DOJ Opinion No. 038, s. 2002

DOJ OPINION NO. 038 , s. 2002 May 21, 2002 Commissioner Rene G. Baez Bureau of Internal Revenue Quezon City Sir : Reference is made to your request for opinion on whether the Social Security System (SSS) and the National Statistics Office (NSO) are prevented by their respective charters from furnishing the BIR with the information enumerated in "Annex A" attached to your letter-request. As reflected in such "Annex A", the information you wish to access from the NSO and the SSS, assuming they are available, are the following: Source Information Desired Social Security System 1. Information on SSS Member classified as: a) Employer Member Name, Address/Principal Place of Business, Postal Code, TIN, SSS Number b) Self-Employed Member Name, Address, Postal Code, Birthday, SSS Number, Salary Bracket, Civil Status, TIN, Dependents, if any c) Employee Name, Address, Birthday, SSS Number, Salary Bracket, Civil Status, TIN, Dependents, if any 2. Information on SSS contracts: a) Names of Suppliers of Goods/Services b) Business/Trade Names c) Principal Place of Business d) TIN e) Sales Invoice Number f) Quantity Description of Articles/Services Purchased/Contracted for g) Price/Amount Paid National Statistics Office 1. Information on Exportation a) Names of Exporters b) Principal Place of Business c) TIN of Exporters d) Quantity/Unit of Measurement e) Description of Items f) Commercial Sales Invoice Number g) Dollar Value h) Destination i) Date of Exportation j) Name of Foreign Buyers k) Country of Declaration l) Export Declaration m) Loading Port n) Bill of Lading/Airway Bill Number o) Letters of Credit Number (L/C) p) Date of Departure from Loading Port q) Shipping Terms (C&F, FOB, etc.) It is disclosed that you wish to access such information in view of the implementation of your agency's Third Party Information Program which aims to expand revenue tax base, increase tax collection and enhance voluntary compliance. The program involves gathering of data from both private and government sectors pursuant to Section (5)(B) of the Tax Code of 1997 but such data shall be treated with strict confidentiality in accordance with the provisions of Section 270 of the said Code. Hence, this request. To be able to resolve the instant query, it is necessary to examine certain provisions of the laws pertaining to the powers and functions of the NSO and the SSS, which pertinently provide, to wit: Executive Order No. 121, s. 1987 (Reorganizing and Strengthening the Philippine Statistical System and For Other Purposes) "SEC 9. The National Statistics Office . The National Census and Statistics Office is hereby renamed the National Statistics Office (NSO). It shall be the major statistical agency responsible for generating general purpose statistics and undertaking such censuses and surveys as may be designated by the NSCB. xxx xxx xxx "SEC. 17. Access to Data of Government Agencies. Subject to existing laws, rules and regulations on confidentiality of information, any individual, institution or instrumentality shall be given access to unpublished data, provided that the cost incurred is assumed by the requesting party, in accordance with existing laws, rules and regulations ". (Emphasis supplied) Executive Order No. 5, s. 1998 (Strengthening the National Statistics Office) "SEC. 1. Strengthening of the National Statistics Office. The NSO shall be strengthened to enhance its capability to perform its mandate as the major statistical agency for generating general purpose statistics and as implementor of the Civil Registry Law through the following shifts in the organization and operations of the agency: 1.1 Delegation of more substantive and administrative functions to the field offices, thus, transforming them from mere data collection arms to statistics-producing and civil registration servicing units; 1.2 Refocusing the functions of the central office units towards developmental planning, design and analysis of designated statistical activities, as well as other surveys and statistical studies requested by the government agencies and international organizations; and 1.3 Greater use of information technology to facilitate data processing and analysis and promote easy access to statistical information by interested government, private and international organizations, and the general public. " (Emphasis supplied) Republic Act No. 8292 (Strengthening the Social Security System) "Sec. 24. Employment Records and Reports. . . . '(c) The records and reports duly accomplished and submitted to the SSS by the employer or the member, as the case may be, shall be kept confidential by the SSS except in compliance with a subpoena duces tecum issued by the Courts, shall not be divulged without the consent of the SSS President or any official of the SSS duly authorized by him, shall be presumed correct as to the data and other matters stated therein, unless the necessary corrections to such records and reports have been properly made by the parties concerned before the right to the benefit being claimed accrues, and shall be made the basis for the adjudication of the claim." (Emphasis supplied) After a careful review of the pertinent provisions above-quoted, this Department is of the view that there is nothing in the said provisions that completely prohibits the NSO and SSS from furnishing the BIR with the information enumerated earlier. In the case of the NSO, there is even explicit authority to NSO to make its statistical data available to interested parties including government agencies. NSO is the major statistical agency of the government responsible for generating general purpose statistics. Their statistics and data are vital to the country's development as it will provide direction for efficient and effective planning. As a matter of fact, the strengthening of the NSO under E.O. No. 5 was brought about by the growing demand for quality statistical products and services from the National Government, local government units, non-government organizations, academe and domestic and global business for planning, policy formulation and day-to-day decision-making ( 2nd whereas clause, E.O. No. 5 ). Hence, NSO has shifted to a wider arena to include the greater use of information technology to facilitate data processing and analysis and promote easy access to statistical information by interested government, private and international organizations, and the general public (Sec. 1, 1.3, E.O. No. 5, supra). Moreover, Section 17 of E.O. 121, above-quoted, expressly allows any individual, institution or instrumentality to have access to unpublished data subject to existing laws, rules and regulations on confidentiality of information provided that the cost incurred is assumed by the requesting party. This Department believes that it is with more reason that such statistical information should be made accessible or available to the BIR for its official use in attaining its objectives of expanding revenue tax base and improving tax collection. On the other hand, in the case of the SSS, Section 24(c) of R.A. No. 8282 (the SSS law) expressly provides that the records and reports duly accomplished and submitted to the SSS by the employers or members, as the case may be, "shall be kept confidential except in compliance with a subpoena duces tecum issued by the courts, shall not be divulged without the consent of the SSS President or any official of the SSS duly authorized by him ", shall be presumed correct as to the data and other matters stated therein . . ." The necessary implication of this provision is that such records and reports may be disclosed upon proper request of an interested party if consented to or allowed by the SSS President or his duly authorized SSS official (see italicized portion). Based on these premises, the BIR should address its request for statistical data directly to the Administrator of NSO and the President of SSS pursuant to the above-quoted provisions. EaHcDS Please be guided accordingly. Very truly yours, (SGD.) HERNANDO B. PEREZ Secretary