BIR Ruling

May 22, 1972 Action Line c/o The Manila Times P. O. Box 775 Manila Gentlemen : This refers to the letter dated March 13, 1972 of Mr. Juan dela Cruz (Pseudonym) requesting clarification on the questions posed therein relative to his being an informer under R.A. No. 2338, which was referred to this Office for appropriate action. It appears that Mr. dela Cruz is the former bookkeeper of the company he wishes to denounce for alleged tax evasion. cdt In reply, I have the honor to inform you as follows: 1. Provided that Mr. dela Cruz has in his possession the supporting papers or the order of the company, basis for the entries made in its books of accounts, he cannot be held liable criminally under Section 355 of the Tax Code. 2. Mr. dela Cruz may be called to testify as bookkeeper of the company in case a criminal suit is filed against it for alleged tax evasion. However, under no circumstance should Mr. dela Cruz's identify as the informer in said case be revealed. 3. To entitle him to reward as provided under R.A. No. 2338. Mr. dela Cruz should reduce his information in writing and under oath and furnish the same to the Secretary of finance, or to the Commissioner of Internal Revenue, or to the Regional Director or to the Revenue District Officer, or to their assistance in case of their absence or incapacity. 4. As a general rule, the examination of books of accounts of a taxpayer is conducted once in a year, but there is no prohibition of the same being re-examined if there is information received indicating fraud, misfeasance, concealment, or misrepresentation of material facts. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue