BIR Ruling [DA-120-99]

February 26, 1999 BIR RULING [DA-120-99] Headquarters Special Project Office Military Intelligence Group 16, ISAFP Camp General Emilio Aguinaldo Quezon City Attention: Jorge F . Calubayan CAPTAIN PA Case Officer Gentlemen : This refers to your request for certified true copies of the income tax returns for the years 1991-1996 of the following persons in connection with the confidential investigation being conducted by your Office, viz: LLjur Name TIN Bienvenida Atalit ACOSTA 120-415-570 Edgardo Diego CASTRO 120-414-128 Lusvisminda Aguirre GUEVARA 120-416-105 Rogelio V. MAGDAMIT 120-414-031 Ledinila Dilig BARIZO 120-415-902 Procopio Arcalas BARIZO 120-415-361 Romeo Sanchez GONZALES 120-413-176 Salome Jarata TIAMZON 120-415-282 Pablito Adona VIVERO V1612-61063-A-2 Melinda Abayan SITAO 120-414-433 Lilia Alcantara LIZARONDO 5636019-1 Edgardo Dumalag AQUINO 4064-733-E Celestina Sibug BATAC 120-414-600 Benjamin Sibug BATAC B3219-C1641-A7 Nery Edralin MANANGAN 124-414-344 In reply, please be informed that Section 270 of the Tax Code of 1997 provides: "SEC. 270. Unlawful Divulgence of Trade Secrets . Except as provided in Section 71 of this Code and Section 26 of Republic Act Numbered 6388, any officer or employee of the Bureau of Internal Revenue who divulges to any person or makes known in any other manner than may be provided by law information, regarding the business, income, or estate of any taxpayer, the secrets, operation, 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 punished by a fine of not less than Fifty thousand pesos (P50,000.) but not more than One hundred thousand pesos (P100,000), or suffer imprisonment of not less than two (2) years but not more than five (5) years, or both." In Opinion No. 72, Series of 1991, the Secretary of Justice opined that individual income tax returns under the first paragraph of the aforequoted Section "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 whose 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 upon showing that he has a material interest which will be affected by the information contained in the return. Based on the foregoing, we cannot grant the request in view of the prohibition under Section 270 of the Tax Code of 1997. (BIR Ruling No. DA-1-98 dated January 6, 1998) Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue