Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

House BillNo.__—« 294

Introduced by HONORABLE DANILO E, SUAREZ

EXPLANATORY NOTE

Despite the passage of Republic Act No. 9282, which expanded the jurisdiction of the
Court of Tax Appeals and mandated that civil and criminal actions in tax related cases shall be
heard by the Court of Tax Appeals, there have been impediments in the resolution of tax cases.
These impediments have proved to be a stumbling block in the Bureau of Internal Revenue’s
(BIR) effort to collect taxes by effectively prosecuting various tax-related cases.

One such impediment pertains to the time-honored practice of the BIR to refer to the
Department of Justice, though its prosecutors, various collection assessment cases before the
courts. This is quite understandable considering the limited staff in the legal department of the
Bureau who will handle tax-related cases. This set-up, however, has become a breeding ground
for corruption as concerned taxpayers would turn out conniving with the prosecutors of the DOJ
to delay resolution of cases or in some instances, decide in their favor.

This bill thus seeks to remedy the situation by making it mandatory for the BIR to take
exclusive jurisdiction in handling tax-related cases and by discouraging referral of the cases to
the DOJ. In this manner, the people from the BIR, armed with expertise on the field, would
solely handle tax cases to the exclusion of others. Aside from hastening prosecution of cases, it
will encourage the BIR itself to broaden and expand its legal department and provide the
necessary assistance in relation thereto.

Approval of this bill is earnestly requested

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DANILO E. SUAREZ
Representative .
Third District, Province of Quezon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

294

House Bill No.

Introduced by HONORABLE DANILO E. SUAREZ

AN ACT AMENDING SECTION 220. CHAPTER II. TITLE VIIl OF
REPUBLIC ACT NO. 8424 AND FOR OTHER PUPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SEC. 1. Section 220. Chapter Il. Title Vill of Republic Act No. 8424 is hereby amended
to read as follows:

‘SEC. 220 Form and (Mode of) Proceedings 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 THIS PURPOSE, NO REFERRAL BY THE BUREAU OF INTERNAL
REVENUE TO THE OFFICE OF THE SOLICITOR GENERAL, THE DEPARTMENT 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.

SEC. 2. Repealing Clause. ~ All laws, orders, issuances, circulars, rules and regulations
or parts thereof, which are inconsistent with the provisions of this Act are hereby repealed or
modified accordingly

SEC. 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 and effect,

SEC. 6. Effectivity. - This Act shall take effect fifteen days (15) days following its
publication in at least two (2) newspapers of general circulation.

Approved,