BIR Ruling [UN-219-95]

June 15, 1995 BIR RULING [UN-219-95] Mr. Leo R. Cadayona 63-1 D. Ponce Street Davao City 8000 S i r : This is to acknowledge receipt of your letter dated April 18, 1995 and follow up letter dated May 24, 1995, bearing on your inquiry as to whether the reward system for information on tax evasion cases still exists. It appears that you have in your possession vital documents that could lead to the discovery of a multi-million-peso tax evasion case involving two (2) affiliated companies. In reply, please be informed in the affirmative. Pursuant to Section 281(1) of the Tax Code, as amended by P.D. 1773, you shall be rewarded in a sum equivalent to 15% of the revenues, surcharges, fees or penalties assessed and actually paid as a result of your valid information. If the taxpayer denounced offers to compromise the case and his offer is accepted by the Commissioner of Internal Revenue, the 15% reward shall be based on the amount agreed upon in the compromise and collected. However, should no revenue surcharges or fees be actually recovered or collected, then you are not entitled to reward. It must be emphasized however, that the information to be filed by you must not yet be in the possession of the Bureau of Internal Revenue nor shall it refer to a case of fraud or violation already pending or previously investigated or examined by the Commissioner of Internal Revenue or any of his deputies, agents or examiners, as the case may be or by the Secretary of Finance or any of his deputies or agents. It is also understood that you are not an internal revenue officer or employee or a public officer or related within the sixth degree of consanguinity to such BIR official or employee or any public officer. Regarding the protection that this Office can extend to you as an informer, please be assured that your identity shall be kept confidential at all times either before or after the termination of the case and shall not be disclosed to any person, especially to the taxpayer and any official or employee of this Office who maliciously reveal your identity without your consent shall be subject to severe disciplinary action. (Section 2, Republic Act No. 2338). cdtech Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue