DOJ Opinion No. 072, s. 1991

DOJ OPINION NO. 072 , s. 1991 April 24, 1991 The Commissioner Bureau of Internal Revenue Quezon City Sir : This has reference to your query on whether or not you disclosure of an individual income tax return to a Senate committee would make you liable under Section 269 of the National Internal Revenue Code. You state that the Senate Committee on Ways and Means, in connection with its investigation of one Mr. Ahmor Estebanlar, has issued a subpoena duces tecum for his income tax returns for the years 1985 to 1990; that despite your request, the said committee has refused to disclose the purpose of the said subpoena ;and that you want the "correct interpretation" of the abovecited codal provision, which reads: "SEC. 269. Unlawful divulgence of trade secrets. Except as provided in Section 64 of this Code and Section 26 of Republic Act Numbered 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 of 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 fined in a sum of not less than five thousand pesos but not more than ten thousand pesos, or imprisoned for a term of not less than six months but not more than five years, or both." The foregoing provision of law imposes penal sanctions upon any BIR official or employee who discloses "information regarding the business, income, or estate of any taxpayer", "knowledge of which was obtained by him in the discharge of his official duties", unless such disclosure comes within the purview of Section 64 of the Tax Code, which reads: "SEC. 64. Disposition of income tax returns; publication of lists of persons filing returns and paying taxes . After the assessment shall have been made, as provided in this Title, the returns together with any corrections thereof which may have been made by the Commissioner, shall be filed in the office of the Commissioner of Internal Revenue 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 within sixty days from the date of the effectivity of this Code by the Secretary of Finance. The Commissioner of Internal Revenue may in each year cause to be prepared and published in any newspaper and otherwise make available to public inspection upon written request and pursuant to regulations to be prescribed by the Secretary of Finance, lists containing the names and addresses of persons who have filed income tax returns with the amount of income declared and the income tax paid by each. The list of taxpayers for the preceding taxable year in each municipality or city shall be posted at the main entrance of the respective municipal building or city hall." By the first paragraph of the aforequoted section of law, individual income tax returns "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". The existing rules on inspection of such returns provide that such inspection is allowed only to (a) BIR officials and employees whose official duties require such inspection; (b) the person who made the return, or his duly constituted attorney in fact; (c) the administrator, executor, or trustee of the taxpayer's estate or the duly constituted attorney-in-fact of such administrator, executor, or trustee, where the maker of the return has died; and (d) in the discretion of the Commissioner of Internal Revenue, one of the heirs of law or next of kin of such deceased person upon showing that he has a material interest which will be affected by the information contained in the return (See Section 4 of Regulations No. 33 cited in de Leon, The National Internal Revenue Code Annotated, 1989 Ed., pp. 501-502; See also Vera vs. Cusi, Jr., 91 SCRA 153). Based upon the foregoing, it is believed that there is sufficient basis for your reluctance in complying with the subpoena in question. The abovecited regulations enumerate the instances in which individual income tax returns may be revealed. but disclosure to a Senate committee is not among those instances. Section 269 requires that to avoid liability thereunder, the disclosure of the information must be in the manner provided by law. This Department has had previous occasion to point our that the compliance of a legislative subpoena is subject to pertinent provisions of existing laws (Secretary of Justice Opn. No. 68, s. 1988). prcd The query is answered accordingly. Very truly yours, (SGD.) FRANKLIN M. DRILON Secretary