Rules of Procedure

March 12, 2014 HOUSE OF REPRESENTATIVES CONGRESSIONAL OVERSIGHT COMMITTEE ON COMPREHENSIVE TAX REFORM PROGRAM (R.A. NO. 8424) RULES OF PROCEDURE ARTICLE I The Oversight Committee SECTION 1. Composition. The Congressional Oversight Committee on the Proper Implementation of the National Internal Revenue Code created pursuant to Section 290 of the Republic Act No. 8424, otherwise known as the Comprehensive Tax Reform Program of 1997, shall be composed of the Chairpersons of the Committees on Ways and Means of the Senate and the House of Representatives and four (4) additional members from the House, to be designated by the Senate President and Speaker of the House of Representatives. The Chairpersons of the Committees on Ways and Means in the Senate and the House of Representatives shall be Co-Chairpersons of the Oversight Committee. SECTION 2. Duties and Functions. The Oversight Committee shall, in aid of the legislation, perform the following functions: 1. Set the guidelines and over-all framework to monitor and ensure the proper implementation of R.A. No. 8240 and R.A. No. 10351, OTHERWISE KNOWN AS THE REFORMED SIN TAX LAW OF 2012; 2. Determine that the power of the Bureau of Internal Revenue (BIR) Commissioner to compromise and abate is reasonably exercised; 3. Review the collection performance of the BIR; 4. Review the implementation of the programs of the BIR; 5. Approve the internal budget and budget for all programs of the Oversight Committee, including the compensation of its personnel; TAEcCS 6. Submit periodic reports to Congress; 7. Determine inherent weaknesses in the law and recommend necessary remedial legislation; and 8. Perform such other duties and functions as may be necessary to obtain its objectives pursuant to R.A. No. 8424 and R.A. No. 10351. SECTION 3. Powers and Authority. The Oversight Committee shall have the following powers and authority: 1. Require the BIR the submission of all pertinent information including but not limited to: industry audits, collection performance data, status report on criminal actions initiated against persons and the submission of taxpayer return: Provided, however, That any return or return information which can be associated with, or otherwise identify, directly or indirectly, a particular taxpayer shall be furnished the Oversight Committee only when sitting in Executive Session unless such taxpayer otherwise consents in writing to such disclosure; 2. Require the Department of Budget (DBM), the Department of Agriculture (DA), the Department of Health (DOH) and the Philippine Health Insurance Corporation (Philhealth) the submission of all pertinent information including but not limited to the detailed reports on the expenditure of the amounts earmarked under R.A. No. 10351; 3. Require the Department of Labor and Employment (DOLE) and the Technical Education and Skills Development Authority (TESDA) the submission of all pertinent information including but not limited to the allocations to finance unemployment alleviation program and the training and retooling programs of displaced workers pursuant to the provisions of R.A. No. 10351; 4. Adopt its internal rules of procedures and to amend and publish the same as the need arises; 5. Conduct hearings and receive testimonies, report and technical advice; 6. Invite or summon by subpoena ad testificandum any public official, private citizen or any other person to testify before it, or require any person by subpoena duces tecum to produce before it such records, reports, documents or other materials as it may require; ECTAHc 7. Organize its support staff and retain consultants as the Oversight Committee may deem necessary; 8. Adopt its internal budget, approve all disbursements therefrom, like operating expenses, traveling expenses as well as other expenses necessary in the performance of the mandated duties and functions of the Oversight Committee members; 9. Create its own Bids and Awards Committee in accordance with the existing laws, rules and regulations, whenever necessary; and 10. Generally exercise all the powers necessary to attain the purposes for which it was created. ARTICLE II Officers SECTION 4. Chairpersons. The Chairpersons of the Committees on Ways and Means in the Senate and in the House of Representatives shall be the Co-Chairpersons of the Oversight Committee. SECTION 5. Powers and Functions of the Co-Chairpersons. The Co-Chairpersons of the Oversight Committee shall have the following powers and functions: 1. To propose rules and regulations pertaining to the Oversight Committee's internal functions, and such other rules as may be necessary to carry out its functions for the approval of the Oversight Committee; 2. Each Co-Chairperson shall have the power to administer oaths, sign subpoenas issued by the Oversight Committee requiring the attendance and testimony of witnesses or the production of such books, papers, contracts, records, statement of accounts, agreements and other documents as may be material to a just determination of the matter under investigation, and to testify in any investigation or hearing; 3. To hold any person or witness in