BUREAU OF INTERNAL REVENUE (BIR)

BIR is under the executive supervision and control of the Department of Finance.
BIR is headed by a chief known as the Commissioner of Internal Revenue and four (4) assistants known as Deputy
Commissioners.

Powers and duties of the BIR:

a. To assess and collect all national internal revenue taxes, fees and charges;
b. To enforce all forfeitures, penalties and fines connected therewith;
c. To execute judgments in all cases decided in its favor by the Court of Tax Appeals and ordinary courts;
d. To give effect to and administer the supervisory and police power conferred to it by law;
e. To recommend to the Secretary of Finance all needful rules and regulations for the effective enforcement of
the provisions of the NIRC.
Other functions of the BIR:
a. Accounting for all revenues collected;
b. Exercising all legal requirements that are appropriate;
c. Preventing and prosecuting tax evasions and other illegal activities;
d. Exercising supervision and control over its constituents;
e. Performing such other functions as may be provided by law.
Powers and duties of the Commissioner of Internal Revenue:
a. Power to interpret tax law and decide tax cases
1. Interpret provisions of this Code and other tax laws subject to review of the Secretary of Finance
2. Decide cases:
a. Disputed assessment
b. Refunds of internal revenue taxes, fees and charges
c. Penalties impose in relation thereto
d. Other matters arising from this Code or other laws or portions thereof administered by the BIR
subject to the exclusive appellate jurisdiction of the CTA.
b. Power to obtain information, summon, examine and take testimony of persons
1. The Commissioner is authorized:
a. To examine any relevant book, paper, record or other data
b. To obtain any information (costs, volume of production, receipts, sales, gross income, etc.) on
a regular basis
c. To Summon
d. To take the testimony of the person concerned, under oath as may be relevant to the inquiry
e. To cause revenue officers and employees to make a canvas of any revenue district or region.
c. Power to make assessments, prescribe additional requirements for tax administration and enforcement
1. Examination of returns and determination of tax due;
2. Terminate taxable period;
a. When the taxpayer is retiring from business subject to tax;
b. When the taxpayer absconded;
c. When the taxpayer removes his property from Philippines;
d. When the taxpayer hides or conceals his property;
3. Prescribe real property value;
4. Authority to inquire into bank deposit;
Notwithstanding R.A. 1405 (Bank Secrecy Law) the Commissioner is authorized to inquire
into the bank deposits of:
a. A decedent to determine the gross estate
b. A taxpayer who has filed an application to compromise payment of tax liability by reason
of financial incapacity
5. Authority to register tax agents
6. Authority to prescribe additional requirements
d. Authority to delegate power
1. The Commissioner may delegate the powers vested in him to subordinate officials with rank
equivalent to Division Chief or higher, subject to limitations imposed under the rules and
regulations, except the following powers:
a. Power to recommend the promulgation of rules and regulations by the Secretary of
Finance
b. Power to issue rulings of first impression or to reverse, revoke, modify any existing
rule of the BIR
c. Power to compromise or abate any tax liability
d. Power to assign or reassign internal revenue officers to establishments where articles
subject to excise tax are kept.
e. Other Powers
1. Duty to ensure the provision and distribution of forms, receipts, certificates, and appliances
and the acknowledgment of payment of taxes;
2. Authority to administer oaths and to take testimony
3. Authority to make arrests and seizures
4. Authority to employ, assign or reassign internal revenue officers and employees of the BIR to
other or special duties connected with the enforcement or administration of the revenue rules