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 3973 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.
SEC. 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.
SEC. 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:
Revenue Region No. 1 is called the Ilocos Region, and
comprises the provinces of Ilocos Norte, Ilocos Sur, Abrar La Union,
Benguet, Mountain Province and Pangasinan, and the cities of Baguio,
Laoang, Dagupan and San Carlos, with the regional center at San
Fernando, La Union.
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.
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.
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
Palawan, with the regional center at Malolos, Bulacan.
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.
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.
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.
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.
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.
Revenue Region No. 6-B is called the Negros Island Region and
comprises the provinces if 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.
Revenue Region No. 7 is called the Central Visayas Region and
comprises the privinces of Cebu and Bohol, and the cities of Cebu,
Danao, Lapu-Lapu, Toledo City and Tagbilaran, with the regional center
at Cebu City.
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.
Revenue Region No. 9 is called the North-western 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.
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 cities of Ozamis, Iligan, Cagayan de Oro, and
Gingoog, with the regional center at Cagayan de Oro City.
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.
Revenue Region No. 11-A is called the Southwestern Mindanao
Region and comprise the provinces of Maguindanao, Northern Cotabato,
South Cotabato, and Sultan Kudarat and the city of Cotabato with the
regional center at Cotabato City.
Revenue Region No. 11-B is called the 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.
SEC. 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 hereof.
SEC. 5. The repeal of the provisions creating a
Compromise Review Committee in the Department of Finance as continued 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 10. So much amount as may be needed to implement
the provisions of this Decree is hereby deemed appropriated.
SEC. 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.
(Sgd.)
FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.)
ROBERTO V. REYES
Acting Executive Secretary
