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									                        REPUBLIC OF THE PHILIPPINES
                          DEPARTMENT OF FINANCE
                       BUREAU OF INTERNAL REVENUE

                                                         June 1, 1998


                  REVENUE MEMORANDUM ORDER NO. 50-98

SUBJECT       :      Implementing the Updated Code of Conduct for Bureau of
                     Internal Revenue Officers and Employees

TO            :      All Internal Revenue Officers, Employees and Others
Concerned


       This updated Code of Conduct for Bureau of Internal Revenue Officers
and Employees (Annex A) is intended to promote and implement the
Constitutional mandate that public office is a public trust and that public officers
and employees must at all times be accountable to the people, serve them with
utmost responsibility, integrity, loyalty and efficiency, act with patriotism and lead
modest lives (Section 1, Article XI, 1987 – Constitution of the Republic of the
Philippines).

       It is mandated that each and every Revenue Officer and Employee should
read thoroughly and imbibe the provisions of this Code of Conduct and at the
same time show with compliance herewith.

      It is to be stressed that this Code of Conduct is set of rules that every
Revenue Officer and Employee must keep and possess for his/her information
and guidance to attain efficient performance.

       This Order which takes effect immediately supersedes the Code of
Conduct for Bureau of Internal Revenue Employees issued in 1987 (RMO 16-87)
as well as other issuances inconsistent herewith.



                                                 (Original Signed)
                                            LIWAYWAY VINZONS-CHATO
                                           Commissioner of Internal Revenue
                      (Annex A)




THE UPDATED CODE OF CONDUCT

           FOR

BUREAU OF INTERNAL REVENUE

  OFFICERS AND EMPLOYEES
                   TABLE OF CONTENTS

Section                                                            Page
 No.
                   CHAPTER I – GENERAL PROVISIONS

  1       Declaration of Policy                                     1
  2       Norms of Conduct of Revenue Officials and Employees       1
  3       Bases and Sources                                         3
  4       Definition of Terms                                       7

                    Chapter II – EMPLOYEES CONDUCT

  5       Responsibility of Administrators and Supervisors         13
  6       Responsibility of Employees Concerning Code of           13
          Conduct
  7       Official Relations with the Public                       16
  8       Duties of Revenue District Officers and Other Internal   20
          Revenue Officers (Sec. 11 of Tax Reform Act of 1997)

                    Chapter III – OFFICIAL ACTIVITIES

   9      General                                                  20
  10      Performance of Duty                                      21
  11      Post of Duty Changes                                     21
  12      Observance of Duty Hours                                 21
  13      False Statements                                         23
  14      Accountability for Money and Property                    23
  15      Care of Official Documents                               24
  16      Use of Government Time, Property and Facilities          25
  17      Statement of Assets and Liabilities                      26
  18      Loyalty and Strikes                                      27
  19      Appearance                                               27
  20      Use of Badges and Identification Cards                   27
  21      Computers’ Security

                   Chapter IV – PERSONAL ACTIVITIES
22   Basic Policy                                          27
23   Conflicts of Interest                                 28
24   Financial Interests Restricted                        29




25   Outside Employment and Business Activity              29
26   Influencing Legislation or Petitioning Congress       31
27   Purchase of Government Property                       32
28   Disposition of Government Property                    32
29   Use of Government-Owned or Leased Vehicles            32
30   Use, Protection and Conservation of Government        33
     Money and Property
31   Exposure of Firearms                                  33
32   Gifts or Gratuities                                   33
33   Soliciting, Selling, Canvassing or Advertising        34
34   Association with Disreputable Person                  35
35   Use of Intoxicants/Prohibited Drugs or Substance      35
     Abuse
36   Gambling, Betting and Lottery Chances                 36
37   Tax Obligations                                       36
38   Political Activity                                    36
39   Night Clubs, Bars and Other Places of Entertainment   37

               Chapter V – RIGHTS OF EMPLOYEES

40   In Active Duty                                        38
41   After Separation from the Service                     38

      Chapter VI – GROUNDS FOR DISCIPLINARY ACTION

42   General                                               39

     Chapter VII – OFFENSES, PENALTIES AND LIABILITIES

43   General                                               40
44   Grave Offenses                                        41
45   Less Grave Offenses                                   44
46   Light Offenses                                        45
47   Infractions’ Classification                           47
            Chapter VIII – GRIEVANCE MACHINERY (RMO 32-93)

 48        Scope of Grievance Mechanism                      54
 49        Basic Policies                                    55
 50        Composition of Grievance Committee                56




 51        Grievance of Procedures                           57
 52        Decision Implementation                           59
 53        Responsibilities                                  59

                               APPENDICES

Annex I    LIST OF BIR EMPLOYEES ISSUED with CODE OF         61
           CONDUCT FOR BUREAU OF INTERNAL REVENUE
           OFFICERS AND EMPLOYEES under RMO No. _____
Annex II   Memorandum of Receipt for Code of Conduct         62
                                 FOREWORD

       This basic mission of the Bureau of Internal Revenue is to foster, to the
fullest extent possible, voluntary compliance with all revenue laws and
regulations and to efficiently perform its primary function of collecting the correct
tax from all taxpayers. In the performance of this function, it must be stressed
that we are all public servants and therefore at whatever cost, our duties must be
carried out diligently, firmly, honestly and impartially but the same time with
humility, understanding and patience.

       Confidence in this Bureau and faith in its dependability and integrity are
factors having a vital impact in our ability to carry out our purpose. We can
maintain the public confidence only to the extent that everyone of our contacts
with the public reflects the highest ethical and moral standards.

       Each of us has an important public relations role to play. Not only we
must act with complete propriety, but we must be sure that none of our actions
can be interpreted otherwise. Courtesy, fairness and competence must mark all
our relationships with the public. We must be reasonable and as ready to
recognize the rights of the taxpayer as we are to protect the rights of the
Government.

       The purpose of this Code of Conduct is to lay down all the norms that are
to be followed to attain our ends. Considering how the Bureau has gone so far, it
is surely expected that a grateful nation would come out in the open and say that
in the midst of doubt, corruption and self-interest, here is a circle of public
servants who by their performance have proven that the Filipinos are not only
worth dying for but likewise worth living and working for.
       But at all times, let us keep the BIR vision always alive in us. Our vision is
that

              “The BIR, the Philippines’ premier tax administration agency, is a
       model in customer service, whose delivery systems and management
       practices are world class and whose people, having been empowered to
       serve, are highly respected for their integrity and professionalism.

              With its impressive achievements in revenue collections, the BIR
       propels the nation’s progress, enabling the government to make the
       Philippines an economic miracle in the region and in the world, uplifting
       the quality of life of every Filipino.”



                                                      (Original Signed)
                                                 LIWAYWAY VINZONS-CHATO
                                                       Commissioner




                      Chapter I – General Provisions

Sec. 1. Declaration of Policy

       Public office is a public trust. Public Officers and Employees must at all
       times be accountable to the people, serve them with utmost responsibility,
       integrity, loyalty and efficiency, act with patriotism and justice and lead
       modest lives.

Sec. 2. Norms of Conduct of Revenue Officials and Employees

       Every Revenue Official and Employee shall observe the following
       standards of conduct in the discharge and execution of official duties:

              a. Uphold the Constitution, laws and regulations of the Republic of
                 the Philippines and never be a party to their evasion;

              b. Put loyalty in the revenue service to the highest moral principles
                 and to country above loyalty to persons, party of government
                 office;
c. Give a full day’s labor for a full day’s pay, giving to the
   performance of his duties conscientious effort and best thought;

d. Never discriminate unfairly by the dispensing of special favors of
   privileges to anyone, whether for remuneration or not, and never
   accept, for himself or his family, favors or benefits under
   circumstances which might be construed by reasonable persons
   as influencing the performance of his governmental duties;

e. Seek to find and employ more efficient and economical ways of
   getting tasks accomplished.

f. Make no private promises of any kind binding upon the duties of
   his office, since a government employee has no private word
   which can be binding on public duty;

g. Must not engage in business with the Government, either
   directly or indirectly, which is inconsistent with the conscientious
   performance of his government duties;

h. Never use any information coming to him confidentially in the
   performance of governmental duties as a means for making
   private profit;

i.   Expose corruption whenever discovered;

j.   Be conscious at all time s that public office is a public trust;

k. Always uphold the public interest over and above personal
   interest;

l.   Use government resources and powers efficiently, honestly and
     economically to avoid wastage in public funds and revenues;

m. Perform and discharge duties with the highest degree of
   excellence, professionalism, intelligence and skill.

n. Respect the rights of others;

o. Refrain from doing acts contrary to law, good morals, good
   custom, public policy, public order, public safety and public
   interest;

p. Never dispense or extend undue favors on account of his office
   to his relatives except with respect to appointments of such
   relatives to positions considered strictly confidential or as
               members of his personal staff whose terms are co-terminous
               with his;

           q. Provide service to anyone without unfair discrimination and
              regardless of party affiliations or reference;

           r. Extend prompt, courteous and efficient service to the public;

           s. Provide information on policies and procedures in clear and
              understandable language, ensure openness of information,
              public consultations and hearings whenever appropriate,
              encourage suggestions, simply and systematize policy, rules
              and procedures, and avoid red tape;

           t. Commit to the democratic way of life and values and maintain
              the principle of public accountability; and

           u. Lead modes life appropriate to his position and income and
              shall not indulge in extravagant or ostentatious display of wealth
              in any form.


Sec. 3. Bases and Sources

     This Code of Conduct supersedes RMO 16-87, embodies the pertinent
     rules of the Revised Civil Service Law and Rules, Constitution, Laws
     passed by Congress, Presidential Issuances, Court Rulings, International
     Law and Ruling, Bureau Policies, and incorporates by reference Sections
     269, 270, 271, 272, and 273 and National Internal Revenue Code, as
     amended, to wit:
             “Sec. 269. Violations Committed by Government Enforcement
     Officers – Every official, agent or employee of the Bureau of Internal
     Revenue or any other agency of the Government charged with the
     enforcement of the provisions of the Code, who is guilty of any of the
     offenses herein below specified shall, upon conviction for each act or
     omission, be punished by a fine of not less that Fifty thousand pesos
     (P50,000.00) but not more than One hundred thousand pesos
     (P100,000.00) and suffer imprisonment of not less than ten (10) years but
     not more than fifteen (15) years and shall likewise suffer an additional
     penalty of perpetual disqualification to hold public office, to vote and to
     participate in any public election:

     a. Extortion or willful oppression through the use of his office or willful
        oppression and harassment of a taxpayer who refused, declined,
        turned down or rejected any of his offers specified in paragraph (d)
        hereof;
b. Knowingly demanding or receiving any fee, other or greater sums than
   are authorized by law or receiving any fee, compensation or reward,
   except as law prescribed, for the performance of any duty;

c.   Willfully neglecting to give receipts, as by law required, for any sum
     collected in the performance of duty or willfully neglecting to perform
     any other duties enjoined by law;

d. Offering or undertaking to accomplish, file or submit a report or
   assessment on a taxpayer without the appropriate examination of the
   books of accounts or tax liability, or offering or undertaking to submit a
   report or assessment less than the amount due the Government for
   any consideration or compensation, or conspiring or colluding with
   another or others to defraud the revenues or otherwise violate the
   provisions of this Code;

e. Neglecting or by design permitting the violation of the law by any other
   person;

f.   Making or signing any false entry or entries in any book, or making or
     signing any false certificate or return;

g. Allowing or conspiring or colluding with another to allow the
   unauthorized retrieval, withdrawal or recall of any return, statement or
   declaration after the same has been officially received by the Bureau
   of Internal Revenue;

h. Having knowledge or information of any violation of this Code or any
   fraud committed on the revenues collectible by the Bureau of Internal
   Revenue, failure to report such knowledge or information to their
   superior officer, or failure to report as otherwise required by law; and

i.   Without the authority of law, demanding or accepting or attempting to
     collect, directly or indirectly, as payment or otherwise any sum of
     money or other thing of value for the compromise, adjustment or
     settlement of any charge or complaint for any violation or alleged
     violation of this Code.

     Provided, That the provisions of the foregoing paragraph
     notwithstanding, any internal revenue officer for which a prima facie
     case of grace misconduct has been established shall, after due notice
     and hearing of the administrative case and subject to Civil Service
     Laws, be dismissed from the revenue service: Provided, further, That
     the term ‘grave misconduct’, as defined in the Civil Service Law,
     shall include the issuance of fake letters of authority and receipts,
           forgery of signature, usurpation of authority and habitual issuance of
           unreasonable assessments.

              “SEC. 270. Unlawful Divulgence of Trade Secrets. - Except as
       provided in Section 71 of this Code and Section 26 of Republic Act No.
       6388, any officer or employee of the Bureau of Internal Revenue who
       divulges to any person or makes known in any other manner than may be
       provided by law information regarding the business, income or estate of
       any taxpayer, the secrets, operation, style or work or apparatus of any
       manufacturer or producer, or confidential information regarding the
       business of any taxpayer, knowledge of which was acquired by him in the
       discharge of his official duties, shall, upon conviction for each act or
       omission, be punished by a fine of not less than Fifty thousand pesos
       (P50,000.00) but not more than One hundred thousand pesos
       (100,000.00) or suffer imprisonment of not less than two (2) years but not
       more than five (5) years, or both.


        “SEC. 271. Unlawful Interest of Revenue Law Enforcers in
Business. - Any internal revenue officer who is or shall become interested,
directly or indirectly, in the manufacture, sale or importation of any article subject
to excise tax under Title VI of this Code or in the manufacture or repair or sale, of
any die for printing, or making of stamps, or labels shall, upon conviction for each
act or omission, be punished by a fine of not less than Five thousand pesos
(5,000.00) but not more than Ten thousand pesos (P10,000.00), or suffer
imprisonment of not less than two (2) years and one (1) day but not more than
four (4) years, or both.

        “SEC. 272. Violation of Withholding Tax Provision. - Every officer or
employee of the Government of the Republic of the Philippines or any of its
agencies and instrumentalities, its political subdivisions, as well as government-
owned or controlled corporations, including the Bangko Sentral ng Pilipinas
(BSP), who, under the provisions of this Code or rules and regulations
promulgated thereunder, is charged with the duty to deduct and withhold any
internal revenue tax and remit the same in accordance with the provisions of this
Code and other laws is guilty of any offense herein below specified shall, upon
conviction for each act or omission be punished by a fine of not less than Five
thousand pesos (P5,000.00) but not more than fifty thousand (P50,000.00) or
suffer imprisonment of not less than six (6) months and one (1) day but not more
than two (2) years, or both:

       a. Failing or causing the failure to deduct and withhold any internal
          revenue tax under any of the withholding tax laws and implementing
          rules and regulations;
      b. Failing or causing the failure to remit taxes deducted and withheld
         within the time prescribed by law, and implementing rules and
         regulations; and

      c. Failing or causing the failure to file return or statement within the time
         prescribed, or rendering or furnishing a false or fraudulent return or
         statement required under the withholding tax laws and rules and
         regulations.

      “SEC. 273. Penalty for Failure to Issue and Execute Warrant. - Any
      official who fails to issue or execute the warrant of distraint or levy within
      thirty (30) days after the expiration of the time prescribed in Section 207 or
      who is found guilty of abusing the exercise thereof by competent authority
      shall be automatically dismissed from the service after due notice and
      hearing.


Sec. 4. Definition of Terms

      Unless the specific words of the text or the context as a whole, or a
      particular statute shall require a different meaning, the words mentioned
      hereunder shall mean:

             a. ”Extortion” – is the unlawful taking by any officer, by color of
                his office, of any money or thing of value that is not due to him
                or more than is due or before it is due. (U.S. v. Deaver,882) 14
                Fed. 595; see U.S. v. Harned, (1899) 43 Fed Stat. Ann., 2nd,
                992). To constitute extortion, there must be the receipt of
                money or something of value. It is extortion and oppression for
                an officer to take money for the performance of his duty, even
                though it be in the exercise of a discretionary power. (Bouvier’s
                Law Dictionary, Vol., 1, p. 1167)

             b. “Oppression” - is an act of cruelty, severity, unlawful exaction,
                domination or excessive use of authority. (Ochate v.s. Deling,
                105 Phil. 390)

             c. “Bribery”- may be classified into:

                    1. Direct Bribery – is the performance by a public officer of
                       an act constituting a crime, in connection with the
                       performance of his official duties, in consideration of any
                       offer, promise, gift of present received by such officer,
                       personally or through the mediation of another.
        2. Indirect Bribery – refers to the acceptance of gifts offered
           to a public officer by reason of his office.

d. “Dishonesty” – the concealment or distortion of truth in a
   matter of fact relevant to one’s office or connected with the
   performance of his duties (Sec. 8, P.D. No. 971). An absence
   of integrity, a disposition to betray, cheat, deceive or defraud,
   bad faith (Area vs. Lepanto Consolidated Mining Co., 17679-R.
   November 24, 1958).

e. “Neglect of Duty” – the omission or refusal, without sufficient
   excuse, to perform an act or duty, which it was the officer’s legal
   obligation, especially to the performance of a task or duty
   (Magallanes vs. Provincial Board, 66 OG 7839)

f. “Misconduct” – a transgression of some established and
   definite rule of action, more particularly, unlawful behavior by
   the public officer. It implies malice or a wrongful intent and not
   mere error of judgment.

g. “Grave” – means a wanton and capricious exercise of
   discretion. (Caoile vs. Puno, SP – 00221, June 19, 1971).

h. “Gross” – flagrant, shameful. (Camus vs. Civil Service Board
   of Appeals, 112 Phil 306).

i.   “Gross Negligence” – the want of even slight care and
     diligence. Such entire want of care as to raise a presumption
     that the person in fault is conscious of the probable
     consequence of carelessness, and is indifferent, or worse, to
     the danger of injury to person or property of others.

     Such negligence as amounts to a reckless disregard of the
     safety of person or property – (Amedo vs. Rio y Olabarrieta Inc.,
     95 Phil 37).

j.   “Immoral Conduct” – that conduct which is willful, flagrant, or
     shameless, and which shows a moral indifference to the opinion
     of the good and respectable members of the community
     (Arciaga vs. Maniwang, Administrative Case No. 1608, Aug. 14
     1981, 106 SCRA 594)

k. “Notoriously Undesirable” – presupposes on the part of the
   official or employee a history of disciplinary infractions meriting
   the sobriquet of notorious (Viray vs. GSIS, CV-01890, March 10,
   1996)
l.   “Inefficiency” – implies negligence, incompetence, ignorance
     and carelessness (Suroza vs. Honrado, Adm Matter No. 2026 –
     CFI, Dec. 19, 1981; 10 SCRA 396).

m. “Incompetence” – the manifest lack of adequate ability and
   fitness for the satisfactory performance of official duties by
   reason of the officer’s vice or vicious habits. This has reference
   to any physical, moral or intellectual quality, the lack of which
   substantially incapacitates one to perform the duties of an
   officer.

n. “Moral Turpitude” - an act of baseness, vileness, shameful,
   wickedness or depravity in the private and social duties which a
   man owes his fellowmen, or to society in general, contrary too
   the accepted and customary rule of right and duty between man
   and man, or conduct contrary to justice, honesty, modesty or
   good morals (Tak Ng vs. Republic. 106 Phil 730).

o. “Falsification” – the misrepresentation of a thing, fact, or
   condition, certifying that a thing is true when it is not, whether
   one has the right to make the representation or certification. It
   likewise refers to the commission of a deliberate falsehood with
   the intent to deceive. – (People vs. Bacalso. 1899-R, July 24,
   1950).

p. “Official Document”- is a document which is issued by a public
   official in the exercise of the functions of his office.

q. “Public Document”- a document created, executed or issued
   by a public official in response to the exigencies of the public
   service, or in the execution of which a public official intervened
   (U.S. vs. Asensi, 34 Phil. 765). It includes any instrument
   authorized by a notary public or a competent public official, with
   the solemnities required by law.

r. “Malversation” – a crime committed by a public officer who, by
   reason of the duties of his office, is accountable for public funds
   and property, appropriates or consents or through abandonment
   or negligence, permits any person to take such public funds or
   property, wholly or partially. (This does not include TECHNICAL
   MALVERSATION)

s. “Technical Malversation” – is the application by a public
   officer of public fund/property under his administration, to a
   public use other than that for which such fund or property has
   been appropriated/intended by law.

t. “Insubordination” – a quality or state of not submitting to
   authority; Disobedience of a lawful order. (Lejano vs. Mayaga).
   16826-R January 29, 1957)

u. “Habitual Drunkenness” – the habit of excessively using
   intoxicating drinks. The habit should be actual and confirmed,
   but it is not necessary that it be continuous or of daily
   occurrence. (People vs. Amenamen, 37 OG 2325).

v. “Prohibited Drugs” – refers to those substances enumerated
   in the Dangerous Drug Act, which have the physiological effects
   of a narcotic or a hallucinogenic drug, which includes opium and
   its active components and derivatives like heroin and morphine;
   coca leaf and its derivatives, principally cocaine; alpha and beta
   eucaine, hallucinogenic drugs, such as mescaline, lysergic acid
   diethylamide (LSD) and other substances producing similar
   effects; Indian hemp and its derivatives; all preparations made
   from any of the foregoing; and other drugs and chemical
   preparations, whether natural or synthetic.

w. “Sexual Harassment” – is an act, actual or implied, committed
   by any employer, employee, manager, supervisor, agent of the
   employer, or any other person who, having authority, influence
   or moral ascendancy over another in work, demands, requests
   or otherwise requires any sexual favor from another, regardless
   of whether the demand or request is accepted by the object of
   said act. It also includes acts of lasciviousness as defined
   under the Revised Penal Code.

x. “Nepotism” – a situation where appointments are made in
   favor of a relative of the appointing or recommending authority,
   or of the chief of the bureau or office, or of the person exercising
   immediate supervision over the appointee. As used in this
   definition, the word “relative” refer to those related to the
   appointing authority within the third degree either of
   consanguinity or of affinity.

y. “Employee” – when used with reference to a person in the
   public service, includes any person in the service of the
   government or any of its agencies, political subdivision or
   instrumentalities.
z. “Person” – includes natural and juridical persons, unless the
   context indicates otherwise.

aa. “Gift” – refers to a thing or a right disposed of gratuitously, or
    any act of liberality, in favor of another who accepts it, and shall
    include a simulated sale or an ostensibly onerous disposition
    thereof. It shall not include an unsolicited gift of nominal or
    insignificant value not given in anticipation of, or in exchange
    for, a favor from a public official or employee.

bb. “Receiving any Gift” – the act of accepting, directly or
    indirectly, a gift from a person other than a member of the public
    officer’s immediate family, in behalf of himself or of any member
    of his family or relative within the fourth civil degree, either by
    consanguinity or affinity, if the value of the gift is under the
    circumstances manifestly excessive.           Receiving gifts on
    occasions of Christmas, birthdays, etc. which are not of
    considerable value do not fall under this term.

cc. “Family of Public Officials” – means their spouses and
    unmarried children less than eighteen (18) years of age.

dd. “Conflict of Interest” – arises when a public official or
    employee is a member of a board, an officer or a substantial
    stockholder of a private corporation or owner or has a
    substantial interest in a business and the interest of such
    corporation or business, or his rights or duties therein, may be
    opposed to or affected by the faithful performance of official
    duty.

ee. “Relatives” – refers to any and all persons related to a public
    official or employee within the fourth civil degree of
    consanguinity or affinity, including bilas, inso and balae.

ff. “Complaint” – means an employee’s expressed (written or
    spoken) feelings of dissatisfaction with some aspects of his
    working conditions, relationships or status which are outside his
    control.

gg. “Grievance” – refers to the method of determining and finding
    the best way to remedy the specific cause or causes of the
    complaint or grievance.

hh. “Grievance Procedure” – refers to the method of determining
    and finding the best way to remedy the specific cause or causes
    of the complaint or grievance.
            ii. “Conciliation” – refers to the process whereby a third party
                (conciliator) brings the parties together, encourages them to
                discuss their differences and assists them in developing their
                own proposed solutions.

            jj. “Mediation” – refers to the process whereby a third party
                (mediator) is more active in assisting the parties reach
                acceptable solutions to the problems and help the disputing
                parties develop or come out with an acceptable solution. He
                can even submit his own proposals for the settlement of
                disputes.

            kk. “Arbitration” – refers to the process whereby a third party
                (individual arbitrator, board of arbitrators or an arbitration court)
                is empowered to make a decision which disposes of the dispute.




                      Chapter II – Employees Conduct

Sec. 5. Responsibility of Administrators and Supervisors

      A. All Deputy Commissioners, Assistant Commissioners, Regional
         Directors, Assistant Regional Directors, Chiefs of Divisions, Assistant
         Chiefs of Divisions, Revenue District Officers and Section Chiefs are
         responsible for ensuring that proper information and guidance on this
         Code of Conduct is disseminated to all employees.

      B. The supervisors should hold themselves up as models for their
         subordinates to emulate, particularly in attendance and decorum, and
         be responsible for providing proper information and guidance with
         respect to acceptable conduct and for seeking necessary clarification
         from the Personnel Division or higher authority.

      C. It will be the responsibility of the Chief, Personnel Division and heads
         of offices to see to it that each and every revenue employee receives
         a copy of this Code of Conduct. Each head of office shall prepare and
         submit the LIST OF BIR EMPLOYEES ISSUED WITH CODE OF
         CONDUCT FOR BUREAU OF INTERNAL REVENUE OFFICERS
         AND EMPLOYEES (Annex I) to the Internal Affairs Service whereas
         every individual revenue employee shall sign on the prescribed
         Memorandum Receipt (Annex II) to be submitted by the head of office
         to the Personnel Division. The Personnel Division’s copy shall from
         part of the employee’s 201 file and will be considered by the Bureau
         as a proof that the employee has read the entire contests of the Code.

Sec. 6. Responsibility of Employees Concerning Code of Conduct

     A. General

        In meeting his obligation to do his part in maintaining public confidence
        in and high esteem of the Bureau, the revenue employee is required
        to:

        1. know the Code of Conduct and its application to his case;

        2. seek information from his superior in case of doubt                or
           misunderstanding in the application of the Code of Conduct.

        3. abide by the Code of Conduct; and

        4. Be aware of the consequences of violation of the laws, rules and
           regulations regarding conduct.




     B. Reporting Allegations or Information of Employee’s Misconduct

        1. Any allegation of information that the Code of Conduct or any tax
           law has been violated, or crime or misconduct has been committed
           must be promptly reported to the Assistant Commissioner – Internal
           Affairs Service especially where the allegation or information
           concerns serious criminal matters such as embezzlement,
           solicitation or bribes, extortion, fraud against the government or
           conspiracy to defraud the government.

        2. Information reported to the Internal Affairs Service which requires
           knowledge, consideration or possible action by other units of the
           Bureau will be promptly referred by said Revenue Service to the
           units concerned at the Regional or National Office level, consistent
           with security requirements deemed necessary in proper
           investigation. Information received by the Internal Affairs Service
           will be disclosed only to those entitled to receive it. Confidential
           sources of information will be protected.

     C. Reporting Attempted Bribery
   1. Attempts by outsiders to bribe revenue employees constitute
      flagrant attacks on the integrity of the service. An attempt to bribe
      is an offer to give something of value with intention to have the
      recipient do something improper or fail to do something he should
      do, in discharging the duties of his position. Such an offer made to
      an employee of the Service is a criminal offense penalized under
      the Revised Penal Code.

   2. Bribe offers are often made indirectly or subtly, rather than in a
      direct fashion.   Employees must be perceptive and alert in
      recognizing such bribe overtures and must promptly report them so
      that trained personnel can evaluate the facts and initiate
      investigation when sufficient evidence warrants. Any employee
      who has reasonable grounds for believing that an attempt to bribe
      him has been or will be made has the duty to:

      a. Avoid any statement or implication that will or will not accept the
         Bribes, and try to hold the matter in abeyance;

      b. Immediately report the matter to the Internal Affairs Service and
           Thereafter to submit a memorandum to said Service stating the
      full
           Circumstances concerning the matter; and

      c. Thereafter, cooperate fully in any ensuing investigation and
         avoid unnecessary discussion of the case with anyone.



D. Reporting Unethical Practices or Misconduct by Tax Practitioners

   Information concerning unethical practice by tax practitioners which
   also involves either alleged misconduct by an employee or attempt by
   the practitioner to corrupt an employee must be reported directly to the
   Internal Affairs Service for appropriate action.

E. Reporting Law Suits Related to Official Duties

   Employees who are sued civilly or charged with violation of any local or
   international law as a result of the performance of their official duties
   are entitled to be represented by an attorney of the Solicitor General’s
   Office or of the Bureau of Internal Revenue. Employees will promptly
   report such matter through supervisory channels to permit timely
   official determination of a proper cause of action in the interest of the
   Government and the employee concerned.
      F. Reporting Violations of Revenue Laws

         Employees must report to the Internal Affairs Service any knowledge
         or information they may have of the violation of any revenue law or
         fraud against the Government by any person under any revenue law.

      G. Reporting Loss or Damage of Official Records and Property

         Employee will promptly report to their supervisor/superior the loss of
         any accountable government property such as identification card,
         receipts, books, etc. They will similarly report the loss or mutilation of
         any official record or document such as tax returns, informant letters,
         reports, etc. and damage or loss of government equipment such as
         automobile, jeep, office machines, etc.

Sec. 7. Official Relations with the Public

      A. General

          The manner in which employees conduct themselves in their official
          relationships with the public will either build or tend to destroy public
          confidence in and esteem for the Bureau.

      B. Courtesy, Fairness, Impartiality and Appearance.

          Employees are expected to conduct themselves in their official
          relations with the public in a manner which will enhance public respect
          for and confidence in the employee as a public servant and the Bureau
          as a whole. Employees must be courteous, business-like, fair,
          diplomatic and tactful. They must not only perform their duties in a
          wholly impartial manner but also avoid any appearance of acting
          otherwise. They must wear the prescribed uniform.




      C. Self-Disqualification from Certain Assignments

          When an officer or employee receives an assignment involving a
          person acting either as principal or agent, with whom he has bad
          social, business or other relationships of a nature that might impair or
          give the appearance of impairing the employee’s impartiality or
          independence, he will discuss with his supervisor the possible need to
          have the matter reassigned. This applies particularly to assignments
          involving investigation, tax examination and adjudication of matters at
          issuer between a taxpayer and the Bureau.
D. Criticism of Attorney, Accountants and Accounting System

   Adverse or antagonistic criticism of the work of accountants and
   attorneys employed by taxpayers must be avoided at all times. If the
   employee finds, during the course of his examination, that the
   taxpayer failed to comply substantially with the law and regulations in
   maintaining the necessary records, the employee will discuss the
   matter with his supervisor and follow the prescribed procedure for
   reporting his findings.

E. Recommending Attorneys, Accountants

   Employees must not recommend or suggest, specifically or by
   implication to a taxpayer any attorney or accountant of firm of
   attorneys or accountants in connection with any official business which
   involves or may involve the Bureau.

F. Irregular Arrangements in Examining the Taxpayers’ Books

   Employees are cautioned against making any improper arrangements
   with taxpayers or their representatives for conducting the examination
   of their books or records. Some of the irregular arrangements which
   should be avoided are:

      1. Borrowing the key to a taxpayer’s office;

      2. Remaining at a taxpayer’s place of business after office hours
         without presence of the taxpayer or his representative;

      3. Removing books of accounts or private records from a
         taxpayer’s office for the purpose of examining them in greater
         detail without the taxpayer’s permission or due process of law.

G. Conferences to be in Accordance with Established Procedures

   All official conference with taxpayers or their representative must be
   conducted in accordance with prescribed instructions.            Strict
   observance of the prescribed procedure is necessary in view of the
   confidential nature of such conferences.

H. Financial Transactions with Taxpayers and their Representatives

   An employee may not engage in any business or financial transaction
   with a taxpayer, or his representative, under circumstances which
     might reasonably be construed as influencing or improperly relating to
     past, present or future performance of his governmental duties.

I.   Disclosure of Official or Confidential Information

     Any officer or employee of the Bureau of Internal Revenue may not
     divulge to any person or make known in any other manner than may
     be provided by law information regarding the business, income or
     estate of any taxpayer, the secrets, operation, style or work, or
     apparatus of any manufacturer or producer, or confidential information
     regarding the business of any taxpayer, knowledge of which was
     acquired by him in the discharge of his official duties, unless otherwise
     authorized by law or by competent authority.

J. Service Operations not to be Disclosed

     The contents of any internal management documents designated,
     “official use only”, are not to be disclosed without authority.
     Information concerning investigations by the Bureau must not be
     disclosed in an unauthorized manner. As a pre-caution against
     improper disclosure of information, employees engaged in loose talk
     concerning the business of the service. They should consult their
     supervisors whenever there is any question as to the propriety of
     releasing any specific information.

K. Private Stenographers/Secretaries not to be Used

     Employees should not utilize the services of private stenographers or
     secretaries or other personnel who are not revenue employees for
     assistance on official matters unless duly authorized by competent
     authority.

L. Testimony in Court

     Employees are prohibited from giving out any official records or any
     copies thereof to private persons or to other government officers, or to
     produce such records or copies thereof in any court except in
     compliance with the subpoena duly issued for the purpose and
     allowed under existing laws (Opinion of Ministry of Justice, Series of
     1989) and only after securing the advice or assistance of the Legal
     Service or Legal Division, as the case may be.


M. Engagements to Speak or Write
        a.   Public addresses and articles for publication dealing with internal
             revenue operations or matters or revenue policy must be cleared
             in advance with the Commissioner of Internal Revenue. An
             employee may not accept compensation, or permit his expenses
             to be paid by sources other than the National Government for
             speaking engagements or writings performed as official duties,
             unless the Commissioner’s approval is obtained.

        b.   Unless specific approval of the Commissioner is obtained, no
             employee shall receive an honorarium or compensation for
             speaking or participating in a tax forum or writing for publication
             on internal revenue matters. However, the acceptance of nominal
             courtesies normally extended in the spirit of hospitality is
             permitted.


     N. Visitors

         Visitors normally will not be allowed in workrooms except in
         connection with official business. However, instructive visits by
         individuals or groups may be permitted when such visits contribute to
         taxpayer service and good public relations, and they do not violate
         security requirements.


Sec. 8. Duties of Revenue District Officers and Other Internal Revenue
Officers
      (Sec. 11 of the Tax Reform Act of 1997)

            “It shall be the duty of every Revenue District Officer or other
     internal revenue officers and employees to ensure that all laws, and rules
     and regulations affecting national internal revenue are faithfully executed
     and complied with, and to aid in the prevention, detection and punishment
     of frauds or delinquencies in connection therewith.

             It shall be the duty of every Revenue District Officer to examine the
     efficiency of all officers and employees of the Bureau of Internal Revenue
     under his supervision, and to report in writing to the Commissioner,
     through the Regional Director, any neglect of duty, incompetency,
     delinquency, or malfeasance in office of any internal revenue officer of
     which he may obtain knowledge, with a statement of all the facts and any
     evidence sustaining each case.”
                    CHAPTER III – OFFICIAL ACTIVITIES

Sec. 9. General

             This concerns official activities which are most likely to affect the
      public confidence in the Bureau and the integrity of its employees.

Sec. 10. Performance of Duty

              Employees must conscientiously perform their duties to the
      Government and to the public. They are required to respond readily to the
      direction of their supervisors, to cooperate fully with all properly
      constituted authorities and to dispose of their work promptly and
      accurately. All relations with fellow employees and others must be
      conducted in a manner which will not needlessly cause dissension or
      discord among employees or disrupt official business.

Sec. 11. Post of Duty Changes

              Fluctuating workloads, improved procedures, new requirements,
      special assignments, personnel imbalances or other causes, may at times
      require employees to change posts of duty or assignments. The
      Commissioner has the authority to transfer employees whenever
      necessary to meet workload conditions, while Regional Directors shall
      have the same authority, with the approval of the Commissioner to
      transfer employees between local offices within their respective
      jurisdictions and employees must accede to changes in posts of duty or
      assignments as notified.

Sec. 12. Observance of Duty Hours

      A.   Employees must observe designated duty hours which is eight hours
           of work a day from eight o’clock (8:00 a.m.) in the morning to twelve
           o’clock noon (12:00 noon) and from one o’clock (1:00 p.m.) to five
           o’clock (5:00 p.m.) in the afternoon for five days a week or a flexible
           schedule as approved by the Commissioner for a total of forty (40)
           hours a week, exclusive of time for lunch; and be punctual in
           reporting for work and returning from coffee breaks and lunch
           periods.     Tardiness without acceptable excuse can result in
           employees being places in a charge against their vacation leaves, if
           any, or in a nonpay status as the case may be. When charges
           against leave or compensatory time or placing an employee in a
           nonpay status do not eliminate habitual tardiness, supervisors shall
           initiate procedures for appropriate disciplinary action.
B.   A daily record of attendance shall be required of all officers and
     employees including those serving in the field, and where bundy
     clocks are available, the same shall be used by the employees in
     addition to signing the daily record of attendance. In case of conflict,
     the daily record of attendance shall prevail.

     In case there are no bundy clocks, employees shall accomplish the
     daily time record (C.S. Form 48), and shall submit the same to the
     Chief of Office, Division or Unit at the end of each month.

     The time indicated in the daily time record must tally with the Daily
     Record of Attendance, duly certified by the Assistant Chief of the
     Office, Division or Unit.

     The Assistant Commissioners down to the Assistant Division Chiefs,
     in the Central Office, and Regional Directors, Division Chiefs,
     Assistant Division Chiefs, Revenue District Officers and Assistant
     Revenue District Officers, in the Regional Offices, are not required to
     time in on the time sheets of their respective offices, but they should
     submit to their immediate Chiefs their daily time records (C.S. Form
     48) for each month.

     Except in case of illness or unavoidable emergency, employees must
     arrange in advance to obtain authorization for absence from duty.

     Where absence from duty results from illness or unavoidable
     emergency, the employee is required to notify his supervisor or other
     appropriate person, as soon as possible. When an employee fails to
     properly notify his supervisor, he may be considered as not entitled to
     leave and the absence may be charged as unauthorized leave.
     Extenuating circumstances preventing an employee from giving such
     notification shall be considered before denying leave or charging
     unauthorized absence.

C.   Unauthorized absence without adequate excuse, or recurring or
     continued unauthorized absence, is cause for disciplinary action
     including separation.

D.   Sick leave may be granted to employees on account of sickness or
     the sickness of any member of their immediate family which shall be
     limited only to any relative living under the same roof and dependent
     upon them for support. It may also be granted when the employee
     needs to obtain medical, dental or optical examination or treatment.
     Use of sick leave other than for the designated purpose is forbidden.
           Ordinary application for sick leave already taken not exceeding five
           days need not be accompanied by a medical certificate.

           Every employee requesting permission to go on partial leave
           (undertime) shall file a partial leave form duly approved by the head
           of office concerned indicating the time of departure and the actual
           time of return to the office. A supervisor who leaves the office for a
           personal or official business shall notify his higher supervisor relative
           thereto.

Sec. 13. False Statements

      Falsification or irregularities in the keeping of time records will render the
      guilty officer or employee liable to dismissal from the service or to other
      appropriate disciplinary action, without prejudice to criminal prosecution as
      the circumstances warrant.

      Employees should not intentionally make false or misleading statements
      on matters of official interest.

Sec. 14. Accountability for Money and Property

      Any money, property or other thing of value received by or coming into the
      custody of an employee in connection with the discharge of duties relating
      to enforcement of internal revenue laws must be accounted for, deposited,
      or otherwise disposed of in accord with established procedures. Severe
      disciplinary action and criminal prosecution can result from the employee’s
      failure to follow these procedures.

Sec. 15. Care of Official Documents

      A. All records and documents in the custody of revenue officers and
         employees are in their custody for official purpose only. It is unlawful
         to remove or conceal, alter, mutilate, obliterate, or destroy records or
         documents or to remove with the intent of performing any of the above
         actions. Employees must not remove records and documents from
         official files without approval from proper authority. Working papers,
         copies of reports and other official records and documents shall be
         promptly sent to file when no longer needed for official purposes.
         Disposal or destruction of records and documents is to be made in
         accordance with established requirements.

      B. Employees shall be held responsible for the loss, disappearance, or
         theft of official documents when attributable to negligence or
         carelessness.    Employees are cautioned against leaving official
         documents unprotected in automobiles, leaving them in public
           conveyances, in rest rooms, in taxpayer’s offices, etc. Recovery of
           documents may not necessarily be a mitigating circumstance after the
           loss.

Sec. 16. Use of Government Time, Property, and Facilities

        A. Employees are forbidden to use Government Time, property, or
           facilities, including equipment and supplies, for conducting personal
           business or for unauthorized personal purpose.


        B. Employees have a positive responsibility to protect and conserve all
           government property, including equipment and supplies entrusted or
           issued to them.

        C. Employees may be held financially liable for damage or loss of
           Government property resulting from their gross negligence. They may
           also be prosecuted for intentional damage or destruction of
           Government property.

Sec. 17. Statement of Assets and Liabilities

        Every official or employee, except those who serve in an official honorary
        capacity, without service credit or pay, temporary laborers and casual or
        temporary and contractual workers, shall file under oath his/her Statement
        of Assets, Liabilities and Networth and a disclosure of business interest
        and financial connections including those of his/her spouse and unmarried
        children under eighteen (18) years of age living in his/her household, in
        the prescribed form.

   A. Contents of Statement

        1. The Statement of Assets, Liabilities and Networth shall contain
           information on the following:
           a. Real property, its improvements, acquisition costs, assessed value,
               and current fair market value;
           b. Personal property and acquisition cost;
           c. All other assets such as investments, cash on hand or in banks,
               stocks, bonds and the like; and
           d. All financial liabilities, both current and long term.

   2.    The disclosure of Business Interests and Financial Connections shall
        contain information on any existing interests in, or any existing
        connections with, any business enterprises or entities, whether as
        proprietor, investor, promoter, partner, shareholder, officer, managing
        director, executive, creditor, lawyer, legal consultant, or adviser,
      financial/business consultant, accountant, auditor and the like, the names
      and addresses of the business enterprise or entities, the dates when such
      interest or connections were established, and such other details as will
      show the nature of the interests or connections.

   B. When to File

      The above documents under the Code must be filed:

      1.     Within thirty (3) days after assumption of office statements of which
             must be reckoned as of his first day of service;
      2.     On or before April 30 of every year thereafter, statements of which
             must be reckoned as of the end of the preceding year; or
      3.     Within thirty (30) days after separation from the service; statements
             of which must be reckoned as of his last day of office.

C. Where to File

   The Statement of Assets, Liabilities and Networth and the Disclosure of
   Business Interest and Financial Connections shall be filed by the:

           Where to File                Official/Employee Concerned

    Deputy Ombudsman in              Regional officials and employees of
    their respective regions         departments, bureaus and agencies of
                                     the national government, including the
                                     judiciary      and       constitutional
                                     commissions and offices.

    Civil Service Commission         All   other    central  officials   and
                                     employees of departments, bureaus
                                     and     agencies    of  the     national
                                     government including the Judiciary and
                                     constitutional commissions and offices
                                     as well as government –owned and
                                     controlled corporations and their
                                     subsidiaries



Sec. 18. Loyalty and Strikes

      Employees must adhere to their oath of office and appointment affidavit
      which includes provisions of loyalty and prohibitions against strikes.
      No person may accept or hold office or employment in the Government if
      he advocates the overthrow of the constitutional form of government, or if
      he is a member of an organization that advocates the overthrow of the
      constitutional form of government, knowing that such organization so
      advocates.

Sec. 19. Appearance

      Employees are expected to groom themselves in a manner fitting to the
      surroundings of their work assignments.

Sec. 20. Use of Badges, Identification Cards, Credential and Authority

      Credentials and badges issued to employees are for use only in
      establishing identity or authority in connection with official duties. Such
      badges, credentials, or an employee’s official position, status or
      designation, are not to be used to exert influence or obtain, either directly
      or indirectly, privileges, favors, or rewards for themselves or others, or to
      improperly enhance their own prestige.

Sec. 21. Computer’s Security

      Employees must take every effort to assure the security and prevent the
      unauthorized disclosure of protected information/data in the use of
      Government owned or lease computers. In addition, employees may not
      use any service computer system other than for official purposes.

      Any act which has adverse effect on the computer hardware, software,
      data network, operating system, printed data, computer media and
      computing environment is considered as security breach/violation and is
      punishable accordingly.



                    CHAPTER IV-PERSONAL ACTIVITIES

Sec. 22. Basis Policy

      Every revenue employee shall exercise utmost care in all his personal
      activities, interests associations to avoid apparent or real conflict with
      official duty or to avoid detraction from the public image of the employee
      or of the Bureau. He should observe a modest if not a frugal lifestyle.

Sec. 23. Conflicts of Interest
      A. A conflict of interest situation is one in which a revenue employee’s
         private interest, usually of a financial or economic nature, conflicts or
         raises a reasonable question of conflict with his public duties and
         responsibilities.

      B. The following are some of the acts of revenue employees which are
         considered to be within the contemplation of conflict of interest and,
         therefore, are prohibited:

         1. Receiving any improper consideration for procuring any contract
            with the Republic of the Philippines;

         2. Acting on behalf of the Government in transacting business with a
            private concern in which the employee, his spouse, or children has
            a financial interest. It is considered that the employee has a
            financial interest in such a private concern if he is negotiating, or
            has any arrangement concerning prospective employment with
            such private concern;

         3. Receiving or agreeing to receive any    compensation for any service
            rendered by himself or another in        relation to any proceeding,
            contract, claim, controversy, charge     or other matter in which the
            Government is directly or indirectly    interested before any of its
            executive agencies;

         4. Acting as agent or attorney or assisting in the prosecution of any
            claim against the Government;

         5.       Receiving any salaries for services rendered by him for the
              Government of the Philippines from any partly other than the
              Philippine Government; and

         6. Directly or indirectly and corruptly soliciting, accepting or agreeing
            to accept, for himself or another anything of value to influence his
            performance of an official duty or to make opportunity for the
            commission of any fraud in the Philippine Government.




Sec. 24. Financial Interests Restricted

      No employee shall, on a private basis, participate directly or indirectly in
      any financial transaction if he has access to official information not
      available to the general public which is relevant to the transaction; or if in
     the transaction his private interest is, or may reasonably be expected to
     be, in conflict with his official interests or duties.

Sec. 25 Outside employment and Business Activity

     A. No officer or employee shall engage directly in any private business,
        vocation or profession or be connected with any commercial, credit,
        agricultural or industrial undertaking without a written permission from
        the Commissioner of Internal Revenue; Provided,, that his prohibition
        will be absolute in the case of those officers and employees whose
        duties and responsibilities require that their entire time be at the
        disposal of the Government; Provided further, that if an employee is
        granted permission to engage in outside activities, the time so devoted
        outside of office hours should be fixed by the Chief of the agency to the
        end that it will not impair in any way the efficiency of the officer or
        employee; Provided; finally, that no permission is necessary in the
        case of investments made by an officer or employee which do not
        involve any real or apparent conflict between his private interests and
        public duties or in any way influence him in the discharge of his duties,
        and he shall not take part in the management of the enterprise or
        become an officer or member of the board of directors.

     B. Approval will not be granted where the outside employment or
        business activity:

        1. interferes with the efficient performance of official duties;
        2. might bring discredit on or cause unfavorable and justifiable
           criticism to the Bureau;

        3. might reasonably result in a conflict of interest, or an apparent
           conflict of interest, with official duties and responsibilities.

     C. The fundamental principles which govern the permissibility of outside
        employment are that:

        1. The outside activity does not place the employee in a situation
           where there may be a possible conflict, or the appearance of a
           conflict, between hi or her private interest and his or her official
           duties and responsibilities;

        2. The outside activity (unless otherwise permitted) does not deal with
           any tax related matters;

        3. The outside activity will not result in improper use of official
           information obtained in connection with the employee’s
           Government duties or position;
         4. The nature of employment or business activity of the hours to be
            devoted to such outside activity will not impair the employee’s
            availability, capacity, or efficiency for the performance of his or her
            official duties;

         5. The employee will not in any manner advertise or make it known
            that he or she works for the Bureau in order to generate or enhance
            business; and

         6. The employee will not do indirectly, i.e., in the name of, or through
            family, that which he or she is prohibited to do directly.

      D. Employees may not engage in any outside employment or business
         activity which gives rise to a real or apparent conflict of interest. Such
         incompatible activities include:

         1. Legal Employment or Practice;

         2. Appearance on Behalf of Taxpayers;

         3. Accounting;

         4. Bookkeeping; and

         5. Preparation of Tax Returns for Compensation.

      E. Employees who feel that they have grievances as a result of denials of
         permission to engage in outside employment or business activity, may
         appeal the disapproved decisions under existing grievance procedure.

      F. While in non-duty status, seasonal employee may accept/engage in
         outside employment without obtaining prior written permission that is
         otherwise required. Upon return to duty status, the employee must
         submit a written request, if the outside employment activity continues.

      G. Written permission is not required to engage in outside activities which
         are not considered to be employment or business.

Sec. 26. Influencing Legislation or Petitioning Congress

      Employees are prohibited from using government time, money or property
      to influence Members of Congress to favor or oppose legislation. This
      prohibition does not apply to the official handling, through proper
      channels, matters relating to legislation affecting the Bureau; or the rights
      of employees to petition members of Congress, either individually or
      collectively, or to furnish to any committee or member of either House of
      Congress information not restricted by law.

      It is also prohibited for the officers and employees of this Bureau to solicit
      recommendations for promotions, assignments, transfers and other
      personnel actions other than the officers under whose supervision they
      are employed.

Sec. 27. Purchase of Government Property

      Employees are prohibited from directly or indirectly bidding or purchasing
      at any sale of government property under the direction of or incident to the
      functions of the Bureau of Internal Revenue. Government property under
      the control of the Department of Finance shall not be sold to a
      Government employee, either directly or indirectly, unless a properly
      authorized representative of the Bureau or Office disposing of the property
      has determined that the sale is in the best interest of the Government.
      Before purchasing any government property from any agency of the
      Government, either directly or indirectly, employees of the Bureau of
      Internal Revenue shall make known to the disposing agency that they are
      such employees and shall be governed by the disposing agency’s rule
      relating to sales to government employees.

Sec. 28. Disposition of Government Property

      All equipments and supplies issued to employees for use in carrying out
      their official duties remain Bureau of Internal Revenue properties. Upon
      separation, all such properties must be returned to the Bureau. Work
      papers, personal copies of official papers, and personal notes or decrees
      of official business are also official records and documents and must be
      returned to the Bureau at the time of separation or upon demand.
      Identification cards and credentials must likewise be returned.

Sec. 29. Use of Government - Owned or Leased Vehicles

      A. Any Revenue Officer or Employee who willfully uses or authorizes the
         use or any government-owned or leased passenger motor vehicle for
         other than official purposes shall be liable, after proper investigation, to
         appropriate disciplinary action.

      B. Employees of the Bureau also may not transport any person in
         Government-owned or leased motor vehicles unless that person’s
         presence is deemed essential to the successful completion of an
         official mission.
Sec. 30. Use, Protection and Conservation of Government Money and
Property

      Employees may not use government property of any kind including official
      documents and data for other than officially approved activities.
      Employees are expected to protect and conserve all government
      properties entrusted or issued to them; promptly report the loss of, or
      damage to property entrusted to them; and return all government
      properties upon separation from the service.

Sec. 31. Exposure of Firearms

      Employees authorized to carry firearms are forbidden to unnecessarily
      expose or display their firearms in public.

Sec. 32. Gifts or Gratuities

      A. General

          An employee shall not, directly or indirectly, request or accept any gift,
          favor, service, loan or entertainment for himself or others under
          circumstances which might reasonably be construed as influencing or
          improperly relating to past, present or future performance of his
          governmental duties.

      B. Guides

          1. It is normally permissible for employees to accept nominal
             courtesies extended in the spirit of hospitality.

          2. Employees may normally accept certificates, plaques, cups or
             similar mementos for contributions to and achievements in
             government, civic, athletic, recreational, social, fraternal,
             professional, religious and comparable activities.

          3. An employee may not give consent to the acceptance by his
             spouse or children of gifts or gratuities prohibited to the employee
             and may not arrange, for or consent to acceptance by other
             relatives or other persons of gifts or gratuities based on the
             employee’s official connection with the donor or the donor’s
             representative.
           4. Revenue officials or employees may not accept free gift or discount
              certificates or entertainment tickets for distribution to other
              employees.

           5. When an employee is in doubt about accepting a gift or gratuity, he
              should submit the matter in writing to his immediate supervisor and
              obtain a written opinion as to whether acceptance of the gift of
              gratuity is permissible under the Code of Conduct.

      C. Gifts or Gratuities from Other Employees

           It is unauthorized on the part of any employee to solicit contributions
           from other employees for gifts or presents to persons in superior
           official positions. Neither may such superiors receive any gift or
           present offered to them from employees in the Government receiving
           less salary than them. Collection of spontaneous origin may be made
           for token gifts upon retirement or resignation or for expressing
           condolences in cases of illness or death, or greetings in cases of
           birthday or wedding celebrations.

      D. Gift from Foreign Governments

           The Constitution prohibits employees from accepting from foreign
           government, except with the consent of Congress, presents,
           emoluments, offices or titles.

Sec. 33. Soliciting, Selling, Canvassing, or Advertising

      A.    Except as authorized by the Commissioner, Deputy Commissioner, or
            Regional Director, employees may not solicit, make collections, or
            canvass for the sale of any article, or distribute literature or
            advertising matter in any space occupied by the Bureau.

      B.    Employees may not solicit financial aid from or sell tickets to persons
            outside the Government for benefit of any organization of the
            Department of Finance employees. No publication of any such
            organization shall contain any commercial advertising whatsoever
            and the cost of such publications must be wholly paid by the
            organization or association.

      C.    Officers and employees are strictly prohibited to participate, directly or
            indirectly, in any campaign which would involve the solicitation of
            funds or articles for civic, charitable, religious or whatever purpose.

Sec. 34. Association with Disreputable Persons
      Except in connection with official business, employees may not associate
      with individuals or groups when the association tends to discredit, directly
      or indirectly, the character, reputation, or integrity of the employee or of
      the Bureau. Unjustified association with persons who are believed or
      known to be connected with the illegal, immoral or reprehensible activities
      is forbidden because the association by the employee might tend to
      connect the employee or the Bureau with such activities. Employees will
      be held responsible for any public discredit which may result from
      unjustified association with criminal or notoriously disreputable persons.




Sec. 35. Use of Intoxicants/Prohibited Drugs or Substance Abuse

      A. Employees may not use intoxicating beverages/prohibited drugs or
         substances while on official duty or in a manner adversely affecting
         their work performance. Employees will also be held responsible for
         misconduct or public discredit stemming from their use of
         intoxicants/prohibited drugs or substances while off duty.

      B. Employees may not use intoxicants habitually to excess. While on
         duty, they are not allowed to bring, keep or drink any intoxicants within
         the Bureau premises unless required in order to maintain security on
         an undercover assignment. The Bureau of Internal Revenue will hold
         employees responsible for any conduct or embarrassment stemming
         from the employee’s use of intoxicants.

      C. Employees are not allowed to use prohibited drugs/substances except
         for medicinal purpose upon prescription of a physician.

Sec. 36. Gambling, Betting and Lottery Chances

      A. Employees may not engage in any form of illegal gambling, nor gamble
         while on government property or official time.

      B. In areas of conduct where the employee’s personal reputation can
         reflect upon the integrity of the Bureau, it is the employee’s
         responsibility to avoid creating or giving cause or impressions which
         detract from that integrity. The Bureau officers and employees are
         therefore, prohibited from entering casinos, cockpits, race courses, jai
         alai and gambling houses except when they are on official duty or on
         an undercover assignment. Gambling in any form or even casual
         betting, whether on official duty or not, are also prohibited.
      C. While on government property or on official duty, employees may not
         participate in sending chain letters, selling or distributing merchandise
         in any form.

Sec. 37. Tax Obligations

      Employees shall timely and properly file all required tax returns and pay
      the corresponding tax due thereon, if there is any.

Sec. 38. Political Activity

      A. The Bureau imposes restrictions on employees’ political activity. In
         addition, employees may not wear or display political badges or
         buttons when dealing with the public.

      B. No officer or employee in the competitive or non-competitive service,
         whether permanent, provisional or temporary, shall engage directly or
         indirectly in partisan political activities or take part in any election
         except to vote. Political activity shall consist, among other things, in:

          1. Candidacy for an elective office;

          2. Being a delegate to any political committee or directorate or an
             officer of any political club or other similar political organization;

          3. Making speeches or publications to draw political support in behalf
             of any party or candidates for public office;

          4. Canvassing or soliciting votes in the interest of any party or
             candidate;

          5. Soliciting or receiving contributions for political purposes, either
             directly or indirectly; or

          6. Becoming publicly identified with the success or failure of any
             candidate or candidates for election to public office.

