BIR forms special body to probe corrupt revenue officers

Bureau of Internal Revenue building. AFP FILE PHOTO

MANILA — To investigate erring revenue officers, the Bureau of Internal Revenue (BIR) has formed a special disciplinary committee aimed at looking into questionable tax audits.

Separately, BIR Commissioner Caesar R. Dulay also ordered to streamline the application process for broker’s clearance certificates (BCCs) as well as importer’s clearance certificates (ICCs).

In a statement Monday, the BIR said the special disciplinary committee established through Revenue Memorandum Order (RMO) No. 54-2016 issued on Aug. 30 would “speed up the investigation of revenue officers who fail the test of integrity, competence, and efficiency in the performance of their audit function or conduct of tax investigations in a move seen to further instill discipline among revenue officers in the conduct of their functions.”

“The committee will investigate and hear cases of revenuers who have been asked to submit or have already submitted written explanations of what appear to be violations or substantial lapses or departure from existing issuances in the conduct of tax audit/investigations. These acts or omissions were engendered by a careful perusal of long outstanding letters of authority and letter notices and pending reports of termination of investigation,” the BIR explained.

A letter of authority is an official document that empowers revenue officers to examine and scrutinize taxpayers’ books in order to determine their correct tax liabilities.

According to the BIR, the committee is “set to hear the cases of at least 368 revenue officers who were served show cause orders and to explain within three days why they should not be charged administratively for their failure to terminate the investigation/verification of tax cases assigned to them and to submit the required reports of investigation.”

In a related development, Dulay also issued RMO 57-2016, which required revalidation of all letters of authority issued under the Run After tax Evaders (Rate) program.

“In view of the policy to strictly monitor existing tax investigations/audits and reporting on cases under the Rate program, all outstanding letters of authority, for which no preliminary assessments/final assessments have been issued or no cases have been filed with the Department of Justice or the courts as of June 30, 2016, shall be submitted to the Commissioner for special revalidation,” RMO 57-2016 said.

“Under the scheme, new letters of authority shall be issued under the name/s of the investigating officer/s to whom the same are assigned/re-assigned. The new letters of authority will be issued only if the request for special revalidation is justified and supported by progress reports on the cases covered,” the BIR said in a separate statement.

In another order issued on Aug. 31, Dulay further amended the guidelines, policies and procedures in the application and processing of BCCs and ICCs by the BIR.

RMO 56-2016 was aimed at “[protecting] the interests of the public by ensuring that they are dealing with legitimate importers and brokers and at the same time to further streamline the application process.”

Under RMO 56-2016, BCCs and ICCs must be processed and released within five working days upon submission of complete documentary requirements.  SFM