' Security Employees must make every effort to assure the security and prevent the unauthorized disclosure of protected information/data in the use of Government owned or leased computers. In addition, employees may not use any service computer system other than for official purposes. Any act which has adverse effect on the computer hardware, software, data, network, operating system, printed data, computer media and computing environment is considered as security breach/violation and is punishable accordingly. CHAPTER IV PERSONAL ACTIVITIES Sec. 22. Basic Policy Every revenue employee shall exercise utmost care in all his personal activities, interests and associations to avoid apparent or real conflict with official duty or to avoid detraction from the public image of the employee or of the Bureau. He should observe a modest if not frugal lifestyle. Sec. 23. Conflicts of Interest A. A conflict of interest situation is one in which a revenue employee's private interest, usually of a financial or economic nature, conflicts or raises a reasonable question of conflict with his public duties and responsibilities. B. The following are some of the acts of revenue employees which are considered to be within the contemplation of conflict of interest and, therefore, are prohibited: 1. Receiving any improper consideration for procuring any contract with the Republic of the Philippines; 2. Acting on behalf of the Government in transacting business with a private concern in which the employee, his spouse, or children has a financial interest. It is considered that the employee has a financial interest in such a private concern if he is negotiating, or has any arrangement concerning prospective employment with such private concern; 3. Receiving or agreeing to receive any compensation for any service rendered by himself or another in relation to any proceeding, contract, claim, controversy, charge or other matter in which the Government is directly or indirectly interested before any of its executive agencies; 4. Acting as agent or attorney or assisting in the prosecution of any claim against the Government; 5. Receiving any salaries for services rendered by him for the Government of the Philippines from any party other than the Philippine Government; and 6. Directly or indirectly and corruptly soliciting, accepting or agreeing to accept, for himself or another anything of value to influence his performance of an official duty or to make opportunity for the commission of any fraud in the Philippine Government. Sec. 24. Financial Interests Restricted No employee shall, on a private basis, participate directly or indirectly in any financial transaction if he has access to official information not available to the general public which is relevant to the transaction; or if in the transaction his private interest is, or may reasonably be expected to be, in conflict with his official interests or duties. Sec. 25. Outside Employment and Business Activity A. No officer or employee shall engage directly in any private business, vocation or profession or be connected with any commercial, credit, agricultural or industrial undertaking without a written permission from the Commissioner of Internal Revenue; Provided, that this prohibition will be absolute in the case of those officers and employees whose duties and responsibilities require that the entire time be at the disposal of the Government; Provided further, that if an employee is granted permission to engage in outside activities, the time so devoted outside of office hours should be fixed by the Chief of the agency to the end that it will not impair in any way the efficiency of the officer or employee; Provided, finally, that no permission is necessary in the case of investments made by an officer or employee which do not involve any real or apparent conflict between his private interests and public duties or in any way influence him in the discharge of his duties, and he shall not take part in the management of the enterprise or become an officer or member of the board of directors. B. Approval will not be granted where the outside employment or business activity: 1. interferes with the efficient performance of official duties; 2. might bring discredit on or cause unfavorable and justifiable criticism to the Bureau; 3. might reasonably result in a conflict of interest, or an apparent conflict of interest, with official duties and responsibilities. C. The fundamental principles which govern the permissibility of outside employment are that: 1. The outside activity does not place the employee in a situation where there may be a possible conflict, or the appearance of a conflict, between his or her private interests and his or her official duties and responsibilities; 2. The outside activity (unless otherwise permitted) does not deal with any tax related matters; 3. The outside activity will not result in improper use of official information obtained in connection with the employee's Government duties or position; 4. The nature of employment or business activity of the hours to be devoted to such outside activity will not impair the employee's availability, capacity, or efficiency for the performance of his or her official duties; 5. The employee will not in any manner advertise or make it known that he or she works for the Bureau in order to generate or enhance business; and 6. The employee will not do indirectly, i.e., in the name of, or through family, that which he or she is prohibited to do directly. D. Employees may not engage in any outside employment or business activity which gives rise to a real or apparent conflict of interest. Such incompatible activities include: 1. Legal Employment or Practice; 2. Appearance On Behalf of Taxpayers; 3. Accounting; 4. Bookkeeping; and 5. Preparation of Tax Returns for Compensation. E. Employees who feel that they have grievances as a result of denials of permission to engage in outside employment or business activity, may appeal the disapproved decisions under existing grievance procedure. F. While in non-duty status, seasonal employee may accept/engage in outside employment without obtaining prior written permission that is otherwise required. Upon return to duty status, the employee must submit a written request, if the outside employment activity continues. G. Written permission is not required to engage in outside activities which are not considered to be employment or business. Sec. 26. Influencing Legislation or Petitioning Congress Employees are prohibited from using government time, money, or property to influence Members of Congress to favor or oppose legislation. This prohibition does not apply to the official handling, through proper channels, matters relating to legislation affecting the Bureau; or the rights of employees to petition members of Congress, either individually or collectively, or to furnish to any committee or member of either House of Congress information not restricted by law. It is also prohibited for the officers and employees of this Bureau to solicit recommendations for promotions, assignments, transfers and other personnel actions other than the officers under whose supervision they are employed. Sec. 27. Purchase of Government Property Employees are prohibited from directly or indirectly bidding or purchasing at any sale of government property under the direction of or incident to the functions of the Bureau of Internal Revenue. Government property under the control of the Department of Finance shall not be sold to a Government employee, either directly or indirectly, unless a properly authorized representative of the Bureau or Office disposing of the property has determined that the sale is in the best interest of the Government. Before purchasing any government property from any agency of the Government, either directly or indirectly, employees of the Bureau of Internal Revenue shall make known to the disposing agency that they are such employees and shall be governed by the disposing agency's rule relating to sales to government employees. LLpr Sec. 28. Disposition of Government Property All equipments and supplies issued to employees for use in carrying out their official duties remain Bureau of Internal Revenue properties. Upon separation, all such properties must be returned to the Bureau. Work papers, personal copies of official papers, and personal notes or decrees of official business are also official records and documents and must be returned to the Bureau at the time of separation or upon demand. Identification cards and credentials must likewise be returned. Sec. 29. Use of Government-Owned or Leased Vehicles A. Any Revenue Officer or Employee who willfully uses or authorizes the use of any government-owned or leased passenger motor vehicle for other than official purposes shall be liable, after proper investigation, to appropriate disciplinary action. B. Employees of the Bureau also may not transport any person in Government-owned or leased motor vehicles unless that person's presence is deemed essential to the successful completion of an official mission. Sec. 30. Use , Protection and Conservation of Government Money and Property Employees may not use government property of any kind including official documents and data for other than officially approved activities. Employees are expected to protect and conserve all government properties entrusted or issued to them; promptly report the loss of, or damage to property entrusted to them; and return all government properties upon separation from the service. Sec. 31. Exposure of Firearms Employees authorized to carry firearms are forbidden to unnecessarily expose or display their firearms in public. Sec. 32. Gifts or Gratuities A. General An employee shall not, directly or indirectly, request or accept any gift, favor, service, loan or entertainment for himself or others under circumstances which might reasonably be construed as influencing or improperly relating to past, present or future performance of his governmental duties. B. Guides 1. It is normally permissible for employees to accept nominal courtesies extended in the spirit of hospitality. 2. Employees may normally accept certificates, plaques, cups or similar mementos for contributions to and achievements in government, civic, athletic, recreational, social, fraternal, professional, religious and comparable activities. 3. An employee may not give consent to the acceptance by his spouse or children of gifts or gratuities prohibited to the employee and may not arrange, for or consent to acceptance by other relatives or other persons of gifts or gratuities based on the employee's official connection with the donor or the donor's representative. 4. Revenue officials or employees may not accept free gift or discount certificates or entertainment tickets for distribution to other employees. 5. When an employee is in doubt about accepting a gift or gratuity, he should submit the matter in writing to his immediate supervisor and obtain a written opinion as to whether acceptance of the gift or gratuity is permissible under the Code of Conduct. C. Gifts or Gratuities from Other Employees It is unauthorized on the part of any employee to solicit contributions from other employees for gifts or presents to persons in superior official positions. Neither may such superiors receive any gift or present offered to them from employees in the Government receiving less salary than themselves. Collection of spontaneous origin may be made for token gifts upon retirement or resignation or for expressing condolences in cases of illness or death, or greetings in cases of birthday or wedding celebrations. D. Gift from Foreign Governments The Constitution prohibits employees from accepting from foreign government, except with the consent of Congress, presents, emoluments, offices or titles. Sec. 33. Soliciting , Selling , Canvassing , or Advertising A. Except as authorized by the Commissioner, Deputy Commissioner, or Regional Director, employees may not solicit, make collections, or canvass for the sale of any article, or distribute literature or advertising matter in any space occupied by the Bureau. B. Employees may not solicit financial aid from or sell tickets to persons outside the Government for benefit of any organization of the Department of Finance employees. No publication of any such organization shall contain any commercial advertising whatsoever and the cost of such publications must be wholly paid by the organization or association. C. Officers and employees are strictly prohibited to participate, directly or indirectly, in any campaign which would involve the solicitation of funds or articles for civic, charitable, religious or whatever purpose. Sec. 34. Association with Disreputable Persons Except in connection with official business, employees may not associate with individuals or groups when the association tends to discredit, directly or indirectly, the character, reputation, or integrity of the employee or of the Bureau. Unjustified association with persons who are believed or known to be connected with the illegal, immoral, or reprehensible activities, is forbidden because the association by the employee might tend to connect the employee or the Bureau with such activities. Employees will be held responsible for any public discredit which may result from unjustified association with criminal or notoriously disreputable persons. Sec. 35. Use of Intoxicants/Prohibited Drugs or Substance Abuse A. Employees may not use intoxicating beverages/prohibited drugs or substances while on official duty or in a manner adversely affecting their work performance. Employees will also be held responsible for misconduct or public discredit stemming from their use of intoxicants/prohibited drugs or substances while off duty. B. Employees may not use intoxicants habitually to excess. While on duty, they are not allowed to bring, keep or drink any intoxicants within the Bureau premises unless required in order to maintain security on an undercover assignment. The Bureau of Internal Revenue will hold employees responsible for any conduct or embarrassment stemming from the employee's use of intoxicants. C. Employees are not allowed to use prohibited drugs/substances except for medicinal purpose upon prescription of a physician. Sec. 36. Gambling , Betting and Lottery Chances A. Employees may not engage in any form of illegal gambling, nor gamble while on government property or official time. B. In areas of conduct where the employee's personal reputation can reflect upon the integrity of the Bureau, it is the employee's responsibility to avoid creating or giving cause or impressions which detract from that integrity. The Bureau officers and employees are therefore, prohibited from entering casinos, cockpits, race courses, jai alai and gambling houses except when they are on official duty or on an undercover assignment. Gambling in any form or even casual betting, whether on official duty or not, are also prohibited. C. While on government property or on official duty, employees may not participate in sending chain letters, selling or distributing merchandise in any form. Sec. 37. Tax Obligations Employees shall timely and properly file all required tax returns and pay the corresponding tax due thereon, if there is any. Sec. 38. Political Activity A. The Bureau imposes restrictions on employees' political activity. In addition, employees may not wear or display political badges or buttons when dealing with the public. B. No officer or employee in the competitive or non-competitive service, whether permanent, provisional or temporary, shall engage directly or indirectly in partisan political activities or take part in any election except to vote. Political activity shall consist, among other things, in: 1. candidacy for an elective office; 2. being a delegate to any political committee or directorate or an officer of any political club or other similar political organization; 3. making speeches or publications to draw political support in behalf of any party or candidates for public office; 4. canvassing or soliciting votes in the interest of any party or candidate; 5. soliciting or receiving contributions for political purposes, either directly or indirectly; or 6. becoming publicly identified with the success or failure of any candidate or candidates for election to public office. However, any officer or employee can express discreetly or in a temperate manner his views on current political problems or issues, or can mention the names of candidates for public office whom he supports. C. No officer or employee shall discharge, promote, degrade, or in any manner change the official rank, class, status or compensation of any subordinate, or shall promise or threaten to do so for the latter's giving or withholding, or neglecting to make any contribution of money or other valuable thing for any political purpose whatsoever. Sec. 39. Night Clubs , Bars and Other Places of Entertainment Government employees are mandated to lead modest lives. Officers and employees of this Bureau are advised to inhibit themselves from going to night clubs, bars and other places of entertainment to avoid the impression of lavish spending. CHAPTER V RIGHTS OF EMPLOYEES Sec. 40. Rights of Employees In Active Duty While in the service, every Revenue Officer and Employee is entitled as a matter of right to: a. good working conditions; b. dignity and full development of the human person; c. opportunity for increasing and improving job skills, knowledge and abilities; d. just and fair compensation which is synonymous with equal pay for equal work; e. security of tenure; f. courteous, fair and just treatment from supervisors/superiors; g. advancement in his job; h. equal job privileges; i. vacation and sick leave, maternity leave, birthday leave, funeral/mourning leave, paternity leave, hospitalization leave, accident leave, enrollment leave, relocation leave, wedding/anniversary leave and graduation leave; j. obtaining salary and real estate loans from the Government Service Insurance System and other government entities; k. Gratuity or retirement pension subject to the Retirement Law; i. medical and dental care which embraces free medical and physical check-up; m. form associations to promote and protect their rights and improve their working conditions in accordance with existing laws on the matter; and n. communicate worthy and constructive criticisms as well as suggestions to their supervisors especially those which will enhance and promote effectiveness and economy in government or office operations. Sec. 41. Rights of Employees After Separation from the Service Employees shall, in case of separation for an honorable cause, have the right to request and be furnished certificates of service records, letters of recommendation and commendation and also the right to obtain reinstatement in the service. CHAPTER VI GROUNDS FOR DISCIPLINARY ACTION Sec. 42. General A. No officer or employee in the Civil Service shall be suspended or dismissed except for cause as provided by law and after due process. B. The following shall be grounds for disciplinary action: 1. Dishonesty; 2. Oppression; 3. Neglect of Duty; 4. Misconduct; 5. Disgraceful and immoral conduct; 6. Being notoriously undesirable; 7. Discourtesy in the course of official duties; 8. Inefficiency and incompetence in the performance of official duties; 9. Receiving for personal use of a fee, gift or other valuable thing in the course of official duties or in connection therewith when such fee, gift, or other valuable thing is given by any person in the hope or expectation of receiving a favor or better treatment than that accorded other persons, or committing acts punishable under the anti-graft laws; 10. Conviction of a crime involving moral turpitude; 11. Improper or unauthorized solicitation of contributions from subordinate employees; 12. Violation of existing Civil Service Law and rules or reasonable office regulations; 13. Falsification of official document; 14. Frequent unauthorized absences or tardiness in reporting for duty, loafing or frequent unauthorized absences from duty during regular office hours; 15. Habitual drunkenness; 16. Use of prohibited drugs or substance abuse particularly while on duty or inside BIR premises; 17. Gambling prohibited by law; 18. Refusal to perform official duty or render overtime service 19. Disgraceful, immoral or dishonest conduct prior to entering the service; 20. Physical or mental incapacity or disability due to immoral or vicious habits; 21. Borrowing money by superior officers from subordinates or lending by subordinates to superior officers; 22. Lending money at usurious rates of interest; 23. Willful failure to pay just debts or willful failure to pay taxes due to the government; 24. Contracting loans of money or other property from persons with whom the office of the employee concerned has business relations; 25. Pursuit of private business, vocation or profession without the permission required by Civil Service rules and regulations; 26. Insubordination; 27. Engaging directly or indirectly in partisan political activities by one holding non-political office; 28. Conduct prejudicial to the best interest of service; 29. Lobbying for personal interest or gain in legislative halls and offices without authority; 30. Promoting the sale of tickets in behalf of private enterprises that are not intended for charitable or public welfare purposes and even in the latter cases if there is no prior authority; 31. Nepotism as defined in Section 59 of EO 292; and 32. Sexual harassment committed while on duty, inside BIR premises or in connection with the performance of one's official function. Chapter VII OFFENSES, PENALTIES AND LIABILITIES Sec. 43. General Administrative offenses with their corresponding penalties are classified into grave, less grave and light, depending on the gravity of their nature and effects of said acts on the government service. Preventive suspension is not a punishment or penalty for misconduct in office but is considered to be a preventive measure. LLphil The period within which a public officer or employee charged is placed under preventive suspension shall not be considered part of the actual penalty of suspension imposed upon the employee found guilty. The proper disciplining authority may preventively suspend any subordinate officer or employee under his authority pending an investigation, if the charge against such officer or employee involves: a. dishonesty; b. oppression; c. grave misconduct; d. neglect in the performance of duty; or e. if there are reasons to believe that the respondent is guilty of charges which would warrant his removal from the service. Sec. 44. Grave Offenses The following are grave offenses with their corresponding penalties: a. Dishonesty {1 st Offense, Dismissal}; b. Gross neglect of duty {1 st Offense, Dismissal); c. Grave misconduct {1 st Offense, Dismissal}; d. Being notoriously undesirable {1 st Offense, Dismissal}; e. Conviction of a crime involving moral turpitude {1 st Offense, Dismissal}; f. Falsification of official document {1 st Offense, Dismissal}; g. Physical or mental incapacity or disability due to vicious habits {1 st Offense, Dismissal}; h. Engaging directly or indirectly in partisan political activities by one holding non-political office {1 st Offense, Dismissal}; i. Receiving for personal use of a fee, gift or other valuable thing in the course of official duties or in connection therewith when such fee, gift or other valuable thing is given by any person in the hope or expectation of receiving a favor or better treatment than that accorded to other persons or committing acts punishable under the anti-graft laws {1 st Offense, Dismissal}; j. Contracting loans of money or other property from persons with whom the office of the employee has business relations {1 st Offense, Dismissal}; k. Soliciting or accepting directly or indirectly, any gift, gratuity, favor, entertainment, loan or anything of monetary value which in the course of his official duties or in connection with any operation being regulated by, or any transaction which may be affected by the functions of his office. The propriety or impropriety of the foregoing shall be determined by its value, kinship, or relationship between giver and receiver and the motivation. A thing of monetary value is one which is evidently or manifestly excessive by its very nature. {1 st Offense, Dismissal}; l. Disloyalty to the Republic of the Philippines and to the Filipino People {1 st Offense, Dismissal}; m. Nepotism {1 st Offense, Dismissal}; n. Oppression {1 st Offense, Suspension for six (6) months and one (1) day to one (1) year; 2 nd Offense, Dismissal}; o. Disgraceful and immoral conduct {1 st Offense, Suspension for six (6) months and one (1) day to one (1) year; 2 nd Offense, Dismissal}; p. Inefficiency and incompetence in the performance of official duties {1 st Offense, Suspension for six (6) months and one (1) day to one (1) year; 2 nd Offense, Dismissal}; q. Frequent unauthorized absences or tardiness in reporting for duty, loafing, or frequent unauthorized absences from duty during regular office hours {1 st Offense, Suspension for six (6) months and one (1) day to one (1) year; 2 nd Offense, Dismissal}; An officer or an employee in the civil service shall be considered habitually absent if he incurs unauthorized absences exceeding the allowable 2.5 days monthly leave credit under the Leave Law for at least three months in a semester or at least three (3) consecutive months during the year. Any employee shall be considered habitually tardy if he incurs tardiness, regardless of the number of minutes, ten (10) times a month for at least two (2) months in a semester or at least two (2) consecutive months during the year. In case of claim of ill-health, heads of department of agencies are encouraged to verify the validity of such claim and, if not satisfied with the reason given, should disapprove the application for sick leave. On the other hand, cases of employees who absent themselves from work before approval of the application should be disapproved outright. In the discretion of the Head of any department, agency, or office, any government physician may be authorized to do a spot check on employees who are supposed to be on sick leave. r. Refusal to perform official duty {1 st Offense, Suspension for six (6) months and one (1) day to one (1) year; 2 nd Offense, Dismissal}; s. Gross Insubordination (1 st Offense, Suspension for six (6) months and one (1) day to one (1) year; 2 nd Offense, Dismissal}; t. Conduct grossly prejudicial to the best interest of the service {1 st Offense, Suspension for six (6) months and one (1) day to one (1) year; 2 nd Offense, Dismissal}; u. Directly or indirectly having financial and material interest in any transaction requiring the approval of his office. Financial and material interest is defined as pecuniary or proprietary interest by which a person will gain or lose something. {1 st Offense, Suspension for six (6) months and one (1) day to one (1) year; 2 nd Offense, Dismissal}; v. Owning, controlling, managing or accepting employment as officer, employee, consultant, counsel, broker, agent, trustee, or nominee in any private enterprise regulated, supervised or licensed by his office, unless expressly allowed by law {1 st Offense, Suspension for six (6) months and one (1) day to one (1) year; 2 nd Offense, Dismissal}; w. Engaging in the private practice of his profession unless authorized by the constitution, law or regulation, provided that such practice will not conflict with his official functions {1 st Offense, Suspension for six (6) months and one (1) day to one (1) year; 2 nd Offense, Dismissal}; x. Disclosing or misusing confidential or classified information officially known to him by reason of his office and not made available to the public, to further his private interests or give undue advantage to anyone or to prejudice the public interest {1 st Offense, Suspension for six (6) months and one (1) day to one (1) year; 2 nd Offense, Dismissal}; and y. Obtaining or using any statement filed under the Code of Conduct and Ethical Standards for Public Officials and Employees for any purpose contrary to morals or public policy or any commercial purpose other than by news and communications media for dissemination to the general public {1 st Offense, Suspension for six (6) months and one (1) day to one (1) year; 2 nd Offense, Dismissal) Sec. 45. Less Grave Offenses The following are less grave offenses with their corresponding penalties: a. Simple neglect of duty {1 st Offense, Suspension for one (1) month and one (1) day to six (6) months; 2 nd Offense, Dismissal}; b. Simple misconduct (1 st Offense, Suspension for one (1) month and one (1) day to six (6) months; and 2 nd Offense, Dismissal}; c. Gross discourtesy in the course of official duties {1 st Offense, Suspension for one (1) month and one (1) day to six (6) months; 2 nd Offense, Dismissal}; d. Gross violation of existing civil service law and rules of serious nature {1 st Offense, Suspension for one (1) month and one (1) day to six (6) months; 2 nd Offense, Dismissal}; e. Insubordination {1 st Offense, Suspension for one (1) month and one (1) day to six (6) months; 2 nd Offense, Dismissal); f. Habitual drunkenness {1 st Offense, Suspension for one (1) month and one (1) day to six (6) months; 2 nd Offense, Dismissal}; g. Recommending any person to any position in a private enterprise which has a regular or pending official transaction with his office, unless such recommendation or referral is mandated by law, or international agreements, commitment and obligation, or as a part of the function of his office {1 st Offense, Suspension for one (1) month and one (1) day to six (6) months; 2 nd Offense, Dismissal}; h. Unfair discrimination in rendering public service due to party affiliation or preference {1 st Offense, Suspension for one (1) month and one (1) day to six (6) months; 2 nd Offense, Dismissal}; i. Failure to file Sworn Statements of Assets, Liabilities and Net Worth, and Disclosure of Business Interest and Financial Connections including those of their spouses and unmarried children under eighteen (18) years of age living in their households {1 st Offense, Suspension for one (1) month and one (1) day to six (6) months; 2 nd Offense, Dismissal}; and j. Failure to resign from his position in the private business enterprise within thirty (30) days from assumption of public office when conflict of interest arises and/or failure to divest himself of his shareholdings or interest in private business enterprise within sixty (60) days from assumption of public office when conflict of interest arises: Provided, however, That where a conflict of interest arises for those who are already in the service, the official or employee must either resign or divest himself of said interest within the periods herein-above provided, reckoned form the date when the conflict of interest had arisen {1 st Offense, Suspension for one (1) month and one (1) day to six (6) months; 2 nd Offense, Dismissal} Sec. 46. Light Offenses The following are light offenses with their corresponding penalties: a. Discourtesy in the course of official duties {1 st Offense, Reprimand; 2 nd Offense, Suspension for one (1) to thirty (30) days; 3 rd Offense, Dismissal}; b. Improper or unauthorized solicitation of contributions from subordinate employees {1 st Offense, Reprimand; 2 nd Offense, Suspension for one (1) to thirty (30) days; 3 rd Offense, Dismissal}; c. Violation of reasonable office rules and regulations (This includes violation of MC 14, s. 1991 (Dress Code).) {1 st Offense, Reprimand, 2 nd Offense, Suspension for one (1) to thirty (30) days; 3 rd Offense, Dismissal}; d. Gambling prohibited by law {1 st Offense, Reprimand, 2 nd Offense, Suspension for one (1) to thirty (30) days; 3 rd Offense, Dismissal}; e. Refusal to render overtime service {1 st Offense, Reprimand, 2 nd Offense, Suspension for one (1) to thirty (30) days; 3 rd Offense, Dismissal}; f. Disgraceful, immoral or dishonest conduct prior to entering the service {1 st Offense, Reprimand, 2 nd Offense, Suspension for one (1) to thirty (30) days; 3 rd Offense, Dismissal}; g. Borrowing money by superior officers from subordinates {1 st Offense, Reprimand, 2 nd Offense, Suspension for one (1) to thirty (30) days; 3 rd Offense, Dismissal); h. Lending money at usurious rates of interest {1 st Offense, Reprimand, 2 nd Offense, Suspension for one (1) to thirty (30) days; 3 rd Offense, Dismissal}; i. Willful failure to pay just debts {1 st Offense, Reprimand, 2 nd Offense, Suspension for one (1) to thirty (30) days; 3 rd Offense, Dismissal}; The term "just debts" shall apply only to (1) claims adjudicated by a court of law, or (2) claims the existence and justness of which are admitted by the debtor. j. Willful failure to pay taxes due to the government {1 st Offense, Reprimand, 2 nd Offense, Suspension for one (1) to thirty (30) days; 3 rd Offense, Dismissal); k. Pursuit of private business, vocation or profession without the permission required by civil service rules and regulations {1 st Offense, Reprimand, 2 nd Offense, Suspension for one (1) to thirty (30) days; 3 rd Offense, Dismissal}; l. Lobbying for personal interest or gain in legislative halls and offices without authority {1 st Offense, Reprimand, 2 nd Offense, Suspension for one (1) to thirty (30) days; 3 rd Offense, Dismissal}; m. Promoting the sale of tickets in behalf of private enterprises that are not intended for charitable or public welfare purposes and even in the latter cases if there is no prior authority {1 st Offense, Reprimand, 2 nd Offense, Suspension for one (1) to thirty (30) days; 3 rd Offense, Dismissal}; n. Failure to act promptly on letters and request within fifteen (15) days from receipt, except as otherwise provided in the rules implementing the Code of Conduct and Ethical Standards for Public Officials and Employees {1 st Offense, Reprimand, 2 nd Offense, Suspension for one (1) to thirty (30) days; 3 rd Offense, Dismissal}; o. Failure to process documents and complete action on documents and papers within a reasonable time from preparation thereof, except as otherwise provided in the rules implementing the Code of Conduct and Ethical Standards for Public Officials and Employees {1 st Offense, Reprimand, 2 nd Offense, Suspension for one (1) to thirty (30) days; 3 rd Offense, Dismissal}; and p. Failure to attend to anyone who wants to avail himself of the services of the office, or act promptly and expeditiously on public transactions {1 st Offense, Reprimand, 2 nd Offense, Suspension for one (1) to thirty (30) days; 3 rd Offense, Dismissal} Sec. 47. Infractions ' Classification Offenses under EO 292 Infractions Dishonesty Failure to remit tax/revenue collection Maliciously providing false material information in the Personal Data Sheet Misappropriation of government money and property Intentionally assisting taxpayers in filing fraudulent returns Other similar or analogous acts/infractions Gross Neglect of Duty Unsecured superuser and other powerful accounts Disclosure of user id/password without consent Prescription of tax assessment involving the amount of five hundred thousand pesos (P500,000.00) or more Prescription of audit case when gross sales or gross receipts exceeds ten million pesos (10M) Loss of accountable forms and other government property due to failure to exercise utmost diligence in the care and custody of accountable forms and property Unjustified delay in the remittance of revenue and tax collection Other similar or analogous acts/infractions Grave Misconduct Installation of unauthorized software Unauthorized copying of BIR software Unauthorized access to machines (PCs and servers) holding applications or data Unauthorized access to external storage media (tape cartridges, floppy disks, etc.) Adding an unauthorized PC to the network Unauthorized user access to other BIR offices Unauthorized access to the Operating System Unauthorized access to Integrated Tax System Unauthorized access to sensitive data in the database Unauthorized access to printed output from database (reports, correspondences, etc.) Unauthorized users gaining access to the system via logged-in workstations Disclosure of user id/password with consent Abuse of regular access Habitual issuance of unreasonable assessments Knowingly using fake accountable forms Printing of fake accountable forms Unauthorized printing of accountable forms Forgery of signature Usurpation of authority Falsification of public document Unjustified failure to issue receipt, as provided by law, for any sum of money officially collected Sexual harassment Drug abuse or substance abuse Extortion Demanding money or favor before doing one's duty Filing of false and unreasonable charges against taxpayers Falsely testifying under oath Entering into contract which is grossly disadvantageous to the government Demanding, directly or indirectly, the payment of sums different from or larger than those authorized by law Other similar or analogous acts/infractions Falsification of official Tampering with Operating System files document Unauthorized tampering of applications, alteration of text files reports, correspondences, etc. created or used by other applications Tampering with the database structures Tampering of database records by unscrupulous users Alterations of dates, names, figures in official documents and official records Tampering of collection reports, official receipts etc. False entries in official logbooks and other records Other similar or analogous acts/infractions Engaging directly or Mounting the stage to give political speech indirectly in partisan Actively campaigning by handing out political activities by one political propaganda materials holding non-political office Giving financial and/contribution to candidates Other similar or analogous acts/infractions Contracting loans of Borrowing money or property by a Revenue money or other property Officer from taxpayers/practitioners from persons with whom Other similar or analogous acts/infractions the office of the employee has business relations Disloyalty to the Republic Treason of the Philippines and to Burning or destroying flag or other symbols the Filipino People of the Republic Failure to uphold the Constitution Giving or providing confidential informations to the enemy of the State Other similar or analogous acts/infractions Oppression Abuse of Authority Failure to act with justness and sincerity/ Inequity and/or partiality in the performance of official functions Other similar or analogous acts/infractions Disgraceful or immoral Adultery conduct Concubinage Engaging in homosexual acts Maintaining house of vices (gambling house, prostitution den, etc.) Other similar or analogous acts/infractions Conduct grossly prejudicial Theft of technical books to the best interest of Prescription of tax assessment involving the service the amount of less than five hundred thousand pesos (P500,000.00) Prescription of audit case when gross sales or gross receipts do not exceed ten million pesos (P10M) Entering into contract which is disadvantageous to the interest of the government Willful filing of false Statement of Assets and Liabilities Other similar or analogous acts/infractions Disclosing or misusing Unlawful divulgence of trade secrets of confidential or classified taxpayers information officially Giving advance notice to a favored person known to him by reason of about an impending release of a his office and not made regulation/decision or a conduct of audit, available to the public, to investigation, verification and/or surveillance further his private interests Other similar or analogous acts/infractions or give undue advantage to anyone or to prejudice the public interest. Obtaining or using any Unauthorized divulgence of the contents of statement filed under the the Sworn Statements of Assets, Liabilities Code of Conduct and and Networth of an employee Ethical Standards for Other similar or analogous acts/infractions Public Officials and Employees for any purpose contrary to morals or public policy or any commercial purpose other than by news and communications media for dissemination to the general public Simple neglect of duty Failure to report unethical practice or misconduct of tax practitioners Loss or damage to government property due to negligence Failure to report attempted bribery Failure to report violations of revenue laws Failure of any revenue officer/s to comply with the requests (access to records) of the different revenue offices for records/documents in their custody/ possession without reasonable cause Failure to submit report of collections Failure to report the loss or damage of official records and property Other similar or analogous acts/infractions Simple misconduct Unauthorized access to communication links Dissemination of false information False entries in official logbooks and other records Collecting or receiving, directly or indirectly, by way of payment of tax or otherwise, things or objects other than cash Technical malversation Using government time and property for private purposes without approval of competent authority Quarreling or fighting with another employee while inside the BIR premises or on duty Wanton display of licensed or unlicensed firearm in public Abetting the commission of an offense Other similar or analogous acts/infractions Gross Discourtesy in the Intentional inattention to the public/taxpayer's Course of Official Duties need/request. Other similar or analogous acts/infractions Gross Violation of existing Failure to follow procedures in the promotion Civil Service Laws & of employees Rules of Serious Nature Other similar or analogous acts/infractions Insubordination Refusal to obey or follow lawful orders such as RTAO, Special Mission Orders, RSO, Sub-poena, etc. Failure of any revenue officer/s to appear, whenever required, before the Secretariat, Audit Report Evaluation Committee or any investigative body or officer Other similar or analogous acts/infractions Habitual Drunkenness Frequently coming to office under the influence of alcoholic liquors Other similar or analogous acts/infractions Discourtesy in the course Arrogance, unresponsiveness or inattention of official duties to the needs of the public Ill-temper Other similar or analogous acts/infractions Violation of Reasonable Non-wearing of official ID & prescribed Office Rules and uniform Regulations Failure to attend flag ceremonies & other official celebration, rites, seminars, etc Tampering Records of Attendance Mis-labeling of tapes Loading of virus infected files to network environment Unauthorized access to technical manual Unauthorized use of government-owned or leased vehicle/property Failure to apply all the prescribed audit procedures and techniques Failure to observe the procedures prescribed under existing Revenue Memorandum Orders Failure to comply with reporting requirements Other similar or analogous acts/infractions Gambling prohibited by Jueteng, playing pusoy and other card Law games with betting of anything of value, any game of chance where there is betting of money Horse racing on prohibited days, illegal cockfighting, etc. Other similar or analogous acts/infractions Chapter VIII GRIEVANCE MACHINERY (RMO 32-93) Sec. 48. Scope of Grievance Mechanism Complaints and grievances may exist between and among individual employees, between employee and supervisor, and between employee and management. It shall not apply to cases of dissatisfaction with official actions taken by the management or in disciplinary cases. prLL Complaints and grievances may refer to any of the following: A. Non-economic issues 1. Policies, practices and procedures which affect employees from recruitment to promotion, detail, transfer, retirement, termination, lay-offs, etc.; 2. Physical working conditions; 3. Interpersonal and inter-organizational linkages and relationships; and 4. Arbitrary exercise of discretion and/or management prerogatives. B. Policies, practices, and procedures on economic issues such as financial and other terms and conditions of employment as fixed by law. C. Issues between the management and the CSC-registered employee associations (PARDO, BIRUE and BIREA). 1. Economic issues and other economic packages fixed by law 2. Political issues a. Recognition and coverage of negotiating unit; b. Association security and check off; and c. Violation of provisions and/or policies on self-organization 3. Violation of voluntary agreements reached between the association and management D. Any and all matters giving rise to employee dissatisfaction Sec. 49. Basis Policies A. Employees shall have the right to present their complaints and/or grievances to management and have them settled as expeditiously as possible in the best interest of the employee concerned, the revenue service, and the government as a whole. B. Complaints and grievances shall not apply to cases of dissatisfaction with official actions taken by the management of the Bureau or in disciplinary cases. C. An employee without resorting to formal grievance procedures, may discuss informally any problem relating to conditions of employment with supervisors. D. In presenting a complaint or grievance, the employee shall be assured freedom from coercion, discrimination, or reprisal and of speedy and impartial settlement of such complaint or grievance. E. Complaints and/or grievances shall be considered not only in relation to their alleged objects but also in relation to the personal situations of the complainants. F. Complaints and/or grievances shall be resolved at the lowest possible level in the Bureau. G. Grievance proceedings shall not be bound by formal legal rules and technicalities. H. An employee shall have the right to appeal decisions on grievances to competent authorities. Sec. 50. Composition of the Grievance Committee A. National Office 1. Deputy Commissioner for Resource Management Group or his representative to act as Chairman 2. Two (2) Assistant Commissioners (Human Resource Development Service and Internal Affairs Service) or their representatives 3. The Chief, Personnel Division or his representative 4. Two (2) rank and file employees chosen at large 5. An alternate for higher supervisor and employee in case the complaint concerns any of the members of the Committee 6. Two (2) association members chosen from among themselves to sit in the Committee only for grievance existing between the management and the recognized association B. Regional Office 1. Assistant Regional Director to act as Chairman 2. Two (2) higher supervisors (Division Chief and Revenue District Officer) 3. The Chief, Administrative Division 4. Two (2) rank and file employees chosen at large 5. An alternate for higher supervisor and employee in case the complaint concerns any of the members of the Committee 6. Two (2) association members chosen from among themselves to sit in the Committee only for grievance existing between the management and the recognized association Sec. 51. Grievance Procedures The procedures for asking redress for complaints and grievances shall be as follows: A. Oral Discussion A complainant shall present orally his complaints to his immediate supervisor who shall within three (3) days from the date of presentation inform the employee orally of the decision. B. Grievance in Writing 1. If the employee is not satisfied with the oral decision, he may submit his grievance in writing within five (5) working days from the date of the oral decision of his immediate supervisor to the next higher supervisor. The written complaint shall pass thru the immediate supervisor who shall forward the grievance with his comments within five (5) working days to the next higher supervisor, who shall within five (5) working days from receipt thereof inform the employee in writing, thru the immediate supervisor, of the decision, PROVIDED HOWEVER, that where the object of the complaint is the immediate supervisor, the complainant may bring the grievance to the next higher supervisor who shall take proper action within five (5) working days from receipt of the complaint. 2. If the complainant is not satisfied with the decision of the higher supervisor, he may appeal his grievance to the Grievance Committee within five (5) working days from receipt of the decision, thru the higher supervisor. After making his comments, the higher supervisor shall forward the complaint within five (5) working days to the Grievance Committee, who shall within ten (10) working days from receipt of the complaint, conduct an investigation and hearing. The Grievance Committee shall furnish the complainant with a copy of its decision within five (5) working days after the investigation and hearing, thru the higher supervisor and immediate supervisor, PROVIDED HOWEVER, that where the object of the complaint is the higher supervisor, the complainant may bring his case directly to the Grievance Committee. 3. If the complainant is not satisfied with the decision of the Grievance Committee, he may elevate his grievance thru the Committee to BIR top management (MANCOM) within five (5) working days from receipt of the decision. The top management shall make the decision within ten (10) working days after the receipt of the complaint, PROVIDED HOWEVER, that where the object of the complaint is the top management, the complainant may bring his grievance directly to the Civil Service Commission. 4. If the complainant is not satisfied with the decision of the top management, he may appeal or elevate his grievance to the Civil Service Commission. The CSC shall, if necessary conduct an investigation and hearing and render a decision within thirty (30) days from the termination of the investigation. 5. The aggrieved party may file a petition for reconsideration with the CSC if he is not satisfied with its decision, within fifteen (15) days from receipt of the decision. 6. The CSC's decision is final, binding, and executory unless appeal from said decision is brought to the proper courts. 7. For a member of a recognized association who would like to present grievances through the body, he must submit his grievance in writing thru the association president or his authorized representative. Any and all subsequent actions of the member-employee, immediate supervisor, higher supervisor, Grievance Committee, top management, and Civil Service Commission shall pass thru the association president or his authorized representative. If there is a deadlock, either or both parties appeal to the Public Sector Labor Management Council (PSLMC) thru the Office for Personal Relations which in turn shall submit to the PSLMC its comments within five (5) working days after receipt of the complaint. The PSLMC shall render its decision within thirty (30) working days thereafter. The decision of the Council shall be final, binding, and executory unless appeal is brought to the proper courts. 8. The complainant shall fill up the grievance form which shall provide the following information: a. Name of the Complainant b. Position title c. Designation d. Present Section/Division of Assignment e. Immediate Supervisor f. Present Department/Unit of Assignment g. Higher Supervisor h. Nature of Grievance i. Settlement desired j. Signature of Employee k. Date of filing from the lowest level in the Bureau Sec. 52. Decision Implementation Unless appealed, the decision of the concerned authorities shall take effect immediately and/or upon receipt of the decision of all parties involved. Sec. 53. Responsibilities All records involving complaints and grievances shall be kept by the Personnel Division of this Bureau and by the Record Officer of the recognized association. Submitted by: (SGD.) LILIAN B. HEFTI (Officer-In-Charge) Assistant Commissioner Internal Affairs Service (SGD.) DIOSDADO J.R. MENDOZA Chief Personnel Inquiry Division (SGD.) CATALINA LENY C. BARRION Acting Chief Computer Audit Division (SGD.) OSCAR M. ABILGOS Assistant Chief Internal Security Division APPROVED: (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue ANNEX I (Office) LIST OF BIR EMPLOYEES ISSUED WITH CODE OF CONDUCT FOR BUREAU OF INTERNAL REVENUE OFFICERS AND EMPLOYEES UNDER RMO NO. ______ Name of Employee Position/ Unit Assigned Designation 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 II MEMORANDUM OF RECEIPT For CODE OF CONDUCT I acknowledge receipt of a copy of the updated Code of Conduct for Bureau of Internal Revenue Officers and Employees released under Revenue Memorandum Order No. ______ dated _____________ from ________________________________. (Head of Office) It is understood that having received a copy thereof, I am obligated to read its contents and abide thereby. ______________________________ Name of Employee ______________________________ Position/Designation ______________________________ Service/Region-Division/RDO ______________________________ Date Received