      However, any officer or employee can express discreetly or in a temperate
      manner his views on current political problems or issues, or can mention
      the names of candidates for public office whom he supports.

      C. No officer or employee shall discharge, promote, degrade, or in any
         manner change the official rank, class, status or compensation of any
         subordinate or shall promise or threaten to do so for the latter’s giving
         or withholding, or neglecting to make any contribution of money or
         other valuable thing for any political purpose whatsoever.
Sec. 39. Night Clubs, Bars and Other Places of Entertainment

      Government employees are mandated to lead modest lives. Officers and
      employees of this Bureau are advised to inhibit themselves from going to
      night clubs, bars and other places of entertainment to avoid impression of
      lavish spending.


                  CHAPTER V – RIGHTS OF EMPLOYEES

Sec. 40. Rights of Employees in Active Duty

      While in the service, every Revenue Officer and Employee is entitled as a
      matter of right to:

      a. Good working conditions;
      b. Dignity and full development of the human person;
      c. Opportunity for increasing and improving job skills, knowledge and
         abilities;
      d. Just and unfair compensation which is synonymous with equal pay for
         equal work;
      e. Security of tenure;
      f. Courteous, fair and just treatment from supervisors/superiors;
      g. Advancement in hi job;
      h. Equal job privileges;
      i. Vacation and sick leave, maternity leave, birthday leave,
         funeral/mourning leave, paternity leave, hospitalization leave, accident
         leave, enrollment leave, relocation leave, wedding;/anniversary leave
         and graduation leave;
      j. Obtaining salary and real estate loans from the Government Service
         Insurance System and other government entities;
      k. Gratuity or retirement pension subject to the Retirement Law;
      l. Medical and dental care which embraces free medical and physical
         check-up;
      m. For associations to promote and protect their rights and improve their
         working conditions in accordance with existing laws on the matter; and
      n. Communicate worthy and constructive criticisms as well as
         suggestions to their supervisors especially those which will enhance
         and promote effectiveness and economy in government or office
         operations.

Sec. 41. Rights of Employees After Separation from the Service

      Employees shall, in case of separation for an honorable cause, have the
      right to request and be furnished certificates of service records, letters of
      recommendation and commendation and also the right to obtain
      reinstatement in the service.


          CHAPTER VI – GROUNDS FOR DISCIPLINARY ACTION

Sec. 42. General

      A. No officer or employee in the Civil Service shall be suspended or
         dismissed except for cause as provided by law and after due process.

      B. The following shall be grounds for disciplinary action:

         1.  Dishonesty;
         2.  Oppression;
         3.  Neglect of Duty;
         4.  Misconduct;
         5.  Disgraceful and immoral conduct;
         6.  Being notoriously undesirable;
         7.  Discourtesy in the course of official duties;
         8.  Inefficiency and incompetence in the performance of official duties;
         9.  Receiving for personal use of a fee, gift or other valuable thing in
             the course of official duties or in connection therewith when such
             fee, gift, or other valuable thing is given by any person in the hope
             or expectation of receiving a favor or better treatment than that
             accorded other persons, or committing acts punishable under the
             anti-graft laws;
         10. Conviction of a crime involving moral turpitude;
         11. Improper or unauthorized solicitation of contributions from
             subordinate employees;
         12. Violation of existing Civil Service Law and rules or reasonable office
             regulations;
         13. Falsification of official document;
         14. Frequent unauthorized absences or tardiness in reporting for duty,
             loafing or frequent unauthorized absences from duty during regular
             office hours;
         15. Habitual drunkenness;
         16. Use of prohibited drugs or substance abuse particularly while on
             duty or inside BIR premises;
         17. Gambling prohibited by law;
         18. Refusal to perform official duty or render overtime service;
         19. Disgraceful, immoral or dishonest conduct prior to entering the
             service;
         20. Physical or mental incapacity or disability due to immoral or vicious
             habits;
         21. Borrowing money by superior officers from subordinates or lending
             by subordinates to superior officers;
         22. Lending money at usurious rates or interest;
         23. Willful failure to pay just debts or willful failure to pay taxes due to
             the government;
         24. Contracting loans of money or other property from persons with
             whom the office of the employee concerned has business relations;
         25. Pursuit of private business, vocation or profession without the
             permission required by Civil Service rules and regulations;
         26. Insubordination;
         27. Engaging directly or indirectly in partisan political activities by one
             holding non-political office;
         28. Conduct prejudicial to the best interest of service;
         29. Lobbying for personal interest or gain in legislative halls and offices
             without authority;
         30. Promoting the sale of tickets in behalf of private enterprises that are
             not intended for charitable or public welfare purposes and even in
             the latter cases if there is no prior authority;
         31. Nepotism as defined in Section 59 o EO 292; and
         32. Sexual harassment committed while on duty, inside BIR premises
             or in connection with the performance of one’s official function.


          Chapter VII – OFFENSES, PENALTIES AND LIABILITIES

Sec. 43. General

      Administrative offenses with their corresponding penalties are classified
      into grave, less grave and light, depending on the gravity of their nature
      and effects of said acts on the government service.

      Preventive suspension is not a punishment or penalty for misconduct in
      office but is considered to be a preventive measure.

      The period within which a public officer or employee charged is placed
      under preventive suspension shall not be considered part of the actual
      penalty of suspension imposed upon the employee found guilty.

      The proper disciplining authority may preventively suspend any
      subordinate officer or employee under his authority pending an
      investigation, if the charge against such officer or employee involves:

             a.   Dishonesty;
             b.   Oppression;
             c.   Grave misconduct
             d.   Neglect in the performance of duty; or
             e. If there are reasons to believe that the respondent is guilty of
                charges which would warrant his removal from service.

Sec. 44. Grave Offenses

      The following are grave offenses with their corresponding penalties:
             a. Dishonesty (1st Offense, Dismissal)
             b. Gross neglect of duty (1st Offense, Dismissal)
             c. Grave misconduct (1st Offense, Dismissal)
             d. Being notoriously undesirable (1st Offense, Dismissal)
             e. Conviction of a crime involving moral turpitude (1st Offense,
                Dismissal)
             f. Falsification of official document (1st Offense, Dismissal)
             g. Physical or mental incapacity or disability due to vicious habits
                (1st Offense, Dismissal)
             h. Engaging directly or indirectly in partisan political activities by
                one holding non-political office (1st Offense, Dismissal)
             i. Receiving for personal use of a fee, gift or other valuable thing
                in the course of official duties or in connection therewith when
                such fee, gift or other valuable thing is given by one person in
                the hope or expectation of receiving a favor or better treatment
                than that accorded to other persons or committing acts
                punishable under the anti-graft laws (1st Offense, Dismissal)
             j. Contracting loans of money or other property from persons with
                whom the office of the employee has business relations (1st
                Offense, Dismissal)
             k. Soliciting or accepting directly or indirectly, any gift, gratuity,
                favor entertainment, loan or anything or monetary value which in
                the course of his official duties or in connection with any
                operation being regulated by, or any transaction which may be
                affected by the functions of his office. The propriety or
                impropriety of the foregoing shall be determined by its value,
                kinship, or relationship between giver and receiver and the
                motivation. A thing of monetary value is one which is evidently
                or manifestly excessive by its nature (1st Offense, Dismissal)
             l. Disloyalty to the Republic of the Philippines and to the Filipino
                People (1st Offense, Dismissal)
             m. Nepotism (1st Offense, Dismissal)
             n. Oppression (1st Offense, Suspension for six (6) months and one
                (1) day to one (1) year, 2nd Offense, Dismissal)
             o. Disgraceful and immoral conduct (1st Offense, Suspension for
                six (6) months and one (1) day to one (1) year, 2nd Offense,
                Dismissal)
             p. Inefficiency and incompetence in the performance of official
                duties (1st Offense, Suspension for six (6) months and one (1)
                day to one (1) year, 2nd Offense, Dismissal)
q. Frequent unauthorized absences or tardiness in reporting for
   duty, loafing, or frequent unauthorized absences from duty
   during regular office hours (1st Offense, Suspension for six (6)
   months and one (1) day to one (1) year, 2nd Offense, Dismissal)

   An officer or an employee in the civil service shall be considered
   habitually absent if he incurs unauthorized absences exceeding
   the allowable 2.5 days monthly leave credit under the Leave
   Law for at least three months in a semester or at least three (3)
   consecutive months during the year.

   An employee shall be considered habitually tardy if he incurs
   tardiness, regardless of the number of minutes, ten (10) times a
   month for at least two (2) months in a semester or at least two
   (2) consecutive months during the year. In case of claim of ill-
   health, heads of department of agencies are encouraged to
   verify the validity of such claim and, if not satisfied with the
   reason given, should disapprove the application for sick leave.
   On the other hand, cases of employees who absent themselves
   from work before approval of the application should be
   disapproved outright.

   In the discretion of the Head of any department, agency, or
   office, any government physician may be authorized to do a
   spot check on employees who are supposed to be on sick
   leave.

   r. Refusal to perform official duty (1st Offense, Suspension for
      six (6) months and one (1) day to one (1) year, 2nd Offense,
      Dismissal)
   s. Gross Insubordination (1st Offense, Suspension for six (6)
      months and one (1) day to one (1) year, 2nd Offense,
      Dismissal)
   t. Conduct grossly prejudicial to the best interest of the service
      (1st Offense, Suspension for six (6) months and one (1) day
      to one (1) year, 2nd Offense, Dismissal)
   u. Directly or indirectly having financial and material interest in
      any transaction requiring the approval of his office. Financial
      and material interest is defined as pecuniary or proprietary
      interest by which a person will gain or lose something. (1st
      Offense, Suspension for six (6) months and one (1) day to
      one (1) year, 2nd Offense, Dismissal)
   v. Owning, controlling, managing or accepting, employment as
      officer, employee, consultant, counsel, broker, agent,
      trustee, or nominee in any private enterprise regulated,
      supervised or licensed by his office, unless expressly
                   allowed by law (1st Offense, Suspension for six (6) months
                   and one (1) day to one (1) year, 2nd Offense, Dismissal)
                w. Engaging in private practice of his profession unless
                   authorized by the constitution, law or regulation, provided
                   that such practice will not conflict with his official functions
                   (1st Offense, Suspension for six (6) months and one (1) day
                   to one (1) year, 2nd Offense, Dismissal)
                x. Disclosing or misusing confidential or classified information
                   officially known to him by reason of his office and not made
                   available to the public, to further his private interests or give
                   undue advantage to anyone or to prejudice the public
                   interest (1st Offense, Suspension for six (6) months and one
                   (1) day to one (1) year, 2nd Offense, Dismissal); and
                y. Obtaining or using any statement filed under the Code of
                   Conduct and Ethical Standards for Public Officials and
                   Employees for any purpose contrary to morals or public
                   policy or any commercial purpose other than by news and
                   communications media for dissemination to the general
                   public (1st Offense, Suspension for six (6) months and one
                   (1) day to one (1) year, 2nd Offense, Dismissal)

Sec. 45. Less Grave Offenses

      The following are less grave offenses with their corresponding penalties:

            a. Simple neglect of duty {1st Offense, Suspension for one (1)
               month and one (1) day to six (6) months; 2nd Offense,
               Dismissal};
            b. Simple misconduct {1st Offense, Suspension for one (1) month
               and one (1) day to six (6) months; 2nd Offense, Dismissal}
            c. Gross discourtesy in the course of official duties {1st Offense,
               Suspension for one (1) month and one (1) day to six (6) months;
               2nd Offense, Dismissal}]
            d. Gross violation of existing civil service law and rules of serious
               nature {1st Offense, Suspension for one (1) month and one (1)
               day to six (6) months; 2nd Offense, Dismissal}
            e. Insubordination {1st Offense, Suspension for one (1) month and
               one (1) day to six (6) months; 2nd Offense, Dismissal}
            f. Habitual drunkenness {1st Offense, Suspension for one (1)
               month and one (1) day to six (6) months; 2nd Offense,
               Dismissal}
            g. Recommending any person to any position in a private
               enterprise which has a regular or pending official transaction
               with his office, unless such recommendation or referral is
               mandated by law, or international agreements, commitment and
               obligation, or as a part of the function of his office {1st Offense,
               Suspension for one (1) month and one (1) day to six (6) months;
               2nd Offense, Dismissal}
            h. Unfair discrimination in rendering public service due to party
               affiliation or preference {1st Offense, Suspension for one (1)
               month and one (1) day to six (6) months; 2nd Offense,
               Dismissal}
            i. Failure to file Sworn Statements of Assets, Liabilities and Net
               Worth, and Disclosure of Business Interest and Financial
               Connections including those of their spouses and unmarried
               children under eighteen (18) years of age living in their
               household {1st Offense, Suspension for one (1) month and one
               (1) day to six (6) months; 2nd Offense, Dismissal}; and
            j. Failure to resign from his position in the private business
               enterprise within thirty (30) days from assumption of public
               office when conflict of interest arises and/or failure to divest
               himself of his shareholdings or interest in private business
               enterprise within sixty (60) days from assumption of public office
               when conflict of interest arises: Provided, however, That where
               a conflict of interest arises for those who are already in the
               service, the official or employee must either resign or divest
               himself of said interest within the periods herein-above
               provided, reckoned form the date when the conflict of interest
               had arisen {1st Offense, Suspension for one (1) month and one
               (1) day to six (6) months; 2nd Offense, Dismissal}

Sec. 46. Light Offenses

      The following are light offenses with their corresponding penalties:

            a. Discourtesy in the course of official duties {1st Offense,
               Reprimand, 2nd Offense, Suspension for one (1) to thirty (30)
               days, 3rd Offense, Dismissal}
            b. Improper or unauthorized solicitation of contributions from
               subordinate employees {1st Offense, Suspension for one (1)
               month and one (1) day to six (6) months; 2nd Offense,
               Dismissal}
            c. Violation of reasonable office rules and regulations (This
               includes violation of MC 14, s. 1991 (Dress Code).) {1st Offense,
               Suspension for one (1) month and one (1) day to six (6) months;
               2nd Offense, Dismissal}
            d. Gambling prohibited by law {1st Offense, Suspension for one (1)
               month and one (1) day to six (6) months; 2nd Offense,
               Dismissal}
            e. Refusal to render overtime service {1st Offense, Suspension for
               one (1) month and one (1) day to six (6) months; 2nd Offense,
               Dismissal}
f. Disgraceful, immoral or dishonest conduct prior to entering the
   service {1st Offense, Suspension for one (1) month and one (1)
   day to six (6) months; 2nd Offense, Dismissal}
g. Borrowing money by superior officers from subordinates {1st
   Offense, Suspension for one (1) month and one (1) day to six
   (6) months; 2nd Offense, Dismissal}
h. Lending money at usurious rates of interest {1st Offense,
   Suspension for one (1) month and one (1) day to six (6) months;
   2nd Offense, Dismissal}
i. Willful failure to pay just debts {1st Offense, Suspension for one
   (1) month and one (1) day to six (6) months; 2nd Offense,
   Dismissal}

     The term “just debts” shall apply only to (1) claims adjudicated
     by a court of law, or (2) claims the existence and justness of
     which are admitted by the debtor

j.   Willful failure to pay taxes due to the government {1st Offense,
     Suspension for one (1) month and one (1) day to six (6) months;
     2nd Offense, Dismissal}
k.   Pursuit of private business, vocation or profession without the
     permission required by civil service rules and regulations {1st
     Offense, Suspension for one (1) month and one (1) day to six
     (6) months; 2nd Offense, Dismissal}
l.   Lobbying for personal interest or gain in legislative halls an
     offices without authority {1st Offense, Suspension for one (1)
     month and one (1) day to six (6) months; 2nd Offense,
     Dismissal}
m.   Promoting the sale of tickets in behalf of private enterprises that
     are not intended for charitable or public welfare purposes and
     even in the latter cases if there is no prior authority {1st Offense,
     Suspension for one (1) month and one (1) day to six (6) months;
     2nd Offense, Dismissal}
n.   Failure to act promptly on letters and request within fifteen (15)
     days from receipt, except as otherwise provided in the rules
     implementing the Code of Conduct and Ethical Standards for
     Public Officials and Employees {1st Offense, Suspension for one
     (1) month and one (1) day to six (6) months; 2nd Offense,
     Dismissal}
o.   Failure to process documents and complete action on
     documents and papers within a reasonable time from
     preparation thereof, except as otherwise provided in the rules
     implementing the Code of Conduct and Ethical Standards for
     Public Officials and Employees {1st Offense, Suspension for one
     (1) month and one (1) day to six (6) months; 2nd Offense,
     Dismissal}
             p. Failure to attend to anyone who wants to avail himself of the
                services of the office, or act promptly and expeditiously on
                public transactions {1st Offense, Suspension for one (1) month
                and one (1) day to six (6) months; 2nd Offense, Dismissal}

Sec. 47. Infractions’ Classification



        Offenses under EO 292                         Infractions

       Dishonesty                       •   Failure to remit tax/revenue
                                            collection
                                        •   Maliciously providing false material
                                            information in the Personal Data
                                            Sheet
                                        •   Misappropriation of government
                                            money and property
                                        •   Intentionally assisting taxpayers in
                                            filing fraudulent returns
                                        •   Other similar or analogous
                                            acts/infractions

       Gross Neglect of Duty            •   Unsecured super user and other
                                            powerful accounts
                                        •   Disclosure of user id/password
                                            without consent
                                        •   Prescription of tax assessment
                                            involving the amount of five
                                            hundred         thousand       pesos
                                            (P500,000.00) or more
                                        •   Prescription of audit case when
                                            gross sales or gross receipts
                                            exceeds ten million pesos (10M)
                                        •   Loss of accountable forms and
                                            other government property due to
                                            failure to exercise utmost diligence
                                            in the care and custody of
                                            accountable forms and property
                                        •   Unjustified delay in the remittance
                                            of revenue and tax collection
                                        •   Other     similar    or   analogous
                                            acts/infractions

       Grave Misconduct                 •   Installation of unauthorized software
                                        •   Unauthorized copying of BIR
    software
•   Unauthorized access to machines
    (PCs      and     servers)       holding
    applications or data
•   Unauthorized access to external
    storage media (tape cartridges,
    floppy disks,etc.)
•   Adding an unauthorized PC to the
    network
•   Unauthorized user access to other
    BIR offices
•   Unauthorized       access      to    the
    Operating System
•   Unauthorized access to printed
    output from database (reports,
    correspondences, etc.)
•   Unauthorized users gaining access
    to the system via logged-in
    workstations
•   Disclosure of user id/password with
    consent
•   Abuse of regular access
•   Habitual issuance of unreasonable
    assessments
•   Knowingly using fake accountable
    forms
•   Printing of fake accountable forms
•   Unauthorized          printing        of
    accountable forms
•   Forgery of signature
•   Usurpation of authority
•   Falsification of public document
•   Unjustified failure to issue receipt,
    as provided by law, for any sum of
    money officially collected
•   Sexual harassment
•   Drug abuse or substance abuse
•   Extortion
•   Demanding money or favor before
    doing one’s duty
•   Filing of false and unreasonable
    charges against taxpayers
•   Falsely testifying under oath
•   Entering into contract which is
    grossly disadvantageous to the
    government
                                      • Demanding, directly or indirectly,
                                        the payments of sums different from
                                        or larger than those authorized by
                                        law
                                      • Other     similar  or    analogous
                                        acts/infractions

Falsification      of      official   •   Tampering with Operating System
document                                  files
                                      •   Unauthorized          tampering       of
                                          applications, alteration of text files –
                                          reports, correspondences, etc. –
                                          created      or    used    by     other
                                          applications
                                      •   Tampering with the database
                                          structures
                                      •   Tampering of database records by
                                          unscrupulous users
                                      •   Alterations of dates, names, figures
                                          in official documents and official
                                          records
                                      •   Tampering of collection reports,
                                          official receipts, etc.
                                      •   False entries in official logbooks
                                          and other records
                                      •   Other      similar      or  analogous
                                          acts/infractions

Engaging directly or indirectly       • Mounting the stage to give political
in partisan political activities by     speech
one holding non-political office      • Actively campaigning by handing
                                        out political propaganda materials
                                      • Giving financial aid/contribution to
                                        candidates
                                      • Other      similar   or   analogous
                                        acts/infractions

Contracting loans of money or         • Borrowing money or property by a
other property from persons             Revenue           Officer      from
with whom the office of the             taxpayers/practitioners
employee      has    business         • Other     similar    or   analogous
relations                               acts/infractions

Disloyalty to the Republic of the     •   Treason
Philippines and to the Filipino       •   Burning or destroying flag or other
People                                    symbols of the Republic
                                     • Failure to uphold the Constitution
                                     • Giving or providing confidential
                                       information to the enemy of the
                                       State
                                     • Other     similar   or   analogous
                                       acts/infractions

Oppression                           • Abuse of Authority
                                     • Failure to act with justness and
                                       sincerity/inequity and/or partiality in
                                       the performance of official functions
                                     • Other      similar   or    analogous
                                       acts/infractions

Disgraceful or immoral conduct       • Adultery
                                     • Concubinage
                                     • Engaging in homosexual acts
                                     • Maintaining     house   of   vices
                                       (gambling house, prostitution den,
                                       etc.)
                                     • Other     similar   or  analogous
                                       infractions

Conduct of grossly prejudicial       •   Theft of technical books
to the best interest of the          •   Prescription of tax assessment
service                                  involving the amount of less than
                                         five hundred thousand pesos
                                         (P500,000.00)
                                     •   Prescription of audit case when
                                         gross sales or gross receipts do not
                                         exceed ten million pesos (P10M)
                                     •   Entering into contract which is
                                         disadvantageous to the best
                                         interest of the government
                                     •   Willful filing of false Statements of
                                         Assets and Liabilities
                                     •   Other       similar   or    analogous
                                         acts/infractions

Disclosing      or      misusing     • Unlawful divulgence of trade
confidential    or      classified     secrets of taxpayers
information officially known to      • Giving advance notice to a favored
him by reason of his office and        person about an impending release
not made available to the              of a regulation/decision or a
public, to further his private         conduct of audit, investigation,
interests    or    give    undue       verification and/or surveillance
advantage to anyone or to            •   Other     similar   or    analogous
prejudice the public interest            acts/infractions

Obtaining     or    using     any    • Unauthorized divulgence of the
statement filed under the Code         contents of the Sworn Statements
of    Conduct     and      Ethical     of Assets, Liabilities and Networth
Standards for Public Officials         of an employee
and     Employees      for    any    • Other     similar    or   analogous
purpose contrary to morals or          acts/infractions
public policy or any commercial
purpose other than by news
and communications media for
dissemination to the general
public

Simple neglect of duty               •   Failure to report unethical practice
                                         or misconduct of tax practitioners
                                     •   Loss or damage to government
                                         property due to negligence
                                     •   Failure to report attempted bribery
                                     •   Failure of any revenue officer/s to
                                         comply with the requests (access to
                                         records) of the different revenue
                                         offices for records/documents in
                                         their custody/possession without
                                         reasonable cause
                                     •   Failure to submit report of
                                         collections
                                     •   Failure to report the loss or damage
                                         or official records and property
                                     •   Other       similar   or   analogous
                                         acts/infractions

