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The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
The Bureau of Internal Revenue shall be under the supervision and control of the Department of Finance and its powers and duties shall comprehend the assessment and collection of all national internal revenue taxes, fees, and charges, and the enforcement of all forfeitures, penalties, and fines connected therewith, including the execution of judgments in all cases decided in its favor by the Court of Tax Appeals and the ordinary courts. The Bureau shall give effect to and administer the supervisory and police powers conferred to it by the Tax Code or other laws. (Section 2 of National Internal Revenue [NIRC], Powers and Duties of the BIR)
Taxes are the lifeblood of the government and so should be collected without unnecessary hindrance. However, such collection should be made in accordance with the law as any arbitrariness will negate the very reason for the government itself (Commissioner of Internal Revenue v. Metro Star Superama, Inc., G.R. No. 185371, December 8, 2010).
Therefore, the Bureau of Internal Revenue (BIR) plays an important role in the tax administration being implemented by the government’s executive branch. The general functions of BIR are embodied under Section 2 of the NIRC. It includes the assessment and collection of all kinds of national internal revenue taxes, fees, and charges as well as the enforcement of forfeitures, penalties, and fines connected therewith.
By definition, an assessment is simply the statement of the details and the amount of tax due from a taxpayer (Commissioner of Internal Revenue vs. Pascor Realty and Development Corporation, G.R. No. 128315, June 29, 1999). An assessment contains not only a computation of tax liabilities, but also a demand for payment within a prescribed period. The ultimate purpose of assessment is to ascertain the amount that each taxpayer is to pay. An assessment is a notice to the effect that the amount therein stated is due as tax and a demand for payment thereof (Petronila C. Tupaz v. Honorable Benedicto Ulep, G.R. No. 127777, October 1999). Meanwhile, collection refers to the act of collecting tax liability.
Specific Functions of the BIR
Aside from the general functions to collect and assess tax, the BIR through the Commissioner of Internal Revenue exercises various specific roles, to wit:
- Interpret tax laws and decide cases (Section 4, NIRC);
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Obtain information, and summon, examine, and take testimony of persons (Section 5, NIRC);
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Make assessments and prescribe additional requirements for tax administration and enforcement (Section 6, NIRC);
– Examination of tax returns and determination of tax due (Section 6[a], NIRC, and Republic Act No. 10963)
– Authority to conduct inventory-taking, surveillance, and to prescribe presumptive gross sales and receipts (Section 6[c], NIRC)
– Authority to terminate taxable period (Section 6[d], NIRC)
– Prescribe real property value (Section 6[e], NIRC)
– Inquire into bank deposits and other related information held by the financial institutions (Section 6[f], NIRC)
– Accredit tax agents (Section 6[g], NIRC)
– Prescribe procedural and documentary requirements (Section 6[h], NIRC)
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Delegate powers (Section 7, NIRC); and,
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Ensure the Provision and Distribution of Forms, Receipts, Certificates, and Appliances, and the Acknowledgment of Payment of Taxes (Section 8, NIRC).
Read also: Taxpayer’s remedies against assessment and collection by BIR
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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