Guidelines and Procedures in the Administration of the Qualifying Examination for Revenue Personnel Who Shall be Assigned to Perform the Audit/Investigation Function of the Tax Fraud Division (TFD)

October 13, 1999 REVENUE MEMORANDUM ORDER NO. 80-99 SUBJECT : Guidelines and Procedures in the Administration of the Qualifying Examination for Revenue Personnel Who Shall be Assigned to Perform the Audit/Investigation Function of the Tax Fraud Division (TFD) TO : All Revenue Officials and Employees Concerned I. OBJECTIVES: This Order is issued to: 1. Prescribe the guidelines and procedures in the administration of the qualifying examination for revenue personnel who shall be assigned to perform the audit and investigation of all internal revenue tax liabilities under the TFD. 2. Prescribe the criteria in the selection of applicants for the qualifying examination. 3. Prescribe the criteria for the written examination for revenue personnel and oral examination for supervisors. 4. Prescribe the basis for the selection of the successful examinees. II. POLICIES 1. Written and oral qualifying examinations shall be given to determine qualified revenue personnel who shall perform the audit and investigation function of the TFD. 2. The qualifying examinations shall be mandatory for all qualified revenue personnel presently assigned at the Tax Fraud Division and Special Investigation Divisions (SIDs) in Metro Manila, including San Pablo City and Pampanga. 3. It shall be optional for other qualified revenue personnel. 4. Supervisors with RO IV or Intelligence Officer III items regardless of place of assignment need not take the written examination but they are required to undergo an oral examination on managerial/supervisory skills and others, as may be required. 5. An Overall TFD Examination Committee shall be created for this purpose with the appropriate Sub-Committees. 6. Only those who will pass the qualifying examinations shall be assigned to perform the audit and investigation function of the Tax Fraud Division after undergoing a training program. III. CRITERIA/REQUIREMENTS 1. For Revenue Officer I, II, or III/ Intelligence Officer I or II/ Attorney I or II: A. It shall be mandatory for the following personnel to take the TFD qualifying examination: A.1 Those presently assigned at the Tax Fraud Division, National Office who meet the following requirements: a. Permanent employee of the BIR; b. A CPA or lawyer or both or a graduate of a Bachelor's Degree major in accounting; c. At least 3 years experience in field audit/tax fraud investigation; and d. Without administrative and/or criminal case(s) filed with the Sandiganbayan, Civil Service Commission (CSC) and Internal Security Division of the BIR; and A.2 Those presently assigned at the SIDs in Metro Manila, including San Pablo City and Pampanga, who meet the same set of requirements. B. It shall be optional for the other revenue personnel who qualify according to the criteria and requirements prescribed herein. C. The scope of the written examination shall include the following: 1. 1997 NIRC and all pertinent Revenue Regulations and Rulings; 2. Audit Procedures and Techniques; 3. Report Making; and 4. Case Analysis. D. The successful applicants shall be chosen based on the following: 1. Written examination - 70% 2. Oral examination - 30% 2. For Supervisors with RO IV or Intelligence Officer III items: The scope of the oral examination and the equivalent weighted score are as follows: 1. Technical Competence - 50% 2. Managerial Competence - 40% 3. Others - 10% IV. PROCEDURES: A. The SUB-COMMITTEE ON THE SELECTION OF QUALIFIED EXAMINEES shall: 1. Receive the following requirements from the applicants: a. Personal Data Sheet (PDS) and b. Clearance from the Internal Security Division; 2. Validate and certify the latest PDS of applicants as submitted; 3. Prepare and submit for review to the Overall TFD Examination Committee, the final list of applicants who are qualified to take the examination; and 4. Prepare and submit for approval to the Commissioner, the Revenue Special Order (RSO) on the final list of applicants who qualified for the examination. B. The SUB-COMMITTEE ON THE CONDUCT OF QUALIFYING EXAMINATION shall: 1. Identify and prepare the venue of the examination; 2. Prepare and ensure adequacy of questionnaires and other necessary materials; and 3. Administer the actual conduct of the examination. C. The SUB-COMMITTEE ON THE EVALUATION OF TEST RESULTS shall: 1. Rank the test results of the written examination; 2. Prepare and submit for approval to the Overall TFD Examination Committee, the list of examinees who passed the written examination for the schedule of their oral examination; 3. Receive the list of examinees who passed the oral examination; 4. Collate and submit the list of examinees who have passed both the written and oral examination to the Overall TFD Examination Committee for review and approval; and 5. Prepare and submit for approval to the Commissioner, the RSO on the approved list of successful examinees who shall undergo the required Tax Fraud Investigation Training Program. D. The OVERALL TAX FRAUD INVESTIGATION EXAMINATION COMMITTEE shall: 1. Decide en banc all issues on the application, administration, evaluation and other matters related to the Tax Fraud Division qualifying examination which were raised and unresolved at the Sub-Committee level; 2. Deliberate en banc on the results of the oral examination; 3. Transmit the list of examinees who have passed the oral examination to the Sub-Committee on Evaluation of Test Results for ranking; and 4. Review and approve the final list of successful examinees of the Tax Fraud Division qualifying examination. cdll V. EFFECTIVITY This Order takes effect immediately. (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue