(b) Commissioner may prescribe a Minimum

amount of gross receipts, sales and

taxable base (taking into account the
sales and income of other persons
engaged in similar business) :
1. When a person has failed to issue
receipts as required by Sec. 113
(Invoice requirements for VATregistered
persons) and Sec. 237
(Issuance of Receipts or Commercial
Invoices); or
2. When the books of accounts or
records do not correctly reflect the
declarations made or required to be
made in a return,
such minimum amount shall
be prima facie correct
4) Terminate taxable period Commissioner shall declare the tax period of
a taxpayer terminated and send notice to the
taxpayer of such decision with a request for
immediate payment of the tax, when it has
come to the knowledge of the Commissioner:
(RIRHO)
(a) that a taxpayer is Retiring from business
subject to tax or
(b) is Intending to leave the Philippines or
(c) to Remove his property therefrom or
(d) to Hide or conceal his property or
(e) is performing any act tending to Obstruct
the proceedings for the collection of tax
5) Prescribe Real Property Values The Commissioner is authorized to:
(a) divide the Philippines into different zones
or areas and
(b) determine the fair market value of real
properties located in each zone or area
For tax purposes, the value of the property
shall be whichever is higher of:
(a) Fair market value as determined by the
Commissioner; or
(b) Fair market value as shown in the
schedule of values of the provincial and
city assessors.
6) 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 his gross estate
(b) a taxpayer who has filed an application to
compromise payment of tax liability by
reason of financial incapacity
The taxpayers application for compromise
shall not be considered unless he waives in
writing his privilege under RA 1405 and other

general or special laws. Such waiver shall

authorize the Commissioner to inquire into
his bank deposits.
7) Authority to Register tax agents (a) The Commissioner shall Accredit and
Register, individuals and general
professional partnerships and their rep.
who prepare and file tax returns and
other papers or who appear before the
BIR
(b) The Commissioner shall create national
and regional accreditation boards
Those who are denied accreditation may
appeal the same to the Sec. of Finance who
shall rule on the appeal within 60 days from
receipt of such appeal. Failure of the Sec. of
Finance to rule on the appeal within the said
period shall be deemed as approval for
accreditation.
8) Authority to Prescribe Additional
RequirementsThe Commissioner may prescribe the
manner of compliance with any documentary
or procedural requirement for the submission
or preparation of financial statements
accompanying tax returns.
D. Authority to delegate power (Sec. 7)
The Commissioner may delegate the powers vested
in him to subordinate officials with rank equivalent to
Division Chief or higher, subject to
limitations/restrictions imposed under the rules and
regulations EXCEPT, (the following powers shall
NOT be delegated): (RIR CoA A)
1) power to Recommend the promulgation
of rules and regulations by the Sec. of
Finance
2) power to Issue rulings of first impression
or to Reverse, revoke, modify any
existing rule of the BIR
3) power to Compromise or Abate any tax
liability
EXCEPT, the regional evaluation board
may compromise:
(a) assessments issued by regional
offices involving deficiency taxes of
P500,000 or less; and
(b) minor criminal violations as may be

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determined by the rules

Regional Evaluation Board is composed
of:

i. Regional Director as Chairman

ii. Asst. Regional Director
iii. Heads of the Legal, Assessment and
Collection Div.
iv. Revenue District Officer having
jurisdiction over the taxpayer
4) power to Assign or reassign internal
revenue officers to establishments where
articles subject to excise tax are kept
E. Assignment of Internal Revenue Officers
(Secs. 16 &17)
The Commissioner may assign/ reassign internal
revenue officers:
1) involved in excise tax functions as often as the
exigencies of revenue service may require;
provided that he shall in no case stay in his
assignment for more than 2 years (Sec. 16)
2) without change in rank and salary, to other or
special duties connected with the enforcement
and administration of internal revenue laws as
the exigencies of the service may require;
provided that officers assigned to perform
assessment or collection functions shall not
remain in the same assignment for more than 3
years; assignment of officers and employees to
special duties shall not exceed 1 year (Sec. 17)
F. Internal Revenue Districts (Sec. 9)
The Commissioner, with approval of the Sec. of
Finance, shall divide the Philippines into such
number of revenue districts for administrative
purposes. Each district shall be under the supervision
of a Revenue District Officer.
Duties of the Commissioner: (PASO)
1) To Prescribe, provide and distribute to the proper
officials the requisite licenses, internal revenue
stamps, labels, all other forms, certificates,
bonds, records, invoices, books, receipts,
instruments and appliances used in administering
laws falling within the jurisdiction of BIR
2) To Acknowledge payment of any tax under this
Code expressing
a) the amount paid and
b) the particular account for which payment
was made (Sec. 8)
3) To Submit reports to the appropriate committee
of Congress upon its request and in aid of
legislation, which information or report shall
include, but not be limited to:
(a) industry audits
(b) collection performance data
(c) status reports in criminal actions initiated
against persons
(d) taxpayers returns
provided, any return or information which can
be associated with or identifies, directly or

indirectly a particular taxpayer, shall be

furnished to the appropriate committee of
Congress only when sitting in Executive
Session, unless the taxpayer consents in
writing to such disclosure
4) Submit reports to the Oversight Committee
through the Chairman of the Committee on Ways
and Means of the Senate and House of
Representatives, on the exercise of his powers of
abatement and compromise of taxes (Sec. 204)
every 6 months of each calendar year. (Sec. 20)
NATIONAL INTERNAL REVENUE TAXES: (Sec.
21) (I VEE DOO)
1) Income tax
2) Estate and Donors tax
3) Value-Added tax
4) Other percentage tax
5) Excise tax
6) Documentary stamp tax
7) Such Other taxes as are or hereafter may be
imposed and collected by the BIR
TITLE II. TAX ON INCOME
DEFINITION OF TERMS
1) Person an individual, a trust, estate or corp.
2) Corporation include partnerships (distinguish
between ordinary and general professional
partnership)
3) General professional partnership
partnerships formed for the sole purpose of
exercising their common profession, no part of its
income being derived from engaging in any trade
or business
4) Shares of stock includes shares of stock of a
corp., warrants & options to purchase shares of
stock, as well as units of participation in a
partnership (except gen. professional
partnership), joint stock companies, joint
accounts, joint ventures taxable as corp.,
associations & recreation or amusement