TMAP Spearheads Opposition to Administrative Order 263

In a letter dated June 26, 2009, TMAP, together with PCCI, FINEX and PICPA, asked President Gloria Macapagal-Arroyo to withdraw Administrative Order (AO) No. 263 as it unduly expands the authority of the Presidential Adviser on Revenue Enhancement (PARE), by authorizing the latter to investigate tax cases and initiate the filing of appropriate action against large taxpayers who may be liable for tax laws and regulations violations.

TMAP, PCCI, FINEX and PICPA maintain that the Commissioner of Internal Revenue has adequate and sufficient authority to enforce tax collection. Hence, the expansion of the PARE’s authority is superfluous. Moreover, Section 20 of the Tax Code is clear that no civil or criminal action for the recovery of taxes or the enforcement of any fine, penalty or forfeiture under the Tax Code shall be filed in court without the approval of the Commissioner. Thus, PARE has no authority to initiate actions against large taxpayers. Accordingly, exposing large taxpayers to double investigation (first by the BIR, then by PARE) would not only result to “redundancy”, but can also disrupt operations of business enterprises operations and hurt their “bottom line”, which is counterproductive in these times of bleak economic conditions.

Finally, the business associations expressed their misgivings on the unwarranted powers granted to the PARE, which may compromise the integrity of the BIR as an institution. Consequently, TMAP, together with the mentioned business groups, is urgently appealing for the cancellation and withdrawal of AO No. 263.