BIR Ruling

August 18, 1972 Hon. Faustino Dy Provincial Governor Ilagan, Isabela S i r : This refers to your Memorandum Circular dated January 19, 1972 enjoining that no government agent conducting investigation be entertained and/or allowed without proper identification and clearance by the Municipal Mayor concerned and approved by your Office. The purpose of this requirement, according to the circular, is to protect your business sectors from undue and unnecessary harassment and to erase the bad impression created by unscrupulous and unauthorized public officials conducting investigation against legitimate businessman of your province. In connection therewith, I have the honor to inform you that as far as this Office is concerned, no investigation can be conducted by any internal revenue officer unless authorized by the Commissioner of Internal Revenue or the Regional Director. The internal revenue officer authorized to investigate is invariably given a letter of authority addressed to, and which should be served upon the taxpayer. Moreover, the internal revenue officer is provided with an identification card. A taxpayer should demand presentation of the letter of authority and the identification card before he should allow an internal revenue officer to investigate him. These requirements are designed to prevent unauthorized investigation and harassment during investigation. It cannot be denied that investigation for internal revenue purposes is a matter which is exclusively lodged with this Office. If internal revenue officers will be required to comply with the abovementioned circular of your Office before they can conduct their investigation, this will hamper their investigation, specially against taxpayers committing acts of tax evasion, thereby prejudicing efforts of this Office to improve tax collection. aisadc However, in case there are abuses or unauthorized investigations committed by internal revenue officers against taxpayers within that province, it is requested that this Office be informed immediately of such abuses and unauthorized investigation, in order that disciplinary action may be taken against the officers concerned. In view thereof, it is requested that internal revenue officers conducting duly authorized investigation within your province be exempted from complying with the above requirements of your circular. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue