Production of Income Tax Returns, Record of Inventory, and Record of Annual Sales in a Criminal Case

October 23, 1972 BIR RULING NO. 025-72 Production of income tax returns, record of inventory, and record of annual sales in a criminal case . Certified copies of the income tax returns may be furnished the fiscal in the criminal case. (BIR Ruling No. 011-72, dated March 24, 1972; 024-72, dated October 10, 1972). As regards the record of inventory and annual sales, presumably submitted by the taxpayer, this Office is of the opinion that the same may also be submitted to the fiscal in connection with the aforesaid criminal case, without violating Section 347 of the Tax Code. It has been ruled that the purpose of the prohibition under Section 347 of the Tax Code is to protect the taxpayer from the improper or unlawful divulgence of his trade secrets or other confidential information to those who do not have a legitimate interest in it, to prevent unfair competition and to protect his right to privacy. But it is also evident that the prohibition was never intended to protect the taxpayer from divulgence to crimes or other unlawful behavior as the subject or proper inquiry by a duly constituted court, board or other investigative agency and information sought to be divulged is relevant and material evidence thereof. (See Opinion No. 45, S. 1965, Secretary of Justice). Thus, in Opinion No. 116, S. of 1941, the Secretary of Justice had occasion to state that Section 347 and 349 of the Tax Code are designed merely to protect the legal rights of the taxpayer against unfair competition; they cannot be invoked to immunize him from the operation of our national laws and that the statute imposing secrecy upon interval revenue officers is not intended to impede the wheels of justice. (Citing Blair vs. Gesterlain Machine Co., 17 F. 2d 663) Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue