1 2 — The Burs 3 A. Powers, duties and functions of the bureau Nature, powers and duties ofthe Borea Of Internal Revenue “The Buren of hima Revenue (Rn amine agency wih is inotd n he camrtialonendetesonofratena tes ts ura he _Sugevsen and onl othe Dope Prince Ee © 0 tis part of the Reveiue options grvp of he Department oc Finance ven ineides th Bureau of Cusons, Se Revenue Svc sn he Lema Sem tn gonera. te pore andes andthe Bare he folowing 1. Aseossrnent and collection ofl aonalitemal even as, fee Sage 2. rercemertf al aires, pansies vanes connscnd herewith catonot jones in al eases issn is ovr by te Cut ot Tax ‘peels (Sta) are ena ot 2 4. Ghee ad aint he spain ad poles power cofered ARSE amet Revenue Cae (HC) o ober ows ms) {Internal revenue taxes : “The folowing las, feet and charges are Seomod w be ‘abo! intemal everue x25: (2) income ax, (b) Estote and done’ ax (e) Veto ade a (9 Otrer percentage tres (0) Excise ates: {0 Docent sano taser peer noes 0 ar of horse ay impos arid cacao (9) Se torial Revenue (S= 2)———————=—————S——sKX—Mh— INCOME TAXATION oun Tax Pnnciples & Remedies) —Ampongan _54 B. Powers and duties of the Commissioner Chief officials of the bureau “The bureas shail have a chil to be krown 2 the Comission of Ireeral Revarve, hereinaferffered to as the Commision an feu" (2) ‘estan chlo be hnown as Daply Commissions (See) Each dopty commissioner stil supervise one (1) of the four (a) groups. iz Oparaons Graup. Infermaton ‘Systems. Greup. Resasach ‘Managerert Group andthe Legal ond Enersemert rou. Powers of the Commissioner of Internal Revenue “The Commissono as boon given broad powers in ord t2 6 lew ant elect te news over. Those tsade ha feboweng 1. To eterpret tax laws anata decide ax cases (Ste. +i: 2. Te abtan infomation, and te sunmen, examine, and take tastier of tons (See 5 i 3. To make assoesments and prescribe addons! requrements for tox ‘rina and ercamert se it Power to interpret tax faw and to decide tax cases The power fo interpret te provisions of the National Inemal Revere Cede (NRG) and omer tax laws shal bs under the clusve ond orginal ston of be Commssioner, subject to review by the Secieany ot et on tin opts tan rect Stes pista 9 feet gear ane teenies Ts, the not empowered to iss a ating on ar cave ag Seo of ston is ol empowered tse a gon or ‘which wi pn fo terre oat ane The power io Gace disputed assessments, funds of tamsl covers ses Mf 1 Seca dante assessments eid fea copier2= The Bureau intenatRevewe SS the Duca i void in he Connon oj ot exzve Balas inedcsonclina Coste Yar kppassteise tee ee ncn PEER aS nt at ce wre ccne2— ar’s Bookstore is uncertain a ty whather of oi nme ty Es applicable ots line of busoess. Ths. siites aga qsiy ibaa: tera! Revenue n tha ise The BAL svt na hw th Iver Lave’ Is engaged 18 ot covered bythe ace Reing Tres toskstore didnot py enews Subssqvely, however, the HIR revered ie pein rng ad rec oe itn ha the tx coves theline ef sis whe Las Bo Fengagse. I Lares sitet to back tes comesponding 1 tyes bere reeling? gr Aree: ‘No. ADIR ug cannot he hen retail sch p= prejilalo the tapers: Lares oats wl be pce ie ers fhepevicas lng Power to examine books and other accounting Fecords and abtain information In ascenahing be crecinss of ary etc mar rela wh rane fas coon made, & in etsrrng te hy fa arson fo oh inom rovarue Tox Or a eatearg ary ch abit, ore esi cinpans, the Carwmasons's canoe 0 examine any Bok, popes, ra rane ta wich ray bo Ye cr matenal tach ny 2. To cbian ona rogr