DOF REVIEW OF CIR's ADVERSE RULINGS
All rulings and issuances of the Commissioner of Internal Revenue that pertain to the implementation and interpretation of the Tax Code of 1997 and other tax laws are valid. However, the Secretary of Finance has the power to affirm, revise, modify or set aside rulings and issuances of the Bureau of Internal Revenue (BIR) concerning such implementation and application of the provisions of the Tax Code of 1997 and other tax laws.
The exercise of such power under Section 4 of the Tax Code of 1997, however, does not cover disputed assessments, refunds of internal revenue taxes, fees or other charges, and penalties imposed in relation thereto, or other matters arising under the Tax Code or other laws or portions thereof administered by the BIR. In these instances, the Court of Tax Appeals has the exclusive appellate jurisdiction pursuant to the second paragraph of the same Section 4.
Neither shall the power be exercised to apply to rulings that are deemed void ab initio because they contradict duly issued Revenue Regulations, Revenue memorandum Orders, Revenue Memorandum Rulings, and Revenue Memorandum Circulars.
It is important to note that only the final adverse decision of the Commissioner may be brought to the Department of Finance (DOF) for review. These rulings, therefore, refer to those issued by the Commissioner, or by the Deputy Commissioner for Legal and Inspection Group, Assistant Commissioner for Legal Service, or by the Regional Directors, as may be appropriate according to each one's delegated authority under pertinent issuances.
For this purpose, the requesting taxpayer shall pay a certification in the amount of ten pesos (P10.00) for every page of the complete records on file that shall be reproduced and certified to be a true and authentic copy thereof. Any and all amounts paid as certification fee are non-refundable and shall be forfeited in case the taxpayer finally decides not to seek a review by the Secretary of Finance.
Notwithstanding, the Secretary of Finance may review motu proprio the rulings and issuances of the Bureau of Internal Revenue concerning such implemetation and application of the provisions of the Tax Code of 1997 and other tax laws.
What this is For:
No specific BIR numbered form shall be used. The duplicate copy of the records on file with the BIR pertaining to the taxpayer's request will need to be authenticated and certified by the BIR.
How to File:
o Computer security and building monitoring and maintenance systems (e.g. computer firewalls, encryption technology, fluctuation controls, etc).
Other Documentary Requirements:
1. Within 30 days from receipt of an adverse ruling by the Commissioner, the taxpayer may seek the DOF Secretary's review. Administrative remedies must be exhausted in the case of rulings by delegates, e.g., adverse rulings of Regional Director are subject to review by the Assistant Commissioner (ACIR) for Legal Service and by the Deputy Commissioner (DCIR) for Legal and Inspection Group.
2. File with the Office of the Commissioner, for endorsement to the ACIR-Legal Service (ACIR-LS), a copy of the request for review of the Ruling.
3. Request from the ACIR-LS for an authenticated and certified true copy of the complete docket or records on file.
4. Pay the certification fee to the authorized agent bank having jurisdiction over the taxpayer or the place of business of the taxpayer, using Payment Form 0605.
5. Present to the ACIR-LS the original copy of the official receipt that evidences payment of the certification fee, and submit a photocopy thereof to form part of the docket or records of the case.
6. Within 5 days from the payment of the fee, true copies of the records of the case shall be prepared and authenticated by the ACIR-LS.
7. The ACIR-LS shall, under authority of the Commissioner, sign the endorsement letter to the DOF, submitting to the Commissioner a monthly report of all such endorsements made, copy furnished the DCIR for Legal and Inspection Group.
8. The authenticated and certified true copy of the docket or records of the case, including the endorsement thereof to the Secretary of Finance, through the BIR Operations Group, shall be released to the holder of the original copy of the official receipt evidencing payment of the certification fee.
A taxpayer who receives an adverse ruling from the Commissioner may, within 30 days from the date of receipt of such ruling, seek its review by the Secretary of Finance, either by himself/itself or through his/its duly accredited tax agent or representative. The request for review shall be in writing and under oath, and must comply with the conditions stated in Revenue Administrative Order No. 3-2001 dated October 22, 2001.
Codal Reference.
First paragraph of Section 4, tax Code of 1997
Related Revenue Issuances and Other Issuances.
DOF Department Order No. 23-01 - (Implementing rules of the first paragraph of Section 4 of the Tax Code of 1997)
Revenue Memorandum Circular (RMC) No. 44-2001 - (Circularizing Department Order No. 23-01)
Revenue Administrative Order No. 2-2001 - (Implementing the provisions of Department Order No. 23-01)
Revenue Administrative Order No. 3-2001 - (Implementing further Department Order No. 23-01)
Other Matters.
Department Order No. 23-01 repealed Department Order No. 005-99 and Revenue Administrative Order No. 1-99.