Rules of Procedure

October 26, 2005 CONGRESSIONAL OVERSIGHT COMMITTEE ON THE PROPER IMPLEMENTATION OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED (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 Chairmen of the Committees on Ways and Means of the Senate and the House of Representatives and four (4) additional members from each House, to be designated by the Senate President and the Speaker of the House of Representatives. The Chairmen of the Committees on Ways and Means in the Senate and the House of Representatives shall be Co-Chairmen of the Oversight Committee. SECTION 2. Duties and Functions . The Oversight Committee shall, in aid of legislation, perform the following functions: 1. Set the guidelines and over-all framework to monitor and ensure the proper implementation of Republic Act No. 8240; 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; HSEIAT 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; 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. 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 reports on criminal action initiated against persons and the submission of taxpayers returns: 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. Adopt its internal rules of procedures; 3. Conduct hearings and receive testimonies, reports and technical advice; 4. Invite or summons 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; 5. Organize its secretariat, appoint an executive director, and retain consultants as the Oversight Committee may deem necessary; 6. Adopt its internal budget, approve all disbursements therefrom, like operating expenses, travelling expenses as well as other expenses necessary in the performance of the mandated duties and functions of the members of the Oversight Committee; and 7. Generally exercise all the powers necessary to attain the purposes for which the Oversight Committee was created. ARTICLE II Officers SECTION 4. Chairpersons . The Chairmen of the Committees on Ways and Means in the Senate and in the House of Representatives, shall be the Co-Chairmen of the Oversight Committee. SECTION 5. Powers and Functions of the Co-Chairmen . The Co-Chairmen 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; DcCASI 2. To administer oaths, sign subpoenas issued by the Oversight Committee requiring the attendance and testimony of witnesses of 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 in contempt, directly or indirectly, and impose appropriate penalties therefor as may be sanctioned by the Oversight Committee; 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 if 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. To disburse funds in accordance with its approved budget; 7. To organize its staff and technical panel, and hire and appoint such employees and personnel, whether temporary, contractual or on consultancy, and determine their compensation subject to applicable civil service laws, rules and regulations with a view to ensuring a competent and efficient Secretariat; and 8. To exercise all the powers necessary to attain the purposes of the Oversight Committee. SECTION 6. Vice-Chairmen . There shall be Vice-Chairmen from the Senate and House panels who shall preside over the Oversight Committee meetings or hearings in case both Co-Chairmen are unavailable. SECTION 7. Staff . The Oversight Committee shall be supported by staff and technical personnel headed by an Executive Director. The staff and the committee secretaries of the Senate and House panels shall assist the Oversight Committee in the performance of its functions. SECTION 8. Qualifications, Duties and Responsibilities of Executive Director . The Executive Director, who must have adequate experience and knowledge on tax laws and revenue regulations as well as 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 direct and supervise the day-to-day operations of the Oversight Committee; aACHDS 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; and 7. To perform such other functions as may be assigned by the Co-Chairmen. SECTION 9. Consultants . The Co-Chairmen 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-Chairmen. The determination of the business to be considered shall be made by the Co-Chairmen. A regularly 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-Chairmen 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 meetings, 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 Chairman of the Senate panel. If the chairman of the Senate panel is not present at any of its meetings, the Chairman of the House panel shall preside over the meeting. If both Chairmen are not present at any of its meetings, the Vice-Chairman shall preside over the meeting. CAacTH SECTION 13. Quorum for a Meeting . A majority of the members of the Oversight Committee shall constitute a quorum to hold a meeting. SECTION 14. Proxies . No vote by any member of the Oversight Committee may be cast by proxy. 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 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 tend 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 members of the Oversight Committee, and such other staff and witnesses as they may authorize, shall be present in any business or meeting which has been closed to the public. SECTION 16. Transcripts 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 Secretariat shall, upon the instruction by the Co-Chairmen, make public notice of the date, time, venue and subject matter of any hearing to be conducted on any measure or matter at least three (3) days before the date of the 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-Chairmen or the Secretariat, shall make announcement at the earliest possible time. SECTION 18. Quorum for Hearings . A majority of the members of the Oversight Committee shall constitute a quorum to conduct a hearing: Provided, however , That the oversight Committee may authorized a fewer number of members: Provided, further , That in no case shall it be less than two (2): Provided. Finally , That both panels are represented. SECTION 19. Hearings of Sub-Committees . Sub-Committees, as may hereafter be established by the Oversight Committee, may conduct public hearings in accordance with the provisions of these Rules and such other rules as may be adopted by the Oversight Committee. SECTION 20. Selection of Witnesses . Selection of witnesses for hearings shall be made under the direction of the Co-Chairmen. 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 for the Oversight Committee's 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-Chairmen shall provide adequate time for questioning of the witnesses by all members, and the rule of germaneness shall be enforced in all hearings. aASDTE 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 SubCommittees 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 measures pursuant to its findings. ARTICLE VI Other Procedures and Regulations SECTION 26. The Co-Chairmen 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. These Rules shall take effect on the date of their adoption and shall remain in force until they are amended or repealed. Adopted, this 26th day of October, 2005. (SGD.) JESLI A. LAPUS Co-Chairman House of Representatives (SGD.) RALPH G. RECTO Co-Chairman Senate of the Philippines (SGD.) EXEQUIEL B. JAVIER (SGD.) JOKER P. ARROYO (SGD.) ARREL R. OLAO (SGD.) MANUEL B. VILLAR, JR. (SGD.) MARK O. COJUANGCO (SGD.) PANFILO M. LACSON JOSEPH A. SANTIAGO ALFREDO S. LIM