Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT ORDAINING A 
BILL OF RIGHTS AND OBLIGATIONS OF THE TAXPAYER 
EXPLANATORY NOTE 
The government lives and breathes through taxation. A Supreme Court ruling provides that 
“Taxes are the nation's lifeblood through which government agencies continue to operate 
and which the State discharges its functions for the welfare of its constituents.”1 
For every right, there is a corresponding responsibility. Sec. 28 (1) of the 1987 Constitution 
states that “The rule of taxation shall be uniform and equitable. The Congress shall evolve 
a progressive system of taxation.” Philippine law follows the theoretical justice principle 
which states that a sound tax system must be based on the taxpayers' ability to pay. 
The Doctrine of Symbiotic Relationship provides that “The State has the power to demand 
and receive taxes based on the reciprocal duties of support and protection between the 
State and its citizens.”  
This bill aims to have a simple yet comprehensive list of the rights and obligations of the 
taxpayer.  
On behalf of the people of Parañaque City’s Second District, and for the common good 
of the Filipino people, the approval of the said measure is earnestly sought. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 
1 G.R. No. 230861 (Asian Transmission Commission v. CIR, 19 September 2018) 
September 30, 2022
9:27 am
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT ORDAINING THE 
BILL OF RIGHTS AND OBLIGATIONS OF THE TAXPAYER 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 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 the taxpayer's rights in complying with the National Internal 
Revenue Code of 1997, as amended, the Customs Modernization and Tariff Act, and all 
other pertinent rules and regulations, to the end, that abuses committed against taxpayers 
are mitigated, if not completely avoided, and taxes are collected responsibly, with due 
regard for taxpayer's rights. In turn, the taxpayer is expected to faithfully comply with the 
basic tax obligations to the government. 
SEC. 3. Taxpayer's Bill of Rights and Obligations. — In addition to the rights and remedies 
of the taxpayer as provided for in the National Internal Revenue Code (NIRC) of 1997, as 
amended; Customs Modernization and Tariff Act (CMTA), as amended; Republic Act (RA) 
No. 1125, as amended, creating the Court of Tax Appeals 1(CTA); and all other laws, rules 
and regulations, issuances and circulars in support 
thereof, the taxpayer is hereto granted the following: 
a) taxpayer's basic rights,
b) taxpayer's rights in civil cases, and
c) taxpayer's rights in criminal cases,
whether at the administrative level or at the judicial level, concerning tax assessments, 
collection and refund, and prosecution for criminal cases. 
5310


 
On the other hand, the taxpayer is expected to observe and comply with basic tax 
obligations enumerated in this Act as well as in other relevant laws, rules and regulations 
that are implemented by the Department of Finance (DOF), Bureau of Internal Revenue 
(BIR) and the Bureau of Customs (BOC), which are singly or collectively referred herein as 
"revenue authority" or "revenue authorities, " as may be applicable. For purposes of this 
Act, revenue officers, employees, and agents shall refer to the officers, employees, and 
agents of these revenue authorities. 
 
SEC. 4. Taxpayer's Basic Rights — The following are the taxpayer's basic rights: 
a) Right to obtain complete, dear, and accurate information, to receive 
simplified and non- technical statements, and to be assisted in complying 
with tax obligations. — The taxpayer is entitled to know in a simplified manner how one 
can comply with laws, rules, and regulations implemented by revenue authorities. The 
taxpayer is entitled to a clear, complete, accurate, and simplified explanation of these laws, 
rules, regulations, and procedures, as well as be apprised of the rights and obligations as 
a taxpayer in all tax forms, publications, notices, correspondences, assessments, rulings, 
and decisions. 
Thus, all revenue officers, employees, and agents shall judiciously provide all taxpayers 
with clear, adequate, and non-technical written explanations of the findings, assessments, 
reason for audit selection, rulings, decisions, and the procedures, remedies, and rights 
available during an audit, appeals and collection proceedings. The written explanation shall 
include a narrative description that explains the basis of audit changes, proposed 
assessments, assessments, and denials of refunds; identifies any amount of tax, interest, 
or penalty due, including details of how the amount was calculated; and states the 
consequences of the taxpayer's failure to comply with the notice. 
The taxpayer shall also have the right to participate in taxpayer dialogues and information 
or education campaigns of revenue authorities to elicit awareness and consciousness 
among taxpayers of rights and obligations and to help them faithfully comply with the 
revenue laws, rules and regulations; 
b) Right to be clearly and timely informed of any law, rules, regulations, 
decisions, pending assessment, investigation, and other cases filed against 
the taxpayer. — The taxpayer shall have the right to be completely, clearly, and timely 
informed of any pending assessment, rulings, and decisions of revenues authorities about 
their tax account; any investigation for criminal tax cases; any collection or any other cases 
filed against or in favor of the taxpayer, including requests for third-party information 
involving the taxpayer. 


 
Thus, revenue authorities shall clearly and timely explain within the prescribed period to 
the taxpayer the tax outcomes and consequences of any law, rules, regulations, decisions, 
pending assessment, investigation, request for third-party information, and other cases 
filed against or in favor of the taxpayer. Revenue authorities shall issue prior notice and 
conduct at least one public hearing or consultation before revenue regulations become valid 
and enforceable. Whenever necessary, revenue authorities are also mandated to issue and 
publish, within a prescribed period, revenue memorandum circulars providing guidelines on 
the implementation of new supreme court decisions affecting the taxpayer; 
c) Right to professional and quality service and assistance. — The taxpayer all have the 
right to be treated professionally, courteously, fairly, and reasonably in all transactions with 
revenue authorities. Thus, all revenue officers, employees, and agents shall provide 
prompt, courteous, and professional assistance in all dealings with the taxpayer, including 
giving available information and prompt, and accurate responses to questions and requests 
for tax assistance. Revenue authorities shall issue guidelines setting standards for service 
delivery to be followed by all revenue officers, employees, and agents. Standards for service 
delivery shall include the results of a feedback mechanism on the services received by 
taxpayers, which shall be published on the website of revenue authorities. 
Regular training on technical skills development, proper ethics and decorum, accountability, 
and good governance shall be undertaken by all revenue officers, employees, and agents. 
Revenue authorities shall also formulate, develop, publish and implement regular 
monitoring and evaluation of compliance with the standards for service delivery in a periodic 
manner, such as handling of customer relations and accountability, as well as evaluation of 
a variety of performance goals and job criteria of all revenue officers, employees and 
agents. 
d) Right to a consistent application of laws, rules, and regulations; due process; prompt 
and objective disposition of cases. — The taxpayer shall have the right to the consistent 
application of laws, rules, regulations, and other issuances of revenue authorities regarding 
assessments, refunds, or any other proceedings including requests for advisory rulings, 
clearances, 
 termination letters, and lifting of seizure, garnishment and forfeiture orders.  The taxpayer 
shall have the right to challenge and raise objections regarding the findings, assessments, 
rulings, or decisions, whether it be against the taxpayer or against the officials and staff of 
the revenue authorities and other government agencies including government-owned and 
-controlled corporations (GOCCs), government financial institutions (GFIs), and local 
government units (LGUs) tasked with the enforcement of revenue or banking and financial 
laws, whether of local or national application. The taxpayer shall have a right to provide 
additional documentation in response to the actions taken by the proper authorities. In so 
doing, all proper authorities, revenue officers, employees, and agents shall consider such 
objections, and promptly and impartially act and resolve these cases; 


 
e) Right to privacy. — The taxpayer shall have the right to privacy of communication and 
correspondence, as guaranteed by the Constitution, and the right to have any case or 
proceeding, including those involving third-party information requests against or involving 
the taxpayer, to be devoid of publicity, whether through radio, television, newspaper or 
any alternative media, while said case or proceeding is pending. Thus, revenue 
authorities shall respect the privacy of the taxpayer by following due process of law at all 
times, and not being more intrusive than necessary in any inquiry, examination, or 
enforcement action, especially in the recording of interviews during tax determination or 
collection processes conducted by revenue authorities; 
f) Right to be assisted by the National Taxpayer Advocate. — The taxpayer 
shall have the right to seek assistance, upon application, from the National 
Taxpayer Advocate, which shall be responsible for facilitating the resolution 
of taxpayer complaints and problems not resolved through the normal administrative 
channels within revenue authorities, including any taxpayer 
complaints regarding unsatisfactory treatment by revenue officers, 
employees and agents. The assigned Taxpayer Advocate may issue a stay 
order to suspend the execution of any order or decision of the Commissioner of Internal 
Revenue or Commissioner of Customs or his duly authorized representative if a taxpayer 
has suffered or is about to suffer 
irreparable loss as a result of an unjust action by the revenue authorities, without prejudice 
to other remedies available in this Act and existing laws. Revenue authorities, officers, 
employees, and agents who will not comply with the stay order issued by the assigned 
Taxpayer Advocate shall be liable for contempt; 
g) Right to confidentiality. — The taxpayer shall have the right to expect that 
any information they provide to revenue authorities will not be disclosed 
and will be kept confidential unless disclosure is authorized by law or by the taxpayer. Thus, 
revenue authorities shall take appropriate actions against their officers, their employees, 
agents of taxpayers, and others who 
wrongfully use or disclose the taxpayer's return information; 
h) Right to time/y and expeditious completion of tax audits. — The taxpayer 
is entitled to have revenue authorities begin and complete tax audits in a timely and 
expeditious manner after notification of the intent to audit 
through a letter of authority. Thus, revenue authorities, their officers, 
employees, and agents shall conduct the tax audit at a reasonable time and place, except 
in criminal and internal investigations. They shall complete 
the tax audit and investigation of the taxpayer, including inspection of the 


 
tax records and interview of the taxpayer or its authorized representatives, within one 
hundred eighty (180) calendar days from the taxpayer's receipt 10 of a letter of authority 
or notice; 
 i) Unless otherwise provided by law, a single audit team of revenue officers, employees 
and agents coming from the same office shall conduct the complete audit of the books and 
records of the taxpayer once a year. The audit team shall not commence an audit covering 
more than two (2) consecutive taxable years against the same taxpayer unless proven that 
fraud has been committed by the taxpayer. Similarly, revenue authorities, their officer, 
employees, and agents are prohibited from conducting a simultaneous audit of the books 
and records of the same taxpayer involving several taxable years, unless the right is waived. 
Interest arising from deficiency tax based on a particular tax audit shall not accrue beyond 
five 
(5) years; 
j) Right to request for installment payment of tax liabilities under certain circumstances. — 
The taxpayer shall have the right to request for installment payment of tax liabilities under 
any compromise settlement or any assessed tax liabilities under the Taxpayer Assistance 
Order under Section 9 of this Act. Thus, revenue authorities shall consider the facts and 
circumstances that might affect the taxpayer's underlying liabilities and ability to pay in 
granting requests for installment payment of tax liabilities; k) Right to recover attorney’s 
fees and litigation costs for tax assessments under certain circumstances. — The taxpayer 
shall have the right to recover attorney's fees and litigation costs for (i) tax assessments 
made without 
 
substantial justification, and (ii) for claims for tax refunds that are not acted upon 
for an unreasonable length of time at the administrative level, or denied at the 
administrative level but subsequently allowed by the CTA if it appears that such denial was 
unjustified. The award of attorney's fees and costs of litigation shall be included in the 
order upholding the taxpayer's claim; 
l) Right to relief from paying interests and penalties of their tax liabilities due 
to extraordinary circumstances. — The taxpayer shall be provided relief from paying 
interests and penalties on their tax liabilities in case of any unjustifiable error or delay 
caused by the tax authorities or their agents, including ministerial acts such as loss of 
records, personnel transfers, extended illness, or leaves of absence, and personnel 
training. Thus, revenue authorities shall abate interests and penalties on tax liabilities or 
obligations of taxpayers upon whom unjustifiable error or delay has been 14 caused by 
any revenue officer, employee, or agent; and 
m) Right to be represented or assisted by a competent and independent 
counsel or a qualified representative. — The taxpayer shall have the right to be assisted or 
represented by a competent and independent counsel, especially in criminal proceedings, 
preferably of his own choice, or by a qualified representative at any time in administrative 


 
interactions with the revenue authorities. If the person cannot afford the services of a 
private counsel, counsel from the office of the National Taxpayer Advocate shall 
be provided to the taxpayer upon request. 
 
SEC. 5. Taxpayer's Rights in Civil Tax Cases. — The following are the taxpayer's rights in 
civil tax cases: 
a) Right to be given an opportunity for amicable settlement in civil tax cases. 
— The taxpayer shall have the opportunity to amicably settle a civil tax case filed against 
him, as the case may warrant. Applications for a compromise settlement, where the 
taxpayer has paid the minimum amount required by law, should be deemed automatically 
granted if not disapproved by the revenue authority in writing within one hundred eighty 
(180) calendar days from payment: Provided, That in every stage of the proceeding, 
whether in the administrative or judicial level, the parties shall always be given the 
2 chance to exhaust all and every remedy available for the speedy settlement of the case: 
Provided, however, That nothing in this Act shall deprive the court of competent 
jurisdiction of its judicial prerogatives; 
b) Rights of a person subject to a summary collection action by revenue authorities. — 
The taxpayer shall have the right to be informed of the impending institution by revenue 
authorities of a summary collection action which requires sale or seizure of property or 
freezing of assets, except jeopardy assessments. The taxpayer shall have at least thirty 
(30) calendar days from notice of institution of the collection action within which to pay the 
delinquent account or seek further review. Revenue authorities shall be prohibited from 
instituting summary collection actions while the deficiency tax assessment is under dispute; 
c) Right to suspension of other collection actions under certain circumstances. 
— The taxpayer shall have the right to have all other collection actions attempted before a 
jeopardy assessment is suspended, unless delay will endanger collection. After a jeopardy 
assessment, the taxpayer shall have the right to have an immediate review of the jeopardy 
assessment. As used herein, jeopardy assessment is a tax assessment made by an 
authorized revenue officer (RO) without the benefit of a complete or partial audit, 
considering the RO's judgment that the assessment and collection of a deficiency tax will 
be jeopardized by a delay caused by the taxpayer's failure to (1) comply with audit and 
investigation requirements to present his books of accounts and/or pertinent records; or 
(2) substantiate all or any of the deductions, exemptions or credits claimed in his return; 
d) Right to seek review of decisions adverse to the taxpayer and to seek administrative 
stay enforcement action. — The taxpayer shall have the right to seek review, through 
formal or informal proceedings, of any adverse decisions relating to determinations in the 
audit or collection processes. The taxpayer shall have the right to seek a reasonable 


 
administrative stay enforcement action from the Office of the National Tax Advocate 
simultaneous with other administrative remedies available under the law; 
e) Right to be informed of procedures for conditional termination of tax 
obligations. — Revenue authorities shall inform the taxpayer of the procedures for 
conditional termination of tax obligations through installment payment agreements that 
recognize both the taxpayer's financial condition and the best interests of the state: 
Provided, that the taxpayer gives accurate and current information and meets all other 
tax obligations on schedule; 
f) Right to be informed of procedures for requesting cancellation, release, or 
modification of liens. — Revenue authorities shall inform the taxpayer of the procedures 
for requesting cancellation, release, or modification of liens filed by the revenue 
authorities and for requesting that any lien which is filed in error be annotated on the lien 
cancellation filed by the revenue authority, 
with public notice to any credit agency at the taxpayer's request; 
g) Right to recover all costs of administrative or judicial actions under certain 
circumstances. — the taxpayer shall have the right to recover all costs of the administrative 
or judicial action filed against him, including reasonable attorney's fees, when the action is 
brought or maintained without the support of justifiable issues of fact or law; and 
h) Right to relief from interest due to errors or delays caused by revenue 
authorities. — The taxpayer is entitled to relief or waiver by revenue 
authorities of interest that accrues as the result of errors or delays caused by a revenue 
officer, employee, or agent. The total interest that shall be 
assessed and collected on any unpaid amount of tax as provided under Section 249 of the 
National Internal Revenue Code, as amended, shall in no case exceed sixty (60) months. 
 
 SEC. 6. Taxpayer's Rights in Criminal Tax Cases. — The following are the taxpayer's rights 
in criminal tax cases: 
a) Right to be informed of criminal charges arising from tax liabilities. - The 
the taxpayer shall have the right to be knowledgeably and intelligently informed of the 
criminal charges against him as contained in any properly and timely prepared audit report, 
assessment notice, correspondence, document, letter and the like, as implemented by rules 
and regulations, as the case may be, coming from any of the revenue authorities or any 
government agency tasked to enforce the revenue laws and banking and financial laws, in 
appropriate cases; 
b) Right to present evidence in criminal tax cases. — The taxpayer shall have the right to 
be given ample and adequate opportunity, as the situation may warrant, to present 


 
evidence at the taxpayer's or anybody else's possession that would assist the taxpayer in 
the pursuit of the case; 
c) Right to be sewed with papers necessary or related to the criminal tax case. 
- The taxpayer shall have the right to be served with all the necessary documents and 
papers appurtenant to the criminal tax case against him, i a manner that would assist and 
expeditiously help present the taxpayer's side pursuant to the charges against him; and 14 
d) Right to present own witnesses. — The taxpayer shall have the right to present his own 
witnesses in a criminal tax case. 
 
 Sec. 7. Taxpayer's Basic Obligations. — Concomitant to the enumerated taxpayer's rights 
are the following duties and responsibilities of the taxpayer: 
a) Duty to be honest and compliant. — The taxpayer is duty-bound to honestly disclose on 
time complete and correct information about his tax accounts, even if represented by an 
agent or counsel, and fulfill his compliance obligations on or before the dates set by law, 
rules or regulations. The taxpayer shall always exercise reasonable care and diligence in 
complying with his tax obligations, and seek the help of the revenue authorities or the 
National Tax Advocate, as the case may be; 
 b) Duty to keep accurate records. — The taxpayer is expected to keep accurate records of 
his book of accounts and other tax information for the duration required by law and make 
them available for examination by revenue officers following proper procedures; 
c) Duty to timely submit relevant information and fu/fi// the taxpayer's 
repotting obligations to revenue authorities. - The taxpayer is duty bound to cooperate with 
revenue authorities, lodge and submit in a timely manner all relevant information, books of 
account, records, returns and other documents to revenue authorities, and inform the latter 
in case of failure to comply within the period of submission. The taxpayer shall have the 
duty to timely notify revenue authorities of any changes in particular details, including but 
not limited to registered address, registered activities, tax type details, and accounting 
period. The taxpayer is also expected to  faithfully comply with reporting obligations under 
the law; 
d) Duty to pay taxes and fees due on time. - The taxpayer is obliged to timely pay the 
taxes and fees due to revenue authorities through the available channels provided; and 
e) Duty to know what his representative or counsel does on his behalf. — The taxpayer 
shall have the duty to know what information and submissions 
are made by authorized representatives on his behalf. 
 
SEC. 8. Creation of the Offiæ of the National Taxpayer Advocate. — In order to protect the 
rights of taxpayers and in recognition of the complexity of tax laws, both substantive and 
procedural, the Office of the National Taxpayer Advocate is hereby created to promote tax 


 
compliance and assist taxpayers, whether individual or juridical persons. The Office of the 
National Taxpayer Advocate shall be an independent and autonomous office attached to 
the Department of Justice (DOJ) for the purposes of policy and program coordination, under 
the administration and supervision of an official to be known as the National Taxpayer 
Advocate. The National Taxpayer Advocate shall have the rank of Undersecretary and shall 
be appointed by  the President of the Philippines. 
The National Taxpayer Advocate shall be a Filipino citizen, at least forty (40) years of age, 
a member 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 moral turpitude. 
 An individual cannot be appointed as the National Taxpayer Advocate if such individual 
has been an employee or officer of, or has rendered service as consultant or in any other 
capacity to, the Department of Finance (DOF), any of the revenue authorities, any attached 
agencies to the DOF, or has been a local treasurer for two (2) years prior to such 
appointment. A National Taxpayer Advocate cannot serve as officer or employee or 
consultant of, or be appointed to or act in whatever capacity in, any of the revenue 
authorities or as local treasurer, within five (5) years following his/her tenure as a National 
Taxpayer Advocate. For purposes of this Act, a local 
treasurer includes a municipal, city or provincial treasurer. 
 
SEC. 9. Powers, Functions and Responsibilities of the Office of the National Taxpayer 
Advocate. — The Office of the National Taxpayer Advocate 
shall have the following functions, powers and responsibilities: 
a) Assist taxpayers in their queries and concerns relative to tax and customs laws, 
including, but not limited to taxpayer registration, filing and payment of taxes, settling 
deficiency tax assessments, and in resolving their problems with the revenue authorities; 
b) Assist, initiate, intervene, and represent taxpayers, as may be applicable, in cases, 
complaints, and proceedings related to their rights as taxpayers as provided under this 
Act; 
 c) Identify areas in which taxpayers have problems in dealings with the revenue 
authorities, and recommend solutions to revenue authorities and to the anti-red tape 
authority for purposes of reducing regulatory burden to the taxpayers; 
d) Engage in regular information, education and communication programs for all taxpayers 
on laws, rules, regulations, decisions, circulars and orders that affect them, including their 
rights and remedies under the law; 
e) Monitor all issuances of the revenue authorities, and propose changes, to the extent 
possible, in their administrative practices with the end in view 
of mitigating problems identified under the preceding paragraph; 


 
f) Identify potential legislative changes which may be appropriate to mitigate such 
problems and propose the same to Congress; 
g) Issue a Taxpayer Assistance Order, motu proprio, or upon application filed 
by a taxpayer with the Office of the National Taxpayer Advocate, that will serve as a 
complaint to be filed with the Secretary of Finance against the 
 
erring revenue official, employee or agent on the following grounds: 
1 It is determined that the taxpayer is suffering or about to suffer a significant hardship 
as a result of the manner in which the internal revenue or customs laws are being 
administered by the revenue authorities; or 
(ii) The taxpayer meets such other requirements as are set forth in the implementing 
rules and regulations of this Act. 
For purposes of this paragraph, a significant hardship shall include: (i) an immediate 
threat of adverse action, whether administrative or judicial, civil or criminal; (ii) any action 
that will violate the right to privacy of a taxpayer; (iii) a delay of more than thirty (30) 
calendar days in resolving taxpayer account problems; (iv) the taxpayer will incur 
significant and unnecessary costs, including fees for professional representation, if relief is 
not granted; or (v) irreparable injury to, or a long-term adverse impact on, the taxpayer if 
relief is not granted. 
In cases where a revenue officer, employee or agent does not comply with  the laws, rules 
and regulations or any applicable published administrative  guidance, the National 
Taxpayer Advocate shall consider the factors taken into account by the revenue officer, 
employee or agent in determining whether to issue a Taxpayer Assistance Order in the 
manner most favorable to the taxpayer. 
 Any Taxpayer Assistance Order under this Section may be modified or rescinded by the 
National Taxpayer Advocate, only if a valid written explanation is submitted by the 
Commissioner of Internal Revenue or the Commissioner of Customs, as the case may be. 
The reasons for the modification or rescission shall be specifically stated by the National 
Taxpayer Advocate in the rescission or modification order. 
 The running of the period of statute of limitations with respect to any action for which a 
Taxpayer Assistance Order has been issued shall be suspended for the period beginning 
on the date of the taxpayer's application under this section and ending on the date of the 
National Taxpayer Advocate's decision with respect to such application and any period 
specified in a 
Taxpayer Assistance Order issued pursuant to such application; and 
Issue a stay order pursuant to Sec. 4 (f) of this Act and cite in contempt the concerned 
revenue authority, its officers, employees or agents for 
violation of its stay order. 
 
SEC. 10. Organization and Staffing Pattem. The Office of the National 


 
Taxpayer Advocate shall be headed by a National Taxpayer Advocate. The National 
Taxpayer Advocate shall 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, in accordance with civil service laws, rules, and regulations. 
All positions in the Office of the National Taxpayer Advocate shall be governed 
by compensation and position qualification system and qualification standards approved 
by the National Taxpayer Advocate based on comprehensive job analysis 
 and audit of actual duties and responsibilities. The National Taxpayer Advocate shall 
appoint and fix the remuneration of the emoluments of its personnel in accordance 
 
with existing laws on compensation and position classification. 
 
SEC. 11. Submission ofAnnual Reports by the Office of the National 
Taxpayer Advocate. — Not later than December 31 of each calendar year, the Office of the 
National Taxpayer Advocate shall submit a report to the Chairpersons of the Committee on 
Ways and Means of the Senate of the Philippines and House of  Representatives on its 
activities during such calendar year. Such report shall contain 
full and substantive analysis, in addition to statistical information, and shall: 
a) Identify the initiatives that the Office of the National Taxpayer Advocate has undertaken 
aimed at improving taxpayer services and the tax 
authorities' responsiveness;   
b) Contain recommendations received from taxpayers by the Office of 
National Taxpayer Advocate; 
c) Contain a summary of the most serious problems encountered by 
taxpayers, including a description of the nature of such problems; 
d) Contain an inventory of the items described in subsections (a), (b), and (c) 31 of this 
Section for which action has been taken and the result of such 
action; 
 e) Contain an inventory of the items described in subsections (a), (b), and 2 (c) of this 
Section for which action remains to be completed and the period 
during which each item has remained on such inventory; 
f) Contain an inventory of the items described in subsections (a), (b), and (c) 
of this Section for which no action has been taken, the period during which 
each item has remained on such inventory, the reasons for the inaction, 7 and identify 
any revenue officer, employee or agent who is responsible for 
such inaction; 
g) Identify any taxpayer assistance order which was not processed by the 
proper revenue authority in a timely manner; 


 
h) Contain recommendations for such administrative and legislative action as 
may be appropriate to resolve problems encountered by taxpayers; 
i) Identify areas of the tax law that impose significant compliance burdens 14 on taxpayers, 
the revenue authorities, and local treasurers including 
specific recommendations for remedying these problems; 
j) Identify the most litigated issues for each category of taxpayers, including 17 
recommendations for mitigating such disputes: and 
k) Include such other information as the National Taxpayer Advocate may 
deem relevant. 
Each report required under this subparagraph shall be provided directly to the 
Committee on Ways and Means of the Senate of the Philippines and the House of 
Representatives without any prior review or comment from the Commissioner of 
Internal Revenue and Commissioner of Customs or any other officer or employee of 
the said Bureaus. The National Taxpayer Advocate shall furnish copies of said report to the 
Secretary of Finance, and to the Commissioner of Internal Revenue and 26 Commissioner 
of Customs. 
The Commissioners of Internal Revenue and Commissioner of Customs shall 
establish procedures requiring a formal response to all recommendations submitted to 
them by the National Taxpayer Advocate within three (3) months from the date of 
submission. 
 
1 SEC. 12. Other Powers, Functions, and Responsibilities of the National Taxpayer 
Advocate. — The National Taxpayer Advocate shall: 
a) Monitor the coverage and geographic deployment of local offices of Taxpayer 
Advocates; 
b) Develop guidelines to be distributed to all revenue officers and employees and the local 
treasurers outlining the criteria for referral of taxpayer inquiries to local offices of Taxpayer 
Advocates; 
c) Formulate rules, regulations and guidelines on the issuance of a Taxpayer Assistance 
Order, stay order pursuant to Sec. 4(f) of this Act, and other forms of assistance, 
interventions, and representations that the Taxpayer Advocate may provide for the 
taxpayer; 


 
d) Formulate, implement, review and improve standards of delivery of services by the 
Office of the National Tax Advocate to the taxpayer pursuant to their rights enumerated in 
this Act, and monitor and evaluate compliance over such standards by the Tax Advocates 
through a feedback mechanism to be actively participated by the taxpayers; 
e) Ensure that the local telephone number for each local office of the Taxpayer Advocate 
is published and available to taxpayers served by the office; f) Develop career paths for 
local Taxpayer Advocates in the Office of the National Taxpayer Advocate; and 
g) Other powers and functions as may be implied and necessary to perform 
their powers, functions and responsibilities enumerated in this Act. 
 
SEC. 13. Personnel Actions of the National Taxpayer Advocate. — The 25 National 
Taxpayer Advocate shall have the responsibility and authority to: a) Appoint local Taxpayer 
Advocates and make available at least one (1) such Advocate for each province, as may 
be identified by the DOJ; and 
 b) Evaluate and take personnel actions including dismissal with respect to any employee 
of any local office of the National Taxpayer Advocate described 
 
in subsection (a) of this Section. 
The National Taxpayer Advocate may consult with the appropriate supervisory personnel 
of the revenue authorities in carrying out the National Taxpayer Advocate's 
responsibilities and qualifications under this Section. 
 
SEC. 14. Individuals and MSMes as Priority. — Application for the issuance 
of a Taxpayer Assistance Order filed by individuals earning purely from compensation, 
from practice of profession, and single proprietorship, cooperative, partnership or 
corporation considered as micro-, small- and medium- enterprises (MSMes) as provided 
under Section 3 of RA No. 9501, otherwise known as the "Magna Carta for MSMes" shall 
be given priority by the Office of the National Taxpayer Advocate. 
 
SEC. 15. Taxpayer's Remedies for Violation of Rights under this Act. 
— Any violation of the provisions of this Act committed by any official or employee of 14 
the BIR or the BOC, other than the Commissioner of Internal Revenue and Commissioner 
of Customs, shall be filed with the office of the Commissioner of Internal Revenue or the 
Commissioner of Customs, as the case may warrant, with the 
 assistance of the National Taxpayer Advocate. The Commissioner of Internal Revenue  or 
the Commissioner of Customs shall decide the controversy expeditiously, which  shall not 
in any case be more than thirty (30) calendar days from the time the complaint or case is 
filed with their respective offices. Decisions of the Commissioner of Internal Revenue or 
the Commissioner of Customs concerning any complaint or case for violation of the 


 
provisions of this Act, may be brought for review by the aggrieved party or the latter's 
authorized representative, to the Secretary of Finance.  In case the Commissioner of 
Internal Revenue or Commissioner of Customs fail to act 
 on such complaint or case within the time herein prescribed, the aggrieved party or the 
latter's authorized representative may file the complaint or case directly with the Secretary 
of Finance. 
Complaints against the Commissioner of Internal Revenue or the Commissioner of Customs 
for violation of this Act shall be filed directly with the Secretary of Finance who shall decide 
the case within thirty (30) calendar days from the date the complaint was filed. Decisions 
of the Secretary of Finance may be appealed before the Office of 
the President. 
Any complaint or case filed pursuant to this Section shall be without prejudice to any 
other action that may be instituted against the employee or official of the BIR or the BOC 
under existing laws, rules and regulations. 
Evidence against the taxpayers obtained in relation to this Act shall be inadmissible in any 
court or proceeding if found to have been obtained in violation of 
any of the above-enumerated taxpayer's rights. 
 
SEC. 16. Penalties for the Violation of the Bill of Rights of Taxpayers. 
— Any person or public official who is found to have violated the Bill of Taxpayers 10 
Rights shall be punished with imprisonment of not less than six (6) years nor more 11 
than twelve (12) years, and a fine of not less than one hundred thousand pesos 12 
(Php100,000.00) but not more than five hundred thousand pesos (Php500,000.00). 
 
SEC. 17. Report of the Secretary of Finance. — On or before June 1 of 
each calendar year, the Secretary of Finance shall submit and present to the  Chairpersons 
of the Committee on Ways and Means of the Senate and House of  Representatives a 
report on: 
(a) All categories of incidents involving the misconduct of the officers and 
employees of the revenue authorities during the preceding calendar year; and 
(b) Action on and disposition of any such instances. 
 
SEC. 18. Accessibility of the Taxpayer's Bill of Rights and Obligations. 
- The Taxpayer's Bill of Rights and Obligations shall be made available in every 24 revenue 
district office, revenue regional office, and national office of the BIR and 25 collection 
district and national office of the BOC, free of charge, in all formats, digital 26 or otherwise, 


 
and shall be posted in their respective websites, in multiple languages 27 and dialects, as 
may be determined in the implementing rules and regulations. 
 
SEC. 19. 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 an elective  course. 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. 20. Establishment of Micro- and Small- Taxpayer Clinic Program. 
— To ensure the fairness and integrity of the tax system for taxpayers who are 6 classified 
as micro- and small- taxpayers, the DOF shall develop a micro- and small7 taxpayer clinic 
(MSTC) program that will assist individuals and businesses classified 8 as micro- and small- 
taxpayers having a tax dispute with any of the revenue 9 authorities, and provide 
education and information about taxpayer rights and 10 responsibilities in different 
languages or dialects. 
The MSTCs shall be independent from the revenue authorities and the National 12 
Taxpayer Advocate. MSTCs can represent micro- and small- taxpayers in audits, 13 appeals 
and tax collection disputes before revenue authorities and in court. MSTC 
 
services are offered for free or a small fee. 
 
 SEC. 21. Implementing Rules and Regulations. — Within thirty (30) calendar days from 
the effectivity of this Act, the following shall promulgate the 
 necessary rules and regulations for its effective implementation:  
a) A representative from the Department of Finance (DOF); 
b) A representative from the BIR;  
c) A representative from the BOC; 
d) A representative from the DOJ; 
e) A representative from the Secretariat of the Congressional Oversight Committee on 
Comprehensive Tax Reform Program; 
 f) Representatives from the Committee on Ways and Means of both Houses  of Congress; 
g) A representative each from Tax Management Association of the Philippines 
and the Philippine Institute of Certified Public Accountants. 
 
30 SEC. 22. 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. 23. 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. 
 
5 SEC. 24. 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,