BIR Ruling No. 384-12

June 6, 2012 BIR RULING NO. 384-12 Section 270 of the Tax Code of 1997, as amended; BIR Ruling No. 010-11 Macaundas M. Hadjirasul c/o Regional Trial Court, Branch 8 Chief Justice Fernan Memorial Hall of Justice Capitol Site, Cebu City Sir : This refers to your letter dated November 28, 2011 duly indorsed by the Presidential Action Center requesting information on what may have been filed by Heads of Department and Chiefs of independent offices in compliance with Section 7 of RA 3019, specifically on "the amount of his personal and family expenses and the amount of income taxes paid for the next preceding calendar year." It is represented that the information will be used in one of your subjects in Doctor of Science in Jurisprudence (SJD) at the Graduate School of Law of San Beda, Manila. CcSEIH In reply, please be informed that information about a taxpayer's tax return is afforded the highest degree of confidentiality. No official or employee of the BIR may divulge information regarding a tax return without violating Section 270 of the National Internal Revenue Code, as amended ("Tax Code"), which states that: "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." While there are exceptions to the abovementioned provision of the Tax Code, none of them are availing under the facts as represented. Section 71 of the Tax Code states: "SEC. 71. Disposition of Income Tax Returns, Publication of List of Taxpayers and Filers . After the assessment shall have been made, ...the returns, together with any corrections thereof which may have been made by the Commissioner, shall be filed in the Office of the Commissioner and 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, upon recommendation of the Commissioner. ..." On the other hand, Section 26 of Republic Act No. 6388, states that: "SEC. 26. Certificate of Candidacy . No person shall be eligible unless, within the time fixed by law, he files a sworn certificate of candidacy stating in said certificate that he announces his candidacy for the office mentioned therein and that he is eligible for the office; ... The certificate of candidacy shall likewise state his gross income, including deductions and exemptions therefrom and that he has paid his income taxes as assessed for the last two years immediately preceding the election, including the receipt numbers and places of such payments, unless the candidate was exempt from paying income taxes, or his tax obligations are pending final determination, in which case he shall so state in his certificate of candidacy; and shall furthermore contain a waiver of the privilege from public disclosure of his income tax return and tax census statement for the said two-year period, except financial statements attached thereto, said waiver to be effective only during the period of his candidacy." As the exceptions do not apply under the facts as represented, we regret to inform you that under the strict mandate of the law, we cannot accede to your request for such information. (BIR Ruling No. 010-11 dated January 19, 2011) AcEIHC Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue