BIR Ruling No. 024-80

October 17, 1980 BIR RULING NO. 024-80 305-00 000-00 24-80 Mr. Aquilino T. Larin Revenue Regional Director Revenue Region No. 4-A Escolta, Manila S i r : This refers to your letter dated June 25, 1980 requesting a ruling on the following: I Many of our warrants of distraint or levy cannot be served and executed because the taxpayers do not allow our examiners to enter their homes. In cases like this, can our distraining or levying officer forcibly enter the taxpayer's residence in order to effectively execute the warrant without violating the constitutional provision on the sanctity of abode? aisadc II In spite of letters to taxpayers to present their books of accounts to the Office in order that we may be able to properly determine the correct tax due on them, they refuse to or fail to present said books of accounts. Would said refusal or failure to present books of accounts stop the running of the five-year period of prescription within which to assess?" In reply, you are informed as follows: 1) In case the taxpayer refuses to receive the Warrant of Distraint and Levy by not allowing our examiners to enter his resident, the Warrant shall be served by constructive service. A copy of the warrant shall be left in the premises or in the taxpayer's place of business or in the place of the person in possession of or is the occupant of the property of the taxpayer which fact shall be attested to in said copy and in all the other copies of the warrant by the distraining or levying officer and at least two credible witnesses and the warrant is deemed properly served. A copy of the warrant thus served shall be furnished the delinquent taxpayer with notation thereon that a copy of the same was left with the person who is in possession of or an occupant of his property. (Sec. 5, Rev. Reg. No. 3-69) A tax collector cannot legally break and enter the dwelling of a delinquent taxpayer for the purpose of seizing personal property but other buildings as stores, warehouses, etc., may be forcibly entered for such purpose. (3 Op. Atty. General P.I., 76) 2) In case a taxpayer fails or refuses to present his books of accounts despite repeated demands, a subpoena duces tecum should be issued to compel him to produce this books (Sec. 7, Tax Code, as amended by P.D. 1705) Failure to obey such subpoena duces tecum renders the taxpayer liable to the penalties prescribed by Section 337 of the same Code. Refusal or failure of the taxpayer to present his books of accounts does not stop the running of the five-year period of prescription within which to assess because such refusal or failure is not one of the grounds that would suspend the running of the statute of limitations provided for in Section 320 of the Tax Code. cdta Very truly yours, ROMULO M. VILLA Acting Commissioner