RepublicofthePhilippines

BureauofInternalRevenue
RepublicofthePhilippines
BureauofInternalRevenue

ThePhilippines:RATEProgram
(RunAfterTaxEvaders)

IMFJapanHighLevelTaxConference
ForAsianandPacificCountries
January31 February3,2012
Tokyo,Japan
1
 RATEProgram
Developmentoftaxfraud/taxevasioncases
bythecriminalinvestigationofficesoftheBIR,
includingthedevelopmentoffraudcasesfrom
regularauditactivities
Filingofcriminaltaxcaseseveryother
Thursdayoftheweek
 CriminalInvestigationOffice
TaxFraudInvestigationsaredonebythe:
NationalInvestigationDivision(withintheBIR
NationalOffice
SpecialInvestigationDivisions(foundineveryBIR
RegionalOffice)

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 ManpowerComplement
AttheNationalOffice(NationalInvestigation
Division)
Totalof73personnel
HeadedbyaDivisionChief&AssistantDivision
Chief
Composedof2Sections
36personnelassignedattheInvestigationSection
35personnelassignedattheIntelligenceOperations
Section
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 SourcesofInformation
Taxpayersowninformation
Owntaxreturndeclarations
Ownbooksofaccounts
InformationobtainedfromThirdParties
Fromprivatesector
Fromothergovernmentoffices(e.g.landregistration
office,localgovernment,transportationoffice)
Informationobtainedfromintelligencework(e.g.
surveillance) 5
 BasistoCompelProductionof
Documents
Section6oftheNationalInternalRevenue
CodeauthorizestheCommissionerof
InternalRevenuetoissueadministrative
summons(SubpoenaDucesTecumor
SubpoenaAdTestificandum)tocompel
productionofevidenceandtestimony
 DurationofTaxFraudInvestigation
Dependingonthenatureandcomplexityof
thecaseaswellasavailabilityofdocuments/
evidencesinvestigationmayrangefrom1
monthto2yearsorevenmore

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 Whistleblower
Submissionofinformationoftaxfraud/tax
evasionorviolationsoftheNationalInternal
RevenueCode(TaxCode)isbeingencouraged
TheTaxCodeunderSec282providesforan
informantrewardprocess(equivalentto10%
oftheresultingtaxcollectionbutinnocase
morethanP1,000,000)
 InstitutionofCriminalCases
AllcriminalactionsbeforetheCourtofTaxAppeals(CTA)Divisionandthe
regularcourts,intheexerciseoftheiroriginaljurisdiction,shallbe
institutedbythefilingofaninformationinthenameofthePeopleofthe
Philippines,whichmustbeapprovedbytheCommissionerofInternal
Revenue.

TheaboveissanctionedbySection220oftheNIRC,towit:

SEC.220. FormandModeofProceedinginActionsArisingunderthis
Code. Civilandcriminalactionsandproceedingsinstitutedinbehalfof
theGovernmentundertheauthorityofthisCodeorotherlawenforcedby
theBureauofInternalRevenueshallbebroughtinthenameofthe
GovernmentofthePhilippinesandshallbeconductedbylegalofficersof
theBureauofInternalRevenuebutnocivilorcriminalactionforthe
recoveryoftaxesortheenforcementofanyfine,penaltyorforfeiture
underthisCodeshallbefiledincourtwithouttheapprovalofthe
Commissioner.
 ProsecutionofCriminalActions
Asageneralrule,allcriminalactionsshallbe
conductedandprosecutedbythepublic
prosecutorsoftheDepartmentofJustice.In
criminalactionsinvolvingviolationofthe
NationalInternalRevenueCode(NIRC)or
otherlawsenforcedbytheBureauofInternal
Revenue(BIR),theprosecutionmaybe
conductedbythedulydeputizedlegalofficers
oftheBIR,underthedirectionandcontrolof
thepublicprosecutors.
 CoordinationwithOtherAgencies
TheBIRhasexistingMemorandumsof
Agreement/s(MOA)withseverallaw
enforcementorganizations,suchasNational
BureauofInvestigation(NBI),Criminal
InvestigationDetectiveGroup(CIDG)ofthePNP
andAntiMoneyLaunderingCouncil(AMLC).
BIRisalsoamemberoftheNationalLaw
EnforcementCoordinatingCommittee(NALECC),
whichisanorganizationcomposedofvarious
enforcementagenciesinthePhilippines.
 DurationtoconcludeTaxFraudCases(from
indictmenttosentencing)
Basedonthecasesdecided,i.e.,Kintanarand
Mendezcases,ittakesabout4to6yearsto
concludeataxevasioncase.
a. FromfilingoftheComplaintwiththeDOJ
uptotheresolutionofthesame
DateFiled DateResolvedbyDOJ

Sps Benjamin & Gloria Kintanar 6/3/2005 2/7/2006

Joel C. Mendez 3/10/2005 01/20/2006
 DurationtoconcludeTaxFraudCases(from
indictmenttosentencing)
b.FromResolutiontoCourtDecision
DateResolved DateDecidedby
byDOJ Court

Benjamin Kintanar CTA 030 02/07/2006 8/11/2010

Benjamin Kintanar CTA 031 & 032 02/07/2006 9/27/2010

Gloria Kinatanar CTA 033 & 034 02/07/2006 8/26/2009

Joel C. Mendez CTA 03 & 015 01/20/2006 1/05/2011

 RATEStatistics
FY FY FY
2005 2010 2011
2009
CriminalInvestigationInitiatedbefore 124 27 60
theDOJ
ProsecutionRecommendations/ 10 6 30
ResolutioninfavoroftheBureau
Indictment/ForfilingofInformation 7 3 22
beforetheCourts
Conviction 5 5 2
Sentenced(Imprisonment) 1
 ThankYou
andGoodDaytoAll!!!
CommissionerKimJacinto Henares
BureauofInternalRevenue
Philippines