BIR Ruling [DA-564-98]

December 10, 1998 BIR RULING [DA-564-98] Hon. Edgardo B. Espiritu Secretary of Finance Manila S i r : We are forwarding herewith for your approval the herein claim for informer's reward of Ms . Erlinda B . Causapin of No. 22 Orange St., Phase II, CAA Compound, Las Pias City, under Section 282(A) of the Tax Code of 1997, including the pertinent records relative to the internal revenue tax case of Mr. Dominador de Guzman and the Sps. Apolinario and Ofelia Hain. LLjur The records show that on January 21, 1998, an affidavit was submitted by the abovenamed informer denouncing Mr. De Guzman for having sold to the Sps. Apolinario and Ofelia Hain a house and lot at a selling price of P31,000.00 although the lot alone has a zonal value of P1,620.00 per sq. meter thus, paying capital gains tax in the amount of P1,550.00 and documentary stamp tax of P465.00 only. On the basis of said information, an investigation was conducted by a revenue enforcement officer of Revenue Region No. 9, San Pablo City, and it was ascertained that there was indeed an underdeclaration of the selling price of the house and lot in question. Accordingly, subject-taxpayer was assessed deficiency capital gains tax and documentary stamp tax, inclusive of penalties, in the amounts of P49,759.85 and P8,082.00, respectively and which were paid on May 21, 1998 as evidenced by Authority To Accept Payment Nos. 2879912 and 2879913 hereto attached. The records 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 are the aforesaid tax liabilities 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 Ms. Erlinda B. Causapin 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 affected, it is respectfully recommend that she be paid the amount equivalent to 10% of P57,841.85 (P49,759.85 + P8,082.00) or the amount of P5,784.18 as informer's reward pursuant to Section 282(A) of the Tax Code of 1997. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue