Designation of Officials Authorized to Sign Correspondence and Papers in the Bureau of Internal Revenue, and Definition of the Flow of Papers and Correspondence

November 28, 1975 REVENUE MEMORANDUM ORDER NO. 65-75 SUBJECT : Designation of Officials Authorized to Sign Correspondence and Papers in the Bureau of Internal Revenue, and Definition of the Flow of Papers and Correspondence TO : All Internal Revenue Officers, Employees & Others Concerned In order to update the delineation of authority and responsibility in the signing of correspondence and papers in the national, regional, revenue district and collection agents offices, with a view of defining and facilitating the flow of papers and correspondence, the following rules and guidelines are hereby prescribed for the information and guidance of all Concerned: I. The authority of the different officers to sign correspondence and papers shall be in accordance with, but not limited by, the following delineation: 1. Commissioner of Internal Revenue : a. Communications addressed to the President of the Philippines, Secretaries of Departments, Justices of the Supreme Court and the Court of Appeals, Justices of the Court of Tax Appeals; and, heads of other Bureaus, agencies and offices, if the subject matter is not routinary in character. aisa dc b. Revenue regulations, revenue administrative orders, revenue memorandum orders, revenue memorandum circulars, revenue special orders and travel assignment orders; c. Letters of authority to investigate issued to fieldmen of the Agriculture & Natural Resources Division, Financing, Real Estate & Transfer Taxes Division, Manufacturing Division, Service & Miscellaneous Division, Tax Fraud Division, Intelligence Division, Investment Incentives Division, International Operations Division, and divisions under the Specific Tax Service, and the corresponding Letters of Confirmation; d. Approval of field audit reports of investigation/re-investigation of the following: (1) Cases tainted with fraud; (2) Cases reported by fieldmen of the investigating divisions of the Central Office and the divisions under the Specific Tax Service; (3) Cases, not tainted with fraud, coming from revenue regional offices where the amount of tax involved, either original or deficiency or the total of both, is in excess of P100,000.00; e. Action on requests for re-investigation of cases categorized under Letter (d) above; f. Original, revised or amended letters of demand/assessment notices and tax liens involving assessments in excess of P100,000.00, and those even for lesser amounts if not based on established precedents; g. Permits to manufacture articles subject to specific tax; h. Permits to dispose of or destroy damaged raw materials covered by official register books which are no longer usable in the manufacture of articles subject to specific tax and finished products subject to said tax still within the place of production which have become stale, spoiled, unsalable or no longer fit for human consumption; i. Permits to import, manufacture or sell cigarette paper in bobbins or rolls, cigarette tipping papers or cigarette filter tips or rods; j. Permits to remove from customs custody or place of manufacture any apparatus or mechanical contrivance specially for the manufacture of articles subject to specific tax and to install, dismantle or transfer said apparatus or mechanical contrivance; k. Permits to return to a tobacco factory spoiled or damaged tobacco products on which specific tax has been paid for the recovery of reusable tobacco filler and the use of same for manufacturing purposes; l. Permits to remove free of tax any fermented liquor that has become sour or otherwise damaged so as to be unfit for use as such in accordance with existing regulations; m. Rulings, decisions, opinions, and actions prepared by the Legal Service or the Divisions under it, including verified pleadings, prosecution letters and other legal papers for presentation in court in cases involving matters of first impression or novel questions or unusually significant issues; n. Appointments, whether original, promotional or casual; and other personnel matters involving administrative cases and disciplinary measures and penalty for offenses committed, except those of minor character; o. Proofs of debts and refunds of taxes or tax credits involving more than P500.00, but not including refund of specific taxes to embassies and other tax-exempt entities, refunds of taxes withheld on wages or salaries of employees and refund of overpaid quarterly income taxes of partnerships, corporations and other entities doing business in the Philippines; p. Actions on requests for payment of taxes on installment basis; q. Warrants of Distraint, whether actual or constructive, and Levy or Garnishment in collection cases involving amounts in excess of P100,000.00; r. Action on memoranda and reports prepared by the Performance Control Division, except on matters falling under the Deputy Commissioner's authority as hereinafter delineated; s. Decisions to secure arrest, search and seizure orders or warrants; and t. All contracts to which the Bureau of Internal Revenue is a party, unless authority is by law or by express grant validly delegated to another official of the Bureau. 2. Deputy Commissioner of Internal Revenue : a. Approval of field audit reports of investigation/re-investigation of the following: (1) Cases not tainted with fraud, reported by fieldmen from the revenue regional offices where the total amount of tax involved, both original and deficiency, if any, is in excess of P40,000.00 but not more than P100,000.00; (2) Cases reported by the Withholding Tax Division; b. Action on requests for re-investigation of cases categorized under a (1) and (2) above; c. Original, revised or amended letters of demand/assessment notices and tax liens involving assessments of over P40,000.00 but not more than P100,000.00, and Letters of Confirmation with respect to cases reported by the Withholding Tax Division; d. Warrants of Distraint (whether actual or constructive) and Levy or Garnishment in collection cases involving amounts in excess of P40,000.00, but not more than P100,000.00; e. Letters of extension of time to file income tax returns, inventories, and estate and gift tax returns, except cases covered by the delegated authority of regional directors; f. All bonds irrespective of amounts, g. Permits for the delivery to the US Armed Forces and other instrumentalities and embassies of articles subject to specific tax but considered free of tax, in the name of the Commissioner; h. Permits to use loose-leaf invoices, journals, ledgers and other subsidiary records; i. Permits to use Cash Register and Metering Machines; j. Personnel matters involving administrative cases and disciplinary measures of minor character; k. Refunds of taxes or tax credits of P500.00 or below; refunds of specific taxes to embassies and other tax-exempt entities, refunds of taxes withheld on wages or salaries of employees and refunds or tax credits of overpaid quarterly income taxes of corporations or partnerships, regardless of amount; l. Action on memoranda and reports prepared by the Performance Control Division on matters falling under the authority of the Deputy Commissioner as herein delineated; m. Permits to distribute or deal in articles subject to specific tax, including the authority to distribute samples; n. Permits to compound alcoholic liquors which by provision of law may be produced only using taxpaid distilled spirits and/or to repack and sell tax-paid distilled spirits and/or denatured alcohol; o. Permits to alter, change or remodel any existing building and/or premises thereof originally and duly covered by a basic permit allowing their use in the manufacture and storage of articles subject to specific tax and the raw materials used in producing the taxable articles; p. Approval of applications for retirement; q. Grant of permission to teach; r. Grant of length of service awards of BIR employees; and s. Requests to Secretary of Labor to designate referee to divide credits due a deceased BIR employee. 3. Assistant Commissioners of Internal Revenue : The Assistant Commissioners shall review, initial and/or sign such papers and perform such work as may be assigned to them by the Commissioner or the Deputy Commissioner. 4. Assessment Service Chief : a. Except reports on specific tax cases, reviews all field audit reports of cases not tainted with fraud coming from revenue regional offices; however, approves only such audit reports where the amount involved, either original or deficiency or the total of both, is not over P40,000.00; b. Action on requests for re-investigation of cases categorized under Letter (a) immediately preceding; c. Letters of Authority to investigate refundable income tax returns of employees and withholding tax liabilities of employers whose place of business and/or residence are located in Revenue Region Nos. 4-A and 4-B; d. Letters of demand/assessment notices resulting from field audit reports of cases not tainted with fraud and coming from revenue regional offices where the amount of tax involved, either original or deficiency, or the total of both, is not over P40,000.00; e. Letters to the Bureau of Customs authorizing the release of imported goods subject to any tax other than the specific tax; and f. Correspondence prepared by the Assessment Service and the divisions under its jurisdiction involving matters of service level. 5. Administrative Service Chief : a. Tracer letters and other communications to officers and other employees of the bureau who have not acted promptly on matters referred to them or have not complied with instruction previously given; and b. Correspondence prepared by the Administrative Service and the divisions under its jurisdiction involving matters of service level. 6. Legal Service Chief : a. Correspondence and papers released by the Legal Service based on established precedents, except communications addressed to government officials having the rank of bureau director or above; b. Opinions rendered at the instance of regional directors, division chiefs or service heads; and c. Correspondence prepared by the Legal Service and the divisions under its jurisdiction involving matters of service level. 7. Collection Service Chief : a. Warrants of distraint and levy or garnishment or notices of tax liens in collection cases involving amounts in excess of P20,000.00 but not over P40,000.00; and b. Correspondence prepared by the Collection Service and the divisions under its jurisdiction involving matters of service level. 8. Financial & Management Service Chief : Correspondence prepared by the Financial & Management Service and the divisions under its jurisdiction involving matters of service level. 9. Inspection Service Chief : Correspondence prepared by the Inspection Service and the divisions under its jurisdiction involving matters of service level. 10. Specific Tax Service Chief : a. Approval of field audit reports not tainted with fraud when the total amount of the deficiency specific tax is in excess of P10,000.00 but not more than P40,000.00; b. Letters of demand and tax liens involving assessments of specific taxes in excess of P10,000.00 but not more than P40,000.00, in the name of the Commissioner; c. Letters to the Bureau of Customs authorizing the release of imported goods subject to specific tax or to be used in the manufacture of articles subject to specific tax; d. Clearances to producers and/or distributors of cinematographic films prior to review by the Philippine Board of Censors; e. Correspondence prepared by the Specific Tax Service and the divisions under its jurisdiction involving matters of service level. 11. Data Processing Service Chief : Correspondence prepared by the Data Processing Service and the divisions under its jurisdiction involving matters of service level. 12. Chief of Division : All other papers not enumerated herein which are routinary in character. The Chief of division may, however, authorize his assistant to sign for him all 1st and 2nd tracers prepared in the division and on such other minor and routine communication. 13. Regional Directors : a. Approval of reports (1) Approval of field audit reports of tax cases not tainted with fraud involving: (a) Deficiency tax not in excess of P20,000.00 which if added to the tax due per original and/or amended return will not exceed P40,000.00, in the case of income, franchise, premium and bank taxes; (b) Deficiency tax not in excess of P10,000.00 which if added to the original tax due per return or such other form as may be prescribed by the bureau will not exceed P20,000.00 in the case of estate, gift and percentage taxes; and (c) Deficiency tax not in excess of P10,000.00 in the case of specific taxes. (d) Deficiency taxes within the jurisdiction of the region not in excess of P500.00 shall be approved by the Assistant Regional Director. (2) Where the total tax due per return and field audit report not tainted with fraud will exceed P40,000.00 in the case of income, franchise, premium and bank taxes and will exceed P20,000.00 in the case of percentage, estate, and gift taxes, the Regional Director should not approve the field audit report irrespective of the amount of deficiency tax. It should be forwarded to the National Office for approval. (3) Field audit reports submitted by fieldmen of Revenue District Offices where the fifty percent (50%) surcharge is recommended to be imposed should likewise be forwarded to the National Office for approval. b. Letters of demand and assessment notices and tax liens, to be signed in the name of the Commissioner of Internal Revenue, in the following cases: (1) Field audit reports approved by the Regional Director as detailed in the preceding sub-paragraph 13 (a) (1). (2) Field audit reports approved in the National Office in accordance with sub-paragraph 13 a (2) where the deficiency tax is not in excess of P20,000.00 in the case of income, franchise, premium and bank taxes and not in excess of P10,000.00 in the Case of estate, gift and percentage taxes. c. Recommendations for the refund of taxes and reduction of assessments or demands issued by the National Office; d. Warrants of distraint and levy and garnishment in all cases coming under his jurisdiction as detailed in sub-paragraph (b) above, to be signed in the name of the Commissioner of Internal Revenue; e. Collection letters prepared in the region irrespective of the amount involved; f. Approval of reimbursement and travelling expense vouchers after the same are properly checked and approved by the processors, in cases where there is an Accounting Branch in the region and where the payment of said vouchers has been extended to the Regional Office; g. Letters prepared by chiefs of branches or their assistants involving matters of regional level. 14. Assistant Regional Director : a. Approval of office audit reports if there is an Office Audit Section or Unit in the region where the report is not tainted with fraud and the amount of the deficiency tax is within the jurisdiction of the region. b. Approval of field audit reports involving deficiency taxes not exceeding P500.00 where the approval of the said reports is under the jurisdiction of the regional office. c. Follow-up communication (letters, indorsements, memoranda, etc.) such as call up letters or tracers especially those in mimeographed or printed form, addressed to taxpayers or to revenue personnel within the region; d. Follow-up collection letters calling for the payment of taxes, charges, or fees already assessed and payments have already been previously demanded; e. Daily reports of activities, daily time records, applications for leave of absence and requisitions for office supplies and equipments; f. Routinary communications addressed to government officials of provincial or lower levels within the region; g. Other routinary communications not enumerated herein for the signature of the Regional Director; h. All official communications enumerated herein for the signature of the Regional Director in the event of his absence or unavailability in the regional office. 15. Revenue District Officer : a. Follow-up communications (letters, indorsements, memoranda, etc.) such as call-up letters or tracers to revenue personnel within the revenue district; b. Follow-up collection letters involving taxpayers within the revenue district; c. Other routinary official communications within the revenue district level. 16. Collection Agents : a. Routinary communications addressed to taxpayers involving the collection of delinquent taxes and such other matters at the municipal level. Unless otherwise directed by the Commissioner, other papers or correspondence not included in the foregoing enumerations shall be signed by the officer authorized to sign papers or correspondence of most analogous character. cdt II. The flow of reports, correspondence and papers shall be as follows: 1. In the National Office : Unless otherwise directed by the Commissioner, a. those prepared by the divisions shall be coursed through the respective service chiefs before going to the Deputy Commissioner and/or the Commissioner; however, those originating from divisions directly under the Office of the Commissioner shall only be coursed through the Deputy Commissioner; b. those prepared by the different services shall go directly to the Deputy Commissioner if for his signature, or coursed through him if for the Commissioner's signature; c. those coming from the regional offices shall follow the same course as prescribed in a and b insofar as applicable. 2. In the Regional Offices : The procedures prescribed by existing rules shall continue to be observed. However, the determination of the channels through which reports, papers and communications shall be routed should be governed by policy considerations of maximizing efficiency and minimizing red tape. This Revenue Administrative Order supersedes Revenue Administrative Order No. 13-64 dated November 2, 1964 and all Memorandum Orders and other issuances insofar as they are inconsistent herewith. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3