Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

993

HOUSE BILL NO.

Introduced by Honorable Giorgidi B. Aggabao

EXPLANATORY NOTE

Under the obtaining set-up, exclusive jurisdiction is vested with the
Department of Justice to conduct preliminary investigation over all criminal
cases arising, from violations of the National Internal Revenue Code and other
laws administered by the Bureau of Internal Revenue.

This bill seeks to alter and modify this set-up, by granting exclusive
authority to the BIR first, to investigate cases involving violations of the NIRC
and related laws; second, to conduct preliminary investigations; third, to file
the necessary complaint or information in court where the evidence warrants;
and finally, to prosecute them.

‘Tax laws are indubitably difficult and complex, requiring specialized
knowledge, skills, and experience. Without in any way diminishing the
competence of DOJ prosecutors, devolving the conduct of preliminary
investigation with the BIR and their prosecution of tax cases before the courts
would ensure that cases for the government are handled by those eminently
qualified.

Moreover, the Department of Justice is laboring under obvious strain
from all sort of cases referred to it for preliminary investigations. Shifting then
the burden and responsibility of conducting preliminary investigations for tax
cases away from the Department of Justice will definitely expedite the
resolution of tax cases. This way, the skullduggery and underhand dealings
attendant in the interminable wait for resolutions would be eliminated.

For the foregoing reasons, the passage of this bill is earnestly
requested.

SS ;ABAO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

933

HOUSE BILL NO.

Introduced by Honorable Giorgidi B. Aggabao

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

AN ACT
AUTHORIZING THE BUREAU OF INTERNAL REVENUE TO CONDUCT
PRELIMINARY INVESTIGATIONS, FILE COMPLAINTS AND
INFORMATIONS AND PROSECUTE TAX CASES, AMENDING
SECTION 220, CHAPTER II,
TITLE VIII OF REPUBLIC ACT NO.8424, OTHERWISE KNOWN AS:
THE “TAX REFORM ACT OF 1997”

Section 1. Section 220, Chapter II, Title VIII 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
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]. IN CRIMINAL OFFENSES ARISING
FROM VIOLATIONS OF THE NIRC AND OTHER
LAWS ADMINISTERED BY THE BIR, THE BUREAU
SHALL HAVE EXCLUSIVE AUTHORITY TO
CONDUCT PRELIMINARY INVESTIGATIONS,


FILE COMPLAINTS AND INFORMATIONS WITH THE
APPROPRIATE COURTS AND PROSECUTE THEM;
PROVIDED THAT NO COMPLAINT OR
INFORMATION MAY BE FILED OR DISMISSED BY
LEGAL OFFICERS OF THE BUREAU WITHOUT THE
PRIOR WRITTEN AUTHORITY OR APPROVAL OF
THE COMMISSIONER.

IF UPON PETITION BY A PROPER PARTY
UNDER SUCH RULES AS THE DEPARTMENT OF
FINANCE MAY PRESCRIBE, THE SECRETARY OF
FINANCE MAY REVERSE OR MODIFY THE
RESOLUTION OF THE COMMISSIONER.”

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

Approved.