BIR Ruling [DA-296-99]

May 17, 1999 BIR RULING [DA-296-99] The Law Firm of Jaime G. Nagrampa Third Floor, Crispina Building 1589 Quezon Avenue Quezon City 1103 Attention: Atty. Jaime G. Nagrampa Gentlemen : This refers to your letter dated April 29, 1999 requesting on behalf of your client, CI 35-95, for a copy of the letter of Duty Free Phil. Services, Inc. dated sometime in September 1998 requesting for approval of its application for suspension of payment of its VAT liabilities which was the subject of a compromise settlement on January 9, 1998 and the action taken thereon by this Office. It is represented that the requested document will be used to pursue your client's application for payment of informer's reward. In reply, we regret to inform you that your request cannot be granted by this Office on the ground that your client is not a party in interest with respect to the VAT liabilities of Duty Free Phils. Services, Inc. (DFPSI). It is noted that your client's denunciation pertains only to the alleged failure of DFPSI to report/pay the correct corporate income taxes but nothing was ever mentioned therein about the VAT liabilities of subject-taxpayer. As such, he is not entitled to be informed of the action taken by this Office in connection with the approval of the application for compromise settlement offered by DFPSI for the suspension of the payment of its VAT liabilities. Otherwise, he would be allowed to have access to information concerning the income (gross receipts for VAT purposes) realized by DFPSI during the taxable years 1989 to 1996, the divulgence of which is criminally punishable under Section 270 in relation to Section 278, both of the Tax Code of 1997. cSATEH Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner Bureau of Internal Revenue