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.

• Number: Presidential Decree No. 640
• Sections: 12

Preamble

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

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

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.

Section 3

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.

Section 4

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.

Section 5

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.

Section 6

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.

Section 7

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.

Section 8

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.

Section 9

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.

Section 10

SEC. 10. So much amount as may be needed to implement

the provisions of this Decree is hereby deemed appropriated.

Section 11

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