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PHILIPPINE LAWS, STATUTES & CODES
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ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 67 -
CLARIFYING THE AUTONOMOUS POWERS OF THE COMMISSIONERS OF INTERNAL
REVENUE AND CUSTOMS UNDER LETTER OF INSTRUCTIONS NO. 204, DATED JULY
24, 1974, AND EXECUTIVE ORDER NO. 39, DATED AUGUST 6, 1986, AS
REITERATED UNDER EXECUTIVE ORDER NO. 127, DATED JANUARY 30, 1987
WHEREAS, Executive Order No. 127, dated
January 30, 1987, re-organized the Ministry (now Department) of Finance;
WHEREAS, the Minister (now Secretary) of Finance has the power of
supervision and control of the Ministry (now Department) of Finance
under Sec. 6 of Executive Order No. 127;
WHEREAS, the Ministry (now Department) of Finance consists of the (a)
Ministry (now Department) Proper, (b) Operations groups and their
constituent units and (c) Regional Offices under Sec. 7 of Executive
Order No. 127;
WHEREAS, the Operations Groups include the Revenue Operations Group
consisting of the (a) Bureau of Internal Revenue, (b) Bureau of
Customs, (c) Revenue Service and (d) Legal Service under Sec. 12(a)
of Executive Order No. 127;
WHEREAS, Sec. 28 of Executive Order No. 127 provides that "Letter of
Instructions 204 which grants full authority to the Commissioner of
Internal Revenue in matters of discipline and appointment of Internal
Revenue Personnel shall remain in effect;"
WHEREAS, Letter of Instructions No. 204, dated July 24, 1974,
authorized the Commissioner of Internal Revenue "to utilize the entire
tax enforcement including of the Government in . . . preventing
officials and employees of the Bureau of Internal Revenue from
backsliding or from otherwise committing or engaging in acts inimical
to the service and/or the New Society" and "enforcing complete and
absolute discipline among bureau officials and employees with the full
authority to promote, transfer, assign, suspend, dismiss or otherwise
penalize, reinstate, and appoint bureau personnel," as well as to
"apply upon any backsliding or erring official or employee of the
Bureau the full force of the laws, including, if warranted,
recommendation for their arrest or detention;"
WHEREAS, Sec. 33 of Executive Order No. 127 provides that "Executive
Order No. 39 dated 6 August 1986 which grants autonomy to the
Commissioner of Customs in matters of appointment and discipline of
customs personnel shall remain in effect;"
WHEREAS, Executive Order No. 39, dated August 6, 1986, authorized the
Commissioner of Customs "(a) to appoint all Bureau personnel, except
those appointed by the President; (b) to discipline, suspend, dismiss
or otherwise penalize erring Bureau officers and employees; (c) to act
on all matters pertaining to promotion, transfer, detail, reassignment,
reinstatement, reemployment and other personnel action, involving
officers and employees of the Bureau of Customs;"
WHEREAS, Sec. 79(C) of the Revised Administrative Code provides that
"The Department Head shall have direct control, direction and
supervision over all bureaus and offices under his jurisdiction and
may, any provision of existing law to the contrary notwithstanding,
repeal or modify the decisions of the chief of said bureau or offices
when advisable in public interest;"
WHEREAS, Sec. 37 of Act No. 4007 provides that "The provisions of
the existing law to the contrary notwithstanding, whenever a specific
power, authority, duty, function, or activity is entrusted to a chief
of bureau, office, division or service, the same shall be understood as
also conferred upon the proper Department Head who shall have authority
to act directly in pursuance thereof, or to review, modify, or revoke
any decision or action of said chief of bureau, office, division or
service;"
WHEREAS, Sec. 550 of the Revised Administrative Code provides that
it shall be the "duty" of chiefs of bureaus or offices, "under the
immediate executive control, direction, and supervision of the proper
Department Head, to exercise general authority in all matters embraced
within the jurisdiction of the bureau or relating to the operation
thereof and to see to the enforcement of all laws and regulations
pertaining to it;"
WHEREAS, well-settled jurisprudence affirms that the "power of control
of department heads includes the authority to modify, nullify or set
aside the acts of their subordinate officials, and to substitute the
judgment or discretion of the former for that of the latter, as well as
the right to act in lieu of the aforementioned subordinate officials"
(Province of Pangasinan vs. Secretary of Public Works and
Communications, L-27861, Oct. 31, 1969, 30 SCRA 134, 139, and cases
cited);
WHEREAS, well-defined jurisprudence asserts that "The Department Head
can even directly exercise the powers of the chief of the bureau or
office under him pursuant to Sec. 37, Act 4007" (Sichangco vs. Board
of Commissioners of Immigration, L-23545, Nov. 7, 1979, 94 SCRA 61,
68), including powers specifically granted by law to the bureau or
office (Province of Pangasinan vs. Secretary of Public Works and
Communications, supra);
WHEREAS, it is necessary to clarify the autonomous powers of the
Commissioners of Internal Revenue and Customs under Letter of
Instructions No. 204 and Executive Order No. 39 within the functional
and structural organization of the Department of Finance under
Executive Order No. 127; and
WHEREAS, "administrative acts and commands of the President touching on
the organization or mode of operation of the Government . . . or
governing the general performance of duties by public employees" shall
be made effective in executive or administrative orders under
Memorandum Order No. 1, dated January 7, 1958, as amended, governing
general matters of procedure in the Office of the President (proper),
in relation to Sec. 63 of the Revised Administrative Code;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order the
Commissioners of Internal Revenue and Customs to exercise their powers
under Letter of Instructions No. 204, dated July 24, 1974, and
Executive Order No. 39, dated August 6, 1986, upon prior consultation
with and prior clearance from the Secretary of Finance within the
functional and structural organization prescribed under Executive Order
No. 127, dated January 30, 1987.
The prerogative of the President on the appointment and discipline of
Presidential appointees is hereby reserved for the Presidency.
This Administrative Order shall take effect immediately.
Done in the City of Manila,
this 13th day of April, in the year of Our Lord, nineteen hundred and
eighty-eight.
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