[3] The BIR is responsible for collection of all internal revenue taxes, fees and charges and the enforcement of all forfeitures, penalties, and fines connected with these including the execution of judgments for which it has police powers.

Three Filipinos served as BIR Collectors under the American regime: Wenceslao Trinidad (1918–1922); Juan Posadas Jr. (1922–1934); and Alfredo L. Yatco (1934–1938).

Lilian Hefti, was head of the BIR who assumed office in September 2007, but resigned in October 2008, for health reasons.

During the 17th and 18th centuries, the Spanish regime in the Philippines, the Contador de' Resultas served as the Chief Royal Accountant whose functions were similar to the Commissioner of Internal Revenue.

However, it was only during the term of second civil governor Luke E. Wright that the Bureau of Internal Revenue (BIR) was created through the passage of Reorganization Act No.

On August 1, 1904, the BIR was formally organized and made operational under the Secretary of Finance, Henry Ide (author of the Internal Revenue Law of 1904), with John S. Hord as the first Collector (Commissioner).

Following the tenure of John S. Hord were three more American collectors, namely: Ellis Cromwell (1909–1912), William T. Holting (1912–1214) and James J. Rafferty (1914–1918).

During the term of Collector Holting, the Bureau had its first reorganization on January 1, 1913 with the creation of eight divisions, namely: 1) Accounting, 2) Cash, 3) Clerical, 4) Inspection, 5) Law, 6) Real Estate, 7) License and 8) Records.

As an initial step towards decentralization, the Bureau created its first 2 Regional Offices in Cebu and in Davao on July 20, 1955 per RMO No.

This was done to consolidate all statements of assets, incomes and liabilities of all individual and resident corporations in the Philippines into a National Tax Census.

206), as well as the implementation of the package audit investigation by industry are considered to be important measures which contributed significantly to the improved collection performance of the Bureau.

The proclamation of Martial Law on September 21, 1972 marked the advent of the New Society and ushered in a new approach in the developmental efforts of the government.

Several tax amnesty decrees issued by the President were promulgated to enable erring taxpayers to start anew.

New offices were created and some organizational units were relocated for the purpose of making the Bureau more responsive to the needs of the taxpaying public.

On January 30, 1987, the Bureau was reorganized under the administration of Commissioner Bienvenido Tan Jr. pursuant to Executive Order (EO) No.

It was also in 1988 that the Revenue Information Systems Services Inc. (RISSI) was abolished and transferred back to the BIR by virtue of a Memorandum Order from the Office of the President dated May 24, 1988.

This transfer had implications on the delivery of the computerization requirements of the Bureau in relation to its functions of tax assessment and collection.

The Program contained several tax reform and enhancement measures, which included the use of the Taxpayer Identification Number (TIN) and the adoption of the New Payment Control System and Simplified Net Income Taxation Scheme.

The coming of the new millennium ushered in the changing of the guard in the BIR with the appointment of Dakila Fonacier as the new Commissioner of Internal Revenue.

Memoranda of Agreement were also forged with the league of local government units and several private sector and professional organizations (i.e. MAP, TMAP, PCCI, FFCCCI, etc.)

Under the Program, seven ITS back-end systems were released in stages in RR 8 – Makati City and the Large Taxpayers Service.

Following the momentous events of EDSA II in January 2001, newly installed President Gloria Macapagal Arroyo appointed a former Deputy Commissioner, Atty.

This was undertaken through the implementation of change initiatives that were directed to: 1) reform the tax system to make it simpler and suit the Philippine culture; 2) reengineer the tax processes to make them simpler, more efficient and transparent; 3) restructure the BIR to give it financial and administrative flexibility; and 4) redesign the human resource policies, systems and procedures to transform the workforce to be more responsive to taxpayers' needs.

Barely a month since his assumption to duty as the new CIR, Commissioner Parayno offered a Voluntary Assessment and Abatement Program (VAAP) to taxpayers with under-declared sales/receipts/income.

Under his administration, the Bureau attained success in a number of key undertakings, which included the expansion of the RATE Program to the Regional Offices; inclusion of new payment gateways, such as the Efficient Service Machines and the G-Cash and SMART Money facilities; implementation of the Benchmarking Method and installation of the Bureau's e-Complaint System, a new e-Service that allows taxpayers to log their complaints against erring revenuers through the BIR website.

Information sharing between the BIR and the Local Government Units (LGUs) was also intensified through the LGU Revenue Assurance System, which aims to uncover fraud and non-payment of taxes.

Commissioner Esquivias’ administration was marked with the conduct of nationwide closure of erring business establishments under the “Oplan Kandado” Program.

In 2009, the Bureau revived its “Handang Maglingkod” Project where the best frontline offices were recognized for rendering effective taxpayer service.

Under his administration, Commissioner Tan-Torres pursued a high visibility public awareness campaign on the Bureau's enforcement and taxpayers’ service programs.

He institutionalized several programs/projects to improve revenue collections, and these include Project R.I.P (Rest in Peace); intensified filing of tax evasion cases under the re-invigorated RATE Program; conduct of Taxpayers Lifestyle Check and development of Industry Champions.