ChanRobles Virtual law Library
PHILIPPINE LAWS, STATUTES & CODES
A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library.
Home > Chan Robles Virtual Law Library > Philippine Laws, Statutes & Codes > Republic Acts :
REPUBLIC ACTS
AN ACT TO IMPROVE THE REVENUE
COLLECTION PERFORMANCE OF THE BUREAU OF INTERNAL REVENUE (BIR) AND THE
BUREAU OF CUSTOMS (BOC) THROUGH THE CREATION OF A REWARDS AND
INCENTIVES FUND AND OF A REVENUE PERFORMANCE EVALUATION BOARD AND FOR
OTHER PURPOSES. |
Section 1. Short Title. – This Act shall be known as the "Attrition Act of 2005". Sec. 2. Declaration of Policy. – It is the policy of the State to optimize the revenue-generation capability and collection of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) by providing for a system of rewards and sanctions through the creation of a Rewards and Incentives Fund and a Revenue Performance Evaluation Board in the above agencies for the purpose of encouraging their officials and employees to exceed their revenue targets. Sec. 3. Coverage. – The system of rewards, incentives and sanctions provided in this Act shall cover all officials and employees of the BIR and the BOC, regardless of employment status, with at least six months of service. Sec. 4. Rewards and Incentives Fund. – A rewards and Incentives Fund,
hereinafter referred to as the Fund, is hereby created, to be sourced
from the collection of the BIR and the BOC in excess of their
respective revenue targets of the year, as determined by the
Development Budget and Coordinating Committee (DBCC), in the following
percentages:
Excess of Collection of the Excess
the Revenue Targets
Percent
(%) of the Excess Collection to Accrue to the Fund The Fund shall be deemed automatically appropriated the year immediately following the year when the revenue collection target was exceeded and shall be released on the same fiscal year. Revenue targets shall refer to the original estimated revenue collection expected of the BIR and the BOC for a given fiscal year as stated in the Budget of Expenditures and Sources of Financing (BESF) submitted by the President to Congress. The BIR and the BOC shall submit to the DBCC the distribution of the agencies' revenue targets as allocated among its revenue districts in the case of the BIR, and the collection districts in the case of the BOC. Any incentive under this Sec. shall be apportioned among the various units, official and employees of the BOC or the BIR, as the case may be, in proportion to their relative contribution to the aggregate amount of the excess collection over the targeted amount of tax revenue to be collected by the two bureaus respectively. The fund shall be allocated, distributed or released by the Revenue Performance Evaluation Board in each agency, hereinafter created in Sec. 6 of this Act, in accordance with the rules and regulations issued by the same. Sec. 5. Incentives to District Collection Offices. – In the event that
the BIR or the BOC fails to meet its revenue target by less than ten
(10%), the revenue districts, in the case of the BIR, or the collection
districts, in the case of the BOC, which exceed their respective
allocations of the revenue target (allocated target), shall be entitled
to rewards and incentives (district incentive) amounting to ten percent
(10%) of the excess over its allocated target: Provided, however, That
the BIR revenue district or BOC collection office which deliberately
foregoes any revenue collection in a given year as part of a scheme to
avoid a higher allocated target for the subsequent year notwithstanding
its having exceeded its allocated target: Provided, further, That the
allocated target of any such district shall have been reported to and
validated by the DBCC as required in the immediately preceding Sec.. Sec. 6. Revenue Performance Evaluation Board. – There is hereby created a Revenue Performance Evaluation Board in the BIR and the BOC, hereinafter referred to as the Board, each of which shall be composed of the Secretary of the Department of finance (DOF) or his/her Undersecretary as the Chairman; the Secretary of the Department of Budget and Management (DBM) or his/her Undersecretary; the Director General of the National Economic and Development Authority (NEDA) or his/her Deputy Director General; and as nonvoting members, the Commissioners of the BIR and the BOC, or their Deputy Commissioners; two representatives from the rank-and-file employees; and a representative from the officials, both of whom shall be duly nominated by their respective recognized organization. Sec. 7. Powers and Functions of the Board. – the Board in the agency
shall have the following powers and functions: (a)
To prescribe the rules and guidelines for the allocation, distribution
and release of the fund due to the agency as provided for in Sec.s 4
and 5 of this Act: Provided, that the rewards under this Act may also
take the form of nonmonetary benefits; 1.
Where the district or area of responsibility is newly-created, not
exceeding two years in operation, as has no historical record of
collection performance that can be used as basis for evaluation; and (c) To terminate personnel in accordance with the criteria adopted in the preceding paragraph: Provided, That such decision shall be immediately executory: Provided, further, That the application of the criteria for the separation of an official or employee from service under this Act shall be without prejudice to the application of other relevant laws on accountability of public officers and employees, such as the Code of Conduct and Ethical Standards of Public Officers and Employees and the Anti-Graft and Corrupt Practices Act; (d) To prescribe a system for performance evaluation; (e) To perform such other functions as are necessary or incidental to its mandated functions, including the issuances of rules and regulations for the proper conduct of its functions; and (f) To submit as annual report to the Congress. Sec. 8. Liability of Officials, Examiners and Employees of the BIR and the BOC. – The officials, examiners, and employees of the Bureau of Internal Revenue and the Bureau of Customs who violate this Act or who are guilty of negligence, abuses or acts of malfeasance or misfeasance or fail to exercise extraordinary diligence in the performance of their duties shall be held liable for any loss or injury suffered by any business establishment or taxpayer as a result of such violation, negligence, abuse, malfeasance, misfeasance or failure to exercise extraordinary diligence. Sec. 9. Right to Appeal. – An official or employee whose employment is
terminated by virtue of the decision of the board may appeal to the
Civil Service Commission (CSC) or the Office Sec. 10. Performance Report. – The Commissioner of the BIR and the BOC
shall regularly file a report with the Board stating therein the status
of collection in their respective agencies, and in the event of a
shortfall or surplus, the source of the shortfall or surplus, the
personnel-in-charge of the unit, his/her explanation for the shortfall
or surplus and his/her recommendation as to remedial course of action
in cases of shortfall, and in the case of the year-end report the names
of officers and employees who are recommended for termination or reward. Sec. 11. Rules and Regulations. – The DOF, DBM, NEDA, BIR, BOC and CSC, shall jointly issue the rules and regulations of this Act within thirty (30) days after its effectivity. Sec. 12. Joint Congressional Oversight Committee. – There is hereby created a Joint Congressional Oversight Committee composed of seven Members from the Senate and seven Members from the House of Representatives. The Members from the Senate shall be appointed by the Senate President, with at least two senators representing the minority. The Members from the House of Representatives shall be appointed by the Speaker with at least two members representing the minority. After the Oversight Committee will have approved the implementing rules and regulations (IRR) it shall thereafter become functus officio and therefore cease to exist. Sec. 13. Separability Clause. – If any provision of this Act is declared invalid by a competent court, the remainder of this Act any provision not affected by such declaration of invalidity shall remain in force and effect. Sec. 14. Repealing Clause. – All laws, presidential decrees, executive orders, other executive issuances, rules and regulations or parts thereof, including the provisions of Sec. 285 of Republic Act. No. 8424, which are inconsistent with this Act are hereby repealed, amended or modified accordingly. Sec. 15. Effectivity. – This Act shall take effect fifteen (15) days
after its publication in at least two newspapers of general circulation. Approved: January 25, 2005 |
chanrobles virtual law library