Department of Finance

• The Department of Finance(DOF) is the government’s steward of sound fiscal policy. It formulates revenue policies that will ensure funding of critical government programs that promote welfare among our people and accelerate economic growth and stability. The Department envisions that the effective and efficient pursuit of the critical tasks under its wings – revenue generation, resource mobilization, debt management and financial market development – shall provide the solid foundation for a Philippine economy that is one of the most active and dynamic in the world.

Mission

• Formulation, institutionalization and administration of sound fiscal policies;

• Improvement of tax collection efficiency;• Mobilization of adequate resources on most

advantegeous terms to meet budgetary requirements;

• Sound management of public sector debt; and• Initiation and implementation of structural and

policy reforms.

Vision

• A strong economy with stable prices and strong growth;

• A stable fiscal situation with adequate resources for government projects and budgetary which could be adequately financed;

• A borrowing program that is able to avoid the crowding-out effect on the private sector, and minimizes costs;

• A public sector debt profile with long maturities and an optimum mix of currencies that minimizes the impact of currency movements;

• A strong economic growth with equity and productivity

Mandate

• Under Executive Orders 127, 127-A and 292, the Department of Finance is responsible for the following:• Formulation, institutionalization and administration of fiscal

policies in coordination with other concerned subdivisions, agencies and instrumentalities of the government;

• Generation and management of the financial resources of government;

• supervision of the revenue operations of all local government units;

• Review, approval and management of all public sector debt, domestic or foreign; and

• Rationalization, privatization and public accountability of corporations and assets owned, controlled or acquired by the government.

• January to July Fiscal Deficit at P43.713 Billion• The January to July fiscal deficit of the National

Government reached 43.713 billion. The National Government registered a deficit in July amounting to P26.482 billion.

Structure of DOF• OFFICE OF THE SECRETARY

• CORPORATE AFFAIRS GROUP• Corporate Operations Office

• DOMESTIC FINANCE GROUP AND LEGISLATIVE LIAISON• Fiscal Policy And Planning Office • Reseach And Information Office

• MUNICIPAL DEVELOPMENT FUND OFFICE

• INTERNATIONAL FINANCE GROUP• International Finance Operations Office • International Finance Policy Office

• POLICY DEVELOPMENT & MGT SERVICES GROUP• Central Adminstration Office • Central Financial Management Office • CMIO – Information Systems Development Operations Division

• PRIVATIZATION AND OFFICE OF SPECIAL CONCERNS

• Privatization Office

• REVENUE OPERATIONS GROUP

• Revenue Office

• Mabuhay Lane

• One-stop-shop Tax Credit And Duty Drawback Center

• Legal Affairs Office

• REVENUE INTEGRITY PROTECTION SERVICE

Bureau of Customs

History

• Act No. 355 (February 6, 1902), “The Philippine Customs Administrative Act”, created the customs service of the Philippines to collect all revenues warranted by law.

• Executive Order No. 127 (January 30, 1987) reorganized/expanded the organization of the Bureau of Customs (BOC)-Central Office by providing units to monitor and coordinate assessment and operations of the Bureau.

• Executive Order No. 463 (January 9, 1998) created the Management Information System and Technology Group (MISTG) to ensure the implementation of the BOC’s computerization program.

• Republic Act No. 9335 (January 25, 2005), otherwise known as the Attrition Act of 2005, provided for a system of rewards and sanctions to enhance revenue performance through the creation of a Rewards and Incentives Fund and a Revenue Performance Evaluation Board within the Bureau of Internal Revenue and the BOC.

Vision

• A customs service more responsive to clients’ needs and supportive of government goals, adhering to world’s best practices; one that every Filipino can be truly proud of.

 

Mission

The Bureau of Customs, an office under the Department of Finance, is tasked primarily to perform the following functions:

• Assess and collect lawful revenues from imported articles and all other dues, fees, charges, fines and penalties accruing under the Tariff and Customs Laws;

• Prevent and suppress smuggling and frauds upon the Customs;

•  Supervise and control the entrance and clearance of vessels and aircraft engaged in foreign trade;

• Enforcement of Tariff and Customs Laws and all other laws, rules and regulations relating to tariff and customs administration;

 

• Supervision and control over the handling of foreign mail arriving in the Philippines, for the purpose of collecting lawful duty on the dutiable articles thus imported and prevent smuggling through the medium of such mails;

• Supervise and control all import and export cargoes landed or stored in piers, terminal facilities, including container yards and freight stations; and

• Exercise exclusive jurisdiction over seizure and forfeiture cases under the Tariff and Customs laws.

Mandate

• Prevent smuggling and other frauds

• Control vessels/aircrafts doing foreign trade

• Enforce tariff and customs laws

• Control the handling of foreign mails for revenues and prevention purposes

• Control import and export cargoes

• Jurisdiction over forfeiture and seizure cases

• The Philippine Customs is the largest collector of revenue after the Bureau of Internal Revenue.

• Collection equals to close to 19% of the national government’s revenue

Bureau of Internal Revenue

Mission

• The Bureau of Internal Revenue is committed to collect taxes for nation-building through excellent, efficient and transparent service, just and fair enforcement of tax laws, uplifting the life of every Filipino.

Vission

• The Bureau of Internal Revenue is an institution of service excellence, a partner in nation-building, manned by globally competitive professionals with integrity and patriotism.

Functions

• The powers and duties of the Bureau of Internal Revenue are:

• Assessment and collection of all internal revenue taxes, fees and charges; and

• 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;

• It shall also give effect to and administer supervisory and police powers conferred to it by the National Internal Revenue Code and special laws.

History

• Created on August 1, 1904 by Act No. 1189 of the Philippine Commission with only 69 officials and employees, the Bureau of Internal Revenue has remarkably grown through the years. JNO S. Ford was the first Collector of Internal Revenue. He was the bureau's steward for three years (1903-1907). He was succeeded by Ellis Cromwell (1909-1912), William T. Nolting (1912-1914) and James J. Rafferty (1914-1918). Rafferty was the last American collector of the Bureau. Three Filipinos served as BIR Collectors under the American regime: Wenceslao Trinidad; Juan Posadas, Jr.; and Alfredo L. Yatco.

• The filipinization of the BIR started with Bibiano L. Meer, the 8th and 10th Collector (January 3, 1939-December 31, 1941; June 28, 1946-October 4, 1950). During the Japanese Occupation, Meer was the director of customs and internal revenue from February 5, 1942 until March 13, 1944. After the Liberation, he was replaced by Jose Leido, Sr. Leido was succeeded by Meer, who became collector for the second time.

• Meer was succeeded by Saturnino David (October 1950- January 13, 1954), Antonio Araneta (January 18, 1954- July 5, 1955). In 1957, the position of collector was changed to commissioner.

• Lilian Hefti, was head of the BIR who assumed office on September, 2007, but resigned on October, 2008, for health reasons.[1][2] On October 20, 2008, she was replaced by Sixto Esquivias, who served as deputy commissioner.[3]

• The Bureau currently has more than 75 BIR Forms[4] and tax classification for different professionals and businesses.

Mandate

• Assessment and collection of all national internal revenue taxes, fees and charges.

• Enforcement of all forfeitures, penalties, fines and execution of judgments in all cases decided in its favor by the Court of Tax Appeals and the ordinary courts

• Administer supervisory and police powers conferred by National Internal Revenue Code as amended by R.A. 8424 or other laws.

• In late September 2010, the Philippines was removed from the OECD tax haven grey list

• In October 2010, the Philippines signed the first Capacity-Building Partnership Agreement with the IMF and the MCC to help reform tax administration

• Several tax evasion, smuggling and corruption cases have already been filed

Fiscal PerformanceJanuary to June 2011 (In Billion Pesos)

National Government RevenuesJanuary to July 2011 (In Billion Pesos)

National Government ExpendituresJanuary-July 2011 (In Billion Pesos)