BIR Ruling [UN-408-95]

November 17, 1995 BIR RULING [UN-408-95] The Honorable The Secretary of Finance Manila S i r : There is forwarded to that Office for approval the herein claim of Mr. Vicente O. Gomez, of 078 Sito Libis, Brgy. Lagundi, Morong, Rizal, for informer's reward under Section 281(1) of the Tax Code, as amended, including the entire docket bearing on the internal revenue tax case of Mr. Priscilito S.J. Victorio (P. Victorio Enterprises) for the years 1989 and 1990. The records show that on the basis of an affidavit submitted by the abovementioned informer on July 15, 1991 (denominated as Confidential Information No. 2559) an investigation was conducted by revenue enforcement officers of this Bureau and it was ascertained that Mr. Priscilito S.J. Victorio did not correctly declare his gross receipts/income during the years 1989 and 1990 as reported by the informer. On the basis of the recommendation of the investigating examiner, this Office issued on October 23, 1992 Assessment Notice No. FAN-1-89-92-004156 to 004161 demanding from subject taxpayer payment of the total amount of P5,365,016.77 as deficiency income tax, deficiency expanded withholding tax (EWT) and deficiency VAT for the years in question. To enforce collection of the aforestated amount, Warrants of Distraint, Levy and Garnishment were issued against the properties and bank accounts of Mr. Victorio but so far, only the amount of P130,417.16 has been garnished from his account being held by the Province of Rizal. The informer is now requesting that he be paid the corresponding 15% reward out of the said garnished amount receipted in the name of the Provincial Treasurer of Rizal under Official Receipt No. 064909 dated March 23, 1995, xerox copy of which is hereto attached and verified by our Revenue Accounting Division to have been remitted to the government. In may be stated in this connection that a criminal complaint against Mr. Victorio is now pending before the Provincial Prosecutor of Rizal, docketed as I.S. No. 95-4535. 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 nor is the aforesaid tax liability pending or previously investigated or examined by any official or employee of this Bureau or by the Department of Finance; and that the informer is not related to any internal revenue or any other public official or employee within the sixth degree of consanguinity. It appearing that the information furnished by Mr. Vicente O. Gomez was instrumental in the discovery of a violation of the internal revenue laws and in the recovery of taxes, albeit partial, it is respectfully recommended that he be paid the amount equivalent to 15% of P130,417.16 or P19,562.55 as informer's reward pursuant to Section 281(1) of the Tax Code, as amended. cdtech Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue