BIR Ruling No. 045-10

August 27, 2010 BIR RULING NO. 045-10 Sec. 270; BIR Ruling No. 108-97; BIR Ruling No. DA-056-07; BIR Ruling No. DA-088-07 Law Offices of Siguion Reyna Montecillo & Ongsiako 4th & 6th Floors, Citibank Center, 8741 Paseo de Roxas, Makati City Attention: Atty. Cesar P. Manalaysay Atty. Jocelyn R. Esguerra-Dee Atty. Michael Felipe A. Mercado Gentlemen : This is to acknowledge receipt your letter dated March 15, 2010 submitting an excerpt of the relevant Clause of the Internal Regulations of SyCip Gorres Velayo & Co. (SGV) document to support the assertions in your previous letter dated January 20, 2010. In reply to your request to be furnished copies of the supporting documents submitted by Ms. Betty Siy-Yap relative to BIR Ruling No. SB (048) 686-2009, this Office cannot grant the same in view of Section 270 of the 1997 Tax Code, as amended. The pertinent provision reads: "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." (emphasis supplied) HIAEaC It is evident from the above provision that under the "unlawful divulgence" rule, BIR personnel cannot divulge information gained from taxpayers concerning the latter's business, income, or estate as well as the secrets, operation, style or work, or apparatus of any manufacturer or producer, or confidential information regarding the business of any taxpayer. (BIR Ruling No. 108-97 dated October 9, 1997) Section 270 is clear in its intent to protect taxpayers from having their otherwise sensitive and private information unnecessarily revealed to other parties. Based on the foregoing, considering that the requested documents contain information regarding confidential information regarding the business/work of a particular taxpayer, knowledge of which was acquired in the discharge of official duties, this Office is constrained to withhold such information pursuant to Section 270 of the same Tax Code. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue