ORGANIZATION AND FUNCTION OF THE BUREAU OF INTERNAL
REVENUE
Whose supervision and control does BIR fall under?
The Bureau of Internal Revenue shall be under the
supervision and control of the Department of Finance.
(2)
What is the scope of BIRs power and duties?
BIR shall
1. Assess and collect all national internal revenue
taxes, fees, and charges, and
2. Enforce all forfeitures, penalties, and fines
connected therewith
3. Execute judgments in all cases decided in its
favor by the Court of Tax Appeals (CTA) and the
ordinary courts.
4. Give effect to and administer the supervisory
and police powers conferred to it by the NIRC or
other laws. (2)
ORGANIZATIONAL STRUCTURE
BIR shall have a
1. Chief (Commissioner of Internal Revenue) AND
2. (4) Assistant chiefs (Deputy Commissioners) (3)
What are the powers of the Commissioner of Internal
Revenue?
CIR has the EXCLUSIVE and ORIGINAL jurisdiction to
1. Interpret the NIRC and other tax laws.
Subject to review by the Secretary of
Finance.
2. Decide disputed 1assessments, 2refunds of
internal revenue taxes, fees or other charges,
3
penalties imposed in relation thereto, or 4other
matters arising under the NIRC or other laws or
portions thereof administered by BIR.
Subject to the exclusive appellate
jurisdiction of the CTA. (4)
For any of the following purposes:
a) ascertain the correctness of any return
b) make a return when none has been made
c) determine the liability of any person for any internal
revenue tax
d) collect any such liability OR
e) evaluate tax compliance
CIR is authorized to
3. Examine any book, paper, record, or other data
which may be relevant OR material to such
inquiry.
4. Obtain any information such as, but not limited
to:
Costs and volume of production
Receipts or sales and gross incomes of
taxpayers
Names, addresses, and financial
statements of corporations, mutual fund
companies, insurance companies,
regional operating headquarters of
multinational companies, joint accounts,
associations, joint ventures or consortia
and registered partnerships, and their
members.
On a regular basis
from any person OR from any office or
officer of the national and local
governments, government agencies and
instrumentalities, including the Bangko
Sentral ng Pilipinas and GOCCs
except the person whose internal
revenue tax liability is subject to audit or
investigation.
5. Summon the (1) person liable for tax OR
required to file a return OR (2) any officer or
employee of such person, or (3) any person
having possession, custody, or care of the books
of accounts and other accounting records
containing entries relating to the business of the
person liable for tax OR (4) any other person
to appear before the Commissioner or
his duly authorized representative
at a time and place specified in the
summons
to produce such books, papers, records,
or other data and
to give testimony
6. Take such testimony of the person concerned,
under oath, as may be relevant or material to
such inquiry.
7. Cause revenue officers and employees to make
a canvass from time to time of any revenue
district or region and inquire after and
concerning all persons who may be liable to pay
any internal revenue tax, and all persons owning
 or having the care, management or possession of
any object with respect to which a tax is
imposed. (5)
CIR or his duly authorized representative may
8. Authorize the examination of any taxpayer and
the assessment of the correct amount of tax.
After a return has been filed as required
by NIRC.
Failure to file a return shall NOT prevent
the CIR from authorizing the
examination of any taxpayer.
What if there is tax deficiency after
CIR may
assessment?
The tax or any deficiency tax shall be paid upon
notice and demand from the CIR or from his duly
authorized representative.
Can a return, statement, or declaration already
filed be withdrawn?
No. Any return, statement or declaration filed in
any office authorized to receive it shall NOT be
withdrawn.
Can the return be modified?
Yes. It can be modified, changed, or amended on
2 conditions:
*Within 3 years from the date of such filing AND
*NO notice for audit OR investigation of such
return, statement or declaration has, in the
meantime, been actually served upon the
taxpayer.
CIR shall
9. Assess the proper tax on the best evidence
obtainable.
When a report required by law as a basis
for the assessment of any national
internal revenue tax shall NOT be
forthcoming within the time fixed by
laws or rules and regulations OR
When there is reason to believe that any
such report is false, incomplete, or
erroneous.
What is the legal weight of this constructed
return?
The return or other document (made or
amended by CIR from his own knowledge and
from such information as he can obtain through
testimony or otherwise) shall be prima facie
correct and sufficient for all legal purposes.
10. Order inventory-taking of goods of any taxpayer
as a basis for determining his internal revenue
tax liabilities.
At any time during the taxable year
If there is reason to believe that such
person is NOT declaring his correct
income sales or receipts for internal
revenue tax purposes.
11. Place the business operations of any natural or
juridical person under observation or
surveillance.
At any time during the taxable year
If there is reason to believe that such
person is NOT declaring his correct
income sales or receipts for internal
revenue tax purposes.
What is the SECOND USE of the findings?
The findings may be used as the basis for
assessing the taxes for the other months or
quarters of the same or different taxable years
and such assessment shall be deemed prima
facie correct.
12. Prescribe a minimum amount of the gross
receipts, sales, and taxable base.
When it is found that a person failed to
issue receipts and invoices violating the
requirements of Sec. 113 (Invoicing and
Accounting Requirements for VAT-
Registered Persons) and Sec. 237
 (Issuance of Receipts or Sales or
Commercial Invoices) ; OR
When there is reason to believe that the
books of accounts or other records do
NOT correctly reflect the declarations
made or to be made in a return required
to be filed.
After taking into account the sales
receipts, income or other taxable base of
other persons engaged in similar
businesses under similar situations or
circumstances; OR
After considering other relevant
information.