Taxations

• WHAT IS TAXATION? typically used by the government to impose a financial obligation on its citizens. This is to provide necessary resources for the government and support its legitimate expenses.
• Contador de' Resultas


  Chief Royal Accountant and Chief Arbitrator, with final decisions on financial matters, similar to the Commissioner of Internal Revenue
• Taxes in the Spanish era

  • Head tax
  • Tax on jewelry
  • Indirect taxes on items like tobacco and wine
• The Spanish treasury subsidized the Philippines annually due to the poor revenue collection system, totaling P 250,000.00 from 1521 to 1821
• First civil government established under William H. Taft


  1902
• Bureau of Internal Revenue (BIR) created under Luke E. Wright


  1904
• BIR formally organized under Secretary of Finance, Henry Ide, with John S. Hord as the first Collector


  August 1, 1904
• First organization had 69 employees, including Collector, Vice-Collector, Chief Clerk, Law Clerk, Records Clerk, and Division Chiefs
• First reorganization under Collector Holting, creating eight divisions


  1913
• Filipino Collectors

  • Wenceslao Trinidad (1918-1922)
  • Juan Posadas, Jr. (1922-1934)
  • Alfredo Yatao (1934-1938)
• Act No. 299 abolished Real Estate, License, and Cash Divisions, leaving five divisions


  May 1921
• Minor changes and creation of Miscellaneous Tax Division in 1939, but overall organization remained the same from 1921 to 1941
• Regulation No. 95 reorganized Provincial Inspection Districts, maintaining Internal Revenue Office in each province supervised by a Provincial Agent


  1937
• Japanese Era (1942-1945)

  1. Bureau of Internal Revenue merged with Customs Office

  2. Combined entity led by Director of Customs and Internal Revenue
• Bureau re-established after Philippines gained independence

  July 4, 1946
• Postwar Era

  1. Reorganization under Executive Order No. 94 (October 1, 1947)

  2. Major reorganization through Revenue Memorandum Order (RMO) No. 41 (March 1, 1954)

  3. First 2 Regional Offices created in Cebu and Davao (July 20, 1955)

  4. Position title changed from Collector to Commissioner (January 1957)

  5. Tax Census Division and Tax Census Unit established (1958)

  6. RA No. 233 (Rewards Law) passed (June 19, 1959)

  7. Philippines re-divided into 15 regions and 72 inspection districts (1964)
• Revenue Information Systems Services Inc. (RISSI) abolished and transferred back to BIR


  1988
• Transfer affected Bureau's computerization requirements for tax assessment and collection functions
• EO No. 430 passed for further streamlining of BIR to support the Integrated Tax System


  July 1997
• Highlights of EO No. 430

  • Creation of Legal and Enforcement Group (headed by Deputy Commissioner)
  • Creation of Internal Affairs Service
  • Creation of Taxpayers Assistance Service
  • Creation of Information Planning and Quality Service
  • Creation of Revenue Data Centers
• Operation: Walang Lagay


  Launched to promote the efficient and honest collection of taxes
• Bureau reorganization on January 30, 1987


  1. Under Executive Order No. 127

  2. Two major functional groups created: Assessment and Collection Group, Legal and Internal Administration Group
• Value-added tax (VAT)

  Adopted in 1988 as part of the 1986 Tax Reform Program to simplify tax administration and make the tax system more equitable
• Revenue Information Systems Services Inc. (RISSI) was abolished and transferred back to the BIR in 1988
• The transfer of RISSI had implications on the delivery of the computerization requirements of the Bureau in relation to its functions of tax assessment and collection
• Tax Administration Program

  • Embodiment of the Bureau's mission to improve tax collection and simplify tax administration
  • Contained several tax reform and enhancement measures including the use of the Taxpayer Identification Number (TIN) and the adoption of the New Payment Control System and Simplified Net Income Taxation Scheme
• The Tax Administration Program was introduced by Commissioner Jose Ong in 1989
• RAMOS ADMINISTRATION Further streamlining of the BIR was approved on July 1997 through the passage of EO No.430, in order to support the implementation of the computerized Integrated Tax System. Highlights of the said EO included the: 1) creation of a fourth Revenue Group in the BIR, which is the Legal and Enforcement Group (headed by a Deputy Commissioner); and 2) creation of the Internal Affairs Service, Taxpayers Assistance Service, Information Planning and Quality Service and the Revenue Data Centers.
• RAMOS ADMINISTRATION Further streamlining of the BIR was approved on July 1997 through the passage of EO No.430, in order to support the implementation of the computerized Integrated Tax System. Highlights of the said EO included the: 1) creation of a fourth Revenue Group in the BIR, which is the Legal and Enforcement Group (headed by a Deputy Commissioner); and 2) creation of the Internal Affairs Service, Taxpayers Assistance Service, Information Planning and Quality Service and the Revenue Data Centers
• Taxation

  Imposed by the government as a financial obligation on its citizens
• Purpose of taxation

  To provide necessary resources for the government and support its legitimate expenses
• Taxation is the life and blood of the society
• Spanish Era

  17th and 18th Centuries
• Contador de' Resultas

  The Chief Royal Accountant and Chief Arbitrator, with final decision on financial matters, similar to the Commissioner of Internal Revenue
• Taxes in Spanish Era

  • Head tax
  • Tax on jewelry
  • Indirect taxes on items like tobacco and wine
• The Spanish treasury subsidized the Philippines annually due to the poor revenue collection system, totaling P 250,000.00 from 1521 to 1821
• First Civil Government under William H. Taft

  1902
• Bureau of Internal Revenue (BIR) under Luke E. Wright


  1904
• BIR organized

  August 1, 1904
• First BIR Organization

  Collector, Vice-collector, Chief Clerk, Records Clerk and Division Chiefs, 69 employees