DBM rejects BIR’s reorganization plan

The Department of Budget and Management (DBM) rejected the request of the Bureau of Internal Revenue (BIR) chief to implement reorganization in the government’s main tax agency.

In a letter to BIR Commissioner Caesar Dulay, Budget Secretary Benjamin E. Diokno said the bureau has to keep checks and balances in place within the agency and to further strengthen its anti-corruption program as main reasons for foregoing reorganization.

Dulay had requested DBM approval to transfer the Internal Affairs Service (IAS) from the Office of the Deputy Commissioner for Legal Group to the Office of the Commissioner.

Diokno said it is "more prudent and appropriate" to retain the current organizational arrangement under the Office of the Deputy Commissioner for Legal Group.

Dulay’s reorganization request was made around the same time that the BIR had been dealing with high-profile tax evasion cases involving one food manufacturer and a homegrown cigarette company.

Under the present set-up, the Deputy Commissioner for Legal Group oversees the conduct of preliminary investigation, hearing of administrative cases, and recommending courses of action for the approval of the Commissioner.

For his part, Diokno pointed out: "There are enormous tasks, which, when transferred to the Office of the Commissioner, may unduly burden the Commissioner of the responsibility of direct supervision over the IAS.."

"Moreover, the Larger Taxpayers Service, whose functions include the development of policies/standards/ guidelines, as well as enforcement of internal revenue laws and regulations involving large taxpayers, already reports directly to the Commissioner, thus posing considerable demand on executive time,” Diokno added.

As for the proposed integration of the functions of the Performance Evaluation Division (PED) with the IAS, Diokno likewise pointed out that the two units are “distinct.”

He said the PED monitors organizational performance, while IAS deals with erring personnel and how to effectively contain and minimize corruption among the ranks.

"It is, therefore, not pragmatic to subsume PED under the IAS,” Diokno said.

"We recognize the need to facilitate the resolution of cases against officials and employees of the BIR and to strengthen its anti-corruption program,” he said.

President Rodrigo Duterte earlier tagged the BIR, the Bureau of Customs, and the Land Transportation Office as the most corrupt agencies in the government.

Based on a survey done by Social Weather Stations in October last year, BIR’s sincerity rating in fighting corruption was “poor” with a score of -27, while BoC rated -68 or “very bad” and LTO’s sincerity rating was -47 or “bad.”

Other government agencies with “poor” sincerity ratings were the House of Representatives with -28, the Department of Transportation with -25, the Department of Public Works and Highways with -22 and the Philippine National Police with -13.