Article 4p. 4

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

RA No 8424 | National Internal Revenue

Code of 1997

As amended

TITLE I ORGANIZATION AND FUNCTION OF THE

BUREAU OF INTERNAL REVENUE

(As Last Amended by RA No. 10963) [1]

SEC. 1. Title of the Code. - This Code shall be known as

the Tax Reform for Acceleration and Inclusion (TRAIN). [2]

SEC. 2. Powers and Duties of the Bureau of Internal

Revenue. - The Bureau of Internal Revenue shall be under

the supervision and control of the Department of Finance

and

its

powers

and

duties

shall

comprehend

the

assessment and collection of all national internal revenue

taxes, fees, and charges, and the enforcement of all

forfeitures,

penalties, and fines connected therewith,

including the execution of judgments in all cases decided

in its favor by the Court of Tax Appeals and the ordinary

courts. The Bureau shall give effect to and administer the

supervisory and police powers conferred to it by this Code

or other laws.

SEC.

3.

Chief

Officials

of

the

Bureau

of

Internal

Revenue. - The Bureau of Internal Revenue shall have a

chief to be known as Commissioner of Internal Revenue,

hereinafter referred to as the Commissioner, and four (4)

assistant chiefs to be known as Deputy Commissioners.

SEC. 4. Power of the Commissioner to Interpret Tax

Laws and to Decide Tax Cases. - The power to interpret

the provisions of this Code and other tax laws shall be

under

the

exclusive

and

original

jurisdiction of the

Commissioner, subject to review by the Secretary of

Finance.

The power to decide disputed assessments, refunds of

internal revenue taxes, fees or other charges, penalties

imposed in relation thereto, or other matters arising

under

this

Code

or

other

laws

or

portions thereof

administered by the Bureau of Internal Revenue is vested

in the Commissioner, subject to the exclusive appellate

jurisdiction of the Court of Tax Appeals. [3]

SEC.

5.

Power

of

the

Commissioner

to

Obtain

Information,

and

to

Summon,

Examine, and Take

Testimony of Persons. - In ascertaining the correctness

of any return, or in making a return when none has been

made, or in determining the liability of any person for any

internal revenue tax, or in collecting any such liability, or

in

evaluating

tax

compliance,

the

Commissioner

is

authorized:

(A) To examine any book, paper, record, or other data

which may be relevant or material to such inquiry;

(B) To obtain on a regular basis from any person other

than the person whose internal revenue tax liability is

subject to audit or investigation, or from any office or

officer

of

the

national

and

local

governments,

government agencies and instrumentalities, including

the Bangko Sentral ng Pilipinas and government-owned

or -controlled corporations, any information such as, but

not limited to, costs and volume of production, receipts or

sales and gross incomes of taxpayers, and the names,

addresses,

and

financial

statements

of

corporations,

mutual fund companies, insurance companies, regional

operating headquarters of multinational companies, joint

accounts, associations, joint ventures or consortia and

registered partnerships, and their members: Provided,

That the Cooperative Development Authority shall submit

to the Bureau a tax incentive report, which shall include

information on the income tax, value-added tax, and

other tax incentives availed of by cooperatives registered

and enjoying incentives under Republic Act No. 6938, as

amended:

Provided,

further,

That

the

information

submitted by the Cooperative Development Authority to

the Bureau shall be submitted to the Department of

Finance and shall be included in the database created

under Republic Act No. 10708, otherwise known as 'The

Tax

Incentives

Management

and

Transparency

Act

(TIMTA).' (as amended by RA No 10963)

(C) To summon the person liable for tax or required to file

a return, or any officer or employee of such person, or any

person having possession, custody, or care of the books of

accounts

and

other

accounting

records

containing

entries relating to the business of the person liable for tax,

or any other person, to appear before the Commissioner

or his duly authorized representative at a time and place

specified in the summons and to produce such books,

papers, records, or other data, and to give testimony;

(D) To take such testimony of the person concerned,

under oath, as may be relevant or material to such

inquiry; and

(E) To cause revenue officers and employees to make a

canvass from time to time of any revenue district or

region and inquire after and concerning all persons

therein who may be liable to pay any internal revenue tax,

and all persons owning or having the care, management

or possession of any object with respect to which a tax is

imposed.

The

provisions

of

the

foregoing

paragraphs

notwithstanding,

nothing

in

this

Section

shall

be

construed as granting the Commissioner the authority to

inquire into bank deposits other than as provided for in

Section 6(F) of this Code.

SEC.

6.

Power

of

the

Commissioner

to

Make

Assessments and Prescribe Additional Requirements

for Tax Administration and Enforcement. -

(A) Examination of Return and Determination of Tax

Due. After a return has been filed as required under the

provisions of this Code, the Commissioner or his duly

authorized representative may authorize the examination

of

any taxpayer and the assessment of the correct

amount of tax, notwithstanding any law requiring the

prior

authorization

of

any

government

agency

or

instrumentality: Provided, however, That failure to file a

return

shall

not

prevent

the

Commissioner

from

authorizing

the

examination

of

any

taxpayer. (as

amended by RA No 10963)

The tax or any deficiency tax so assessed shall be paid

upon notice and demand from the Commissioner or

from his duly authorized representative.

Any return, statement of declaration filed in any office

authorized to receive the same shall not be withdrawn:

Provided, That within three (3) years from the date of

such filing, the same may be modified, changed, or

amended: Provided, further, That no notice for audit or

investigation of such return, statement or declaration has

in the meantime been actually served upon the taxpayer.

(B) Failure to Submit Required Returns, Statements,

Reports and other Documents. - When a report required

by law as a basis for the assessment of any national

internal revenue tax shall not be forthcoming within the

time fixed by laws or rules and regulations or when there

is

reason

to

believe

that

any

such

report

is

false,

incomplete or erroneous, the Commissioner shall assess

the proper tax on the best evidence obtainable.

In case a person fails to file a required return or other

document at the time prescribed by law, or willfully or

otherwise files a false or fraudulent return or other

document, the Commissioner shall make or amend the

return

from

his

own

knowledge

and

from

such

information

as he can obtain through testimony or

otherwise,

which

shall

be

prima

facie

correct

and

sufficient for all legal purposes.

(C) Authority to Conduct Inventory-taking, Surveillance

and

to

Prescribe

Presumptive

Gross

Sales

and

Receipts. - The Commissioner may, at any time during

the taxable year, order inventory-taking of goods of any

taxpayer as a basis for determining his internal revenue

tax liabilities, or may place the business operations of any

person,

natural

or

juridical,

under

observation

or

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