BIR Ruling No. 185-99

November 26, 1999 BIR RULING NO. 185-99 270-DA-1-98-185-99 Office of the Ombudsman Fact Finding and Intelligence Bureau 176 MWSS Building Arroceros Street, Ermita Manila 1000 Attention: Gerardo B . Lantoria Jr . Director, FFIB Gentlemen : This refers to your Subpoena Duces Tecum dated November 24, 1999 addressed to Ms. Marietta Lorenzo, Large Taxpayers Division, Bureau of Internal Revenue requesting for certified true copies of the Cash Collection of Oil Firms from 1998 to 1999. LexLib Please be informed that Section 270 of the Tax Code of 1997 which provides, viz: "SEC. 270. Unlawful Divulgence of Trade Secrets . Except as provided in Section 71 of this Code and Section 26 of Republic Act Numbered 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) In Opinion No. 72, Series of 1991, the Secretary of Justice opined that individual income tax returns under the first paragraph of the aforequoted Section "shall constitute public records and be open to inspection as such upon the order of the President of the Philippines under rules and regulations to be prescribed . . . by the Secretary of Finance" The existing rules on inspection of such returns provide that such inspection is allowed only to (a) BIR officials and employees whose official duties require such inspection; (b) the person who made the return, or his duly constituted attorney in fact; (c) the administrator, executor, or trustee of the taxpayer's estate or the duly constituted attorney-in-fact of such administrator, executor, or trustee, where the maker of the return has died; and (d) in the discretion of the Commissioner of Internal Revenue, one of the heirs of law or next of kin of such deceased person upon showing that he has a material interest which will be affected by the information contained in the return. prcd Based on the foregoing, we cannot grant the request in view of the prohibition under Section 270 of the Tax Code of 1997. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue