THIRTEENTH CONGRESS OF THE 
) 
REPULIC OF THE PHILIPPINES 
) 
Third Regular Session 
1 
Introduced by SENATOR JUAN PONCE ENRILE 
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 Court of Tax Appeals 
(CTA) 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 of justiciable cases. However, the efforts of the Bureau of Internal 
Revenue (BIR) to collect taxes by effectively prosecuting various tax-related cases 
remain hampered due to the bureaucratic processes currently existing in our 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 measure seeks to amend Republic Act 8424 to 
authorize the legal officers of the BIR to investigate, prosecute, file and handle 
exclusively all tax-related cases. At the same time, the bill also vests in the Department 
of Finance the authority to review every criminal complaint before proper cases are filed 
in court. 
When enacted into law, these amendments will allow the Bureau to expand their 
legal department to provide the necessary assistance in 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 
removed. 
In view of these, the immediate passage of this bill is earnestly sought. 


THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Third Regular Session 
) 
SENA‘FF, 
S.B. NO. rC. ‘2 f3 ‘1 
~ 
Introduced by SENATOR JUAN PONCE ENRILE 
AN ACT 
MANDATING THE BUREAU OF INTERNAL REVENUE TO EXCLUSIVELY 
SECTION 220, CHAPTER 11, TITLE 
VI11 OF REPUBLIC ACT NO. 8424, 
OTHERWISE KNOWN AS THE “TAX REFORM ACT OF 1997”, AND FOR OTHER 
PURPOSES 
INVESTIGATE, PROSECUTE AND HANDLE TAX-RELATED CASES, AMENDING 
Section 1. Section 220, Chapter 11, Title VI11 of Republic Act No. 8424, otherwise 
known as the “Tax Reform Act of 1997, is hereby amended to read as follows: 
“Sec. 220. Form [and Mode/ 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 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 lN COURT.” 
Section 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. 
Section 3. Separabi/ity 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. 
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,