SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.B. No. 2100 
Introduced by Senator Juan Ponce Enrile 
AN ACT 
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'14 
FEB -4 P5 :53 
MANDATING THE BUREAU OF INTERNAL REVENUE TO EXCLUSIVELY 
INVESTIGATE, PROSECUTE AND HANDLE TAX RELATED CASES, AMENDING 
• 
SECTION 220, CHAPTER II, TITLE VIII OF REPUBLIC ACT NO. 8424, OTHERWISE 
• 
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KNOWN AS THE "TAX REFORM ACT OF 1997", AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
Republic Act No. 1125, the "Law Creating the Court of Tax Appeals", as amended by 
Republic Act 9282, expands the jurisdiction of the COUJi of Tax Appeals (CT A) and grants the same 
the jurisdiction to hear civil and criminal actions on tax-related cases, with the end in view of 
fulfilling the constitutional principle of efficient and speedy disposition and justifiable cases. 
However, the efforts of the Bmeau of Internal Revenue (BIR) to collect taxes by effectively 
prosecuting various tax-related Cases remain hampered due to the bmeaucratic processes cmrentiy 
existing in om justice system. 
On the other hand, Republic Act No. 8424, or the "Tax Reform Act of 1997", provides that 
civil and criminal actions and proceedings instituted in behalf of the Government shall be conducted 
by the legal officers of the BIR. However, due to the limited manpower of the BIR, it has become 
their practice to refer to the Department of Justice (DOJ) various cases relating to collection 
assessment for the determination of probable cause prior to the filing of appropriate cases. 
'Contrary to the intent of the law, this present system has reportedly become a breeding 
ground for corruption as some taxpayers manipulate the system by conniving with the prosecutors of 
the DOJ to delay resolution of their cases or, in some instances, resolve the cases in their favor. 
Hence, this bill. The proposed measme ieeks to amend Republic Act 8424 to authorize the 
legal officers:of\he BIR to investigate, prosecute, file and handle exclusively all tax-related cases. 
At the same time, the bill also vests in the DepaIiment of Finance the authority to review every 
criminal complaint before proper cases are filed in the court. 
When enactep into law, these amendments will. allow the Bureau to expand their legal 
depaliment to provide the necessary assistance if!' processing these cases. The practice of referring 
these cases to the DOJ, therefore, will be eliminated and the probability of collusion between the 
prosecutors of the DOJ and taxpayers will be rem6ved. 
Senate Bill Nos. 2494, 1233 and 133, proposing for the same amendment, were filed by this 
Representation during the 13 th, 14 'h and 15'h Congresses, respectively. 
In view of these, the immediate passage of this bill is earnestly sought. 


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SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
14 FEB -4 P5:53 
SENATE 
, 
S.B.No. 
2100 
1{F;('EIVi·:O in: .. r 
Introduced by SENATOR JUAN PONCE ENRILE 
AN ACT 
MANDATING THE BUREAU OF INTERNAL REVENUE TO EXCLUSIVELY 
INVESTIGATE, PROSECUTE AND HANDLE TAX RELATED CASES, 
AMENDING SECTION 220, CHAPTER II, TITLE VIII OF REPUBLIC ACT NO. 
8424, OTHERWISE KNOWN AS THE "TAX REFORM ACT OF 1997", AND 
FOR OTHER PURPOSES 
Section 1. Section 220., Chapter 11, Title VIII of Republic Act No. 8424, 
othelwise known as the "Tax Reform Act of 1997, is hereby amended to read as follows: 
"Sec. 220.. Form [and Model of Proceeding in Actions Arising 
under this Code. - Civil and criminal actions and proceedings instituted in 
behalf of the Government under the authority of this Code or other law 
enforced by the Bureau of Internal Revenue shall be brought in the name 
of the Government of the Philippines and shall be [conducted] 
INVESTIGATED, PROSECUTED AND HANDLED EXCLUSIVELY 
by legal officers of the Bureau of Internal Revenue but no civil or criminal 
action for the recovery of taxes or the enforcement of any fine, penalty or 
forfeiture under this Code shall be filed in Court without the approval of 
the Commissioner. FOR THE PUiPOSE, NO REFERRAL BY THE 
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BUREAU OF INTERNAL REVENUE TO THE OFFICE OF THE 
.. SdLiCITOR GENERAL, THE DEfiARTMENT OF JUSTICE OR ANY 
GOVERNMENT AGENCY SHALL BE ALLOWED IN CONNECTION 
WITH A CIVIL OR CRIMINAL ACTION HANDLED BY THE LEGAL 
OFFICERS OF THE BUREAU OF, INTERNAL REVENUE. THE BIR 
SHALL HAVE EXCLUSIVE AUTHORITY TO FILE ANY CIVIL OR 
CRIMINAL CASE DIRECTLY WITH THE PROPER COURT FOR 
THE RECOVERY OF TAXES OR ENFORCEMENT OF ANY FINE, 
PENALTY OR FORFEITURE UNDER THIS CODE: PROVIDED 
THAT, 
THE 
DEPARTMENT 
OF 
FINANCE 
SHALL 
HAVE 
AUTOMATIC REVIEW OVER, AND CONDUCT PRELIMINARY 
INVESTIGATION IN,EVERY CRIMINAL COMPLAINT BEFORE IT 
IS FILED IN COURT." 
I. 
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Section 2. Repealing Clause. - All laws, orders, issuances, circulars, rules and 
regulations or pmis thereof, which are inconsistent with the provisions of this Act are 
hereby repealed or modified accordingly. 
Section 3. Separability Clause. - If any provisions of this Act is declared 
unconstitutional or invalid,. other parts or provisions hereof not affected shall continue in 
full force mId effect. 
Section 4. Effectivity - This Act shall take effect after fifteen (15) days following 
its publication in at least two (2) newspapers of general circulation. 
Approved, 
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