BIR Ruling

June 28, 1965 Hon. Porfirio T. Diaz Office of the Municipal Board Silay City S i r : Reference is made to your letter dated May 7, 1965 requesting information as to whether collection agents or administrative assistants for collection whose duties and functions are to supervise and coordinate collection with collection agents are empowered to apprehend: LLpr "1. Persons caught in the actual act (en flagrante) of possessing blue seal cigarettes; person or business firm caught in the actual act of entering matters in their books of accounts in violation of Internal Revenue Laws? "2. Persons caught not in the condition specified in No. 17 "3. To what extent are their powers?" In reply thereto, I have the honor to inform you that the duties and functions of a collection agent are limited to the enforcement of the provisions of the laws, rules or regulations bearing on collection of internal revenue taxes, fees or charges. Such duty includes the power to distrain and/or levy upon the delinquent taxpayer's properties, if he is so ordered. (Revenue Administrative Order No. 3-62 dated May 31, 1962 and Revenue Administrative Order No. 14-64 dated November 2, 1964). Collection agents cannot, therefore, as a rule, make arrests or seizures although the violation is committed in their presence. However, as an exception to this rule, Revenue Administrative Order No. 2-64 authorizes collection agents and cash clerks, except those assigned in chartered cities, provincial capitals, station towns of chief revenue officers, station towns of regional directors and certain municipalities near Manila, to apprehend possessors of, dealers in or sellers of blue seal cigarettes. Any confiscation of such articles should however, be receipted for and immediately reported to the Chief Revenue Officer within 24 hours from the date of apprehension. Generally, therefore, should a collection agent discover any violation of internal revenue law, he must report the matter to the provincial revenue officer (now Chief Revenue Officer) concerned who shall take the necessary action as may be appropriate in the circumstances. (BIR Ruling No. 63-0078, dated October 28, 1963). prll Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue