BIR Ruling [DA-707-99]

December 27, 1999 BIR RULING [DA-707-99] Committee on Ways and Means House of Representatives North Basement Batasan Complex, Quezon City Attention: Mr . Mauricio R . Pulhin Legislative Committee Secretary Gentlemen : This refers to your letter dated November 18, 1999 requesting for the following data in connection with the scheduled meeting on House Resolution No. 519 entitled "Resolution Directing the Committee on Ways and Means to Conduct an Inquiry, in aid of legislation, into the alleged failure of Metrobank to pay the correct amount of Documentary Stamp Taxes for the taxable years 1995 and 1996" on December 6, 1999, to wit: "1. Complete record of assessments made on Metrobank from the preliminary assessment to the final assessment and the working papers related thereto; "2. Copy of the memorandum from Former Commissioner Liwayway Chato creating the Special Task Force to audit the banking industry; "3. Copy of the Letter of Authority No. 133982 issued on August 9, 1996; LA No. 149630 dated May 19, 1998; and the LA issued on July 19, 1998 for the taxable year 1997; "4. Data for collection and assessment of other banks from 1995 to 1997." Please be informed that Section 20(A) of the Tax Code of 1997 provides, viz: "SEC. 20. Submission of Report and Pertinent Information by the Commissioner. (A) Submission of Pertinent Information to Congress . The provision of Section 270 of this Code to the contrary notwithstanding, the Commissioner shall, upon request of Congress and in aid of legislation, furnish its appropriate Committee pertinent information including but not limited to: industry audits, collection performance data, status reports in criminal actions initiated against persons and taxpayer's returns: Provided ,however, That any return or return information which can be associated with, or otherwise identify, directly or indirectly, a particular taxpayer shall be furnished the appropriate Committee of Congress only when sitting in Executive Session unless such taxpayer otherwise consents in writing to such disclosure. (Emphasis supplied) On the basis of the foregoing provision, this Office can furnish Congress of the aforementioned informations provided the taxpayer involved consents in writing to such disclosure. Otherwise, only when the appropriate Committee of Congress is sitting in Executive Session. Webster International Dictionary defines Executive Session as a closed session of a legislative or other body acting in the function of an Executive Council. On the other hand, The Grolier International Dictionary defines it as a legislative session, usually one closed to the public .It can be inferred from the foregoing that the previous meeting/public hearing on House Resolution No. 519 cannot be considered as an Executive Session within the context of the said definitions. Furthermore, Section 270 of the Tax Code of 1997 provides, thus: "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 that 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) prcd Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue