Breakdown of the Amounts Assessed and Demanded and the Nature Thereof

1960 BIR RULING NO. 085-60 Atty. Jose Araas Bank of P.I. Building R-301, Plaza Cervantes M a n i l a S i r : Reference is made to your letter dated December 3, 1959, supplemented by another letter dated January 4, 1960, relative to the claim for reward of your client, Mr. Gaudioso A. Solomon, under Republic Act No. 2338 on the assessment against Smith Sound System Laboratories and requesting further the present status of the case, particularly as to the breakdown of the amounts assessed and demanded and the nature thereof. cd In reply thereto, I have the honor to inform you as follows: Upon examination of the records of the case, it appears that the confidential information against the Smith Sound System Laboratories, 176 R.J. Fernandez St., San Juan, Rizal was furnished this Office by Mr. Gaudioso A. Solomon on April 23, 1959. On the basis of this information a search warrant was, upon proper application, issued by the Justice of the Peace Court, San Juan, Rizal. The search warrant was immediately executed and some books and records of the taxpayer were taken. On April 25, 1959, however, the taxpayer moved to quash the warrant and was granted. The investigating internal revenue officers had terminated their investigation and their corresponding report already submitted. Republic Act No. 2338 took effect on June 19, 1959, the date of its approval. This law was not in existence when the information against the Smith Sound System Laboratories was furnished this Office by your client on April 23, 1959. Since the law does not provide for the retroactive effect thereof, it is obvious that your client cannot be entitled to the reward provided for therein, for in the absence of the law providing for the payment of rewards, no one is under an obligation to pay unless he has contractually bound himself to do so. (Stamper vs. Temple 6 Tenn. 113, 44 Am. Dec. 296 Anno. 37 L.R.A. 119, 129 St. Rep. 407). In view thereof, it is regretted that considering the prohibition contained in section 347 of the Tax Code, the breakdown of the amounts assessed against the demanded from the Smith Sound System Laboratories cannot be furnished you. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue