BIR Ruling [DA-271-06]

April 21, 2006 BIR RULING [DA-271-06] Sec. 282 (A) Hon. Margarito B. Teves Secretary of Finance Manila S i r : We are forwarding herewith for your approval the herein claim for informer's reward of Mr. JESSIE C. QUIJANO under Section 282 (A) of the Tax Code of 1997, including the entire docket relative to the internal revenue tax case of KATHERINE YU CHUN, proprietress of White Gold Marketing for taxable year 2001. It could be ascertained from the records that on June 4, 2002, an Affidavit, together with its supporting documents was filed before the Office of the Assistant Chief, Law Division denouncing KATHERINE YU CHUN for using unregistered invoices (delivery receipts) for taxable year 2001, which was assigned as Confidential Information No. 50-2002 dated June 4, 2002. Acting on this disclosure, in a Memorandum dated June 24, 2002 issued by the Chief, Tax Fraud Division, the case was assigned to Revenue Officer Olivia F. Aviles and Group Supervisor Josefa Torrenueva, with the instruction that a thorough preliminary investigation be conducted thereon to ascertain the veracity of the information. Access to records was sent to Revenue District Office No. 38 where the taxpayer has her registered address. However, on July 30, 2002, in a Memorandum for the Chief, Tax Fraud Division, the Revenue Officers assigned to the case recommended that the same be forwarded to the Special Investigation Division (SID), BIR Revenue Region 7 (Quezon City) for a closer monitoring of the case. The Special Investigators of the SID in turn indorsed the case to Revenue District Office (RDO) #38 for practical reasons since the taxpayer is within the jurisdiction of the said RDO. As analyzed and reviewed by the examiners, all papers pertinent thereto would only mean the necessity for the issuance of a Tax Verification Notice (TVN). Since the taxpayer used unregistered invoices (Delivery Receipts) on her sales transaction, her tax liabilities can only be assessed and collected through audit and examination of her Books of Accounts and Financial Records. The taxpayer was assessed and made to pay P30,000.00 as penalty for 1st and 2nd offense as follows: Kind of Tax Date Amount Paid Miscellaneous Tax May 14, 2003 P30,000.00 which was certified by the Chief, Revenue Accounting Division that the collection was verified and found included in the RDC QC-RR7 data file as representing payment of taxes as remitted per CRDC and Central Bank Credit Advice. CIDTcH The records further show that the information furnished by the informers was in writing and under oath; that it was not yet in the possession of the Bureau of Internal Revenue nor was 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. Jessie C. Quijano was instrumental in the discovery of a violation of the provisions of the NIRC, it is respectfully recommended that he be paid the amount equivalent to 10% of P30,000.00 or the amount of P3,000.00 as informer's reward pursuant to Section 282 (A) of the Tax Code of 1997, the law applicable herein. The said reward shall be subject to the 10% final tax imposed under Section 2.57.1 (k) of Revenue Regulations No. 2-98. Very truly yours, (SGD.) JOSE MARIO C. BUAG Commissioner of Internal Revenue