BIR Ruling No. 010-10

June 4, 2010 BIR RULING NO. 010-10 RMO 12-93 National Media Tabloid Association 619 H. Sulucan St., Sampaloc, Manila Attention: Mr. Phil Ver Posadas Publisher Mr. Juanito Espina Senior Reporter Gentlemen : This refers to your letter dated August 24, 2008 requesting accreditation to act as deputy in monitoring businesses. HIACEa It is represented that you are members of the newly organized National Media Tabloid Association; that as such, you are formally requesting accreditation to act as deputy in relation with the monitoring of business sectors regarding correct declarations of their tax dues and to provide instantaneous reports concerning tax evasion. In reply, please be informed that the Bureau of Internal Revenue, under the 1997 Tax Code, as amended, has no authority to accredit any association/organization to act as a "deputy" in monitoring the business sectors in connection with the BIR's programs against tax evasion. Relevant to Section 5 of the same Tax Code which provides for the power of the Commissioner to obtain information and to summon/examine, and take testimony of persons, Revenue Memorandum Order (RMO) No. 12-93 dated February 1, 1993 was issued to provide "Guidelines in the Filing of Confidential Information for Violations of the National Internal Revenue Code (NIRC) and Investigation By Authorized Revenue Officer". The objectives of this issuance are: A. To provide the guidelines, rules and procedures in the filing of confidential information for violations of the NIRC in relation to Finance Regulations No. 1 implementing Republic Act No. 2339, as amended (now Section 281 of the NIRC); B. To facilitate the investigation of persons covered by the information; and C. To delineate the responsibilities of the different offices and units in the BIR involved in the filing, investigation and disposition of confidential information. The guidelines set forth under the foregoing RMO show the process to be taken whenever there is confidential information forwarded by any individual concerning violations of the Tax Code. Hence, there is no need for the BIR to authorize, recognize or accredit private organizations in monitoring business sectors regarding possible violations of the Tax Code. The BIR and its chief officials, while grateful for the vigilance of private organizations and their assistance in the fight against tax evasion, are limited only to such powers and duties granted under the Tax Code and relevant laws. DaEATc In view of the foregoing, this Office cannot issue any accreditation to your association as requested. Very truly yours, (SGD.) JOEL L. TAN-TORRES Commissioner of Internal Revenue