contempt, directly or indirectly, and punish such person or witness who disobeys any order of the Oversight Committee or refuses to be sworn or to testify or to answer a proper question by the Oversight Committee or any of its members or testifying, testifies falsely or evasively. A person or witness held in contempt may be detained in such place as the Oversight Committee may designate under the custody of either the House or Senate Sergeant-at-Arms until such person or witness agrees to produce the required documents, or to be sworn, or to testify, or otherwise purge himself of that contempt; ITECSH 4. To enter into any obligation or contract essential to the proper administration of the Oversight Committee's affairs, the conduct of its operations or the accomplishment of its mandate; 5. To determine and approve the financial requirements of the Oversight Committee including the budget of its operations, the conservation and administration of its assets, and the servicing of its liabilities especially those which shall fall due from time to time; 6. Each Co-Chairperson shall have the power to disburse funds in accordance with their respective approved budget; 7. Each Co-Chairperson shall have the power to organize a staff and technical panel, and hire and appoint such employees and personnel in accordance with the approved budget of each panel, whether temporary, contractual or consultancy, and determine their compensation subject to applicable civil service laws, rules and regulations; and 8. To exercise all powers necessary to attain the purpose of the Oversight Committee. SECTION 6. Vice-Chairpersons. There shall be Vice-Chairpersons from the Senate and House panels who shall preside over the Oversight Committee meetings or hearings in case both Co-Chairpersons are unavailable. SECTION 7. Support Staff. The Oversight Committee shall be supported by staff and technical personnel designated by the Chairpersons of the committee. The support staff and the Committee Secretaries of the Committee on Ways and Means of both houses of Congress shall assist the Oversight Committee in the performance of its functions. SECTION 8. Duties and Responsibilities of Support Staff. The support staff, who must have adequate experience and knowledge on tax law and revenue regulations as well as all other issues relating to tax administration and policies, shall have the following duties and responsibilities: 1. To prepare the agenda for all meetings or hearings of the Oversight Committee and to submit for consideration thereof the policies and measures which are necessary to carry out the affairs of the Oversight Committee; 2. To execute and administer the policies and decisions of the Oversight Committee; 3. To establish and assign duties and responsibilities of the members of the staff and delegate such authority as he may deem appropriate; 4. To handle the day-to-day operations of the Oversight Committee; CTHDcS 5. To submit for the approval of the Oversight Committee the annual and/or supplemental budget of the Oversight Committee; 6. To maintain official records, files and proceedings of the Oversight Committee; 7. To perform such other functions as may be assigned by the Co-Chairpersons. SECTION 9. Consultants. The Co-Chairpersons may engage the services of consultants to assist the Oversight Committee, under such terms and conditions and with such authority and duties as they may determine. ARTICLE III Meetings SECTION 10. Regular Meetings. The regular meeting of the Oversight Committee shall be once a month, the date of which shall be determined by the Co-Chairpersons. The determination of the business to be considered shall be made by the Co-Chairmen. A regular scheduled meeting need not be held if there is no business to be considered. SECTION 11. Special Meetings. A special meeting may be called by the Co-Chairpersons as they may deem necessary or at the request of a majority of the members of the Oversight Committee, but notice, including the agenda of the meeting, shall be given three (3) calendar days in advance to every member. SECTION 12. Presiding Officer. All meetings and hearings of the Oversight Committee shall be presided by the Chairperson of the Senate panel. If the Chairperson of the Senate panel is not present at any of its meetings, the Chairperson from the House panel shall preside the meeting. If both Chairpersons are not present at any of its meetings, the Vice Chairperson shall preside the meeting. SECTION 13. Quorum for a Meeting. The presence of at least four (4) members of the Oversight Committee shall constitute a quorum to hold a meeting. Provided, That, in all meetings of the Oversight Committee, both the Senate and House panels are represented by at least one (1) member. SECTION 14. Proxies. No vote by any member of the Oversight Committee may be cast by proxy. HCISED SECTION 15. Conduct of Meetings. Each meeting for the transaction of business of the Oversight Committee shall be open to the public except when it determines by a vote that all or part of the remainder of the meeting on that day shall be closed to the public because disclosure of matters to be considered would endanger national security, compromise sensitive law enforcement information, or lend to defame, degrade, or incriminate any person, or otherwise violate any law or rule of both Houses. No vote shall be required to close a meeting that relates solely to internal budget or personal matters. No person other than the member of the Oversight Committee, and such other staff and such witnesses as they may authorize, shall be present in any business or meeting which has been closed to the public. SECTION 16. Transcript and Minutes of the Meeting. There shall be a transcript and minutes of all meetings of the Oversight Committee. However, transcripts and minutes of meetings, or parts thereof which have been closed to the public shall be available only to the members of the Oversight Committee and may not be released, in whole or in part, to any other person unless authorized by the Oversight Committee. ARTICLE IV Hearings SECTION 17. Public Notice. The support staff shall, upon the instruction by the Co-Chairpersons, make public notice of the date, place and subject matter of any hearing to be conducted on any measure or matter at least three (3) days before the commencement of that hearing unless the Oversight Committee determines that there is a good cause to begin such hearing at an earlier date. In the latter case, the Co-Chairpersons, or the support staff, shall make announcement at the earliest possible time. SECTION 18. Quorum for Hearings. The presence of at least two (2) members of the Oversight Committee shall constitute a quorum to conduct a hearing. SECTION 19. Hearings of Sub-Committees. Sub-Committees, as may hereafter be established by the Committee, may conduct public hearings in accordance with the provision of these rules and such other rules as may be adopted by the Oversight Committee. HAaDTE SECTION 20. Selection of Witnesses. Selection of witnesses for hearings shall be made under the direction of the Co-Chairpersons. A list of proposed witnesses shall be submitted to the members of the Oversight Committee for review sufficiently in advance of the hearings to permit suggestions by the members of the Oversight Committee to receive appropriate consideration. SECTION 21. Written Statements of Witnesses. As far as practicable, all witnesses appearing before the Oversight Committee shall file advance written statements of their proposed testimonies at least twenty-four (24) hours in advance of their appearance, and their oral testimony shall be limited to brief summaries. Limited insertions of additional germane materials will be received for the record, subject to the approval of the Co-Chairmen. SECTION 22. Questioning of Witnesses. The Co-Chairpersons shall provide adequate time for questioning of witnesses by all members, and the rule of germaneness shall be enforced in all hearings. SECTION 23. Official Transcripts. An accurate stenographic record shall be kept of all Oversight Committee proceedings and actions. Brief supplement materials when required to clarify the transcripts may be inserted in the record. SECTION 24. Confidential Information. The information contained in any books, papers, or documents furnished to the Oversight Committee or any of its standing Sub-Committees by an individual, partnership, corporation or other legal entity shall, upon the request of the individual, partnership, corporation or entity furnishing the same, be maintained in strict confidence by the Members and staff of the Oversight Committee, except that any such information may be released outside of executive session of the Oversight Committee if the release thereof is effected in a manner which will not reveal the identity of such individual, partnership, corporation or entity in connection with any pending hearing or as a part of a duly authorized report of the Oversight Committee, and is essential to the performance of the functions of the Oversight Committee in the interest of the public. ARTICLE V Reports of the Oversight Committee SECTION 25. Reports. The Oversight Committee shall submit to Congress periodic reports of its findings and recommendations, with a program of implementation and recommended adoption of legislative and executive measure pursuant to its findings. EHSITc ARTICLE VI Other Procedures and Regulations SECTION 26. The Co-Chairpersons of the Oversight Committee may establish such other procedures and take such actions as may be deemed necessary to carry out the foregoing Rules or facilitate the effective operation of the Oversight Committee. SECTION 27. The Rules shall take effect on the date of their adoption and shall remain in force until they are amended or repealed. ADOPTED, this 12th day of March 2014. (SGD.) ROMERO "MIRO" S. QUIMBO Co-Chairperson House of Representatives (SGD.) SONNY ANGARA Co-Chairperson Senate of the Philippines Members: (SGD.) RANEO E. ABU (SGD.) CYNTHIA A. VILLAR (SGD.) ENRICO "RECOM" ECHIVERRI TEOFISTO "TG" L. GUINGONA III (SGD.) EUFRANIO C. ERIQUEL, M.D. (SGD.) PAOLO BENIGNO "BAM" AQUINO IV MARK LLANDRO L. MENDOZA (SGD.) VICENTE "TITO" C. SOTTO III Published in the Official Gazette, Vol. 110, No. 25, pp. 4054-4058 dated June 23, 2014.