WHEREAS, the Bureau of Internal Revenue (BIR) needs an efficient computer system and communications network to effectively conduct its audit, collection, intelligence and monitoring operations;

WHEREAS, a thorough study and evaluation showed that the Data Processing Center (DPC) of the BIR is unable to perform fully its assigned functions due to inability to attract and retain competent and skilled personnel and because of the inadequacy of its existing computers and supportive facilities;

WHEREAS, the Electronic Data Processing (EDP) Long Range Plan of the BIR approved by the President on 6 March 1981 can best be implemented and placed in actual operation by an entity that is managed and staffed by skilled and experienced professionals working under an independent corporate set-up;

WHEREAS, the long range plan can be successfully implemented only by an entity which is allowed greater flexibility in hiring and promoting personnel, in providing a competitive compensation plan and in acquiring and disposing of computer equipment and supplies;

WHEREAS, the BIR is now being assisted by a wholly owned government foundation in the design and development of new application systems;

WHEREAS, there is a duplication of efforts and resources between this government foundation and the BIR Data Processing Center;

WHEREAS, under Presidential Decree No. 1416, as amended, the President is empowered to undertake such organizational and related improvements as may be appropriate in the light of changing circumstances and new developments;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, and the authority vested in me by Presidential Decree No. 1416, as amended, do hereby order and obtain the following:

SECTION 1. The Data Processing Center of the BIR, together with the Regional Data Centers, are hereby abolished and their activities shall be contracted to free of tax and performed by the Revenue Information Systems Services, Inc. (RISSI), a wholly government-owned foundation: Provided, that priority in rehiring shall be given to BIR Data Processing Center personnel who may qualify for positions under RISSI-prescribed qualification and merit system: Provided, further, that all BIR personnel who are laid off under the provisions of this Executive Order, or who may voluntarily retire by reason thereof, shall be entitled to all benefits and gratuities provided for under existing laws: Provided, finally, that to carry out the provisions of this Executive Order, such amount as may be necessary shall be made available to the BIR from the Retirement Gratuity Fund.

SECTION 2. The budget of the abolished Data Processing Center and Regional Data Centers shall be set aside as a lump sum appropriation for use by the BIR to fund contracts with RISSI and to meet the exigencies of BIR Operations. Such contracts shall be effective immediately upon execution thereof.

SECTION 3. RISSI is hereby authorized to handle and process any and all confidential information of the government. However, RISSI, including its officials and employees, are required to establish appropriate administrative, technical, and physical safeguards to insure the security and the confidentiality of records and to protect against any anticipated threats or hazards to their security or integrity which could result in substantial harm, embarrassment, inconvenience or unfairness to any individual or corporation on whom information is maintained. The officials and employees of RISSI violating the laws and established rules on the divulgence of confidential information obtained in the processing of tax return and other documents shall be subject to the penalties provided for under Section 332 of the National Internal Revenue Code. The officials and employees of BIR supplying information to RISSI in accordance with the provisions of the contract as authorized herein shall not be considered in violation of said Section 332.

SECTION 4. The Commissioner of Internal Revenue is hereby authorized to issue such orders as may be necessary to implement the provisions of the Executive Order. Except as may otherwise be determined by the Commissioner, all present incumbents of positions in the abolished Data Processing Center and Regional Data Centers shall continue to exercise their usual functions, duties, and responsibilities, pending the issuance of implementing orders.

SECTION 5. This Executive Order shall take effect on February 1, 1983.

Done in the City of Manila, this 16th day of February, in the year of our Lord, nineteen hundred and eighty three.


By the President:

(SGD.) JUAN C. TUVERA
Presidential Executive Assistant