BIR Ruling No. 105-61

March 24, 1961 BIR RULING NO. 105-61 The Provincial Revenue Officer Butuan City (Thru the Regional Director BIR Regional District No. 9 Zamboanga City) S i r : This is with reference to your letter dated March 17, 1961, raising an issue as to whether or not the Provincial Revenue Officer of Agusan can furnish the Director of Forestry, Manila, and District Forester of Agusan, lists of timber licensees in the province of Agusan with their respective delinquent sales tax liabilities arising from their timber production appearing in the records of the Bureau of Internal Revenue, without violating the prohibition imposed in Section 347 of the National Internal Revenue Code. cdta The provisions of Section 347 of the National Internal Revenue Code and Section 1822 of the Revised Administrative Code are quoted hereunder, for ready reference, as follows: "SEC. 347. Unlawful divulgence of trade secrets . Except as provided in Section 81 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 inheritance of any taxpayer, the secrets, operation, style of 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 be fined in a sum of not more than two hundred pesos or imprisoned for a term of not less than six months nor more than five years, or both." (NIRC) "SEC. 1822. Duty of forest officers to cooperate with Bureau of Internal Revenue . Forest officers and employees of the Bureau of Forestry shall cooperate with the Bureau of Internal Revenue in securing the payment of charges on forest products and shall assist said Bureau generally in the enforcement of the National Internal Revenue Code in so far as it relates to forests and forest products. (Revised Adm. Code.) cdti Please be informed that the prohibition imposed in Section 347 of the Tax Code is not absolute since divulgence of the matters mentioned therein is permitted if so authorized by law. (Cu Unjieng vs. Posadas, 58 Phil. 360). On this point, the Secretary of Justice ruled that "any such law authorizing divulgence need not specifically mention or refer to BIR records so as to qualify as an exception to the general prohibition in Section 347." (Opinion No. 18, 8. of 1960) Applying the foregoing authorities in the instant case, in so far as it relates to forests and forest products, it is our opinion, and so hold, that the provisions of Section 1822 of the Revised Administrative Code, above-quoted, is one among the exceptions to Section 347 of the Tax Code. Accordingly, the Provincial Revenue Officer, as the representative of the Commissioner of Internal Revenue, can lawfully furnish the Director of Forestry, Manila, or District Forester of Agusan with their respective delinquent sales tax liabilities arising from their timber production appearing in the BIR records, without violating the inhibition set forth in Section 347 above-stated. For this purpose, the authority of the Secretary of Finance to allow such divulgence is no longer necessary. In this connection, please be informed further that this Bureau issued a circular to all internal revenue officers concerned of our avowed campaign, in cooperation with the Bureau of Forestry, to enforce the collection of forest charges and fixed and percentage taxes, inviting attention to our Field Circular No. V-11, dated March 29, 1947. cdt Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue