;: 
[,z;.,';>i; 
, . i  
FOURTEENTH CONGRESS OF THE REPUBLIC ) 
.. 
I
.
 
/_L 
'
~
f
 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
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 when 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 ofhternal 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 of funds. 
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 


evasiodavoidance, and increasing perception of systemic corruption in the Bureau. It is 
expected that the new authority shall be free from political interference in terms of 
decisions pertaining to revenue rulings, 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 separatiodretirement 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. 
This is a senate counterpart bill to one filed in the House of Representatives by 
Rep. Jose De Venecia, Jr. 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
FOURTEENTH CONGRESS OF THE REPUBLIC ) 
i 
, - , , ? - 3 ( , :  
9 
OF THE PHILIPPINES 
) 
/J% i', 
I : , /  ' ;  
First Regular Session 
) 
S.No. 202 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
CREATING THE NATIONAL REVENUE AUTHORITY, 
PROVIDING FUNDS THEREFOR 
Be it enacted by the Senate and House Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known and cited as the "National 
Revenue Authority Act of 2008." 
SECTION 2. Declaration ofpolicy. -It is the policy of the State to reform tax 
administration to meet the resource needs of government, satisfy the requirements of 
taxpayers as customers, and help ensure the efficient and effective collection of taxes by 
the Government. Towards this end, the State shall create an internal revenue agency that 
shall be endowed with fiscal and administrative powers necessary to discharge its 
mandate with excellence. 
SECTION 3. Creation of the National Revenue Authority; Corporate Powers. - 
There is hereby established a public organization to be known as the National Revenue 
Authority, hereinafter referred to as the Authority, which shall be responsible for the 
implementation of internal revenue laws and shall be attached to the Department of 
Finance (OOF). It shall be organized within one hundred eighty (180) days from the 
effectivity of this Act. The Authority shall have its principal place of business in Metro 
Manila and may establish branches and offices in such other places as may be deemed 
necessary for the performance of its mandate. 
1 


4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
21 
SECTION 4. Responsibility and Primary Objective. - The primary responsibility 
and objective of the Authority is to raise revenues to finance the operations of the 
Government consistent with fiscal policy and revenue collection targets. 
SECTION 5. Powers and Functions. - The Authority shall exercise the powers 
and duties heretofore exercised by the Bureau Internal Revenue under the National 
Internal Revenue Code of 1997, hereinafter referred to as the Code, and other laws. Such 
powers and duties shall comprehend the assessment and collection of a11 national internal 
revenue taxes, fees, and charges, and the enforcement of all forfeitures, penalties, and 
fines connected therewith, including the execution ofjudgments in all cases decided in its 
favor by the Court of Tax Appeals and the ordinary courts. The Authority shall give 
effect to and administer the supervisory and police powers conferred to the Bureau of 
Internal Revenue by the Code and other laws. 
The officials and employees of the Authority shall be hired on a fixed term 
performance-based contracts. 
In addition, the Authority shall have the following corporate powers: to adopt, 
alter, and use an official seal which shall be judicially noticed; to enter into contracts; to 
lease or own real and personal property; and to sell or otherwise dispose of the same; 
incur obligations necessary in the conduct of its operations; and to perform any and all 
acts necessary or proper to carry out the purposes of this Act. 
The Authority may acquire and hold such assets and incur such liabilities in 
connection with its operations authorized by the provisions of this Act and other laws, or 
as are essential to the proper conduct of such operations. 
SECTION 6. Capitalization. - The Authority shall have an authorized capital of 
Ten Billion Pesos (PhP 10,000,000,000) which shall he fully subscribed by the Republic 
of the Philippines and shall be paid up by the transfer to the Authority of assets valued in 
such amount. Initially, the national government shall transfer to the Authority such assets 
as may be determined pursuant to Section 19 of this Act. 
2 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
SECTION 7. Service Fee. - The Authority shall receive an annual service fee 
from the Government for services rendered in the discharge of its mandate. Subject to the 
recommendation of the Development Budget Coordinating Committee (DBCC) created 
under E.O. No. 232, s. of 1970, as amended, said fee shall not fall below one percent (1 
%) nor go beyond two percent (2%) of revenues collected in the immediately preceding 
calendar year, net of collections accruing to Local Government Units, including Internal 
Revenue Allotment (IRA), and other agencies: Provided, however; that in the initial year 
of operation, the service fee shall be 2% of net revenues collected in the immediately 
preceding year. Said amount shall be appropriated in the annual General Appropriations 
Act. 
The Authority shall likewise be entitled to five percent (5%) of annual collections 
in excess of its annual collection target set by the DBCC: Provided, however, that no 
portion of the performance bonus shall accrue to members of the Revenue Board. 
SECTION 8. Composition of the Revenue Board; QualiJication of Members. - (a) 
There is hereby created a Revenue Board, hereinafler referred to as the Board, composed 
of the Secretary of Finance, as chairperson, and the following as members: the Director- 
General of the National Economic Development Authority, Secretary of the Budget and 
Management, and the Chairperson of the Securities and Exchange Commission, all of 
whom shall serve ex officio and with no compensation, and three (3) representatives from 
the non-government sector to be appointed by the President, who shall serve full-time for 
a term of three (3) years, and may be reappointed once: Provided, however, That 
reappointment of representatives from the non-government sector shall follow the 
nomination process outlined in this Section. 
(h) The three members from the non-government sector shall include an 
economist, an accountant, and a lawyer. Each shall be selected and appointed by the 
president from a pool of candidates to be nominated by peak professional organizations 
of economists, accountants, and lawyers, respectively, which must have been in existence 
for at least ten (10) years. A "peak professional organization" refers to an organization 
3 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
duly recognized by members as representative of, and having the largest active 
membership jn their profession. The mechanics of the nomination process shall be 
provided for in the Implementing Rules and Regulations for this Act 
(c) Of the initial members appointed from the non-government sector, the first 
appointee shall serve for three (3) years, the second for two (2) years, and the third for (1) 
year. 
(d) Whenever the chairperson or any of the members serving in ex oficio capacity 
is unable to attend a meeting of the Board, the representative shall be an Undersecretary 
or its equivalent rank: Provided that the highest ranking ex officio member present shall 
preside over the meeting in case the chairperson is absent. 
(e) A member from the non-government sector shall be a natural-born citizen of 
the Philippines, at least forty (40) years of age, of good moral character, known for 
honesty and patriotism, of unquestionable integrity, and a recognized expert in the field 
of taxation, fiscal policy, public finance, fiscal administration, accounting, management , 
or law: Provided, however, That such members shall not have been employees of the 
Bureau of Internal Revenue or the Authority created under this Act within the last ten 
(10) years prior to their appointment: Provided, further, That no person who has been 
connected as a director, partner, officer, lawyer, accountant, consultant or in any other 
capacity with individuals, general professional partnerships, or professional corporations 
who prepare and file tax returns, statements, protests and other papers with, or who 
appear before, the Authority shall be appointed within one (1) year from the cessation of 
such connection. An appointment to fill the vacancy created by the death, resignation or 
removal of a member from the non-government sector shall only be for the unexpired 
period of such member's term. 
(f) The President of the Philippines shall initially fix the compensation of the 
members from the non-government sector based on an objective classification system, to 
be specified in the Implementing Rules and Regulations of this Act, at a sum 
commensurate to the importance and responsibilities attached to the position. The Board 
may increase such compensation: Provided, however, that the increase shall not affect the 
4 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
compensation of a member during whose incumbency the increase was approved for the 
duration of such member's term. 
SECTION 9. Powers of the Revenue Board. - The Revenue Board shall: 
(a) Adopt and promulgate policies and rules for the effective enforcement of the 
provisions of the Code, this Act, and other revenue laws; 
(b) Upon the recommendation of the CEO, approve the annual and supplemental, 
budget of receipts and expenditures of the Authority, and authorize such operating 
and capital expenditures of the Authority as may be necessary or proper for the effective 
management, operation and administration of the Authority; 
(c) Form committees, including an executive committee, that shall assist the 
Board in the performance of its functions: Provided, however, that no person shall be 
appointed to the executive committee who has been employed within the past ten (10) 
years by the Bureau of Internal Revenue or the Authority created under this Act; 
(d) Exercise such powers and perform such other acts as may be necessary, 
useful, incidental or auxiliary to carry out the provisions of this Act, or to perform the 
purposes and objectives of this Act. All references in the Code and other revenue laws, 
and in the rules and regulations issued thereunder, to the Secretary of Finance shall be 
deemed to refer to the Revenue Board. 
SECTION 10. Conflict of Interest. - In addition to the requirements of Republic 
Act No.6713, otherwise known as the Code of Ethical Standards, any member of the 
Board with personal or pecuniary interest in any matter in the agenda of the Board shall 
disclose such interest to the Board and shall inhibit himself during the deliberations when 
such matter is taken up. The decision taken on the matter shall be made public and the 
minutes of the meeting shall reflect the disclosure made and the inhibition of the member 
concerned. 
SECTION 11. Disgualzjkations. - In addition to the disqualification imposed by 
Republic Act No. 6713, a member of the Board shall be disqualified from being 
5 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
connected as director, partner, officer, lawyer, accountant, consultant or in any other 
capacity with individuals, general professional partnerships, or professional corporations 
who prepare and file tax returns, statements, protests and other papers with, or who 
appear before, the Authority, in, which case such member shall terminate his or her 
association with such individuals and resign from, and divest himself or herself of any 
and all interests in, such general professional partnerships, or professional corporations. 
Members of the Board from the non-government sector shall not hold any other 
public office or employment during their tenure, unless such office or employment is 
with a state university or college or is connected with the performance of their duties as 
members of the Board. 
SECTION 12. Removal of Members from the Non-Government Sector. - The 
President may remove any member of the Board from the non-government sector for any 
of the following reasons: 
(a) The member suffers from physical or mental incapacity that renders him or her 
incapable of properly discharging the duties and responsibilities of membership in 
the Board and such incapacity has lasted for more than six (6) months; or 
(b) The member has committed acts or operations that are shown prima facie to be 
fraudulent or illegal or manifestly opposed to the aims and interests of the 
Authority; 
(c) The member no longer possesses the qualifications specified in Section 8 of 
this Act; or 
(d) The member is subsequently disqualified under the provisions of existing law. 
SECTION 13. Meetings. - The Board shall meet at least twice a month. The 
Board may be called to a meeting by the chairperson or by three (3) other members of the 
Board. The presence of four (4) members shall constitute a quorum: Provided, That in all 
cases the chairperson or the chairperson's duly designated alternate shall he among the 
four (4). A11 decisions of the Board shall require the concurrence of at least four (4) 
members. The Authority shall maintain and preserve a complete record of the 
6 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
proceedings of the Board, including the tapes and transcripts of the stenographic notes, 
either in their original form, in microfilm, or in any electronic medium. 
SECTION 14. The Chief Executive Officer; Qual(fications; Appointrtent; Term of 
Ofice. -The Authority shall be headed by a Chief Executive Officer, hereinafter referred 
to as CEO, who shall be a natural-born citizen of the Philippines, of good moral 
character, known for honesty and patriotism, of unquestionable integrity, with at least 
seven (1) years experience in management, and a recognized expert in the field of 
taxation, finance, fiscal administration, economics, public administration or public 
finance. 
The CEO of the Authority shall be appointed by the Board from a list of at least 
three (3) nominees prepared by a selection committee created by the Board and chaired 
by a member of the Board, for a term of three (3) years; Provided, That the incumbent 
Commissioner of the Bureau of Internal Revenue as of the date of the approval of his Act 
shall not be qualified to serve as CEO of the Authority except in a holdover capacity 
pending the appointment of the CEO. 
The CEO shall enter into a performance contract with the Board and maybe re- 
appointed depending on the CEO's performance: Provided, however, that no person may 
be appointed as CEO for more than three (3) terms. In addition to other grounds for 
removal as may provided for by law, the CEO may be removed by a majority vote of all 
the members of the Board prior to the end of the CEO's 3-year term for failure to meet 
commitments m the performance contract, unless such failure is attributable to a cause or 
causes beyond the CEO's control. 
SECTION 15. Powers and functions of the CEO. - The CEO of the Authority 
shall exercise the powers and functions of the Commissioner of the Internal Revenue 
under Sections 4, 5, 6, 7, 8, 14, 15, 16, 17, 19, 20, and other provisions of the National 
Internal Revenue Code of 1997. In addition, the CEO shall: 
(a) Execute, administer and implement the policies and measures approved by the 
Board; 
7 


7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
(b) Direct and supervise the operations and administration of the Authority; 
(c) Represent the Authority in all dealings with offices, agencies and 
Instrumentalities of the Government and with all persons and entities, public or private, 
domestic or foreign; 
(d) Direct and supervise the preparation of the agenda for the meeting of the 
Board, and to submit for the consideration of the Board such policies and measures as he 
or she believes necessary to carry out the purposes and objectives of this Act; 
(e) Promulgate, with the approval of the Board, all necessary rules and regulations 
for the effective enforcement of the provisions of the Code, this Act and other revenue 
laws; 
(f) Determine the organizational structure, including the geographical location of 
the branches and offices, of the Authority; recognize its personnel; and issue such rules 
and regulations, as he or she may deem necessary or convenient for these purposes; 
(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 job 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; 
8 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
(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 defiay 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. 
All reference in the Code and other revenue laws, and in the rules and regulations 
issued thereunder, to the Commissioner of the Internal Revenue shall be deemed to refer 
to the CEO. 
SECTION 16. Salary of the CEO. - The Board shall fix the salary of the CEO 
based on an objective classification system to be specified in the Implementing Rules and 
Regulation o f  this Act at a sum commensurate to the importance and responsibilities 
attached the position. 
SECTION 17. Indemnification for Legal Defense Costs and Expenses. - Section 
227 of the National Internal Revenue Code is hereby amended to read as follows: 
“The National Revenue Authority shall indemnify members of the Revenue Board 
and other officials of the National Revenue Authority, including personnel of the units 
performing assessment, audit and collection functions against all costs and expenses 
reasonably incurred by such person in connection with any civil or criminal action, suit or 
proceeding to which they may be or made a party by reason of their performance of their 
functions or duties, unless they are finally adjudged in such action or proceeding to be 
liable for gross negligence or misconduct. 
9 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
21 
28 
"In the event of settlement or compromise, indemnification shall be provided only 
in connection with such matters covered by the settlement as to which the National 
Revenue Authority is advised by external counsel that the persons to be indemnified did 
not commit any gross negligence or misconduct. 
"The costs and expenses incurred in defending the aforementioned action, suit or 
proceeding may be paid by the National Revenue Authority in advance of the final 
disposition of such action, suit or proceeding upon receipt of an undertaking by or on 
behalf of the member of the Revenue Board, official or employee to repay the amount 
advanced should it ultimately be determined by the National Revenue Authority that said 
member of the Revenue Board, official or employee is not entitled to be indemnified as 
provided in this Section," 
SECTION 18. Implementing Details. - The Authority shall be made operational 
by the performance of the following acts: 
(a) The President shall constitute the Revenue Board by appointing the members 
thereof within one hundred eighty (180) days from the effectivity of this Act; and 
(b) The completion of the transfer of such assets and liabilities of the Authority as 
provided in the succeeding Section. 
SECTION 19. Transfer of Assets. - (a) Upon the effectivity of this Act, a 
Committee composed of the Chairperson and ex officio members of the Revenue Board 
and the Chairpersons of the Committees on Ways and Means of the Senate and the House 
of Representatives shall determine the assets of the Bureau of Internal Revenue which 
shall be transferred to the Authority. The Committee shall hire the services of an 
independent appraiser to determine the value of the assets to be transferred to the 
Authority. 
(b) The Committee shall complete its work within ninety (90) days from the 
constitution of the Board. It shall submit a comprehensive report of its findings and 
justifications to Congress and the President within fifteen (15) days from the completion 
of its work. 
10 


7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
SECTION 20. Mandate to Organize. - (a) The Authority shall be organized by 
the Board, by adopting if it so desires, an entirely new organizational structure or staffing 
pattern to suit the operations of the Authority under this Act. No preferential or priority 
right shall be given to or enjoyed by any personnel for appointment to any position in the 
new staffing pattern, nor shall any personnel be considered as having prior or vested 
rights with respect to retention in the Authority or in any position which may be created 
m the new staffing pattern, even if such personnel should be the incumbent of a similar 
position prior to organization. Selection shall be based strictly on merit and fitness and 
applicants may likewise be subject to lifestyle checks to ensure their suitability for 
appointment to the new organization. The formulation of the program of organization 
shall be completed within six (6) months after the effectivity of this Act, and shall be 
fully implemented within a period of six (6) months thereafter, both of which periods 
shall be collectively referred to as the transition period. Personnel who may not be 
retained are deemed separated from the service. 
(b) Subject to the preceding paragraph and to minimize the disruption of internal 
revenue administration during the transition period, all incumbent personnel in the 
Bureau of Internal Revenue as of the date of the approval of this Act shall continue to 
exercise their duties and functions as personnel of the Authority. To help ensure that 
revenue targets are met during the same period, and in addition to the provisions of 
Section 285 of the National Internal Revenue Code, an additional amount equivalent to 
five percent (5%) of the excess in collection targets for the said period shall be used to 
pay separation benefits authorized under the succeeding Section and shall likewise be 
treated as receipts appropriated for this purpose. Towards the same end, the hiring of 
auditors, suspension of assessments, institution of voluntary assessment programs, and 
similar measures are hereby authorized during the transition period to augment revenue 
collection. 
SECTION 21. Separation Benefits. - The officials and employees of the former 
Bureau of Internal Revenue who are separated from the service as result of the 
11 


1 
2 
3 
4 
5 
organization of the Authority shall be allowed to retire or be separated from the service 
under existing laws: Provided, that in no such case shall any employee displaced or 
separated from the service as a result of this Act, shall receive less than One Hundred 
Thousand Pesos (Php 100,000.00) as separation benefit. The methodology that shall 
govern the implementation of the said program shall be provided in the IRR. 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
SECTION 22. Transfer of Powers. - All powers, duties and functions bested by 
law in the Bureau of Internal Revenue shall be deemed transferred to the Authority. The 
powers, duties and functions vested by the National Internal Revenue Code of 1997 and 
other revenue laws in the Deputy Commissioners, Service Chiefs, Assistant Service 
Chiefs, Revenue Regional Directors, Assistant Revenue Regional Directors, Chiefs and 
Assistant Chiefs of Divisions, Revenue District Officers, special deputies of the 
Commissioner, internal revenue officers and other employees of the Bureau of Internal 
Revenue shall be deemed transferred to the officers and employees of the Authority who 
are appointed to exercise the same powers, duties and functions as the abovementioned 
Bureau of Internal Revenue officers and employees: Provided, however, That pursuant to 
the power of the CEO to determine the organizational structure of the Authority and to 
reorganize its personnel under Section 11 of this Act, the positions and bodies mentioned 
in Sections 7, 9, 10, 11, 13, 14,15, 51(B), 58(A), 7 7 ~ 4 ) ,  81, 90@), 95, 103(B), 114(B), 
128(B), 130(A)(3), 130 (A)(4)@), 163,164,16,17 1,172,196, 200(C), 202, 204, 206, 
207(A), 207(B), 209,213,214,215,227,236(.4), 236(B), 236(E), 236(F), 236(G), 2360), 
241,242, 245(a), 245(e), 2456), 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. 
12 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
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. 
SECTION 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 of the 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 11, 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), 
114(B), 128@), 130(A)(3), 13O(A)(4)(b),163, 164, 166, 171, 172, 196,20O(C), 202, 204, 
206,207(A), 207(B), 209,213,214,215, 227, 236(A), 236(B), 236(E), 236(F), 236(G), 
2360), 241, 242, 245(.), 245(e), 2450),248,271, and 285 are hereby amended, and those 
other laws, rules and regulations in consistent with this Act are hereby repealed or 
25 
modified accordingly. 
13 


1 
2 
3 
force and effect. 
SECTION 25. Separability Clause. - If any provision or section of this Act is 
held invalid, the other provisions and sections not affected thereby shall remain in full 
4 
5 
6 
circulation. 
SECTION 26. Effectivity Clause. - This Act shall take effect fifteen (15) days 
following its publication in the Oficiul Gazette or in two (2) newspapers of general 
7 
Approved. 
14