base ary leon fom any poson er th So‘ porsan wows ra een fe ys au resigeton" or tom any offen or fear of he nana! and toe! Feet cetnen agar so tueriaies sas te Benge "Seung. Blpnes end govermertorned! or cord coporaions, , 3 To summon tho pac abi tx oF eu 2 ea Le, oF oy ‘cor oF omployoo auch parson, & 27 person having possess“To cceret nd register tx agora To roca aditons proce! cr documentary roqrements. Bureau's to oa tyrants authority to Inquire into bank deposits (558 orm ne, opts of watever ae wit banks o bark ‘stitutions shall be | es. nti m3) _ Ryptons Sle crscred as sesh cra nr say : ; rained, uted or cked io by any pean, goverment i I | [Ti base on the provisions of R.A. 1405 otherwise hnown a Bark Despte scr Iau ao bat cops as a cemeteries extra Yo Fo Steinem oss estate ofthe dace. nc ee eee IE 1h (ohaoiss2—The Burwau ct intemal Revemye ST _whon the taxpayer apps fora compromiae of ie tx habit by reason htnancialineapacty (See 6) Ma) ese ox oles ne en mane ep wi crate fe rae ee sel corte tattle ea oe see a ea ae Oe ae ere aia Ss iamen aera aoe aea-2 ‘Labung ded in 2004 leaving aan deposit of Pao milion under join cou wi is wf Madel Leaning of Laban death rm he meeps ‘eCorsioncr of ftemel Revere rot fo eery bank the erty ashing {Rees dseloe ttm th amount of Gepost tat mig be ousting in Bs fume, oc oy itor at the ate of death ‘May the ARC Hank holding the deposit refs to comply on the round oF the Sear Bak epost Law op Answer Yio, ABC Bank cannot refuse 12 comply wth the request of the commissioner The Oomnissonsr is auotied iy the de tte nto the {nk deposk of ¢ dceaed person 1 deteine the pos eta at the time o Seat “This isan exception tothe Secrecy of ank pest Law Authority ofthe commissioner to compromise taxes “Compromise isa canvact whereby te partis by recral concwssns: ‘avid gation or gua end fo one akwady crmenced rent of ary internal ‘The Coniissiner may compromise the payment of any oven taxon ho lowing Bae 4 Reasonable doubt as 10 the valty of te clam agent he taxpayer 2 The rns postion of teaver monde Gear rabty 124 tho wssezsed tne ‘The comgromisa sotloment of any 12 I fotowag mnmusn amounts abty shal be subj totheINGOME TAXATION (wth Tax Princes & Remesing)—Ampongan 5B 8 For cases of final rcapaciy, a minimum omromise rae osuivalone tote percrt (10%) of tw bast assessed tax and ®. For cher cases, a minimum compromise rate equivalent ty ftv pereony (00) of he basic assessed tax © Wher the basic assessed tax inoived exceeds P 1 micn or whore the Seticment fered is ess tian the proscribed minum rate, he spovora of the Commissioner and tho four (4) Deputy Gommissonars cher ta quired, Allriinalvolaons may be compromised except 1 Those aksedy fledin cout or 2 Those inohing fra (Soe 20414 a) The Commissioner i the only efcial vested wit the power anc dscrtion to orto into compromse ef ciminal and ew Cases, THe saver compromise or absle is a power that cannot be culcowted by ie Commissioner. exzept inte foowg cases: 4. Assessments issued by tho Replonal Offees involving bask: caiionoy taxes of P500,009 or las: are 2. Minor criminal violation (Se. 710i) ‘These cases may be compromised by aragenal evaluation bear Abatement or cancellation of tax liability ‘The Commissioner may abate o cance! sx abil wn 1 The tax o¢ ary portion thereof appears to be unjustly of excessively stesso or 2. The acministration and collection corte involved do nit justi the ‘calecton ofthe amount ue See 2048) 1) Non-delegable powers of the Commissioner ‘Tho Commissioner may dologate the fowors vested i hin unde tae Portnent rovsons oft Code to an of auch subordinate ui wit Fark equivalent 10 9 Gyisien eet or higher, subject to sue stats are fests as may be inposed ueer ns en repli obeyed y bw Secretary of Finance, upon recommenda of a Cosa Provided, however, thal the folowing powers of ha Commissioner shal (Chaples 2 = [ne Bureau of interna verve 9 1. The power to recommend tne promulgation of ule ad regu by Socata of Finance 2. The powor Yo issue rungs of fest moresion a to reverse. revoke oF snodiy any enstng rang te Bure 3. The poner to compraisa or abate, under Sec. 204A) and) of the CCose, ary tax abit. Homover,aeeosmens isund by ho toporal (offcasinvoling dafeeney tres of PS0D, 000 est, ant meer cal Violators escovered by repenal and. cet! ofa. maybe ‘compromseain ne epiena eve 4. The power to. assign or reassign tema! revere offces to este shmants where aces subject excise tx ave rosicedor kept Refuns or ere of taxes ‘tok etiam or nua ot tx ret cerca stn m0 tate agar aor ho woe sy rout oa fom he grat aye aon he ar rh rer aoa Sot gat eral ata moe Sy by ‘xo winning tres Mtarrsacn, viewer aon : ‘roam re parent ot ts eves wenaty pa by re ompaye fhe governed ~ riser may cute ere ties eroneouty ‘ecavad ot penaten mponed nad aha leon ar re ort Te flown pies ae ape ee 1. The tmpayer les in wring wt Conresone 9 refund, 2 mn ony vena ae fing fron avainect of ncenines granted 2 aS Set repo. ond ce Tho lam must ed wit wo (2) yrs afr payment of 5 roensuro rus be obe2N08 By ho taxBByO in aime nee of heal Revere witha nota delegates‘2. Hf he taxis pald in installments. or only in pat. the period is counted from the date ofthe lst al estalmert urd the we cr era tox Sty fly pak (Comm ve Pano, 18 SCR 436) , Where a corporation paldquartery corporate incomes taxes in any of the fet tree quarter during Bee taxae year but ncuts net se ‘ung the taxable year, the two-year pero forthe fing of a for refund or ere shal be counted rom the cat the ing othe ar ‘orporeto neome tax retam (Comm v= TAX Sieg 208 SCA 108), 2. Won thiny (0) days rom recat ofthe Commissioner's cision denying the clam, and wihin two (2) yoars am tha dale of paying te tae taxpayer ean appaal the decieant the Cout of Tax Arpeai. Howovor, wher the {W070 period i about fo lapse, the tapayer may oppee! to te Court of Tex Appoatewiticat wating othe decaon ot the Commissioner of ttomal Reverua (COC. CIR, GI Ne €28/8) ‘3. Wit fttsen (16) daye from recalet of tha decison of the Court of Tax ‘Appeal, ha can flo an appa! wih ho Supreme Cou cmea-3 ‘Bay pid the tao ineallment, The fst installment was pad on AD sou wii te final installment was pid Jane 20,201 Se fed alam for efund on May’ 2, 2032 an resid the Comsione’s econ danyng her damon May, 2035. (Qe: Wa the aim for refund fle on ie? Maser: ‘es. Emy hao gers fom Jane 20, 201 (he date alm forrfind. The wo jer period il presets on Jo ‘Since it wat ladon May 2, 2012, the ling of the ea ‘weo-gearprssiptie pio Wen isthe last day to appl the Commissioner's decison to the Ct ‘ToxAppeks? gn Maser, ina payment oe is il within she from the ns 90 days om cer ofthe deision, twin 2 areca pnt te tsa ea appeal oe Gu i Aes "The decison was recived May su Ue go day from the reept oh ae ee rate 2= The Bonu attra Ravens —_ 61 June 20, 2013. ' 1 he Commision tne tims in dosing the dr and ge (2) yrs fs aout to em the per shoul sem the Cua of Tos ‘Bo prescrinte period (ee Conmtrn Sma =