BIR Ruling [DA-286-05]

June 24, 2005 BIR RULING [DA-286-05] The Presidential Management Staff Arlegui St., San Miguel Manila Attention: Directives Monitoring Unit Gentlemen : This has reference to your letter dated March 31, 2005, which was indorsed to this Office last May 16, 2005, requesting us to empower provincial, city, municipal and barangay treasurers or their duly authorized deputies to examine the books, accounts and other pertinent records of any person, partnership, corporation and association subject to local taxes, fees and charges in order to ascertain, assess and collect the correct amount of the tax, fee or charge in order to implement Section 171 of the Local Government Code of 1991. We regret to inform you that this Office cannot accede to your request for the reason that Section 270 of the National Internal Revenue Code of 1997 (NIRC of 1997 for brevity) prohibits any officer or employee of the Bureau of Internal Revenue (BIR for brevity) to divulge to any person or make 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. Thus, "SEC. 270. Unlawful Divulgence of Trade Secrets . Except as provided in Section 71 of this Code and Section 26 of Republic Act No. 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. TcDIEH By deputizing the above-mentioned persons, the BIR would be divulging or providing information prohibited under Section 270 of the NIRC of 1997. For your information and guidance. (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal & Inspection Group