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NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
1806
S. B. No
(In Substitution of Senate Bill Nos. 1077, 1199, and 1309)
Prepared by the Committee on Ways and Means 
with Senators Lapid, Gatchalian and Revilla, Jr. as authors
AN ACT PROVIDING FOR THE
BILL OF RIGHTS AND OBLIGATIONS OF TAXPAYERS, CREATING THE 
OFFICE OF THE NATIONAL TAXPAYER ADVOCATE, APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Phiiippines in 
Congress assembied:
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SEC. 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 taxpayers' rights in complying with their obligation 
to pay national and local taxes to the government, to the end that abuses committed 
against taxpayers are prevented, if not completely eradicated, and taxes are collected 
responsibly, with due regard for taxpayers' rights. In turn, taxpayers are expected to 
faithfully comply with their tax obligations to the government.
SEC. 3. Definition of Terms. - As used in this Act, the following terms shall
mean:


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a) /1sses5/77e/7f refers to the process of determining the amount of taxes, duties, and 
other charges to be paid by the taxpayer;
b) Revenue Authority refQvs, singly or collectively, to the Bureau of Internal Revenue 
(BIR), Bureau of Customs (BOC), Local Government Units (LGUs), and other tax 
collecting agencies;
c) Revenue Officers refer to the officers, employees, and agents of the revenue 
authorities;
d) Summary Collection refers to the civil remedy of the government for the collection 
of accounts receivable or delinquent accounts by garnishment or distraint of personal 
property, or levy of real property;
e) Taxes refer to all taxes imposed under the National Internal Revenue Code (NIRC) 
of 1997, as amended, the Customs Modernization and Tariff Act of 2016, the Local 
Government Code of 1991, as amended, and all other tax laws, rules and regulations, 
including those collected by other tax collecting agencies;
f) Taxpayer refers to any person, whether natural or juridical, subject to the tax 
imposed by the national and local government; and
g) Tax Audit refers to the examination into a taxpayer's obligation, and compliance 
with tax laws, rules and regulations by the BIR, BOC, LGUs, or other tax collecting 
agencies, as the case may be.
SEC. 4. Taxpayer's Bill of Rights and Obligations. — Notwithstanding the 
rights and remedies of the taxpayer provided for in the National Internal Revenue 
Code (NIRC) of 1997, as amended; Customs Modernization and Tariff Act (CMTA); 
Republic Act (RA) No. 1125, creating the Court of Tax Appeals (CTA), as amended; 
Book II of the Local Government Code of 1991, as amended; and all other laws, rules


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and regulations, issuances, and circulars in support thereof, the taxpayer is hereto 
granted basic taxpayer rights, whether at the administrative level or at the judicial 
level. Provided, That nothing in this Act shall amend the jurisdiction of the courts and 
quasi-judicial agencies, as provided for by law, nor deprive the Judiciary of its power 
to promulgate rules and procedures in all courts.
Accordingly, the taxpayer is expected to observe and comply with tax 
obligations enumerated in this Act and in other relevant laws, rules, and regulations 
that are implemented by revenue authorities.
SEC. 5. Taxpayer's Basic Rights. — The following are the taxpayer's basic
rights:
a) Right to Information. - The taxpayer shall have the right 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 tax laws, rules, regulations, and procedures, as well as be apprised of 
taxpayer's rights and obligations in all tax forms, publications, notices, 
correspondences, assessments, rulings, and decisions.
In case of any deficiency tax findings or alleged violations, the taxpayer shall have 
the right to be clearly and sufficiently informed in writing of the facts and laws 
thereon, including any supporting computation or documentation, or both, upon 
which they are based, at the same time such findings or violations are communicated.
Unless prejudicial to the government, the taxpayer shall have the right to be informed 
of any impending institution by revenue authorities of a summary collection action, 
which requires sale or seizure of property or the freezing of assets.
b) Right to fair and faithful application of laws. - The taxpayer shall have the right to 
a fair and faithful application of laws, rules, regulations, and other issuances of 
revenue authorities in all proceedings involving the taxpayer.


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c) Right to challenge the position of and be heard by revenue authorities. - The 
taxpayer shall have the right to challenge and raise objections against the findings, 
assessments, rulings, or decisions of the revenue authorities, unless otherwise 
prohibited by law.
d) Right to present evidence and witnesses. - The taxpayer shall have the right to be 
given ample and adequate opportunity to present evidence in the possession of the 
taxpayer or any third party, and call on witnesses to testify, as the case may be, that 
would assist the taxpayer in the pursuit of the case.
e) Right to be assisted or represented by a qualified professional. - The taxpayer shall 
have the right to be assisted or represented by a competent and independent qualified 
professional, such as a legal counsel, accountant, or customs broker, of the 
Taxpayer's own choice, in all administrative, civil, or criminal tax proceedings.
In case the taxpayer experiences financial difficulty in engaging the services of a 
private counsel or qualified professional, the Office of the National Taxpayer Advocate 
(ONTA) shall provide free and effective representation to the taxpayer, upon the 
latter's request.
f) Right to timely and expeditious completion of tax audits. - The taxpayer shall have 
the right to have revenue authorities begin and complete tax audits in a timely and 
expeditious manner.
g) Right against baseless assessment - Except in cases allowed by law, the tax 
authorities are prohibited from issuing assessments against taxpayers without the 
benefit of an audit conducted against taxpayers. Otherwise, such assessments shall 
be void.
h) Right to be given an opportunity for amicable settlement - Unless contrary to laws, 
rules and regulations, the taxpayer shall have the opportunity to amicably settle the


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taxpayer's deficiencies and delinquencies, at any stage of the proceedings: Provided, 
That said settlement must be in writing and duly signed by the parties or their agent.
i) Right to avail of installment payment - In so far as may be permitted by law, the 
taxpayer shall have the right to settle tax liabilities through installment payments.
j) Right to relief from paying interests and penalties. - The taxpayer shall be entitled 
to a reduction of interests and penalties levied on their tax liabilities in case of any 
unjustifiable error or delay caused by the revenue authorities, including instances of 
loss of records, personnel transfers, extended illness or leaves of absence, and 
personnel training, resignation, retirement, or termination from service of the 
concerned personnel.
k) Right to recover actual costs and actual damages arising from judicial actions. - 
The taxpayer shall have the right to recover actual costs and actual damages, 
including attorney's fees and expenses of litigation, arising from judicial actions, as 
may be determined by a court of competent jurisdiction.
i) Right to quality service and assistance. - The taxpayer shall have the right to be 
treated professionally, courteously, fairly, and reasonably by revenue authorities.
m) Right to privacy. - The taxpayer shall have the right to privacy of communication 
and correspondence, as guaranteed by the Constitution, and the Data Privacy Act of 
2012. The taxpayer shall have the right to demand that any information provided to 
revenue authorities shall not be disclosed and shall be kept confidential, unless 
disclosure is expressly authorized by law or by the taxpayer.
SEC. 6. Taxpayer's Basic Obligations. - Complementary to the above 
taxpayer's rights are the following duties and responsibilities of the taxpayer:
a) Observe and comply with tax laws, rules, and regulations;


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b) Truthfully and timely disclose complete and correct information as required by tax 
laws, rules, and regulations, including but not limited to, registered address, official 
email address, registered activities, tax type details, and accounting period;
c) Lodge and submit, either personally or through electronic means, in a timely 
manner all relevant information, books of accounts, reports, records, returns, and 
other documents to revenue authorities on or before the dates set by tax laws, rules, 
and regulations;
d) Exercise reasonable care and diligence in complying with all tax obligations;
e) Keep accurate records of the required books of accounts and other tax information 
for the duration required by law, rules, and regulations, and make them available for 
examination by revenue officers following proper procedures;
f) Cooperate with revenue authorities in the latter's conduct of tax audits in 
accordance with laws, rules, and regulations; and
g) Timely pay the taxes due to the government through any available payment 
channels.
SEC. 7. Creation of the Office of the National Taxpayer Advocate. —
In order to protect the rights of taxpayers, both substantive and procedural, the ONTA 
is hereby created to promote tax compliance and assist taxpayers. The ONTA shall be 
an independent and autonomous office attached to the Department of Justice (DOJ) 
for purposes of policy and program coordination.
The ONTA shall have the power to provide for the structural organization and 
staff of its offices and shall have the power and authority to designate and appoint 
officers and employees of the Office and create divisions and units, including regional 
or provincial offices, as may be necessary, subject to the approval of the Department 
of Budget and Management (DBM) and in accordance with civil service laws, rules.


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and regulations: Provided, That all employees shall be subject to Republic Act No. 
6758, otherwise known as the Salary Standardization Act.
SEC. 8. Powers, Functions and Responsibilities of the Office of the 
National Taxpayer Advocate. — The ONTA shall have the following functions, 
powers, and responsibilities:
a) Assist the public in their tax queries and concerns relative to taxes;
b) Represent taxpayers, and assist, initiate, and intervene, as may be applicable, in 
tax cases, complaints, and proceedings, after due evaluation: Provided, That the 
qualifications and disqualifications of taxpayers who shall be given priority in the 
ONTA's representation services shall be in relation to Section 5(e) of this Act.
c) Engage in regular information, education, and communication programs for all 
taxpayers on tax laws, rules, regulations, circulars, including those that implement 
Supreme Court decisions, and other issuances that affect them, including their rights 
and remedies under the law;
d) Recommend remedial administrative measures to revenue authorities by way of 
continuing policy review, and to the Anti-Red Tape Authority for purposes of reducing 
regulatory burden to taxpayers;
e) Monitor tax issuances of revenue authorities, and propose recommendations, when 
necessary, at the administrative level, to ensure that taxpayers' rights as provided in 
this Act are upheld;
f) Develop capacity building programs, and conduct the necessary trainings for the 
officials and employees of ONTA; and


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g) Perform such other powers and functions as may be necessary to enhance the 
ONTA's performance of its powers, functions, and responsibilities, as enumerated in 
this Act.
SEC. 9. The Chief Taxpayer Advocate and Deputy Taxpayer 
Advocates. - The ONTA shall be headed by the Chief Taxpayer Advocate, who shall 
have the primary authority and responsibility for the effective exercise of its mandate 
and the discharge of its powers and functions. The Chief Taxpayer Advocate shall be 
assisted by Deputy Taxpayer Advocates, one (1) each for the National Capital Region, 
Luzon, Visayas, and Mindanao.
The Chief Taxpayer Advocate and Deputy Taxpayer Advocate shall be Filipino 
citizens, at least forty (40) years of age, members of the Philippine Bar in good 
standing, with at least ten (10) years of practice in the field of taxation with proven 
integrity and competence and must not have been convicted of any crime involving a 
violation of any tax laws and rules, and of any crime involving moral turpitude.
SEC. 10. Appointment, Term, and Rank. —The Chief Taxpayer Advocate 
and Deputy Taxpayer Advocates shall be appointed by the President: Provided, That 
the appointment of the Deputy Taxpayer Advocates shall be upon the 
recommendation of the Chief Taxpayer Advocate. They shall both serve for a fixed 
term of seven (7) years with one (1) re-appointment.
The Chief Taxpayer Advocate and Deputy Taxpayer Advocates shall have the 
equivalent rank, salaries, allowances, and retirement benefits as the Prosecutor- 
General and Senior Deputy State Prosecutor of the National Prosecution Service, 
respectively.
SEC. 11. Disqualification. — An individual cannot be appointed as the Chief 
Taxpayer Advocate or Deputy Taxpayer Advocate if such individual has been an 
employee or officer of, or has rendered service as consultant or in any other capacity 
to any of the revenue authorities for two (2) years prior to such appointment.


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SEC. 12. Submission of Annual Reports. - The Congressional Oversight 
Committee on the Comprehensive Tax Reform Program (COCCTRP) shall exercise 
oversight powers over the implementation of this Act.
To this end, the ONTA shall submit a detailed report on its activities and 
identified problem areas, either personally or through electronic means, to the 
COCCTRP on or before December 31 of every year, copy furnished the Secretary of 
Finance, particularly on identified areas in which taxpayers have problems in dealing 
with revenue authorities.
Afterwards, on or before June 1 of every year, the Secretary of Finance shall 
submit a report in relation to the ONTA's report, either personally or through 
electronic means, to the COCCTRP and shall include appropriate remedial action, if 
any, or proposed legislation, and other recommendations on the proper 
implementation of this Act.
SEC. 13. Penalties for the Violation of the Bill of Rights of Taxpayers.
— Notwithstanding the administrative remedies provided in the National Internal 
Revenue Code (NIRC) of 1997, as amended; the Customs Modernization and 
Tariffication Act of 2016 (CMTA); R.A. No. 1125 creating the Court of Tax Appeals 
(CTA), as amended; and Book II of the Local Government Code of 1991, as amended, 
any person or revenue officer who is found to have violated Section 5 of this Act shall 
be punished with imprisonment of not less than six (6) months nor more than six (6) 
years, or a fine of not less than One Hundred Thousand Pesos (Phpl00,000.00) but 
not more than One Million Five Hundred Thousand Pesos (Phpl,500,000.00), or both.
SEC. 14. Accessibility of the Taxpayer's Bill of Rights and Obligations.
— The Taxpayer's Bill of Rights and Obligations shall be made available in all offices 
of revenue authorities, free of charge, in all formats, digital or otherwise, and shall be 
posted in their respective websites, in English and Filipino language.


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SEC. 15. 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 the curriculum. 
The Commission on Higher Education (CHED), pursuant to its mandate under RA No. 
7722, otherwise known as the "Higher Education Act of 1994," shall develop the 
program to execute and implement this Section.
SEC. 16. Appropriations. — The amount necessary for the implementation 
of this Act including the funding for the establishment, yearly operations and 
maintenance of the ONTA shall be included in the Annual General Appropriations Act.
SEC. 17. Implementing Rules and Regulations. — Within sixty (60) 
calendar days from the effectivity of this Act, the DOJ, in consultation with the DOF, 
DBM, DILG, BIR, BOC, Civil Service Commission (CSC), CHED, ARTA, and the private 
sector shall promulgate the necessary rules and regulations, for the effective 
implementation of this Act.
SEC. 18. 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.
SEC. 19. 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. 20. 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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