05 TAX ADMINISTRATION
Tax Compliance
De La Salle University
TAX ADMINISTRATION
Taxation Administration is the process by which
the tax laws passed by the Legislative
Department is implemented and collected by the
Executive Department of Government that is
tasked to perform such function.
TAX AUTHORITIES
Department
of Interior and
Local Gov’t.
Department
of Finance
Bureau of
Internal
Revenue
Bureau of
Customs
Local Gov’t.
Units
BUREAU OF INTERNAL REVENUE
BIR
Commissioner
Planning and
Management
Services
Deputy
Commissioner
Operations
Project
Management
and
Implementation
Services
Deputy
Commissioner
Legal
19 Revenue Regions divided
into124 Revenue District Offices
Large Taxpayers
Services
Deputy
Commissioner
Information
Systems
Deputy
Commissioner
Resource
Management
POWERS AND DUTIES OF THE B.I.R.
•
General Powers and Duties
•
Assess and collect all National Internal Revenue Taxes
•
Enforce all forfeitures, penalties, fines connected
therewith
•
Execute judgments in all cases decided in its favor by
the courts
•
Give effect to and administer supervisory and police
powers conferred to it.
•
Recommend to the Secretary of Finance all needful
rules and regulations for the effective enforcement of
the provisions of the National Internal Revenue Code
BUREAU OF CUSTOMS
Customs
Commissioner
Deputy
Commissioner
Internal
Admininstration
Group
Deputy
Commissioner
Assessment & Ops
& Coordination
Group
Deputy
Commissioner
Revenue
Collections and
Monitoring Group
17 Collection Districts located in
Major Ports of Entry
Deputy
Commissioner
Intelligence
Group
Deputy
Commissioner
Enforcement
Group
Deputy
Commissioner
M.I.S. and
Technology
Group
POWERS AND DUTIES OF THE B.O.C.
•
Powers and Duties of the Commissioner [E.O. 127]
•
Collect customs duties, taxes; account for all
revenues
•
Exercise police authority over importations and
parties thereto of goods and all ports of entry
•
Prevent and suppress smuggling, pilferage and all
economic frauds within all ports of entry
•
Supervise, control all exports, imports; administer all
legal requirements
LOCAL GOVERNMENT UNITS
Secretary
D.I.L.G
Urbanized Cities
Mayors
Provinces
Governors
Provincial Cities
Mayors
Municipalities
Mayors
LGU
Heads
LGU
Legislative Body
LGU
Assessing Office
Local Baranggays
Captains
LGU
Treasurer’s Office
TAXING POWERS OF L.G.U.’S
•
The Local Government Code of 1991(R.A. No. 7160)
•
Section 18. Power to Generate and Apply
Resources
•
Local government units shall have the power
and authority to establish an organization that
shall be responsible for the efficient and
effective implementation of their
development plans, program, objectives and
priority.;
TAXING POWERS OF L.G.U.’S
• The Local Government Code of 1991(R.A. No. 7160)
•
Section 18. Power to Generate and Apply
Resources
•
Local government units shall have the power
and authority to create their own sources of
revenues and to levy taxes, fees, and charges
which shall accrue exclusively for their use
and disposition and which shall be retained
by them; to have a just share in national
taxes.
TAXING POWERS OF L.G.U.’S
•
The Local Government Code of 1991(R.A. No. 7160)
•
Section 128. Scope
•
The provision herein shall govern the exercise
by provinces, cities, municipalities and
barangays of their taxing and other revenue
raising powers.
TAXING POWERS OF L.G.U.’S
•
The Local Government Code of 1991(R.A. No. 7160)
•
Section 129. Power to create Sources of
Revenue
•
Each LGU has the power to create its own
sources of revenue and to levy taxes, fees,
and charges.
TAXING POWERS OF L.G.U.’S
•
The Local Government Code of 1991(R.A. No. 7160)
•
Section 132. Local Taxing Authority.
•
The power to impose a tax, fee, or charge or to
generate revenue under this Code shall be
exercised by the sanggunian of the local
government unit concerned through an
appropriate ordinance.
DISTRIBUTION OF THE POWER TO IMPOSE TAX BY
PROVINCIAL, CITY, MUNICIPAL AND BARANGAY
GOVERNMENT:
DISTRIBUTION OF THE POWER TO IMPOSE TAX BY
PROVINCIAL, CITY, MUNICIPAL AND BARANGAY
GOVERNMENT:
THE COURTS
• The Courts plays a very important part in Tax
Administration because it provides, not only a
support to, but also a check and balance to
the sweeping powers of the Tax Authorities
•
The Courts that plays direct roles in the Tax
Administration are:
•
Supreme Court
•
Court of Tax Appeals
•
Regular Courts
THE COURTS
Supreme Court
Court of
Appeals
Sandigan
Bayan
Court of Tax
Appeals
Regional Trial
Courts
Shari’a Courts
M.T.C.’s
M.C.T.C’s
Shari’a Circuit
Courts
THE SUPREME COURT
• Under Article VIII, Constitution, the judicial
power shall be vested in one Supreme Court
and in such lower courts as may be provided
by law. This power includes the duty to settle
actual controversies involving rights that are
legally demandable and enforceable and to
determine if any branch or instrumentality of
government has acted with grave abuse of
discretion amounting to lack of excess of
jurisdiction.
THE SUPREME COURT
•
In simple terms, the Supreme Court is the final
arbiter in resolving any conflict. In relation to
Tax, the Supreme Court is vested with the
power to determine whether the tax laws
enacted by the legislature or the steps taken
by the executive is valid and in accordance
with the Constitution and Law.
•
Supreme Court is both a Court of Original
Jurisdiction and Appellate Jurisdiction.
THE SUPREME COURT
Structure of the Supreme Court
Supreme Court
En Banc
Chief Justice
Supreme Court
1st Division
(3) Justices [C.J.]
Supreme Court
2nd Division
(3) Justices
Supreme Court
3rd Division
(3) Justices
Supreme Court
4th Division
(3) Justices
Supreme Court
5th Division
(3) Justices
THE COURT OF TAX APPEALS (C.T.A.)
• The C.T.A.is the court vested by law with the
exclusive appellate jurisdiction, among others,
to review on appeal, decisions of the
Commissioner of Internal Revenue and the
Commissioner of Customs in tax cases arising
from the N.I.R.C. and the Tariff and Customs
Code and other laws administered by the BIR
and the BOC.
•
C.T.A. also has jurisdiction over disputed
assessments of tax.
THE COURT OF TAX APPEALS (C.T.A.)
•
The C.T.A. is not a quasi-judicial agency but a
regular court forming part of the judiciary.
•
The C.T.A. is also an appellate court co-equal
to the Court of Appeals.
•
Decisions of the C.T.A. is appealable to the
Supreme Court
THE COURT OF TAX APPEALS
Structure of the C.T.A.
Court of Tax
Appeals En
Banc
Presiding Justice
Supreme Court
1st Division
(3) Justices [P.J.]
Supreme Court
2nd Division
(3) Justices
Supreme Court
3rd Division
(3) Justices
OTHER COURTS
•
Other courts also assist in the tax system by
providing the ancillary actions needed in the
collection of taxes that is within their original
jurisdictions.
•
Collection cases
•
Attachments/Forfeiture cases
•
Criminal cases for violation of the NIRC or Tariff and
Customs Code
•
Others…
HOW DO THEY ALL FIT IN
BIR
Assessment of
Taxes
Acceptable?
Yes
Payment of
Taxes
End of
Process
Customs
No
1
ReAssessment
Appeal of
Assessment
Reconsidered?
Yes
No
Appeal to
Commissioner
HOW DO THEY ALL FIT IN
1
BIR
Commissioner
Appeal to
Commissioner
Favorable?
Customs
Commissioner
Yes
ReAssessment
No
Payment of
Taxes
End of
Process
Protest?
No
Yes
Appeal to
C.T.A.
HOW DO THEY ALL FIT IN
Appeal to
C.T.A.
Favorable?
Yes
Execute
Order of
C.T.A.
End of
Process
No
Appeal to
Supreme
Court
Favorable?
No
End of
Process
Yes
Execute
Order of
Supreme
Court
End of
Process
END OF SECTION 02
Tax Compliance
De La Salle University