BIR Ruling [DA-220-01]

October 24, 2001 BIR RULING [DA-220-01] Hon. Jose Isidro N. Camacho Secretary of Finance M a n i l a S i r : We are forwarding herewith for your approval the herein claim for informer's reward of Mr. Cesar R. Abad under Section 282(A) of the 1997 Tax Code including the entire docket relative to the internal revenue tax case of Silver Rose General Merchandising for the years 1996, 1997, 1998 and January to May of 1999. The records show that on June 28, 2000, the abovenamed informer filed with the Special Investigation Division of BIR Revenue Region No. 8, Makati City a letter dated June 28, 2000 denouncing Silver Rose General Merchandising for "failure or refusal to issue receipt or sales or commercial invoices" for the purchase of one (1) Standard electric fan in September 1999. (Report of Examiner dated January 15, 2001) On January 3, 2000 the said informer filed with the Legal Division of BIR Revenue Region No. 8 an affidavit denouncing the same Taxpayer for "tax evasion and non-issuance of receipt" on September 1999 in violation of Sec. 237 of the 1997 Tax Code and recorded the same under Entry No. LD-C.I. No. 0017. This Confidential Information (LD-C.I. No. 0017) was forwarded to the Special Investigation Division on January 3, 2000. Letter of Authority No. LOA 1998-00010238 dated September 21, 2000 was then issued by the BIR Regional Director of Makati City to Revenue Officers Jovenito E. Maggay and Ernesto P. Vibar under the supervision of Group Supervisor Victor B. De Jesus of the Special Investigation Division to investigate all internal revenue taxes of Mr. Tariq Mian for the period from January 1, 1996 to December 31, 1999. On the basis of the recommendation of the Revenue Examiners of the special Investigation Division as contained in their investigation report dated January 15, 2001, there were found taxes due from Mr. Tariq Mian (Silver Rose Gen. Merchandise) the total amount of P151,999.61 representing deficiency income tax, value added tax and withholding tax for the years 1999, 1998, 1997 and 1996. Mr. Tariq Mian paid the following amounts as deficiency taxes, to wit: BCS. DATE BANK AMOUNT LIST OF 12.58 TAX TYPE NO. CODE VERIFIED A-40060 03-06-01 170-000 P5,316.99 03/01-04/01 Income Tax A-40060 03-06-01 170-000 21,598.78 03/01-04/01 Value-Added Tax A-40060 03-06-01 170-000 3,352.53 03/01-04/01 Value-Added Tax A-40060 03-06-01 170-000 3,189.99 03/01-04/01 Income Tax A-40060 03-06-01 170-000 220.42 03/01-04/01 W/holding Tax-Compensation A-40064 03-09-01 170-000 45,132.16 03/01-04/01 Income Tax A-40064 03-09-01 170-000 35,622.50 03/01-04/01 Income Tax A-40064 03-09-01 170-000 37,566.24 03/01-04/01 Value-Added Tax TOTAL P151,999.61 which was certified by the Chief, Revenue Accounting Division that the Collections listed were verified and found included in the Makati RDC data file as representing payment of taxes as remitted per CRDC and Central Bank Credit Advice. The records further show that the information furnished by the informer was in writing and under oath; that it was not yet in the possession of the Bureau of Internal Revenue nor is the aforesaid tax liability pending or previously investigated by any official or employee of this Bureau or by the Department of Finance; and that the informer is, as represented, not related to any internal revenue official or employee or to any public officer within the sixth degree of consanguinity. It appearing that the information furnished by Mr. Cesar Abad was instrumental in the discovery of a violation of the internal revenue laws and in the recovery of taxes which otherwise would not have been effected, it is respectfully recommended that he be paid the amount equivalent to 10% of P151,999.61 or the amount of P15,199.96 as informer's reward pursuant to Section 282(A) of the 1997 Tax Code, the law applicable herein. The said reward shall be subject to the 10% final tax imposed under Sec. 2.57.1(K) of Revenue Regulations No. 2-98. Very truly yours, (SGD.) REN G. BAEZ Commissioner of Internal Revenue