BIR Ruling [DA-589-99]

October 7, 1999 BIR RULING [DA-589-99] Mr. Rey O. Garcia 42-E Emerald Street Cypress Village Masambong, Quezon City S i r : This refers to your letter dated July 14, 1999 requesting this Office to permit you to access the latest income tax statement and/or statement of asset and liabilities of Michael G. Say. prcd It is represented that a Writ of Execution dated June 23, 1999 was issued by Hon. Labor Arbiter Potenciano S. Caizares, Jr. of the National Labor Relations Commission in the case you filed against Mahal Kong Pilipinas, Inc. and/or Michael G. Say; that the original decision of the case rendered on August 13, 1992 which was declared final and executory by the Supreme Court on November 16, 1996, has yet to be enforced and satisfied, despite repeated attempts in the past and after three (3) writs had been issued; that the final Decision could not be executed as respondents Michael G. Say closed his company, changed residence, made his whereabouts unknown, and when located made himself elusive; and that so far Michael G. Say has succeeded in hiding his personal properties, as well as his leviable asset and real properties. Please be informed that Section 270 of the Tax Code of 1997 which provides, viz: "SEC. 270. Unlawful Divulgence of Trade Secrets . Except as provided in Section 71 of this Code and Section 26 of Republic Act Numbered 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." (Emphasis supplied) In Opinion No. 72, Series of 1991, the Secretary of Justice opined that individual income tax returns under the first paragraph of the aforequoted Section "shall constitute public records and be open to inspection as such upon the order of the President of the Philippines under rules and regulations to be prescribed . . . by the Secretary of Finance". The existing rules on inspection of such returns provide that such inspection is allowed only to: (a) BIR officials and employees whose official duties require such inspection, (b) the person who made the return, or his duly constituted attorney in fact; (c) the administrator, executor, or trustee of the taxpayer's estate or the duly constituted attorney-in-fact of such administrator, executor, or trustee, where the maker of the return has died; and (d) in the discretion of the Commissioner of Internal Revenue, one of the heirs of law or next of kin of such deceased person upon showing that he has a material interest which will be affected by the information contained in the return. Based on the foregoing, we cannot grant the request in view of the prohibition under Section 270 of the Tax Code of 1997. Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)