BIR Ruling [DA-(S270-003) 426-08]

November 13, 2008 BIR RULING [DA-(S270-003) 426-08] November 5, 2008 Hon. Antonio A. Villar, Jr. Undersecretary/Head Presidential Anti-Smuggling Group Office of the President 1/L Bahay Ugnayan, Malacaang Compound San Miguel, Manila Dear Undersecretary Villar : This has reference to your letter dated August 28, 2008 requesting for copies of Importer's Sworn Statements, Authority to Release Imported Goods (ATRIG), and VAT returns of various car companies filed within the last three years. TIDHCc Much as we want to help you evaluate the revenue behavior of the companies in the motor vehicle high-end market, we are, however, prohibited by law to divulge to any person or make known in any other manner than may be provided by law information regarding the business, income or estate, the secrets, operation, and confidential information regarding the business of any taxpayer, the same being considered as confidential information under Section 270 of the Tax Code of 1997, as amended, violation of which would constitute unlawful divulgence of trade secrets, viz. : SEC. 270. Unlawful Divulgence of Trade Secrets. Except as provided in Section 71 of this Code and Section 26 of Republic Act No. 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. One of the exceptions to this rule, however, is when upon request of Congress and in aid of legislation, the Commissioner of Internal Revenue may furnish the appropriate Committee in Congress the 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 said appropriate Committee of Congress only when sitting in Executive Session unless such taxpayer otherwise consents in writing to such disclosure. (Sec. 20, Tax Code of 1997) On the other hand, the Tax Code also imposes penalties on anyone who causes an officer of the BIR to disclose or divulge information acquired by him in the discharge of his official duties, viz. : SEC. 278. Procuring Unlawful Divulgence of Trade Secrets. Any person who causes or procures an officer or employee of the Bureau of Internal Revenue to divulge any confidential information regarding the business, income or inheritance of any taxpayer, knowledge of which was acquired by him in the discharge of his official duties, and which it is unlawful for him to reveal, and any person who publishes or prints in any manner whatever, not provided by law, any income, profit, loss or expenditure appearing in any income tax return, shall be punished by a fine of not more than Two thousand pesos (P2,000), or suffer imprisonment of not less than six (6) months nor more than five (5) years, or both. cEDIAa We truly recognize the importance of the role played by your Group in the overall efforts of the government to rid the country of tax evaders. We also realize that any assistance we could extend in the conduct of your investigation will be beneficial to the government in general and to the BIR in particular. We regret, however, that we cannot grant your request for copies of Importer's Sworn Statements, Authority to Release Imported Goods (ATRIG), and VAT returns of various car companies filed within the last three years for the same will amount to unlawful divulgence of trade secrets which is prohibited under Section 270 of the Tax Code, as amended. So that the government will not be precluded from pursuing the investigation you have commenced, may we request that all information you have gathered so far which may be indicative that certain taxpayers have committed tax evasion, be forwarded to this Office in order that we can initiate appropriate legal actions to ensure that errant taxpayers are dealt with accordingly. Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Commissioner Bureau of Internal Revenue