BIR Ruling

November 14, 1966 Mr. E Tiamzon, Sr. Records Control Section Bureau of Internal Revenue Manila S i r : This refers to your letter dated November 4, 1966 requesting the opinion of this Office as to whether or not you may produce the income tax returns of Messrs. Nicanor Hael Huet and Fernando A. Generao for the years 1955 to 1965 inclusive in obedience to the subpoena duces tecum issued by the Presidential Agency on Reforms and Government Operations on October 28, 1966 without violating the provisions of Sections 81 and 347 of the Tax Code. cdpr In reply, please be informed that pursuant to Office Circular No. V-170 dated October 21, 1960, which embodies the 5th Indorsement dated July 12, 1960 of the Office of the President of the Philippines, this Office is authorized to make income tax returns and allied records available for inspection by the Presidential Anti-Graft Committee subject to the following conditions: 1. That the request for inspection must always be signed by the Chairman of the Presidential Anti-Graft Committee; and 2. That the request must show in detail the reason for the inspection desired, the name and address of the taxpayer who made the returns and the name and official designation of the one making the inspection. The foregoing requirements were imposed in order to safeguard the confidential nature of the returns as expressed in Sections 81 and 347 of the National Internal Revenue Code, and in accordance with Section 10 of Regulations No. 33 of the Department of Finance, which provides as follows: "When the head of an executive department (other than the Department of Finance) or of any other bureau or office of the Philippine Government, desires to inspect or to have some officer or employee of his branch of the service inspect a return in connection with some matter officially before him, the inspection may, in the discretion of the Secretary of Finance, be permitted upon written application to him by the head of such executive department or other Government bureau or office. The application must be signed by such head and must show in detail why the inspection is desired, the name and address of the taxpayer who made the return, and the name and official designation of the one it is desired shall inspect the return. When the head of a bureau or office in the Department of Finance, not a part of the Bureau of Internal Revenue, desires to inspect a return in connection with some matter officially before him, other than an income tax matter, the inspection, may in the discretion of the Secretary, be permitted upon written application to him by head of such bureau or office, showing in detail why the inspection is desired. The reasons submitted for permission to inspect as provided in this section shall be considered by the Secretary and a decision reached by him whether the reason are sufficient to permit the inspection." prll As the two (2) subpoena duces tecum issued by the PARGO do not specify in detail the reason for the production of the income tax returns in question, nor categorically state whether or not Messrs. Nicanor Hael Huet and Fernando Generao are government employees and/or officials who stand charged for violating the provisions of Republic Act Nos. 1379 and 3019, their income tax returns may not be produced without violating Section 347 of the Tax Code. Furthermore, requested documents such as income tax returns cannot be submitted as exhibits nor should any official or employee of this Bureau testify with respect thereto. If the PARGO wishes to use the contents of said documents as evidence, it should file with this Office a formal request for certified true copies thereof, which are the ones to be submitted in court as evidence and not the originals or file copies of this Office. (See BIR Ruling dated January 12, 1957). LLjur Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue