BIR Ruling

August 21, 1968 Mr. C. Chua Victory Business Agency 2nd Floor, The Remnants Center Bldg. 823 Juan Luna Street Manila S i r : In reply to your letter dated August 9, 1968, I have the honor to inform you as follows: Any internal revenue officer when duly authorized, can examine or inspect books of accounts, registers and records of taxpayers. It may be stated that every fieldman of the Bureau assigned to field investigation work is required, before proceeding to a taxpayer to commence investigation, to serve a letter of authority or memorandum instructing him to examine or investigate, signed by the Commissioner of Internal Revenue or Director of the revenue region concerned. The Commissioner and the Director are the only officials who can issue letters of authority. (Par. V, Revenue Memorandum Circular No. 26-67, July 1, 1967). Exception to this requirement are cases that require immediate action on the spot, such as apprehension of merchants: (1) who do not issue sales receipts or invoices; (2) who keep private books of accounts; (3) who are not provided with the necessary privilege tax receipts; and (4) persons who possess illicit articles on which the specific tax is not paid. (Field Cir. No. V-70). Except in the above-mentioned cases which require immediate action, a taxpayer has the right to refuse inspection of his books and other records if and when the agent is not armed with a letter of authority instructing him to examine or investigate said books of accounts and records. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue