Boarding of Interisland Vessels for the Purpose of Conducting Searches and Seizures of Articles Subject to Internal Revenue Taxes

July 20, 1960 BIR RULING NO. 311-60 The Regional Director BIR Regional District No. 9 Zamboanga City S i r : This is with reference to your letter dated May 19, 1960, requesting information as to whether or not internal revenue officers may board interisland vessels for the purpose of conducting searches and seizures of articles subject to internal revenue taxes and on which the corresponding taxes have not been paid without securing prior permission from the customs authorities. In the affirmative, whether or not such searches and seizures would violate any customs law or regulations. In reply to the foregoing query, attention is invited to the following general provision of the National Internal Revenue Code: "SEC. 14. Authority of internal-revenue officers to make arrests and seizures . The Collector of Internal Revenue, the Deputy Collector of Internal Revenue, internal revenue agents, agent's assistants and examiners . . . shall have authority to make arrests and seizures for the violation of any penal law or regulation administered by the Bureau of Internal Revenue. . . . (Emphasis supplied) For specific tax purposes, the same Code provides the following: "SEC. 167. Authority of internal revenue officer in searching for taxable articles . Any internal-revenue officer may, in the discharge of his official duties enter any house building, or place where articles subject to tax under this Title are produced or kept, or are believed by him upon reasonable grounds to be produced or kept, so far as may be necessary to examine, discover, or seize the same. "He may also stop and search any vehicle or other means of transportation when upon reasonable grounds he believes that the same carriers many article on which the specific tax has not been paid." (Emphasis supplied) "SEC. 168. Detention of package containing taxable articles . Any revenue officer may detain any package containing or supposed to contain articles subject to a specific tax when he has good reason to believe that the lawful tax has not been paid or that the package has been or is being removed in violation of law, any every such package shall be held by such officer in a safe place until it shall be determined whether the property so detained is liable by law to be proceeded against for forfeiture; but such summary detention shall not continue in any case longer than seven days without process of law or intervention of the officer to whom such detention is to be reported." The aforequoted provisions of the Tax Code will readily show that a duly authorized internal revenue officer, performing his official duty, is not required to secure permission from customs authorities before conducting any search or seizure of articles subject to internal revenue taxes. In this connection, however, attention is invited to the existing rules and regulations of the Bureau of Customs prohibiting unauthorized personnel from entering Customs premises without proper permission from the Customs authorities concerned. While there is no law penalizing duly authorized internal revenue officers discharging their official duties under the foregoing circumstances, it is always advisable to seek the permission or cooperation of the customs authority concerned, to maintain harmonious relationship, in whatever course of action to be taken against the taxpayers within the customs premises. cdll Please be guided accordingly. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue