FIFTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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First Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The National Government (NG) deficit increased from 1,9% of Gross Domestic Product 
(GDP) in 1998 to as much as 4,6% in 2003, A persistent deficit creates doubt within the financial 
markets on government's ability to repay its debt, thus, pushing the cost of borrowing even 
higher. The makings of a financial crisis increasingly threaten the entire economy until a point is 
reached wheq business confidence is lost and creditors refuse to lend any further. 
Thus, it is very important to dramatically reduce the NG deficit. One way is to cut on 
public expenditures. However, this runs counter to the need for more public investments 
particularly on health, education and infrastructure to combat poverty and encourage economic 
development. To reduce the deficit without compromising development spending, government 
needs to significantly improve tax collection particularly the Bureau of Internal Revenue (BIR) 
which accounts for about 80% of total tax collection. 
Past efforts to reorganize the BIR have proven to be short-lived because they were 
authorized by mere administrative fiat. At present, the BIR is hampered by at least three 
fundamental institutional constraints: (a) rigid personnel management system where promotion is 
based merely on loyalty and seniority rather than exemplary performance (e.g., exceeding the 
revenue target); (b) compensation structure that restricts the hiring of first-rate professionals; and 
(c) strict line-item budgeting that limits the flexibility in the allocation offunds. 
There is an urgent need for Congress to create a Revenue Authority to address the 
growing taxpayer dissatisfaction particularly over front-line services, high level of tax 
evasion/avoidance, and increasing perception of systemic corruption in the Bureau. It is expected 
1 


that the new authority shall be free from political interference in terms of decisions pertaining to 
revenue ruli~gs, audit and assessment, personnel management, and budgeting. 
The proposed bill shall have the following salient features: 
(1) The Authority shall be governed by a Revenue Board composed of four 
representatives from the government and three from the private sector. The government 
representatives shall include the heads of the Department of Finance (us Chairperson), 
the Department of Budget and Management, the National Economic Development 
Authority and the Securities and Exchange Commission. Private sector representatives 
shall be nominated by peak professional organizations, and appointed by the President of 
the Philippines. They must be recognized experts in the fields of economics, accounting, 
law, business management and other allied professions. The members of the Board shall 
serve for a fixed tenure of office with different periods of expiry to avoid disruption of 
services, to prevent abandonment of approved plans/programs and to limit reversal of 
revenue rulings and regulations. 
(2) The Revenue Authority shall be headed by a Chief Executive Officer (CEO) 
responsible for the preparation of the following: work program, organizational structure, 
annual budget, compensation package, and appointment of rank and file employees, 
among many others. The CEO shall be appointed by the Revenue Board for a period of 
three years with possible reappointment under a performance-based contract. 
(3) The Authority shall receive an annual service fee of not less than 1 % but not more 
than' 2% of total collection of the immediate preceding year, net of local government 
shares. 
(4) Selection of personnel for the new Revenue Authority shall be strictly based on merit 
and fitness. An attractive separation/retirement package shall be offered to those who opt 
not to join the new Authority. 
To balance the budget by 2009, it is imperative that tax collection effort significantly 
improves. In this light, the creation of an independent Revenue Authority should be pursued. 
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This is a senate counterpart bill to one filed in the House of Representatives by Rep, Jose 
De Venecia, Jr. l 
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1 This bill Was originally filed dnring the 141h Congress 1" Regular Session 
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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
) 
) 
First Regular Session 
SENaTp 
S. No. 1181 
Introduced by Senator Miriam Defensor Santiago 
1 
AN ACT 
(v 
2 
CREATING THE NATIONAL REVENUE AUTHORITY, PROVIDING FUNDS THEREFOR 
Be it enacted by the Senate and House Representatives of the Philippines in Congress 
assembled: 
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SECTION 1. Short Title. - This Act shall be known and cited as the "National Revenue 
4 
Authority Act." 
5 
SECTION 2. Declaration of Policy. -It is the policy of the State to reform tax 
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administration to meet the resource needs of government, satisfy the requirements of taxpayers 
7 
as customers, and help ensure the efficient and effective collection of taxes by the Government. 
8 
Towards this end, the State shall create an internal revenue agency that shall be endowed with 
9 
fiscal and administrative powers necessary to discharge its mandate with excellence. 
10 
SECTION 3. Creation of the National Revenue Authority; Corporate Powers. - There is 
11 
hereby established a public organization to be known as the National Revenue Authority, 
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hereinafter referred to as the Authority, which shall be responsible for the implementation of 
13 
internal revenue laws and shall be attached to the Department of Finance (OOF). It shall be 
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organized within one hundred eighty (180) days from the effectivity of this Act. The Authority 
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shall have its principal place of business in Metro Manila and may establish branches and offices 
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in such other places as may be deemed necessary for the performance of its mandate. 
, 
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SECTION 4. Responsibility and Primary Objective. - The primary responsibility and 
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objective of the Authority is to raise revenues to finance the operations of the Government 
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consistent with fiscal policy and revenue collection targets. 
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SECTION 5. Powers and Functions. - The Authority shall exercise the powers and duties 
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heretofore exercised by the Bureau Internal Revenue under the National Internal Revenue Code 
3 
of 1997, hereinafter referred to as the Code, and other laws. Such powers and duties shall 
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comprehend the assessment and collection of all national internal revenue taxes, fees, and 
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charges, and the enforcement of all forfeitures, penalties, and fines connected therewith, 
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including the execution of judgments in all cases decided in its favor by the Court of Tax 
7 
Appeals and, the ordinary courts. The Authority shall give effect to and administer the 
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supervisory ·and police powers conferred to the Bureau of Internal Revenue by the Code and 
9 
other laws. 
10 
The officials and employees of the Authority shaH be hired on a fixed term performance-
11 
based contracts. 
12 
In addition, the Authority shall have the following corporate powers: to adopt, alter, and 
13 
use an official seal which shall be judicially noticed; to enter into contracts; to lease or own real 
14 
and personal property; and to sell or otherwise dispose of the same; incur obligations necessary 
15 
in the conduct of its operations; and to perform any and all acts necessary or proper to carry out 
16 
the purposes of this Act. 
17 
The Authority may acquire and hold such assets and incur such liabilities in connection 
18 
with its operations authorized by the provisions of this Act and other laws, or as are essential to 
19 
the proper conduct of such operations. 
20 
SECTION 6. Capitalization. - The Authority shall have an authorized capital of Ten 
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Billion Pesos (PhP 10,000,000,000) which shall he fully subscribed by the Republic of the 
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Philippines and shall be paid up by the transfer to the Authority of assets valued in such amount. 
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Initially, the national government shall transfer to the Authority such assets as may be 
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determined pursuant to Section 19 of this Act. 
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SECTION 7. Service Fee. - The Authority shall receive an armual service fee from the 
, 
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Government. for services rendered in the discharge of its mandate. Subject to the 
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recommeridation of the Development Budget Coordinating Committee (DBCC) created under 
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E.O. No. 232, s. of 1970, as amended, said fee shall not fall below one percent (1 %) nor go 
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beyond two percent (2%) of revenues collected in the immediately preceding calendar year, net 
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of collections accruing to Local Government Units, including Internal Revenue Allotment (IRA), 
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and other agencies: Provided, however; that in the initial year of operation, the service fee shall 
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be 2% of net revenues collected in the immediately preceding year. Said amount shall be 
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appropriated in the annual General Appropriations Act. 
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The Authority shall likewise be entitled to five percent (5%) of annual collections in 
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excess of its annual collection target set by the DBCC: Provided, however, that no portion of the 
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performance bonus shall accrue to members ofthe Revenue Board. 
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SECTION 8. Composition of the Revenue Board; Qualification of Members. - (a) There 
lOis hereby created a Revenue Board, hereinafter referred to as the Board, composed of the 
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Secretary of Finance, as chairperson, and the following as members: the Director- General of the 
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National Economic Development Authority, Secretary of the Budget and Management, and the 
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Chairperson of the Securities and Exchange Commission, all of whom shall serve ex officio and 
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with no compensation, and three (3) representatives from the non-government sector to be 
IS 
appointed by'the President, who shall serve full-time for a term of three (3) years, and may be 
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reappoint~d once: Provided, however, That reappointment of representatives from the non-
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government sector shall follow the nomination process outlined in this Section. 
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(b) The three members from the non-government sector shall include an economist, an 
19 
accountant, and a lawyer. Each shall be selected and appointed by the president from a pool of 
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candidates to be nominated by peak professional organizations of economists, accountants, and 
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lawyers, respectively, which must have been in existence for at least ten (10) years. A "peak 
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professional organization" refers to an organization duly recognized by members as 
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representative of, and having the largest active membership in their profession. The mechanics of 
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the nomination process shall be provided for in the Implementing Rules and Regulations for this 
25 
Act 
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(c) Of the initial members appointed from the non-government sector, the first appointee 
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shall serve for three (3) years, the second for two (2) years, and the third for (1) year. 
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(d) Whenever the chairperson or any of the members serving in ex officio capacity is 
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unable to attend a meeting of the Board, the representative shall be an Undersecretary or its 
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equivalent rank: Provided that the highest ranking ex officio member present shall preside over 
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the meeting in case the chairperson is absent 
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(e) A member from the non-government sector shall be a natural-born citizen of the 
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Philippines, at least forty (40) years of age, of good moral character, known for honesty and 
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patriotism, of unquestionable integrity, and a recognized expert in the field of taxation, fiscal 
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policy, public finance, fiscal administration, accounting, management , or law: Provided, 
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however, That such members shall not have been employees of the Bureau of Internal Revenue 
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or the Authority created under this Act within the last ten (10) years prior to their appointment: 
II 
Provided, further, That no person who has been connected as a director, partner, officer, lawyer, 
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accountant, consultant or in any other capacity with individuals, general professional 
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partnerships, or professional corporations who prepare and file tax returns, statements, protests 
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and other papers with, or who appear before, the Authority shall be appointed within one (1) year 
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from the cessation of such connection, An appointment to fill the vacancy created by the death, 
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resignation or removal of a member from the non-government sector shall only be for the 
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unexpired period of such member's term. 
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(f) The President of the Philippines shall initially fix the compensation of the members 
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from the non-government sector based on an objective classification system, to be specified in 
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the Implementing Rules and Regulations of this Act, at a sum commensurate to the importance 
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and responsibilities attached to the position. The Board may increase such compensation: 
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Provided, however, that the increase shall not affect the compensation of a member during whose 
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incumbency the increase was approved for the duration of such member's term. 
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SECTION 9. Powers o/the Revenue Board. - The Revenue Board shall: 
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(a) Adopt and promulgate policies and rules for the effective enforcement of the 
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provisions of the Code, this Act, and other revenue laws; 
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(b) Upon the recommendation of the CEO, approve the annual and supplemental, budget 
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of receipts and expenditures of the Authority, and authorize such operating and capital 
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expenditures of the Authority as may be necessary or proper for the effective management, 
2 
operation and administration of the Authority; 
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(c) Form committees, including an executive committee, that shaH assist the Board in the 
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performance of its functions: Provided, however, that no person shaH be appointed to the 
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executive committee who has been employed within the past ten (10) years by the Bureau of 
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Internal Revenue or the Authority created under this Act; 
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(d) Exercise such powers and perform such other acts as may be necessary, useful, 
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incidental or auxiliary to carry out the provisions of this Act, or to perform the purposes and 
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objectives of this Act. All references in the Code and other revenue laws, and in the rules and 
10 
regulations issued thereunder, to the Secretary of Finance shall be deemed to refer to the 
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Revenue Board. 
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SECT JON 10. Conflict of Interest. - In addition to the requirements of Republic Act 
13 
No.6713, otherwise known as the Code of Ethical Standards, any member of the Board with 
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personal or pecuniary interest in any matter in the agenda of the Board shall disclose such 
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interest to the Board and shall inhibit himself during the deliberations when such matter is taken 
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up. The decision taken on the matter shall be made public and the minutes of the meeting shaH 
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reflect the disclosure made and the inhibition of the niember concerned. 
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SECTION 11. Disqualifications. - In addition to the disqualification imposed by 
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Republic Act No. 6713, a member of the Board shall be disqualified from being connected as 
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director, partner, officer, lawyer, accountant, consultant or in any other capacity with individuals, 
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general professional partnerships, or professional corporations who prepare and file tax returns, 
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statements, protests and other papers with, or who appear before, the Authority, in, which case 
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such member shall terminate his or her association with such individuals and resign from, and 
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divest himself or herself of any and all interests in, such general professional partnerships, or 
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professional corporations. Members of the Board from the non-government sector shall not hold 
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any other public office or employment during their tenure, unless such office or employment is 
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with a state university or college or is connected with the performance of their duties as members 
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of the Board. 
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SECTION 12. Removal of Members from the Non-Government Sector. - The President 
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may remove any member of the Board from the non-government sector for any of the following 
3 
reasons: 
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(a) The member suffers from physical or mental incapacity that renders him or her 
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incapable of properly discharging the duties and responsibilities of membership in the Board and 
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such incapacity has lasted for more than six (6) months; or 
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(b) The member has committed acts or operations .that are shown prima facie to be 
8 
fraudulent or illegal or manifestly opposed to the aims and interests of the Authority; 
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(c) The member no longer possesses the qualifications specified in Section 8 of this Act; 
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or 
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(d) The member is subsequently disqualified under the provisions of existing law. 
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SECTION 13. Meetings. - The Board shall meet at least twice a month. The Board may 
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be called to a meeting by the chairperson or by three (3) other members of the Board. The 
14 
presence of four (4) members shall constitute a quorum: Provided, That in all cases the 
15 
chairperson or the chairperson's duly designated alternate shall he among the four (4). All 
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decisions of the Board shall require the concurrence of at least four (4) members. The Authority 
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shall maintain and preserve a complete record of the proceedings of the Board, including the 
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tapes and transcripts of the stenographic notes, either in their original form, in microfilm, or in 
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any electronic medium. 
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SECT-ION 14. The Chief Executive Officer; Qualifications; Appointment; Term of Office. 
21 
-The Aut40rity shall be headed by a Chief Executive Officer, hereinafter referred to as CEO, 
22 
who shall be a natural-born citizen of the Philippines, of good moral character, known for 
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honesty and patriotism, of unquestionable integrity, with at least seven (1) years experience in 
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management, and a· recognized expert in the field of taxation, finance, fiscal administration, 
25 
economics, public administration or public finance. 
26 
The CEO of the Authority shall be appointed by the Board from a list of at least three (3) 
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nominees prepared by a selection committee created by the Board and chaired by a member of 
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the Board, for a term of three (3) years; Provided, That the incumbent Commissioner of the 
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Bureau of Internal Revenue as of the date of the approval of his Act shall not be qualified to 
2 
serve as CEO of the Authority except in a holdover capacity pending the appointment of the 
3 
CEO. 
4 
The CEO shall enter into a performance contract with the Board and maybe reappointed 
5 
depending on the CEO's performance: Provided, however, that no person may be appointed as 
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CEO for more than three (3) terms. In addition to other grounds for removal as may provided for 
7 
by law, the CEO may be removed by a maj ority vote of all the members of the Board prior to the 
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end of the CEO's 3-year term for failure to meet commitments m the performance contract, 
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unless such failure is attributable to a cause or causes beyond the CEO's control. 
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SECTION IS. Powers and jUnctions of the CEO. - The CEO of the Authority shall 
II 
exercise the powers and functions of the Commissioner of the Internal Revenue under Sections 
12 
4,5,6,7,8, 14, IS, 16, 17, 19,20, and other provisions of the National Internal Revenue Code of 
13 
1997. In addition, the CEO shall: 
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(a) Execute, administer and implement the policies and measures approved by the 
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Board; 
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(b) Direct and supervise the operations and administration of the Authority; 
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(c) Represent the Authority in all dealings with offices, agencies and 
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Instrumentalities of the Government and with all persons and entities, public or private, 
19 
domestic or foreign; 
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(d) Direct and supervise the preparation of the agenda for the meeting of the 
21 
Board, and to submit for the consideration of the Board such policies and measures as he 
22 
or she believes necessary to carry out the purposes and objectives of this Act; 
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(e) Promulgate, with the approval of the Board, all necessary rules and regulations for the 
24 
effective enforcement of the provisions of the Code, this Act and other revenue laws; 
25 
(f) Determine the organizational structure, including the geographical location of the 
26 
branches and offices, of the Authority; recognize its persounel; and issue such rules and 
27 
regulations, as he or she may deem necessary or convenient for these purposes; 
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(g) Establish a performance-based management system which shall govern the selection, 
hiring, appointment, transfer, promotion or dismissal of all personnel. 
Such system shall aim to attract and retain professionally competent, well-trained, honest, 
courteous and efficient personnel and to establish professionalism and excellence at all 
levels of the Authority. 
All positions in the Authority shall be governed by a compensation and position 
classification system and qualification standards approved by the Board based on a 
comprehensive jo b analysis and audit of actual duties and responsibilities. The Board 
shall have the authority to establish a compensation plan for the Authority; Provided, 
however, That the total personal services budget of the Authority shall not be more than 
sixty percent (60%) of its total operating budget. 
Appoint, fix the remuneration and other emoluments, and remove personnel of the 
Authority; Provided, That the Board shall have final appellate authority in cases 
involving promotion, transfer, assignment, or reassignment of personnel of the Authority 
and these personnel actions are deemed made in the interest of the service and not 
disciplinary; 
(h) Provide for the continuing education and training of Authority officials and 
employees. For this purpose, the Authority may establish a training Institute or enter into 
agreements with institutions of higher learning in the country for the establishment of 
training programs for its technical personnel in the field of taxation, tax administration 
and related fields. The Authority is likewise authorized to defray the cost of study, at 
home or abroad, of qualified employees of the Authority, of promising university 
graduates or of any other qualified persons who shall be determined by proper 
competitive examinations, 
(i) To exercise such other powers and functions as may be vested in the CEO by the 
Board. 
The CEO shall have the authority to delegate any of the foregoing powers to such official 
or officials of the Authority, as he or she may deem necessary. 
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1 
All reference in the Code and other revenue laws, and in the rules and regulations issued 
2 
thereunder, to the Commissioner of the Internal Revenue shall be deemed to refer to the 
3 
CEO. 
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SECTION 16. Salary of the CEO. - The Board shall fix the salary of the CEO based on 
5 
an objective classification system to be specified in the Implementing Rules and Regulation of 
6 
this Act at a sum commensurate to the importance and responsibilities attached the position. 
7 
SECTION 17. Indemnification for Legal Defense Costs and Expenses. - Section 227 of 
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the National Internal Revenue Code is hereby amended to read as follows: 
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"The National Revenue Authority shall indemnify members of the Revenue Board and 
10 
other officials of the National Revenue Authority, including personnel of the units performing 
II 
assessment, audit and collection functions against all" costs and expenses reasonably incurred by 
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such person in connection with any civil or criminal action, suit or proceeding to which they may 
13 
be or made a party by reason of their performance of their functions or duties, unless they are 
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finally adjudged in such action or proceeding to be liable for gross negligence or misconduct. 
IS 
"In the event of settlement or compromise, indemnification shall be provided only in 
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connection with such matters covered by the settlement as to which the National Revenue 
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Authority is advised by external counsel that the persons to be indemnified did not commit any 
• 
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gross negligence or misconduct. 
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"The costs and expenses incurred in defending the aforementioned action, suit or 
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proceeding may be paid by the National Revenue Authority in advance of the final disposition of 
21 
such action, suit or proceeding upon receipt of an undertaking by or on behalf of the member of 
22 
the Revenue Board, official or employee to repay the amount advanced should it ultimately be 
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determined by the National Revenue Authority that said member of the Revenue Board, official 
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or employee is not entitled to be indemnified as provided in this Section," 
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SEC'];ION 18. Implementing Details. - The Authority shall be made operational by the 
26 
performance of the following acts: 
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(a) The President shall constitute the Revenue Board by appointing the members thereof 
2 
within one hundred eighty (180) days from the effectivity of this Act; and (b) The completion of 
3 
the transfer of such assets and liabilities of the Authority as provided in the succeeding Section. 
4 
SECTION 19. Transfer of Assets. - (a) Upon the effectivity of this Act, a Committee 
5 
composed of the Chairperson and ex officio members of the Revenue Board and the 
6 
Chairpersons of the Committees on Ways and Means of the Senate and the House of 
7 
Representatives shall determine the assets of the Bureau of Internal Revenue which shall be 
8 
transferred to the Authority. The Committee shall hire the services of an independent appraiser to 
9 
determine the value of the assets to be transferred to the Authority. 
10 
(b) The Committee shall complete its work within ninety (90) days from the constitution 
11 
of the Board. It shall submit a comprehensive report of its findings and justifications to Congress 
12 
and the President within fifteen (15) days from the completion of its work. 
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SECTION 20. Mandate to Organize. - (a) The Authority shall be organized by the Board, 
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by adopting if it so desires, an entirely new organizational structure or staffing pattern to suit the 
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operations of the Authority under this Act. No preferential or priority right shall be given to or 
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enjoyed by any persounel for appointment to any position in the new staffing pattern, nor shall 
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any personnel be considered as having prior or vested rights with respect to retention in the 
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Authority or in any position which may be created m the new staffing pattern, even if such 
19 
personnel should be the incumbent of a similar position prior to organization. Selection shall be 
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based strictly on merit and fitness and applicants may likewise be subject to lifestyle checks to 
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ensure their suitability for appointment to the new organization. The formulation of the program 
22 
of organization shall be completed within six (6) months after the effectivity of this Act, and 
23 
shall be fully implemented within a period of six (6) months thereafter, both of which periods 
24 
shall be collectively referred to as the transition period. Personnel who may not be retained are 
25 
deemed separated from the service. 
26 
(b) Subject to the preceding paragraph and to minimize the disruption of internal revenue 
27 
administration during the transition period, all incumbent personnel in the Bureau of Internal 
28 
Revenue as of the date of the approval of this Act shall continue to exercise their duties and 
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1 
functions as personnel of the Authority. To help ensure that revenue targets are met during the 
2 
same period, and in addition to the provisions of Section 285 of the National Internal Revenue 
3 
Code, an additional amount equivalent to five percent (5%) of the excess in collection targets for 
4 
the said perio,d shall be used to pay separation benefits authorized under the succeeding Section 
5 
and shalllikewise be treated as receipts appropriated for this purpose. Towards the same end, the 
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hiring of auditors, suspension of assessments, institution of voluntary assessment programs, and 
7 
similar measures are hereby authorized during the transition period to augment revenue 
8 
collection. 
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SECTION 21. Separation Benefits. - The officials and employees of the former Bureau of 
10 
Internal Revenue who are separated from the service as result of the organization of the 
11 
Authority shall be allowed to retire or be separated from the service under existing laws: 
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Provided, that in no such case shall any employee displaced or separated from the service as a 
13 
result of this Act, shall receive less than One Hundred Thousand Pesos (Php 100,000.00) as 
14 
separation benefit. The methodology that shall govern the implementation of the said program 
15 
shall be provided in the IRR. 
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SECTION 22. Transfer of Powers. - All powers, duties and functions bested by law in the 
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Bureau of Internal Revenue shall be deemed transferred to the Authority. The powers, duties and 
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functions vested by the National Internal Revenue Code of 1997 and other revenue laws in the 
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Deputy Commissioners, Service Chiefs, Assistant Service Chiefs, Revenue Regional Directors, 
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Assistant Revenue Regional Directors, Chiefs and Assistant Chiefs of Divisions, Revenue 
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District Officers, special deputies of the Commissioner, internal revenue officers and other 
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employees of the Bureau of Internal Revenue shall be deemed transferred to the officers and 
, 
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employees of the Authority who are appointed to exercise the same powers, duties and functions 
24 
as the abovementioned Bureau of Internal Revenue officers and employees: Provided, however, 
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That pursuant to the power of the CEO to determine the organizational structure of the Authority 
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and to reorganize its personnel under Section 11 of this Act, the positions and bodies mentioned 
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in Sections 7, 9, 10, 11, 13, 14,15, 51(B), 58(A), 77(A), 81 , 90(D), 95, 103(B), 114(B), 128(B), 
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130(A)(3), 130 (A)(4)(b), 163,164,16,17 1,172,196, 200(C), 202, 204, 206, 207(A), 207(B), 209, 
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213,214,215,227, 236(A), 236(B), 236(E), 236(F), 236(G), 236(0), 241,242, 245(a),245(e), 
245(G), 248, and 271 of the National Internal Revenue Code of 1997 may be changed, abolished, 
combined with another position or body, or substituted with another and the powers and 
functions granted by these provisions to said positions and bodies may be performed by such 
officials or employees deemed appropriate by the CEO: Provided, further, That for purposes of 
applications for abatement, cancellation, and compromise under Section 204 of the Code, the 
Revenue Board shall be authorized to fix the terms and conditions, including the levels of 
approving authority and the creation of committees to process said applications. 
All references to the Bureau of Internal Revenue in the National Internal Revenue Code 
of 1997 and other revenue laws, and in the rules and regulations issued thereunder shall be 
deemed to refer to the National Revenue Authority. 
SECT-ION 23. Applicability of Prohibitions and Sanctions; Administrative Complaints. -
The penalties imposed on officials, agents or employees of the Bureau of Internal Revenue who 
are guilty of the offenses enumerated in the National Internal Revenue Code of 1997 and other 
criminal statutes shall be applied to members of the Revenue Board and officials, agents and 
employees ofthe Authority who axe found guilty of such offenses. 
For purposes of administrative complaints against officers and employees of the 
Authority, an internal audit unit to be created by and reporting directly to the Board shall conduct 
the investigations on such complaints. For this purpose, such internal audit unit shall be deemed 
deputized by the Office of the Ombudsman under Republic Act No. 6770. 
SECTION 24. Repealing Clause. - The provisions of Sections 18, 19,20,21 and 22 of 
Chapter 4, Title II, Book IV of Executive Order No. 292, otherwise known as the 
Administrative Code of 1987, are hereby repealed. The provisions of Title I of the National 
Internal Revenue Code of 1997 insofar as they are inconsistent with the provisions of this Act, 
are hereby r repealed or amended accordingly. The other provisions of the Code, including 
Sections 51(B), 58(A), 77(A), 81, 90(D), 95, 103(B), 
I 14(B), 128(B), 130(A)(3), 
130(A)(4)(b),163, 164, 166, 171, 172, 196,200(C), 202, 204, 206, 207(A), 207(B), 209, 213, 
214, 215, 227, 236(A), 236(B), 236(E), 236(F), 236(G), 236(0), 241, 242, 245, 245 (e), 
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• 
1 
245(0),248,271, and 285 are hereby amended, and those other laws, rules and regulations in 
2 
consistent with this Act are hereby repealed or modified accordingly. 
3 
SECTION 25. Separability Clause. " If any provision or section of this Act is held 
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invalid, the other provisions and sections not affected thereby shall remain in full force and 
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effect. 
6 
SECTION 26. Effectivity Clause. " This Act shall take effect fifteen (15) days following 
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its publication in the Official Gazette or in two (2) newspapers of general circulation. 
Approved. 
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