MALACAŅANG
M a n i l a
PRESIDENTIAL DECREE No. 640 January 21, 1975
REVISING THE APPROVED STAFFING PATTERN OF THE BUREAU OF INTERNAL REVENUE BY CREATING NEW SERVICES AND DIVISIONS THEREIN INCLUDING AN INCREASE IN THE NUMBER OF REGIONAL OFFICES AND THE SALARIES OF ITS OFFICERS AND EMPLOYEES, REPEALING SECTIONS 2 AND 5 OF PRESIDENTIAL DECREE NO. 308 AND PARAGRAPH 14, CHAPTER I, ARTICLE II, PART IV, PARAGRAPH 2 (D), ARTICLE II, CHAPTER III, PART II OF THE INTEGRATED REORGANIZATION PLAN
WHEREAS, the reforms instituted in the Bureau of Internal Revenue has resulted in the unprecedented increase of income tax filers from 1,431.024 in 1971 to 4,257.094 in 1973 in accordance with the statistics available as of June 30, 1974;
WHEREAS, revenue collections have also increased progressively during the last three (3) fiscal years beginning with fiscal year ended June 30, 1972 from P2,793,042,015.42 to P5,553,261,563.22, during fiscal year ended June 30, 1974, or an increase of P2,760,219,547.80 which is equivalent to 99%;
WHEREAS, present conditions and recent developments necessitate changes in some features of the Integrated Reorganization Plan insofar as the Bureau of Internal Revenue is concerned to enable it to continue performing creditably its primordial function of assessment and collection of all internal revenue taxes due the Government; and
WHEREAS, the continuing rise in the cost of living conditions due to inflation have made the present salaries of revenue officers and employees unrealistic so that there is an urgent need for an increase thereof.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order:
Section 1. The approved staffing pattern of the Bureau of Internal Revenue is hereby revised by splitting the Enforcement Service into the Assessment, Specific Tax, and Collection Services, respectively, with their corresponding divisions and sections. A Revenue Inspection Service is also hereby created.
Section 2. Sections 2 and 5 of Presidential Decree No. 308 dated October 9, 1973 is amended by merging the Security and Intelligence Unit and the Tax Fraud Division to be hereinafter known as the Intelligence and Tax Fraud Office under the Office of the Commissioner of Internal Revenue to perform the same functions as delineated in the aforesaid Presidential Decree.
Section 3. There shall be seventeen (17) regions in the Bureau of Internal Revenue as an exception to paragraph 1, Article I, Chapter III, Part II of the Integrated Reorganization Plan, each with definite regional centers within the region as follows:
a. Revenue Region No. 1 is called the Ilocos Region, and comprises the provinces of Ilocos Norte, Ilocos Sur, Abra, La Union, Benguet, Mountain Province and Pangasinan, and the cities of Baguio, Laoag, Dagupan and San Carlos, with the regional center at San Fernando La Union.
b. Revenue Region No. 2 is called the Cagayan Valley Region, and comprises the provinces of Batanes, Cagayan, Isabela, Nueva Vizcaya, Quirino, Ifugao, and Kalinga-Apayao, with the regional center at Tuguegarao, Cagayan.
c. Revenue Region No. 3-A, is called the Western Central Luzon Region, and comprises the provinces of Tarlac, Zambales, Bataan, and Pampanga, and the cities of Olongapo and Angeles, with the regional center at San Fernando, Pampanga.
d. Revenue Region No. 3-B is called the Eastern Central Luzon Region, and comprises the provinces of Nueva Ecija and Bulacan and the Sub-province of Aurora, and the cities of San Jose, Cabanatuan and Palayan, with the regional center at Malolos, Bulacan.
e. Revenue Region No. 4-A is called the Manila Region and comprises the City of Manila and Puerto Princesa, and the provinces of Romblon and Palawan, with the regional center at Manila.
f. Revenue Region No. 4-B is called the Southern Central Luzon Region, and comprises the provinces of Rizal and Cavite, and the cities of Caloocan, Quezon, Pasay, Tagaytay, Trece Martires and Cavite City, with the regional center at Quezon City.
g. Revenue Region No. 4-C is called the Southern Luzon Region and comprises the provinces of Laguna, Batangas, Quezon, Marinduque, Oriental Mindoro and Occidental Mindoro, and the cities of San Pablo, Batangas, Lipa, and Lucena City, with the regional center at San Pablo City.
h. Revenue Region No. 5 is called the Bicol Region and comprises the provinces of Camarines Norte, Camarines Sur, Albay, Catanduanes, Masbate, Sorsogon and the cities of Naga, Iriga and Legaspi, with the regional center at Legaspi City.
i. Revenue Region No. 6-A is called the Panay Region and comprises the provinces of Aklan, Capiz, Antique and Iloilo, and the cities of Roxas and Iloilo City, with the regional center at Iloilo City.
j. Revenue Region No. 6-B is called the Negros Island Region and comprises the provinces of Siquijor, Negros Occidental and Negros Oriental, and the cities of Bacolod, San Carlos, Silay, Bago, La Carlota and Dumaguete, with the regional center at Bacolod City.
k. Revenue Region No. 7 is called the Central Visayas Region and comprises the provinces of Cebu and Bohol, and the cities of Cebu, Danao, Lapu-Lapu, Toledo City and Tagbilaran, with the regional center at Cebu City.
l. Revenue Region No. 8 is called the Eastern Visayas Region and comprises the provinces of Samar and Leyte, and the cities of Calbayog, Tacloban, and Ormoc with the regional center at Tacloban City.
m. Revenue Region No. 9 is called the Northwestern Mindanao Region and comprises the provinces of Zamboanga del Norte, Northern Zamboanga del Sur, Southern Zamboanga del Sur, Sulu, Basilan and Tawi-Tawi and the cities of Dapitan and Zamboanga City, with the regional center at Zamboanga City.
n. Revenue Region No. 10-A is called the Central Mindanao Region and comprises the provinces of Misamis Occidental, Lanao del Norte, Lanao del Sur, Western Oriental Misamis, Eastern Oriental Misamis, Camiguin and Bukidnon, and the cities of Ozamis, Iligan, Cagayan de Oro, and Gingoog, with the regional center at Cagayan de Oro City.
o. Revenue Region No. 10-B is called the Northeastern Mindanao Region and comprises the provinces of Agusan del Norte, Agusan del Sur, Surigao del Norte and Surigao del Sur and the City of Butuan, with the regional center at Butuan City.
p. Revenue Region No. 11-A is called the Southwestern Mindanao Region and comprises the provinces of Magindanao, Northern Cotabato, South Cotabato, and Sultan Kudarat and the city of Cotabato with the regional center at Cotabato City.
q. Revenue Region No. 11-B is called Southeastern Mindanao Region and comprises the provinces of Davao del Norte, Davao del Sur and Davao Oriental and the City of Davao with the regional center at Davao City.
Section 4. Any provision of the General Appropriations Decree (Presidential Decree No. 503 dated June 30, 1974) to the contrary notwithstanding, the annual salaries of internal revenue officers and employees shall be those stated in the Revised Staffing Pattern and List of Positions attached hereto and made an integral part thereof.
Section 5. The repeal of the provisions creating a Compromise Review Committee in the Department of Finance as contained in paragraph 14 Chapter I, Article II, Part IV, of the Integrated Reorganization Plan and vesting solely upon the Commissioner of Internal Revenue the power to compromise criminal and civil cases arising from violations of the National Internal Revenue Code.
Section 6. The authority of the regional director insofar as the Bureau of Internal Revenue is concerned as stated in paragraph 2(d), Article II, Chapter III, Part II of the Integrated Reorganization Plan is hereby amended by vesting upon the Commissioner of Internal Revenue the full authority to promote, transfer, assign, suspend, dismiss or otherwise penalize, reinstate, and appoint bureau personnel.
Section 7. Any revenue officer or employee legally appointed to any of the positions enumerated in the Revised Staffing Pattern and List of Positions shall be immediately entitled to the salary provided for said position and the position as stated in the approved appointment of the official or employee shall be used as the basis in identifying the individual positions in the Bureau of Internal Revenue. Such revenue officer or employee shall perform the functions of the position to which he is legally appointed.
Section 8. Any provision of law to the contrary notwithstanding, revenue officers and employees shall be exempt from the requirements and restrictions as well as rules and regulations pertaining to position-item classifications and salary standardization.
Section 9. Any provision of existing law, decree, rule or regulation to the contrary notwithstanding, the rates of salaries provided for in this Decree shall be given effect.
Section 10. So much amount as may be needed to implement the provisions of this Decree is hereby deemed appropriated.
Section 11. This Decree shall take effect immediately.
DONE in the City of Manila, this 21st day of January, in the year of Our Lord, nineteen hundred and seventy-five.
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