BIR Ruling

January 9, 1970 Mr. Rodolfo U. Serraon Fraud Investigation Division Bureau of Internal Revenue Manila S i r : This refers to your claim for reimbursement in the amount of P3,660.00 representing expenses incurred by you for payment of attorneys and stenographic notes' fees in connection with the criminal and administrative cases filed against you by Mr. and Mrs. Cesareo P. Calanoc. cdti It appears that the basis of your claim for reimbursement is Section 310 of the Tax Code, which is quoted. hereinbelow, as follows: "Sec. 310. SATISFACTION OF JUDGMENT RECOVERED AGAINST TREASURER OR OTHER OFFICER . When an action is brought against any revenue officer to recover damages by reason of any act done in the performance of official duty, and the Collector of Internal Revenue is notified of such action in time to make defense against the same, through the Solicitor General, any judgment, damages or costs recovered in such action shall be satisfied by the Collector of Internal Revenue upon approval of the Department Head, or if the same be paid by the person sued, it shall be repaid or reimbursed to him. No such judgment, damages or cost shall be paid or reimbursed in behalf of a person who has acted negligently or in bad faith, or with willful oppression." A careful scrutiny of the abovementioned section however reveals that before an internal revenue officer can claim for reimbursement, he must show that 1. The expenses were incurred because an action is brought against the internal revenue officer; 2. The said action seeks to recover damages incurred by the aggrieved party by reason of an act done by the revenue officer incurred by the aggrieved party by reason of an act done by the revenue officer in the performance of his official duty; 3. That the Commissioner of Internal Revenue thru the Solicitor General was notified of such action in time to make his defense; 4. That the Court awarded damages to the aggrieved party; 5. That the damages awarded was not satisfied by the Commissioner of Internal Revenue but was paid by the revenue officer sued. It appears, however, that the suits filed against you by Mr. and Mrs. Cesareo F. Calanoc are not actions for damages incurred by the taxpayer by reason of acts done by you in the performance of your official duty. The same were not filed in court. Records show that the alleged criminal acts of Libel and Attempted Robbery or Extortion and administrative charges for Grave Misconduct, Oppression and Abuse of Authority imputed against you by the abovenamed couple were filed with the Fiscal's Office of Manila and the Department of Finance, Manila, respectively. The records further show that the attorneys and stenographic notes' fees were incurred by you in the aforesaid cases and not the result of a court judgment nor does it consists of damages paid by you to an aggrieved party as contemplated in Section 310 of the Tax Code. cd As it is clear under the circumstances present in your case that your claim for reimbursement in the amount of P3,660.00 is not in accordance with the requirement set forth in Section 310 of the Tax Code, we regret to inform you that your claim for reimbursement is hereby denied, for lack of legal basis. Very truly yours, AMBROSIO M. LINA Deputy Commissioner of Internal Revenue