BIR Ruling [DA-069-97]

February 14, 1997 BIR RULING [DA-069-97] The Assistant Commissioner Information Systems Operations Service BIR, Diliman, Quezon City M a d a m : This refers to the letter dated September 18, 1996 of Assistant Commissioner Helen Annie W. Quimpo, Intelligence & Investigations Service, requesting for certified true copies of the income tax returns for the year 1992 to 1995 of the following taxpayers: cdll 1. DEALCO Proprietor: Delfin Alcoreza Silway 8, Polomolok, South Cotabato 2. BIO MARKETING Proprietor: Dr. Emil Escobillo General Santos City 3. VALENTIN MARIANO General Santos City 4. EDMUND MARKETING Proprietor: Nelson Yu General Santos City 5. CONLU Proprietor: Henry Conlu General Santos City 6. BIBIANA FARMS Proprietor: Felipe Ang Katanggawan, General Santos City 7. LOZANO STOCK FARM Proprietor: Raul Lozano General Santos City 8. W. AGRICULTURE Proprietor: Wilson Go General Santos City In reply, Section 269 of the Tax Code, as amended, provides: "SEC. 269. Unlawful divulgence of trade secrets . Except as provided in Section 64 of this Code and Section 26 Republic Act No. 6388, any officer or employee of the Bureau of Internal Revenue who divulges to any person makes known in any other manner than may be provided by law information regarding the business, income, or estate of any taxpayer, the secrets, operations, style or work, or apparatus of any manufacturer or producer, or confidential information regarding the business of any taxpayer, knowledge of which was acquired by him in the discharge of his official duties, shall upon conviction for each act or omission, be fined in a sum of not less than five thousand pesos but not more than ten thousand pesos, or imprisoned for a term of not less than six months but not more than five years, or both." LLjur The exceptions of the foregoing provision are those (1) that pertain to disposition of income tax returns as set forth in Section 64 of the Tax Code, as amended, which makes income tax returns public records and opens them to inspection upon order of the President of the Philippines; or (2) that pertains to informer's reward (then authorized by R.A. 6388) and now contained in Section 281 of the tax Code, as amended. On the other hand, Section 64 of the Tax Code, as amended, reads: "SEC. 64. Disposition of income tax returns; publication of lists of persons filing returns and paying taxes . After the assessment shall have been made, as provided in this Title, the returns, together with any corrections thereof which may have been made by the Commissioner, shall be filed in the office of the Commissioner of internal Revenue and shall constitute public records and be open to inspection as such upon the order of the President of the Philippines under rules and regulations to be prescribed within sixty days from the date of the effectivity of this Code by the Secretary of Finance. The Commissioner of Internal Revenue may in each year cause to be prepared and published in any newspaper and otherwise make available to public inspection upon written request and pursuant to regulations to be prescribed by the Secretary of Finance, lists containing the names and addresses of persons who have filed income tax returns with the amount of income declared and the income tax paid by each. The list of taxpayers for the preceding taxable year in each municipality or city shall be posted at the main entrance of the respective municipal building or city hall." The Secretary of Justice in Opinion No. 72, Series of 1991 opined that the first paragraph of Section 64 of the Tax Code, as amended, individual income tax returns "shall constitute public records and be open to inspection as such upon the order of the President of the Philippines under rules and regulations to be prescribed . . . by the Secretary of Finance". The existing rules on inspection of such returns provide that such inspection is allowed only to (a) BIR Officials and employees when official duties require such inspection; (b) the person who made the return, or his duly constituted attorney in fact; (c) the administrator, executor, or trustee of the taxpayer's estate or the duly constituted attorney-in-fact of such administrator, executor, or trustee, where the maker of the return has died; and (d) in the discretion of the Commissioner of Internal Revenue, one of the heirs of law or next of kin of such deceased person when showing that he has a material interest which will be affected by the information contained in the return. Based on the foregoing, your request is hereby granted inasmuch as it does not violate Section 269 of the Tax Code, as amended. This will, therefore, serve as an authority for the Assistant Commissioner, Information Systems Operation Service to furnish the Assistant Commissioner, Intelligence & Investigation Service or her duly authorized representative with the aforementioned certified true copies of the income tax returns filed by the aforementioned taxpayers for the years 1992 to 1995 upon representation of her and/or her duly authorized representatives identification card/paper. cdtech Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)