BIR Ruling [DA-335-04]

June 21, 2004 BIR RULING [DA-335-04] Hon. Juanita T. Amatong Secretary of Finance Manila M a d a m : We are forwarding herewith for your approval the herein claim for informer's reward of Mr. Felix A. Saldevia and Ms. Nelita S. Henderson, both of Puerto Princesa City, under Section 282(A) of the Tax Code of 1997, including the entire docket relative to the internal revenue tax case of the estate of Dr. Ramon del Rosario who died on February 5, 1999. The records show that on July 3, 2002, an affidavit which was recorded as Confidential Information No. 62-2002 was filed by the above-named informers denouncing the estate of Dr. Ramon del Rosario for under-valuation and exclusion of several properties in the estate tax return filed by the heirs of the decedent. On the basis of said confidential information and documents submitted by the informers, Letter of Authority No. 29391 dated June 25, 2002 was issued by this Office to a group of Revenue Officers of the Tax Fraud Division to investigate all internal revenue tax liabilities of the estate of Dr. Ramon del Rosario. It was ascertained in the investigation that the estate of Dr. Ramon del Rosario had, indeed, committed the violations as averred by the informers. Accordingly, and on the basis of the recommendation of the investigating examiners contained in their Memorandum-report dated March 28, 2003, there was found deficiency estate tax due from the estate of Dr. Ramon del Rosario in the total amount of P1,201,805.45. The total amount actually paid by the estate of Dr. Ramon del Rosario on January 23, 2003 is as follows: Kind of Tax Year Involved Amount Estate Tax 1999 P1,201,805.45 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 informers 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 informers are, 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. Felix A. Saldevia and Ms. Nelita S. Henderson 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 they be paid the amount equivalent to 10% of P1,201,805.45 or the amount of P120,180.54 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. ETHIDa Very truly yours, (SGD.) GUILLERMO L. PARAYNO, JR. Commissioner of Internal Revenue