Simple misconduct                    •   Unauthorized         access        to
                                         communication links
                                     •   Dissemination of false information
                                     •   False entries in official logbooks
                                         and other records
                                     •   Collecting or receiving, directly or
                                         indirectly, by way of payment of tax
                                         or otherwise, things or objects other
                                         than cash
                                     •   Technical malversation
                                     •   Using      government    time    and
                                         property for private purposes
                                         without approval of competent
                                     authority
                                 •   Quarreling or fighting with another
                                     employees while inside the BIR
                                     premises or on duty
                                 •   Wanton display of licensed or
                                     unlicensed firearm in public
                                 •   Abetting the commission of an
                                     offense
                                 •   Other     similar   or    analogous
                                     acts/infractions

Gross Discourtesy in the         • Intentional    inattention   to  the
Course of Official Duties          public/taxpayer’s need/ request
                                 • Other     similar    or    analogous
                                   acts/infractions

Gross Violation of existing      • Other similar or analogous acts
Civil~ Service Laws & Rules of     infractions
Serious Nature                   • Refusal to obey or follow lawful
                                   orders such as RTAO, special
                                   Mission Orders, RDO, Sub-poena,
                                   etc.
                                 • Failure of any revenue officer/s to
                                   appear, whenever required, before
                                   the Secretariat, Audit Report
                                   Evaluation Committee or any
                                   investigative body or officer
                                 • Other     similar   or     analogous
                                   acts/infractions

Habitual Drunkenness             •   Frequently coming to office under
                                     the influence of alcoholic liquors
                                 •   Other      similar   or     analogous
                                     acts/infractions
Discourtesy in the course        •   Arrogance, unresponsiveness or
of official duties                   inattention to the needs of the
                                     public
                                 •   Ill-temper
                                 •   Other      similar   or     analogous
                                     acts/infractions

Violation of Reasonable Office   • Non-wearing of official ID &
Rules and Regulations              prescribed uniform
                                 • Failure to attend flag ceremonies &
                                   other official celebration, rites,
                                   seminars, etc.
                                         •   Tampering Records of Attendance
                                         •   Mis-labeling of tapes
                                         •   Loading of virus infected files to
                                             network environment
                                         •   Unauthorized access to technical
                                             manual
                                         •   Unauthorized use of government-
                                             owned or leased vehicle/property
                                         •   Failure to apply all the prescribed
                                             audit procedures and techniques
                                         •   Failure to observe the procedures
                                             prescribed under existing Revenue
                                             Memorandum Orders
                                         •   Failure to comply with reporting
                                             requirements
                                         •   Other     similar   or   analogous
                                             acts/infractions

      Gambling prohibited by Law         • Jueteng, playing pusoy and other
                                           card games with betting of anything
                                           of value, any game of chance
                                           where there is betting of money
                                         • Horse racing on prohibited days,
                                           illegal cockfighting, etc.
                                         • Other      similar    or   analogous
                                           acts/infractions



          Chapter VIII – GRIEVANCE MACHINERY (RMO 32-93)


Sec. 48. Scope of Grievance Mechanism

     Complaints and grievances may exist between and among individual
     employees, between employee and supervisor, and between employee
     and management. It shall not apply to cases of dissatisfaction with official
     actions taken by the management or in disciplinary cases.

     Complaints and grievances may refer to any of the following:

     A. Non-economic issues

        1. Policies, practices and procedures which affect employees from
           recruitment to promotion, detail, transfer, retirement, termination,
           lay-offs, etc.;
         2. Physical working conditions;

         3. Interpersonal and inter-organizational linkages and relationships;
            and

         4. Arbitrary exercise of discretion and/or management prerogatives.

      B. Policies, practices, and procedures on economic issues such as
         financial and other terms and conditions of employment as fixed by
         law.
      C. Issues between the management and the CSC-registered employee
         associations (PARDO, BIREU and BIREA).

         1. Economic issues and other economic packages fixed by law
         2. Political issues

            a. Recognition and coverage of negotiating unit;
            b. Association security and check off; and
            c. Violation of provisions and/or policies on self-organization

         3. Violation of voluntary agreements reached between the association
            and management

      D. Any and all matters giving rise to employee dissatisfaction

Sec. 49. Basic Policies

      A. Employees shall have the right to present their complaints and/or
         grievances to management and have them settled as expeditiously as
         possible in the best interest of the employee concerned, the revenue
         service, and the government as a whole.

      B. Complaints and grievances shall not apply to cases of dissatisfaction
         with official actions taken by the management of the Bureau or in
         disciplinary cases.

      C. An employee without resorting to formal grievance procedures, may
         discuss informally any problem relating to conditions of employment
         with supervisors.

      D. In presenting a complaint or grievance, the employee shall be assured
         freedom from coercion, discrimination, or reprisal and of speedy and
         impartial settlement of such complaint or grievance.
     E. Complaints and/or grievance shall be considered not only in relation to
        their alleged objects but also in relation to the personal situations of the
        complainants.

     F. Complainants and/or grievances shall be resolved at the lowest
        possible level in the Bureau.

     G. Grievance proceedings shall not be bound by formal legal rules and
        technicalities.

     H. An employee shall have the right to appeal decisions on grievances to
        competent authorities.

Sec. 50. Composition of the Grievance Committee

     A. National Office

        1. Deputy Commissioner for Resource Management Group or his
           representative to act as Chairman
        2. Two (2) Assistant Commissioners (Human Resource Development
           Service and Internal Affairs Service) or their representatives
        3. The Chief, Personnel Division or his representative
        4. Two (2) rank and file employees chosen at large
        5. An alternate for higher supervisor and employee in case the
           complaint concerns any of the members of the Committee
        6. Two (2) association members chosen from among themselves to sit
           in the Committee only for grievance existing between the
           management and the recognized association.

     B. Regional Office

        1. Assistant Regional Director to act as Chairman
        2. Two (2) higher supervisors (Division Chief and Revenue District
            Officer)
        3. The Chief, Administrative Division
        4. Two (2) rank and file employees chosen at large
        5. An alternate for higher supervisor and employee in case the
           complaint concerns any of the members of the Committee
        6. Two (2) association members chosen from among themselves to sit
           in the Committee only for grievance existing between the
           management and the recognized association.

Sec. 51. Grievance Procedures

     The procedures for asking redress for complaints and grievances shall be
     as follows:
A. Oral Discussion

A complainant shall present orally his complaints to his immediate supervisor
who shall within three (3) days from the date of presentation inform the
employee orally of the decision.


B. Grievance in Writing

1. If the employee is not satisfied with the oral decision, he may submit his
   grievance in writing within five (5) working days from the date of the oral
   decision of his immediate supervisor to the next higher supervisor. The
   written complaint shall pass thru the immediate supervisor who shall
   forward the grievance with his comments within five (5) working days to
   the next higher supervisor, who shall within five (5) working days from
   receipt thereof inform the employee in writing, thru the immediate
   supervisor, of the decision, PROVIDED HOWEVER, that where the object
   of the complaint is the immediate supervisor, the complainant may bring
   the grievance to the next higher supervisor who shall take proper action
   within five (5) working days from receipt o the complaint.

2. If the complainant is not satisfied with the decision of the higher
   supervisor, he may appeal his grievance to the Grievance Committee
   within five (5) working days from receipt of the decision, thru the higher
   supervisor. After making his comments, the higher supervisor shall
   forward the complaint within five (5) working days to the Grievance
   Committee, who shall within ten (10) working days from receipt of the
   complaint, conduct an investigation and hearing.           The Grievance
   Committee shall furnish the complainant with a copy of its decision within
   five (5) working days after the investigation and hearing, thru the higher
   supervisor and immediate supervisor, PROVIDED HOWEVER, that where
   the object of the complaint is the higher supervisor, the complainant may
   bring his case directly to the Grievance Committee.

3. If the complainant is not satisfied with the decision of the Grievance
   Committee, he may elevate his grievance thru the Committee to BIR top
   management (MANCOM) within five (5) working days from receipt of the
   decision. The top management shall make the decision within ten (10)
   working days after the receipt of the complaint, PROVIDED HOWEVER,
   that where the object of the complaint is the top management, the
   complainant may bring his grievance directly to the Civil Service
   Commission.

4. If the complainant is not satisfied with the decision of the top
   management, he may appeal or elevate his grievance to the Civil Service
      Commission. The CSC shall, if necessary conduct an investigation and
      hearing and render a decision within thirty (30) days from the termination
      of the investigation.

   5. The aggrieved party may file a petition for reconsideration with the CSC if
      he is not satisfied with its decision, within fifteen (15) days from receipt of
      the decision.

   6. The CSC’s decision is final, binding, and executory unless appeal from
      said decision is brought to the proper courts.



   7. For a member of a recognized association who would like to present
      grievances through the body, he must submit his grievance in writing thru
      the association president or his authorized representative. Any and all
      subsequent actions of the member-employee, immediate supervisor,
      higher supervisor, Grievance Committee, top management, and Civil
      Service Commission shall pass thru the association president or his
      authorized representative. If there is a deadlock, either or both parties
      may appeal to the Public Sector Labor Management Council (PSLMC)
      thru the Office for Personal Relations which in turn shall submit to the
      PSLMC its comments within five (5) working days after receipt of he
      complaint.

   8. The complainant shall fill up the grievance form which shall provide the
      following information:


      a.     Name of he Complainant
      b.     Position title
      c.      Designation
      d.     Present Section/Division of Assignment
      e.     Immediate Supervisor
      f.     Present Department/unit of Assignment
      g.     Higher Supervisor
      h.     Nature of Grievance
      i.     Settlement desired
      j.     Signature of Employee
      k.     Date of filing from the lowest level in the Bureau


Sec. 52. Decision Implementation

Unless appealed, the decision of the concerned authorities shall take effect
immediately and/or upon receipt of the decision of all parties involved.
Sec. 53. Responsibilities

All records involving complaints and grievances shall be kept by the Personnel
Division of this Bureau and by the Record Officer of the recognized association.




                                        Submitted by:

                                               (Original Signed)
                                             LILIAN B. HEFTI
                                          (OFFICER – IN – CHARGE)
                                         ASSISTANT COMMISSIONER
                                         INTERNAL AFFAIRS SERVICE


                                               (Original Signed)
                                          DIOSDADO J.R. MENDOZA
                                                 CHIEF
                                        PERSONNEL INQUIRY DIVISION




                                                    (Original Signed)
                                              CATALINA LENY C. BARRION
                                                      ACTING CHIEF
                                                COMPUTER AUDIT DIVISION



                                                   (Original Signed)
                                                 OSCAR M. ABILGOS
                                                   ASSISTANT CHIEF
                                              INTERNAL SECURITY DIVISION




APPROVED:
          (Original Signed)
    LIWAYWAY VINZONS-CHATO
COMMISSIONER OF INTERNAL REVENUE




                                      (ANNEX I)

                          (Office)
           LIST OF BIR EMPLOYEES ISSUED
   WITH CODE OF CONDUCT FOR BUREAU OF INTERNAL REVENUE
       OFFICERS AND EMPLOYEES UNDER RMO NO. ________


    Name of Employee    Position/     Unit Assigned
                       Designation
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.

                                  Submitted by:


      ____________________________________
               (Head of Office)


      ____________________________________
                                        (Place of Assignment)

                                  Date: ____________________

								
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