NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
s. No. 1199
Senate
Introduced by SEN. WIN GATCHALIAN
AN ACT ORDAINING A
BILL OF RIGHTS AND OBLIGATIONS OF THE TAXPAYER
EXPLANATORY NOTE
The taxation laws of the Philippines have been strengthened over the years. In 
fact, the enactment of Republic Act (RA) No. 11534, or the '‘'Corporate Recovery and Tax 
Incentives for Enterprises (CREATE)" is a testament of the government's firm resolve of 
pushing forward its economic reforms, which would mean more investments and an 
increase of revenues through taxation.
In the collection of taxes, the government has the immense power and resources 
to pursue taxpayers, and in a number of cases, to their undue prejudice. This leaves no 
choice for the affected taxpayers but to hire lawyers and certified public accountants, 
which are relatively costly, in order to ensure that their rights are protected.
RA No. 6713, or the "Code of Conduct and Ethicai Standards for Public Officials 
and Employees", provides for, among others, specific rules of actions and behavior of 
government employees, however it does not stop the deluge of reports of alleged abuses 
or harassment of some officers and employees of the Bureau of Internal Revenue (BIR) 
and Bureau of Customs (BOC). Hence, legislating the Taxpayer Bill of Rights and 
Obligations (TBORO) would be a major leap in trying to address this systemic problem as 
the measure's objective is primarily to protect taxpayers against threats on their rights.


particularly those emanating from the undue discretions of tax authorities, and encourage 
them to pay taxes within the prescribed period of time.
In the April 2022 report of the Revenue Integrity Protection Service (RIPS) of the 
Department of Finance (DOF), 55% of the 468 employees investigated from the period 
July 2016 to February 2022 were from the BOC while 38% were from the BIR. This led 
to the dismissal of 16 employees from the service, on top of the 10 who were found guilty 
in criminal cases, 35 were suspended, 9 were reprimanded and 7 were ordered to pay 
fines as penalties for the charges for which they were held liable. Furthermore, on 11 
July 2022, the BOC reported that three of its personnel were dismissed, 27 were relieved, 
1 was reprimanded, and 7 were suspended for having found to have engaged in "irregular 
activities". Their investigations further led to 249 employees being reshuffled to other 
offices and ports from January to June 2022.
Taking into consideration the guidelines set by the Organisation for Economic Co­
operation and Development (OECD) and international standards and practices, this 
measure proposes the TBORO, which contains fundamental information aimed to help 
taxpayers know their basic rights and obligations without having to consult the Tax Code 
and several tax laws that are complicated to understand. These rights, summarized In a 
concise and clearer manner and with some supplementing the rights and remedies of 
taxpayers as provided for in R.A. 8424, or the "National Internal Revenue Code (NIRC)") 
R.A. 10863, or the "Customs Modernization and Tariff Act (CMTA)") R.A. 1125, as 
amended or "An Act Creating The Court Of Tax Appeals", and all other laws, rules and 
regulations, issuances and circulars in support thereof, are not new as they are already 
enshrined in the 1987 Constitution and/or provided for by law.
Furthermore, this measure proposes the creation of the Office of a National 
Taxpayer Advocate that would take the cudgel in ensuring that not only these rights are 
safeguarded but would also serve as the champion of every taxpayer, especially those 
who are either ignored or taken advantage of. This measure also provides remedies to 
taxpayer's concerns, and promotes accessibility to the taxpayer's rights and obligations, 
especially to MSMes. It also proposes the establishment of a micro- and small- taxpayer


clinic program to be developed by the Department of Finance to ensure the fairness and 
integrity of the tax system for micro- and small- taxpayers having a tax dispute with any 
revenue authority.
With this legislation, we hope that the taxpayer's experience in dealing with 
revenue authorities will be easier and better so as to elicit greater taxpayer's trust and 
confidence in the government, thereby, improving their willingness to comply with their 
tax obligations, and consequently, increase government revenue collections.
In view of the foregoing, urgent approval of this measure^is^rnestly sought.


ot til?
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
1199
Rt'CEiVED BV:
S. B. No.
Introduced by SEN. WIN GATCHALIAN
AN ACT ORDAINING THE
BILL OF RIGHTS AND OBLIGATIONS OF THE TAXPAYER
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Title. — This Act shall be known as "The Taxpayer's Bill of Rights 
and Obligations Act".
SEC. 2. Declaration of Policy. — It is hereby declared the policy of the State 
to provide increased protection of the taxpayer's rights in complying with the National 
Internal Revenue Code of 1997, as amended, the Customs Modernization and Tariff 
Act, and all other pertinent rules and regulations, to the end that abuses committed 
against taxpayers are mitigated, if not completely avoided, and taxes are collected 
responsibly, with due regard for taxpayer's rights. In turn, the taxpayer is expected 
to faithfully comply with the basic tax obligations to the government.
SEC. 3. Taxpayer's Bill of Rights and Obligations. — In addition to the 
rights and remedies of the taxpayer as provided for in the National Internal Revenue 
Code (NIRC) of 1997, as amended; Customs Modernization and Tariff Act (CMTA), as 
amended; Republic Act (RA) No. 1125, as amended, creating the Court of Tax Appeals


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(CTA); and all other laws, rules and regulations, issuances and circulars in support 
thereof, the taxpayer is hereto granted the following:
a) taxpayer's basic rights,
b) taxpayer's rights in civil cases, and
c) taxpayer's rights in criminal cases,
whether at the administrative level or at the judicial level, concerning tax 
assessments, collection and refund, and prosecution for criminal cases.
On the other hand, the taxpayer is expected to observe and comply with basic 
tax obligations enumerated in this Act as well as in other relevant laws, rules and 
regulations that are implemented by the Department of Finance (DOF), Bureau of 
Internal Revenue (BIR) and the Bureau of Customs (BOC), which are singly or 
collectively referred herein as "revenue authority" or "revenue authorities," as may be 
applicable. For purposes of this Act, revenue officers, employees, and agents shall 
refer to the officers, employees, and agents of these revenue authorities.
rights:
SEC. 4. Taxpayer's Basic Rights. — The following are the taxpayer's basic
a) Right to obtain compiete, dear, and accurate information, to receive 
simplified and non-technicai statements, and to be assisted in complying 
with tax obligations. - The taxpayer is entitled to know in a simplified 
manner how one can comply with laws, rules and regulations implemented 
by revenue authorities. The taxpayer is entitled to clear, complete, 
accurate, and simplified explanation of these laws, rules, regulations, and 
procedures, as well as be apprised of the rights and obligations as a 
taxpayer in all tax forms, publications, notices, correspondences, 
assessments, rulings and decisions.
Thus, all revenue officers, employees and agents shall judiciously provide 
all taxpayers with clear, adequate and non-technical written explanations 
on the findings, assessments, reason for audit selection, rulings, decisions, 
and the procedures, remedies, and rights available during audit, appeals 
and collection proceedings. The written explanation shall include a 
narrative description that explains the basis of audit changes, proposed


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assessments, assessments and denials of refunds; identifies any amount 
of tax, interest, or penalty due, including details of how the amount was 
calculated; and states the consequences of the taxpayer's failure to comply 
with the notice.
The taxpayer shall also have the right to participate In taxpayer dialogues 
and information or education campaigns of revenue authorities to elicit 
awareness and consciousness among taxpayers of rights and obligations 
and to help them faithfully comply with the revenue laws, rules and 
regulations;
b) Right to be clearly and timely informed of any law, rules, regulations, 
decisions, pending assessment, investigation and other cases filed against 
the taxpayer. - The taxpayer shall have the right to be completely, clearly 
and timely informed of any pending assessment, rulings and decisions of 
revenues authorities about their tax account; any investigation for criminal 
tax cases; any collection or any other cases filed against or in favor of the 
taxpayer, including requests for third-party information involving the 
taxpayer.
Thus, revenue authorities shall clearly and timely explain within the 
prescribed period to the taxpayer the tax outcomes and consequences of 
any law, rules, regulations, decisions, pending assessment, investigation, 
request for third-party information and other cases filed against or in favor 
of the taxpayer. Revenue authorities shall issue prior notice and conduct 
at least one public hearing or consultation before revenue regulations 
become valid and enforceable. Whenever necessary, revenue authorities 
are also mandated to issue and publish, within a prescribed period, revenue 
memorandum circulars providing guidelines on the implementation of new 
supreme court decisions affecting the taxpayer;
c) Right to professional and quality service and assistance. - The taxpayer 
shall have the right to be treated professionally, courteously, fairly and 
reasonably in all transactions with revenue authorities. Thus, all revenue 
officers, employees and agents shall provide prompt, courteous and 
professional assistance in all dealings with the taxpayer, including giving


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available information and prompt, and accurate responses to questions and 
requests for tax assistance. Revenue authorities shall issue guidelines 
setting standards for service delivery to be followed by all revenue officers, 
employees, and agents. Standards for service delivery shall include the 
results of a feedback mechanism on the services received by taxpayers, 
which shall be published in the website of revenue authorities.
Regular training on technical skills development, proper ethics and 
decorum, accountability and good governance shall be undertaken by all 
revenue officers, employees and agents. Revenue authorities shall also 
formulate, develop, publish and implement regular monitoring and 
evaluation of compliance with the standards for service delivery in a 
periodic manner, such as handling of customer relations and accountability, 
as well as evaluation of a variety of performance goals and job criteria of 
all revenue officers, employees and agents, 
d) Right to consistent appiication of iaws, ruies and reguiations; due process; 
prompt and objective disposition of cases. - The taxpayer shall have the 
right to the consistent application of laws, rules, regulations and other 
issuances of revenue authorities regarding assessments, refunds or any 
other proceedings including requests for advisory rulings, clearances, 
termination letters and lifting of seizure, garnishment and forfeiture orders. 
The taxpayer shall have the right to challenge and raise objections 
regarding the findings, assessments, rulings or decisions, whether it be 
against the taxpayer or against the officials and staff of the revenue 
authorities and other government agencies including government-owned 
and -controlled corporations (GOCCs), government financial institutions 
(GFIs), and local government units (LGUs) tasked with the enforcement of 
revenue or banking and financial laws, whether of local or national 
application. The taxpayer shall have a right to provide additional 
documentation in response to the actions taken by the proper authorities. 
In so doing, all proper authorities, revenue officers, employees and agents 
shall consider such objections, and promptly and impartially act and resolve 
these cases;


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e) Right to privacy. - The taxpayer shall have the right to privacy of 
communication and correspondence, as guaranteed by the Constitution, 
and the right to have any case or proceeding, including those involving 
third-party information requests against or involving the taxpayer, to be 
devoid of publicity, whether through radio, television, newspaper or any 
alternative media, while said case or proceeding is pending. Thus, revenue 
authorities shall respect the privacy of the taxpayer by following due 
process of law at all times, and not being more intrusive than necessary in 
any inquiry, examination or enforcement action, especially in the recording 
of interviews during tax determination or collection processes conducted 
by revenue authorities;
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Right to be assisted by the Nationai Taxpayer Advocate. - The taxpayer 
shall have the right to seek assistance, upon application, from the National 
Taxpayer Advocate, which shall be responsible for facilitating the resolution 
of taxpayer complaints and problems not resolved through the normal 
administrative channels within revenue authorities, including any taxpayer 
complaints regarding unsatisfactory treatment by revenue officers, 
employees and agents. The assigned Taxpayer Advocate may issue a stay 
order to suspend the execution of any order or decision of the 
Commissioner of Internal Revenue or Commissioner of Customs or his duly 
authorized representative if a taxpayer has suffered or is about to suffer 
irreparable loss as a result of an unjust action by the revenue authorities, 
without prejudice to other remedies available in this Act and existing laws. 
Revenue authorities, officers, employees, and agents who will not comply 
with the stay order issued by the assigned Taxpayer Advocate shall be 
liable for contempt;
g) Right to confidentiaiity. - The taxpayer shall have the right to expect that 
any information they provide to revenue authorities will not be disclosed 
and will be kept confidential, unless disclosure is authorized by law or by 
the taxpayer. Thus, revenue authorities shall take appropriate actions 
against their officers, their employees, agents of taxpayers and others who 
wrongfully use or disclose the taxpayer's return information;


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h) Right to timely and expeditious completion of tax audits. - The taxpayer 
is entitled to have revenue authorities begin and complete tax audits in a 
timely and expeditious manner after notification of the intent to audit 
through a letter of authority. Thus, revenue authorities, their officers, 
employees and agents shall conduct the tax audit at a reasonable time and 
place, except in criminal and internal investigations. They shall complete 
the tax audit and investigation of the taxpayer, including inspection of the 
tax records and interview of the taxpayer or its authorized representatives, 
within one hundred eighty (180) calendar days from the taxpayer's receipt 
of a letter of authority or notice;
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Unless otherwise provided by law, a single audit team of revenue officers, 
employees and agents coming from the same office shall conduct the 
complete audit of the books and records of the taxpayer once a year. The 
audit team shall not commence an audit covering more than two (2) 
consecutive taxable years against the same taxpayer, unless proven that 
fraud has been committed by the taxpayer. Similarly, revenue authorities, 
their officer, employees, and agents are prohibited from conducting 
simultaneous audit of the books and records of the same taxpayer involving 
several taxable years, unless the right is waived. Interest arising from 
deficiency tax based on a particular tax audit shall not accrue beyond five 
(5) years;
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Right to request for installment payment of tax liabilities under certain 
circumstances. - The taxpayer shall have the right to request for 
installment payment of tax liabilities under any compromise settlement or 
any assessed tax liabilities pursuant to Taxpayer Assistance Order under 
Section 9 of this Act. Thus, revenue authorities shall consider the facts and 
circumstances that might affect the taxpayer's underlying liabilities and 
ability to pay in granting requests for installment payment of tax liabilities;
k) Right to recover attorney's fees and litigation costs for tax assessments 
under certain circumstances. - The taxpayer shall have the right to recover 
attorney's fees and litigation costs for (i) tax assessments made without 
substantial justification, and (ii) for claims for tax refunds which are not


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acted upon for an unreasonable length of time at the administrative level,
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or denied at the administrative level but subsequently allowed by the CTA
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if it appears that such denial was unjustified. The award of attorney's fees
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and costs of litigation shall be included in the order upholding the
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taxpayer's claim;
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I) Right to relief from paying interests and penalties of their tax liabilities due
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to extraordinary circumstances. - The taxpayer shall be provided a relief
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from paying interests and penalties on their tax liabilities in case of any
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unjustifiable error or delay caused by the tax authorities or their agents,
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including ministerial acts such as loss of records, personnel transfers,
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extended illness or leaves of absence, and personnel training. Thus,
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revenue authorities shall abate interests and penalties on tax liabilities or
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obligations of taxpayers upon whom unjustifiable error or delay has been
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caused by any revenue officer, employee or agent; and
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m) Right to be represented or assisted by a competent and independent
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counsel ora qualified representative. - The taxpayer shall have the right
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to be assisted or represented by a competent and independent counsel,
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especially in criminal proceedings, preferably of his own choice, or by a
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qualified representative at any time in administrative interactions with the
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revenue authorities. If the person cannot afford the services of a private
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counsel, a counsel from the office of the National Taxpayer Advocate shall
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be provided to the taxpayer upon request.
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SEC. 5. Taxpayer's Rights in Civii Tax Cases. — The following are the
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taxpayer's rights in civil tax cases:
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a) Right to be given an opportunity for amicable settlement in civil tax cases.
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- The taxpayer shall have the opportunity to amicably settle a civil tax case
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filed against him, as the case may warrant. Applications for a compromise
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settlement, where the taxpayer has paid the minimum amount required by
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law, should be deemed automatically granted if not disapproved by the
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revenue authority in writing within one hundred eighty (180) calendar days
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from payment: Provided, That in every stage of the proceeding, whether in


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the administrative or judicial level, the parties shall always be given the 
chance to exhaust all and every remedy available for the speedy settlement 
of the case: Provided, however, That nothing in this Act shall deprive the 
court of competent jurisdiction of its judicial prerogatives;
b) Rights of a person subject of a summary collection action by revenue 
authorities. - The taxpayer shall have the right to be informed of impending 
institution by revenue authorities of a summary collection action which 
requires sale or seizure of property or freezing of assets, except jeopardy 
assessments. The taxpayer shall have at least thirty (30) calendar days from 
notice of institution of the collection action within which to pay the 
delinquent account or seek further review. Revenue authorities shall be 
prohibited from instituting summary collection actions while the deficiency 
tax assessment is under dispute;
c) Right to suspension of other collection actions under certain circumstances. 
- The taxpayer shall have the right to have all other collection actions 
attempted before a jeopardy assessment suspended, unless delay will 
endanger collection. After a jeopardy assessment, the taxpayer shall have 
the right to have an immediate review of the jeopardy assessment. As used 
herein, jeopardy assessment is a tax assessment made by an authorized 
revenue officer (RO) without the benefit of a complete or partial audit, 
considering the RO's judgment that the assessment and collection of a 
deficiency tax will be jeopardized by delay caused by the taxpayer's failure 
to: (1) comply with audit and investigation requirements to present his 
books of accounts and/or pertinent records; or (2) substantiate all or any 
of the deductions, exemptions or credits ciaimed in his return;
d) Right to seek review of decisions adverse to the taxpayer and to seek 
administrative stay enforcement action. - The taxpayer shall have the right 
to seek review, through formal or informal proceedings, of any adverse 
decisions relating to determinations in the audit or collection processes. The 
taxpayer shall have the right to seek a reasonable administrative stay 
enforcement action from the Office of the National Tax Advocate 
simultaneous with other administrative remedies available under the law;


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e) Right to be informed of procedures for conditional termination of tax
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obligations. - Revenue authorities shall inform the taxpayer of the
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procedures for conditional termination of tax obligations through
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installment payment agreements that recognize both the taxpayer's
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financial condition and the best interests of the state: Provided, that the
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taxpayer gives accurate and current information and meets all other tax
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obligations on schedule;
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f) Right to be informed of procedures for requesting cancellation, release or
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modification of Hens. - Revenue authorities shall inform the taxpayer of the
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procedures for requesting cancellation, release, or modification of liens filed
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by the revenue authorities and for requesting that any lien which is filed in
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error be annotated on the lien cancellation filed by the revenue authority,
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with public notice to any credit agency at the taxpayer's request;
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g) Right to recover all costs of administrative or judicial actions under certain
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circumstances. - The taxpayer shall have the right to recover all costs of
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the administrative or judicial action filed against him, including reasonable
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attorney's fees, when the action is brought or maintained without the
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support of justifiable issues of fact or law; and
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h) Right to relief from interest due to errors or delays caused by revenue
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authorities. - The taxpayer is entitled to a relief or waiver by revenue
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authorities of interest that accrues as the result of errors or delays caused
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by a revenue officer, employee or agent. The total interest that shall be
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assessed and collected on any unpaid amount of tax as provided under
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Section 249 of the National Internal Revenue Code, as amended, shall in
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no case exceed sixty (60) months.
