Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House BIND __—3.28

Introduced by HONORABLE ALETA C.. SUAREZ

EXPLANATORY NOTE

Despite the passage of Republic Act No. 9282, which expanded the jurisdiction of
the Court of Tax Appeals and mandated the 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 Intemal 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 cases and by discouraging referral of the
cases to the DOJ. In this manner, the people from 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.

Mt.
‘A C. SYAREZ

Reyresentative
Third District, Province of Quezon

Approval of this bill is earnestly requested.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 328

Introduced by HONORABLE ALETA C.. SUAREZ

AN ACT AMENDING SECTION 220 CHAPTER II TITLE VIII OF
REPUBLIC ACT NO. 8424

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

SEC. 1. Section 220. Chapter II. Title VIII 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 this 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 HANDLE
EXCLUSIVELY by all 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 Codes shall be filed in Court without the approval of the
Commissioner. FOR THIS PURPOSE, NO REFFERRAL 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 BEFOREIT 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. 4. Effectivity - This Act shall take effect fifteen days (15) following its
publication in at least (2) newspapers of general circulation

Approved,