SEC. 244. Authority of Secretary of Finance to Promulgate Rules and Regulations. - The Secretary of Finance, upon recommendation of the Commissioner, shall promulgate all needful rules and regulations for the effective enforcement of the provisions of this Code.
 
SEC. 245. Specific Provisions to be Contained in Rules and Regulations. - The rules and regulations of the Bureau of Internal Revenue shall, among other thins, contain provisions specifying, prescribing or defining:

(a) The time and manner in which Revenue Regional Director shall canvass their respective
     Revenue Regions for the purpose of discovering persons and property liable to national
     internal revenue taxes, and the manner in which their lists and records of taxable persons
     and taxable objects shall be made and kept;

(b) The forms of labels, brands or marks to be required on goods subject to an excise tax,
     and the manner in which the labelling, branding or marking shall be effected;

(c) The conditions under which and the manner in which goods intended for export, which
     if not exported would be subject to an excise tax, shall be labelled, branded or marked;

(d) The conditions to be observed by revenue officers respecting the institutions and conduct
     of legal actions and proceedings;

(e) The conditions under which goods intended for storage in bonded warehouses shall be
     conveyed thither, their manner of storage and the method of keeping the entries and
     records in connection therewith, also the books to be kept by Revenue Inspectors and
     the reports to be made by them in connection with their supervision of such houses;

(f) The conditions under which denatured alcohol may be removed and dealt in, the character
    and quantity of the denaturing material to be used, the manner in which the process of
    denaturing shall be effected, so as to render the alcohol suitably denatured and unfit for
    oral intake, the bonds to be given, the books and records to be kept, the entries to be
    made therein, the reports to be made to the Commissioner, and the signs to be displayed
    in the business or by the person for whom such denaturing is done or by whom, such
    alcohol is dealt in;

(g) The manner in which revenue shall be collected and paid, the instrument, document or
     object to which revenue stamps shall be affixed, the mode of cancellation of the same,
     the manner in which the proper books, records, invoices and other papers shall be kept
     and entries therein made by the person subject to the tax, as well as the manner in
     which licenses and stamps shall be gathered up and returned after serving their purposes;

(h) The conditions to be observed by revenue officers respecting the enforcement of Title
     III imposing a tax on estate of a decedent, and other transfers mortis causa, as well
     as on gifts and such other rules and regulations which the Commissioner may consider
     suitable for the enforcement of the said Title III;

(i) The manner in which tax returns, information and reports shall be prepared and reported
    and the tax collected and paid, as well as the conditions under which evidence of payment
    shall be furnished the taxpayer, and the preparation and publication of tax statistics;

(j) The manner in which internal revenue taxes, such as income tax, including withholding
    tax, estate and donor's taxes, value-added tax, other percentage taxes, excise taxes
    and documentary stamp taxes shall be paid through the collection officers of the Bureau
    of Internal Revenue or through duly authorized agent banks which are hereby deputized
    to receive payments of such taxes and the returns, papers and statements that may be
    filed by the taxpayers in connection with the payment of the tax: Provided, however,
    That notwithstanding the other provisions of this Code prescribing the place of filing of
    returns and payment of taxes, the Commissioner may, by rules and regulations, require
    that the tax returns, papers and statements that may be filed by the taxpayers in
    connection with the payment of the tax. Provided, however, That notwithstanding
    the other provisions of this Code prescribing the place of filing of returns and payment
    of taxes, the Commissioner may, by rules and regulations require that the tax returns,
    papers and statements and taxes of large taxpayers be filed and paid, respectively,
    through collection officers or through duly authorized agent banks: Provided, further,
    That the Commissioner can exercise this power within six (6) years from the approval
    of Republic Act No. 7646 or the completion of its comprehensive computerization
    program, whichever comes earlier: Provided, finally, That separate venues for the
    Luzon, Visayas and Mindanao areas may be designated for the filing of tax returns
    and payment of taxes by said large taxpayers.

(1) Value-Added Tax (VAT). - Business establishment with VAT paid or payable of at least One hundred thousand pesos (P100,000) for any quarter of the preceding taxable year;

(2) Excise Tax. - Business establishment with excise tax paid or payable of at least One million pesos (P1,000,000) for the preceding taxable year;

(3) Corporate Income Tax. - Business establishment with annual income tax paid or payable of at least One million pesos (P1,000,000) for the preceding taxable year; and

(4) Withholding Tax. - Business establishment with withholding tax payment or remittance of at least One million pesos (P1,000,000) for the preceding taxable year.

Provided, however, That the Secretary of Finance, upon recommendation of the Commissioner, may modify or add to the above criteria for determining a large taxpayer after considering such factors as inflation, volume of business, wage and employment levels, and similar economic factors.

The penalties prescribed under Section 248 of this Code shall be imposed on any violation of the rules and regulations issued by the Secretary of Finance, upon recommendation of the Commissioner, prescribing the place of filing of returns and payments of taxes by large taxpayers.
 
SEC. 246. Non-Retroactivity of Rulings. - Any revocation, modification or reversal of any of the rules and regulations promulgated in accordance with the preceding Sections or any of the rulings or circulars promulgated by the Commissioner shall not be given retroactive application if the revocation, modification or reversal will be prejudicial to the taxpayers, except in the following cases:

(a) Where the taxpayer deliberately misstates or omits material facts from his return or
     any document required of him by the Bureau of Internal Revenue;

(b) Where the facts subsequently gathered by the Bureau of Internal Revenue are
     materially different from the facts on which the ruling is based; or

(c) Where the taxpayer acted in bad faith.

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