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SEC. 6. Taxpayer's Rights in Criminai Tax Cases. — The following are the
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taxpayer's rights in criminal tax cases:
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a) Right to be informed of criminal charges arising from tax liabilities. - The
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taxpayer shall have the right to be knowledgeably and intelligently informed
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of the criminal charges against him as contained in any properly and timely
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prepared audit report, assessment notice, correspondence, document.


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letter and the like, as innplemented by rules and regulations, as the case
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may be, coming from any of the revenue authorities or any government
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agency tasked to enforce the revenue laws and banking and financial laws,
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in appropriate cases;
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b) Right to present evidence in criminai tax cases. - The taxpayer shall have
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the right to be given ample and adequate opportunity, as the situation may
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warrant, to present evidence at the taxpayer's or anybody else's possession
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that would assist the taxpayer in the pursuit of the case;
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c) Right to be served with papers necessary or reiated to the criminai tax case.
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- The taxpayer shall have the right to be served with all the necessary
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documents and papers appurtenant to the criminal tax case against him, in
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a manner that would assist and expeditiously help present the taxpayer's
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side pursuant to the charges against him; and
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d) Right to present own witnesses. - The taxpayer shall have the right to
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present his own witnesses in a criminal tax case.
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Sec. 7. Taxpayer's Basic Obligations. - Concomitant to the enumerated
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taxpayer's rights are the following duties and responsibilities of the taxpayer:
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a) Duty to be honest and compiiant - The taxpayer is duty-bound to honestly
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disclose on time complete and correct information about his tax accounts,
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even if represented by an agent or counsel, and fulfill his compliance
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obligations on or before the dates set by law, rules or regulations. The
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taxpayer shall always exercise reasonable care and diligence in complying
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with his tax obligations, and seek the help of the revenue authorities or the
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National Tax Advocate, as the case may be;
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b) Duty to keep accurate records. - The taxpayer is expected to keep accurate
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records of his book of accounts and other tax information for the duration
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required by law and make them available for examination by revenue
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officers following proper procedures;
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c) Duty to timeiy submit reievant information and fuifUi the taxpayer's
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reporting obiigations to revenue authorities. - The taxpayer is duty bound
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to cooperate with revenue authorities, lodge and submit in a timely manner
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all relevant information, books of account, records, returns and other
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documents to revenue authorities, and inform the latter in case of failure
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to comply within the period of submission. The taxpayer shall have the
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duty to timely notify revenue authorities of any changes in particular
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details, including but not limited to registered address, registered activities,
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tax type details, and accounting period. The taxpayer is also expected to
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faithfully comply with reporting obligations under the law;
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d) Duty to pay taxes and fees due on time. - The taxpayer is obliged to timely
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pay the taxes and fees due to revenue authorities through the available
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channels provided; and
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e) Duty to know what his representative or counsei does on his behaif - The
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taxpayer shall have the duty to know what information and submissions
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are made by authorized representatives on his behalf.
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SEC. 8. Creation of the Office of the National Taxpayer Advocate. —
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In order to protect the rights of taxpayers and in recognition of the complexity of tax
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laws, both substantive and procedural, the Office of the National Taxpayer Advocate
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is hereby created to promote tax compliance and assist taxpayers, whether individual
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or juridical persons. The Office of the National Taxpayer Advocate shall be an
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independent and autonomous office attached to the Department of Justice (DOJ) for
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the purposes of policy and program coordination, under the administration and
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supervision of an official to be known as the National Taxpayer Advocate. The National
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Taxpayer Advocate shall have the rank of Undersecretary and shall be appointed by
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the President of the Philippines.
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The National Taxpayer Advocate shall be a Filipino citizen, at least forty (40)
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years of age, a member of the Philippine Bar in good standing, with at least ten (10)
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years of practice in the field of taxation, with proven integrity and competence, and
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must not have been convicted of any crime involving moral turpitude.
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An individual cannot be appointed as the National Taxpayer Advocate if such
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individual has been an employee or officer of, or has rendered service as consultant
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or in any other capacity to, the Department of Finance (DOF), any of the revenue
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authorities, any attached agencies to the DOF, or has been a local treasurer for two
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(2) years prior to such appointment. A National Taxpayer Advocate cannot serve as
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officer or employee or consultant of, or be appointed to or act in whatever capacity
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in, any of the revenue authorities or as local treasurer, within five (5) years following
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his/her tenure as a National Taxpayer Advocate. For purposes of this Act, a local
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treasurer includes a municipal, city or provincial treasurer.
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SEC. 9. Powers, Functions and Responsibilities of the Office of the
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National Taxpayer Advocate. — The Office of the National Taxpayer Advocate
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shall have the following functions, powers and responsibilities:
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a) Assist taxpayers in their queries and concerns relative to tax and customs
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laws, including, but not limited to taxpayer registration, filing and payment
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of taxes, settling deficiency tax assessments, and in resolving their
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problems with the revenue authorities;
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b) Assist, initiate, intervene, and represent taxpayers, as may be applicable,
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in cases, complaints, and proceedings related to their rights as taxpayers
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as provided under this Act;
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c) Identify areas in which taxpayers have problems in dealings with the
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revenue authorities, and recommend solutions to revenue authorities and
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to the anti-red tape authority for purposes of reducing regulatory burden
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to the taxpayers;
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d) Engage in regular information, education and communication programs for
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all taxpayers on laws, rules, regulations, decisions, circulars and orders that
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affect them, including their rights and remedies under the law;
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e) Monitor all issuances of the revenue authorities, and propose changes, to
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the extent possible, in their administrative practices with the end in view
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of mitigating problems identified under the preceding paragraph;
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f) Identify potential legislative changes which may be appropriate to mitigate
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such problems and propose the same to Congress;
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g) Issue a Taxpayer Assistance Order, motu proprio, or upon application filed
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by a taxpayer with the Office of the National Taxpayer Advocate, that will
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serve as a complaint to be filed with the Secretary of Finance against the
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erring revenue official, employee or agent on the following grounds:
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(i) 
It is determined that the taxpayer is suffering or about to suffer a 
significant hardship as a result of the manner in which the internal 
revenue or customs laws are being administered by the revenue 
authorities; or
(ii) 
The taxpayer meets such other requirements as are set forth in the 
implementing rules and regulations of this Act.
For purposes of this paragraph, a significant hardship shall include: (i) an 
immediate threat of adverse action, whether administrative or judicial, civil 
or criminal; (ii) any action that will violate the right to privacy of a taxpayer;
(iii) a delay of more than thirty (30) calendar days in resolving taxpayer 
account problems; (iv) the taxpayer will incur significant and unnecessary 
costs, including fees for professional representation, if relief is not granted; 
or (v) irreparable injury to, or a long-term adverse impact on, the taxpayer 
if relief is not granted.
In cases where a revenue officer, employee or agent does not comply with 
the laws, rules and regulations or any applicable published administrative 
guidance, the National Taxpayer Advocate shall consider the factors taken 
into account by the revenue officer, employee or agent in determining 
whether to issue a Taxpayer Assistance Order in the manner most 
favorable to the taxpayer.
Any Taxpayer Assistance Order under this Section may be modified or 
rescinded by the National Taxpayer Advocate, only if a valid written 
explanation is submitted by the Commissioner of Internal Revenue or the 
Commissioner of Customs, as the case may be. The reasons for the 
modification or rescission shall be specifically stated by the National 
Taxpayer Advocate in the rescission or modification order.
The running of the period of statute of limitations with respect to any action 
for which a Taxpayer Assistance Order has been issued shall be suspended 
for the period beginning on the date of the taxpayer's application under 
this section and ending on the date of the National Taxpayer Advocate's 
decision with respect to such application and any period specified in a 
Taxpayer Assistance Order issued pursuant to such application; and
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(h) Issue a stay order pursuant to Sec. 4 (f) of this Act and cite in contempt
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the concerned revenue authority, its officers, employees or agents for
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violation of its stay order.
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SEC. 10. Organization and Staffing Pattern. The Office of the National
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Taxpayer Advocate shall be headed by a National Taxpayer Advocate. The National
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Taxpayer Advocate shall provide for the structural organization and staff of its offices
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and shall have the power and authority to designate and appoint officers and
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employees of the Office, in accordance with civil service laws, rules, and regulations.
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All positions in the Office of the National Taxpayer Advocate shall be governed
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by compensation and position qualification system and qualification standards
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approved by the National Taxpayer Advocate based on comprehensive job analysis
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and audit of actual duties and responsibilities. The National Taxpayer Advocate shall
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appoint and fix the remuneration of the emoluments of its personnel in accordance
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with existing laws on compensation and position classification.
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SEC. 11. Submission of Ann uai Reports by the Office of the Nationai
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Taxpayer Advocate, — Not later than December 31 of each calendar year, the
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Office of the National Taxpayer Advocate shall submit a report to the Chairpersons of
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the Committee on Ways and Means of the Senate of the Philippines and House of
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Representatives on its activities during such calendar year. Such report shall contain
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full and substantive analysis, in addition to statistical information, and shall:
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a) Identify the initiatives that the Office of the National Taxpayer Advocate
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has undertaken aimed at improving taxpayer services and the tax
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authorities' responsiveness;
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b) Contain recommendations received from taxpayers by the Office of
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National Taxpayer Advocate;
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c) Contain a summary of the most serious problems encountered by
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taxpayers, including a description of the nature of such problems;
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d) Contain an inventory of the items described in subsections (a), (b), and (c)
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of this Section for which action has been taken and the result of such
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action;
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e) Contain an inventory of the items described in subsections (a), (b), and
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(c) of this Section for which action remains to be completed and the period
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during which each item has remained on such inventory;
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f) Contain an inventory of the items described in subsections (a), (b), and (c)
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of this Section for which no action has been taken, the period during which
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each item has remained on such inventory, the reasons for the inaction,
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and identify any revenue officer, employee or agent who is responsible for
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such inaction;
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g) Identify any taxpayer assistance order which was not processed by the
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proper revenue authority in a timely manner;
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h) Contain recommendations for such administrative and legislative action as
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may be appropriate to resolve problems encountered by taxpayers;
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i) Identify areas of the tax law that impose significant compliance burdens
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on taxpayers, the revenue authorities, and local treasurers including
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specific recommendations for remedying these problems;
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j) Identify the most litigated issues for each category of taxpayers, including
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recommendations 
for mitigating such disputes: and
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k) Include such other information as the National Taxpayer Advocate may
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deem relevant.
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Each report required under this subparagraph shall be provided directly to the
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Committee on Ways and Means of the Senate of the Philippines and the House of
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Representatives without any prior review or comment from the Commissioner of
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Internal Revenue and Commissioner of Customs or any other officer or employee of
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the said Bureaus. The National Taxpayer Advocate shall furnish copies of said report
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to the Secretary of Finance, and to the Commissioner of Internal Revenue and
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Commissioner of Customs.
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The Commissioners of Internal Revenue and Commissioner of Customs shall
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establish procedures requiring a formal response to all recommendations submitted
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to them by the National Taxpayer Advocate within three (3) months from the date of
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submission.
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SEC. 12. Other Powers, Functions, and Responsibilities of the
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National Taxpayer Advocate. — The National Taxpayer Advocate shall:
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a) Monitor the coverage and geographic deployment of local offices of
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Taxpayer Advocates;
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b) Develop guidelines to be distributed to all revenue officers and employees
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and the local treasurers outlining the criteria for referral of taxpayer
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inquiries to local offices of Taxpayer Advocates;
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c) Formulate rules, regulations and guidelines on the issuance of a Taxpayer
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Assistance Order, stay order pursuant to Sec. 4(f) of this Act, and other
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forms of assistance, interventions, and representations that the Taxpayer
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Advocate may provide for the taxpayer;
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d) Formulate, implement, review and improve standards of delivery of services
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by the Office of the National Tax Advocate to the taxpayer pursuant to their
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rights enumerated in this Act, and monitor and evaluate compliance over
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such standards by the Tax Advocates through a feedback mechanism to be
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actively participated by the taxpayers;
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e) Ensure that the local telephone number for each local office of the Taxpayer
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Advocate is published and available to taxpayers served by the office;
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f) Develop career paths for local Taxpayer Advocates in the Office of the
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National Taxpayer Advocate; and
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g) Other powers and functions as may be implied and necessary to perform
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their powers, functions and responsibilities enumerated in this Act.
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SEC. 13. Personnel Actions of the National Taxpayer Advocate. — The
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National Taxpayer Advocate shall have the responsibility and authority to:
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a) Appoint local Taxpayer Advocates and make available at least one (1) such
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Advocate for each province, as may be identified by the DOJ; and
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b) Evaluate and take personnel actions including dismissal with respect to any
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employee of any local office of the National Taxpayer Advocate described
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in subsection (a) of this Section.
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The National Taxpayer Advocate may consult with the appropriate supervisory
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personnel of the revenue authorities in carrying out the National Taxpayer Advocate's
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responsibilities and qualifications under this Section.
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SEC. 14. Individuals andMSMes as Priority. - Application for the Issuance
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of a Taxpayer Assistance Order filed by individuals earning purely from compensation,
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from practice of profession, and single proprietorship, cooperative, partnership or
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corporation considered as micro-, small- and medium- enterprises (MSMes) as
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provided under Section 3 of RA No. 9501, otherwise known as the "Magna Carta for
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MSMes" shall be given priority by the Office of the National Taxpayer Advocate.
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SEC. 15. Taxpayer's Remedies for Violation of Rights under this Act,
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■— Any violation of the provisions of this Act committed by any official or employee of
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the BIR or the BOC, other than the Commissioner of Internal Revenue and
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Commissioner of Customs, shall be filed with the office of the Commissioner of
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Internal Revenue or the Commissioner of Customs, as the case may warrant, with the
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assistance of the National Taxpayer Advocate. The Commissioner of Internal Revenue
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or the Commissioner of Customs shall decide the controversy expeditiously, which
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shall not in any case be more than thirty (30) calendar days from the time the
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complaint or case is filed with their respective offices. Decisions of the Commissioner
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of Internal Revenue or the Commissioner of Customs concerning any complaint or
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case for violation of the provisions of this Act, may be brought for review by the
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aggrieved party or the latter's authorized representative, to the Secretary of Finance.
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In case the Commissioner of Internal Revenue or Commissioner of Customs fail to act
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on such complaint or case within the time herein prescribed, the aggrieved party or
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the latter's authorized representative may file the complaint or case directly with the
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Secretary of Finance.
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Complaints against the Commissioner of Internal Revenue or the Commissioner
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of Customs for violation of this Act shall be filed directly with the Secretary of Finance
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who shall decide the case within thirty (30) calendar days from the date the complaint
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was filed. Decisions of the Secretary of Finance may be appealed before the Office of
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the President.
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Any complaint or case filed pursuant to this Section shall be without prejudice 
to any other action that may be instituted against the employee or official of the BIR 
or the BOC under existing laws, rules and regulations.
Evidence against the taxpayers obtained in relation to this Act shall be 
inadmissible in any court or proceeding if found to have been obtained in violation of 
any of the above-enumerated taxpayer's rights.
SEC. 16. Penalties for the Violation of the Bill of Rights of Taxpayers.
— Any person or public official who is found to have violated the Bill of Taxpayers 
Rights shall be punished with imprisonment of not less than six (6) years nor more 
than twelve (12) years, and a fine of not less than one hundred thousand pesos 
(Phpl00,000.00) but not more than five hundred thousand pesos (Php500,000.00).
SEC. 17. Report of the Secretary of Finance. — On or before June 1 of 
each calendar year, the Secretary of Finance shall submit and present to the 
Chairpersons of the Committee on Ways and Means of the Senate and House of 
Representatives a report on:
(a) All categories of incidents involving the misconduct of the officers and 
employees of the revenue authorities during the preceding calendar year; and
(b) Action on and disposition of any such instances.
SEC. 18. Accessibility of the Taxpayer's Bill of Rights and Obligations.
- The Taxpayer's Bill of Rights and Obligations shall be made available in every 
revenue district office, revenue regional office, and national office of the BIR and 
collection district and national office of the BOC, free of charge, in all formats, digital 
or otherwise, and shall be posted in their respective websites, in multiple languages 
and dialects, as may be determined in the implementing rules and regulations.
SEC. 19. Integration of Taxpayer's Bill of Rights and Obligations in 
Higher Education curriculum. - All public and private higher education institutions 
shall integrate the Taxpayer's Bill of Rights and Obligations as part of an elective 
course. The Commission on Higher Education (CHED), pursuant to its mandate under
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RA No. 1171, otherwise known as the "Higher Education Act of 1994," shall develop 
the program to execute and implement this section.
SEC. 20. Establishment of Micro- and Small- Taxpayer Clinic Program.
- To ensure the fairness and integrity of the tax system for taxpayers who are 
classified as micro- and small- taxpayers, the DOF shall develop a micro- and small- 
taxpayer clinic (MSTC) program that will assist individuals and businesses classified 
as micro- and small- taxpayers having a tax dispute with any of the revenue 
authorities, and provide education and information about taxpayer rights and 
responsibilities in different languages or dialects.
The MSTCs shall be independent from the revenue authorities and the National 
Taxpayer Advocate. MSTCs can represent micro- and small- taxpayers in audits, 
appeals and tax collection disputes before revenue authorities and in court. MSTC 
services are offered for free or a small fee.
SEC. 21. Implementing Rules and Regulations. — Within thirty (30) 
calendar days from the effectivity of this Act, the following shall promulgate the 
necessary rules and regulations for its effective implementation:
a) A representative from the Department of Finance (DOF);
b) A representative from the BIR;
c) A representative from the BOC;
d) A representative from the DOJ;
e) A representative from the Secretariat of the Congressional Oversight 
Committee on Comprehensive Tax Reform Program;
f) Representatives from the Committee on Ways and Means of both Houses 
of Congress;
g) A representative each from Tax Management Association of the Philippines 
and the Philippine Institute of Certified Public Accountants.
SEC. 22. Separability Clause. — If any provision of this Act is declared 
invalid or unconstitutional, other provisions hereof which are not affected thereby 
shall remain in full force and effect.
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SEC. 23. Repealing Clause. — All laws, orders, decrees, rules and 
regulations, and other parts thereof inconsistent with the provisions of this Act are 
hereby repealed, amended or modified accordingly.
SEC. 24. Effectivity. — This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) national newspapers of general 
circulation.
Approved,
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