BIR Ruling [UN-184-94]

June 24, 1994 BIR RULING [UN-184-94] The Honorable The Secretary of Finance Manila S i r : There are forwarded to that Office for approval the pertinent papers relative to the claim of Mr. Benjamin P. Martinez of No. 5 E. Bendix Lane, Liberty Homes, Alabang, Muntinlupa, Metro Manila, for informer's reward pursuant to the provisions of Republic Act No. 2338 (now Section 281(2), Tax Code, as amended by P.D. No. 1773). cdi The records show that on January 27, 1987, Mr. Martinez filed with the Finance Ministry Intelligence Bureau (now Economic Intelligence & Investigation Bureau) (EIIB), an Affidavit of Information which was recorded on Page 24 of the 1987 Log Book of said Office with Control No. FMIB Legal Division, relative to the technical smuggling activities of Messrs. Mike Lee, Yony Tan and Mike Young. Search Warrants were immediately issued by the Court resulting in the seizure of the motor vehicles of said importers by agents of EIIB. Thereafter, the Court which issued the Search Warrants allowed Messrs. Lee, Tan and Young to pay the corresponding customs duties and internal revenue taxes and after payment, quashed the warrants and ordered EIIB to release to the owners the seized motor vehicles. The total customs duties and taxes paid by the abovenamed importers amounted to P190,982.00 while the internal revenue taxes collected, i.e., excise and advance sales taxes including penalties, amounted to P78,724.00. The records further show that the information furnished by the informer was in writing and under oath; that the same was not yet in the possession of the Bureau of Internal Revenue nor are the aforesaid tax liabilities pending or previously investigated or examined by any of its official or employee or by the Department of Finance; and that the informer is not related to any internal revenue or customs official or employee or any public officer within the sixth degree of consanguinity. It appearing that the information furnished by Mr. Benjamin P. Martinez was instrumental in the discovery of a violation of the Internal revenue laws and in the recovery of taxes which otherwise would not have been effected, it is respectfully recommended that he be paid the amount equivalent to 15% of P269,706.00 (P190,982.00 + P78,724.00) or P40,455.90 as informer's reward, pursuant to Section 281(2) of the Tax Code, as amended. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue