The Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) are the two

most essential government agencies because they are the primary tax collection
agencies mandated by law. However, the powers, responsibilities, and functions of BIR
and BOC are distinct from one another.

1. The Bureau of Internal Revenue (BIR) administers the supervisory and police
powers granted by the National Internal Revenue Code of 1997 or other laws.
Meaning, the BIR has the authority to assess the correct amount of all national
internal revenue taxes from the taxpayers. Aside from the national internal revenue
taxes, the BIR also collects fees and charges and enforces all connected
forfeitures, and imposes penalties and fines for the violation thereof. On the other
hand, the Bureau of Customs (BOC) is responsible for enforcing the Philippine
Tariff and Customs Code and all other laws, rules, and regulations pertaining to
Tariff and customs administration. This means that it has the power to assess and
prevent illegal trade and any forms of customs fraud and facilitate trade through
an efficient and effective customs management system and administration.

2. The BIR collects national taxes, which means that everybody who has a source of
income, whether it be from a job, a profession, compensation, or business, is
required by law to register with and pay the BIR their taxes. For the reason that,
violators may face the possibility of being fined or even put in jail for their failure to
comply with this requirement. In contrast, the BOC has the power to collect
customs revenues. In other words, the BOC also collects taxes, however, it
involves revenues from customs or from imported products.

3. The BIR, under its Commissioner, has the power to prescribe additional
requirements for tax administration and its enforcement. Contrarily, the BOC's
Commissioner only has the authority to make the rules and regulations that are
required to carry out the requirements of the Tariff and Customs Code of the
Philippines, and this authority is contingent upon the consent of the department
head.
4. The BIR can conduct inventory-taking and surveillance and prescribe presumptive
gross sales and receipts. Meaning, in case there is an event of a violation of not
paying and declaring the correct income, sales, or receipts for internal revenue tax
purposes, the BIR, under the direction of its Commissioner, may investigate a
taxpayer's inventory of goods to determine his internal revenue liabilities and place
him or his business under surveillance and observation. On the other hand, the
BOC may conduct an audit examination, inspection, verification, and investigation
of records pertaining to any goods declaration of any importer. These records may
include statements, declarations, documents, and electronically generated or
machine-readable data. The purpose of these procedures is to ascertain whether
or not the goods declaration is accurate and to establish whether or not the
importer is liable for fines, penalties, and other taxes and charges. Like the BIR,
the BOC can also conduct an investigation and inspection. However, the BIR is
authorized to investigate only taxpayers, whereas the BOC is authorized to
investigate only importers of goods.

5. The BIR and the BOC can make arrests and seizures. However, at BIR, this
authority is limited to the Commissioner, Deputy Commissioners, Revenue
Regional Directors, Revenue District Officers, and other internal revenue officers.
While the Officials of the Bureau of Customs, District Collectors, Deputy District
Collectors, police officers, agents, inspectors, and guards of the Bureau, and, with
the Commissioner's permission, officers and members of the Armed Forces of the
Philippines (AFP), and national law enforcement agencies, are the only people
authorized to effect searches, seizures, and arrests within BOC.