The Bir: Atty. Richard M. Fulleros, Cpa, Mba
The Bir: Atty. Richard M. Fulleros, Cpa, Mba
The Bir: Atty. Richard M. Fulleros, Cpa, Mba
The BIR is an administrative agency which is involved in the administration and collection
of national taxes. It is under the supervision and control of the Department of Finance. Its
powers are:
1. Assessment and collection of all national internal revenue taxes
2. Enforcement of all forfeitures, penalties and fines
3. Execution of judgments in all cases decided in its favor by the courts
4. Give effect and administer the supervisory and police powers conferred to it.
INTERNAL REVENUE TAXES
• Income tax
• Estate and donors tax
• Value added tax
• Other percentage taxes
• Excise taxes
• Documentary stamp taxes
• Other taxes
POWER TO INTERPRET TAX LAWS
• The power to interpret the provisions of the NIRC is vested in the BIR. The Secretary of
Justice cannot issue a ruling on any case with respect to the interpretation of tax laws. It
also has the power to settle disputed assessments, refunds of internal revenue, taxes, fees
or other charges, penalties imposed in relation thereto.
POWER TO EXAMINE BOOKS AND ACCOUNTING
RECORDS TO OBTAIN INFORMATION
• The BIR has the power to examine books, papers, records and other data which may be
relevant to such inquiry.
• Obtain on a regular basis information from any person or organization
• Summon the persons liable for tax or required to file a return
• Take testimony of persons concerned under oath
• Cause the revenue officers to obtain canvass of any revenue district office
POWER TO MAKE ASSESSMENTS
• All deposits of whatever nature with banks or bank institutions shall be considered as
absolutely confidential (RA 1405, Bank Secrecy Act). However, an exception to this is
when the BIR Commissioner requests for inquiry on bank deposits based on the
following grounds:
1. Determination of the gross estate of the decedent
2. When the taxpayer applies for a compromise of his tax liability by reason of financial
incapacity.
AUTHORITY OF THE BIR TO COMPROMISE
TAXES
Compromise - is a contract whereby the parties by reciprocal concessions avoid litigation
or put an end to one already commenced. The BIR may compromise tax based on the
following grounds:
1. Reasonable doubt as to the validity of the claim against the taxpayer exists.
2. Financial position of the taxpayer demonstrates clear inability to pay the tax
REFUND OF CREDIT OF TAXES
Tax credit (TC) is a claim for issuance of a tax credit certificate, showing an amount owing
from the government to the taxpayer.
Refund is a laim for the payment of cash for taxes erroneously or illegally paid.
The Commissioner of BIR may credit or refund taxes erroneously or illegally received or
penalties imposed without authority.
REFUNDS OR TAX CREDITS OF INPUT TAX
• In proper cases, the Commissioner of the BIR shall grant a refund or issue the tax credit
certificate for creditable input taxes within 120 days from the date of submission of
complete documents in support of the application for the refund or tax credit.