BIR Ruling

September 23, 1976 The Regional Director Revenue Region No. 10-A Cagayan de Oro City S i r : This refers to your letter dated August 6, 1976 stating that a complaint based on Section 345, paragraphs (a) and (i) of the Tax Code has been filed against Inspector Eutiquiano Villapando, Examiner Oseas Rivera, Chief of the Assessment Branch Amado Reforma, and Regional Director M. N. Masakayan, with the City Fiscal's Office, Cagayan de Oro City; and that complainants as well as respondents have already submitted their respective affidavits and counter-affidavits. With the foregoing as a premise, you pose the following query for clarification: "Whether or not the complaint mentioned above falls within the scope of Section 308, National Internal Revenue Code, requiring prior approval by the Commissioner of Internal Revenue before the action may be begun". In reply, you are informed that Sections 308 and 311 of the Tax Code, as amended by P.D. 69 provide as follows: "Sec. 308. Form and mode of proceedings in actions arising under this Code . Civil and criminal actions and proceedings instituted in behalf of the Government under the authority of this Code or other law enforced by the Bureau of Internal Revenue shall be brought in the name of the Government of the Philippines and shall be conducted by the provincial or city fiscal, or the Solicitor-General, or by the legal officers of the Bureau of Internal Revenue deputized by the Secretary of Justice, but not civil and criminal actions for the recovery of taxes or the enforcement of any fine, penalty or forfeiture under this Code shall be begun without the approval of the Commissioner of Internal Revenue." "Sec. 311. Remedy for enforcement of statutory penalty provisions . The remedy for enforcement of statutory penalties of all sorts shall be by criminal or civil action, as the particular situation may require, subject to the approval of the Commissioner of Internal Revenue." Section 345(a) and (i) states as follows: "Sec. 345. Statutory offenses of officials and employees . Every official, agent or employee of the Bureau of Internal Revenue or of any other agency of the government charged with the enforcement of the provisions of this Code, who is guilty of any delinquency hereinbelow specified or who falls within any of the class herein indicated shall be punished with a fine of not less than five thousand pesos and imprisonment for not less than one year nor more than ten years. "(a) Those guilty of extortion or willful oppression under color of law. "(b) ... "(i) Those who, without the authority of law, demand or accept or attempt to collect directly or indirectly as payment or otherwise, any sum of money or other thing or value for the compromise, adjustment or settlement of any charge or complaint for any violation or alleged violation of law." It should be noted that Sections 308 and 311 which provide, among others, that criminal actions for violations of the internal revenue laws can only be instituted with the approval of the Commissioner of Internal Revenue, are found in Title IX, General Administrative Provisions, while Section 345 which specifies statutory offenses of internal revenue officials and employees is found in Title XI General Penal Provisions. The approval of the Commissioner is required only in cases where judicial remedies either civil or criminal are resorted to for the enforcement of the collection of taxes and/or prosecution of violators of the substantive provisions of the Tax Code. However, in cases of proceedings involving internal revenue officials and employees under Section 345 of the Tax Code, the approval of the Commissioner is not necessary before the action can be begun. aisa dc Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3