BIR Ruling

May 10, 1967 Mr. Patricio Amable 31 San Pedro, Davao City S i r : In reply to your letter dated November 18, 1966 I have the honor to inform you that under the provisions of R.A. No. 2338, an informer who gives information on the commission of tax evasion by a taxpayer which is found to be positive, is entitled to an informer's reward of 25% of the revenues, surcharges, and fees recovered and/or fine or penalty imposed and collected, provided that the following requirements are complied with: 1. That the information submitted by an informer is in writing and under oath; 2. That the informer is not an internal revenue or customs official or employee, or other public official nor is he related to any of the said officials or employees within the sixth degree of consanguinity; and 3. That the information furnished by an informer is not yet in the possession of the Bureau of Internal Revenue and does not refer to a case of fraud or violation already pending or previously investigated or examined by any official or employee of the said Bureau or of the Department of Finance. Under Section 5 of R.A. No. 4713, the Reward Law on smuggling, a cash reward equivalent to twenty per centum of the fair market value of smuggled and confiscated good shall be given to law enforcement personnel and informers who are instrumental in the discovery and seizure of such goods. On frauds upon or violations of any of the provisions of the Internal Revenue Laws, the information may be given to the Secretary of Finance, or to the Commissioner of Internal Revenue, or to the Regional Director, or to the District Revenue Officer, or to their assistants in case of their absence or incapacity, and on smuggling to the Chairman, Anti-Smuggling Action Center (ASAC), PC, National bureau of Investigation, Police or to other law-enforcement agencies. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue