The Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) are the country's premier

revenue collecting agencies. Oftentimes, the assigned collection goals become the standard against
which the performance of the two major collecting agencies are measured. Thus, their performances are
perceived to be good or bad depending on whether they are able to meet their annual revenue targets.
Collection goal is the basis of the system of reward and punishment under Republic Act No. 9335,
otherwise known as the Lateral Attrition Law for personnel of the two bureaus to encourage them to be
more efficient in collecting the taxes due to the government.

The Bureau of Internal Revenue (BIR) is an attached agency of the Department of Finance. It is tasked
to assess and collect all national internal revenue taxes, fees, and charges, and to enforce all forfeitures,
penalties, and fines connected there with and the execution of judgments in all cases decided in its favor
by the Court of tax appeals and the ordinary courts.

The importance of BIR in efficient tax administration is to collect all tax revenues due in a fair and
efficient way with limited costs for taxpayers and the tax administration itself.Also a tax administration
needs to ensure that taxpayers comply with the rules and adequate resources. The tax administrative
function of the BIR is to collect taxes through voluntary compliance because we follow the self-
assessment method of filing and paying taxes in the Philippines.

The Bureau of Customs (BoC) is an attached agency of the Department of Finance. It is charged with
assessing and collecting customs revenues, curbing illicit trade and all forms of customs fraud, and
facilitating trade through an efficient and effective customs management system. BoC is a tasked to
enforce the Tariff and Customs Code,and to collect taxes on imports imposed in the NIRC.

The Department of Finance and Bureau of Customs (BoC) issued the implementing rules and
regulations governing the post-clearance audit of importers. The importance of BoC in efficient tax
administration is to conduct an audit of past import transactions going back three years to determine
whether customs duties and taxes on imported goods have been properly paid, and to assess and collect
deficiencies and penalties if warranted.