Prescribing the Policies, Guidelines and Procedures in Processing Specific Requests for Information

February 18, 2013 REVENUE MEMORANDUM ORDER NO. 002-13 SUBJECT : Prescribing the Policies, Guidelines and Procedures in Processing Specific Requests for Information Pursuant to the Exchange of Information Provision of Philippine Tax Treaties, in Relation to Republic Act No. 10021, as Implemented by Revenue Regulations No. 10-2010 TO : All Internal Revenue Officers and Others Concerned I. Background In the last decade, the world has witnessed a growth in volume and complexity of cross-border commercial and financial transactions. With the liberalization and globalization of economies, however, innovative tax practices by taxpayers that have access to international markets have also emerged alongside an increase in international tax evasion. The harmful effects of some of these practices, e.g., abusive transfer pricing and capital flight, have resulted in significant losses of tax revenues for governments. To confront the challenges presented by globalization, many jurisdictions have emphasized the need for more effective exchange of tax information between national tax authorities. In response to this changing fiscal environment, the Philippine Government enacted, on March 5, 2010, Republic Act (RA) No. 10021 otherwise known as the "Exchange of Information Act of 2010" which ensures that information held by our banks and financial institutions can be made available to foreign tax authorities, upon request, in accordance with the terms of our Double Taxation Agreements (DTAs) and Tax Information Exchange Agreements (TIEAs) 1 hereafter referred to as Exchange of Information or EOI arrangements. This development solidifies the Philippines' commitment to comply with internationally-agreed standards on tax transparency and effective exchange of tax information. At the same time, it impacts the manner in which the Bureau handles requests for information exchange pursuant to the relevant treaty provisions. To ensure that the exchange of information mechanism with our 37 tax treaty partners remains effective in this new environment, the procedures on specific exchange of information (or exchange of information on request), 2 which were last amended in 1997, are being updated to reflect the foregoing changes in the global economy and the Philippine legal system. CaDSHE II. Policy It is the policy of the Bureau of Internal Revenue to cooperate with foreign tax authorities in combating international tax evasion and other criminal tax offenses and to address tax concerns that affect international trade and investment by fully utilizing the mechanism of exchange of information. To this end, the Bureau shall adopt procedures on specific exchange of information that: 1) Allow for effective information exchange with other jurisdictions with which we have EOI arrangements; 2) Ensure the confidentiality of information received under such arrangements; and 3) Safeguard the rights of taxpayers and third parties. III. Objectives In order to carry out this stated policy, this Order: 1. Identifies the scope of exchange of information on request, the subjects covered and the limitations to exchange information; 2. Prescribes the standard procedures to be followed in handling a request for information made to, or received from, a foreign tax authority pursuant to an EOI arrangement; and 3. Prescribes the forms to be used in requesting information from foreign tax authorities, banks and financial institutions and other holders of taxpayer information, and the forms to be used in responding to requests for information from foreign tax authorities pursuant to an EOI arrangement. IV. Competent Authority The competent authority acts as a contact point for the competent authorities of treaty partners for EOI purposes. Exchange of information can only take place between competent authorities or their authorized representatives. This ensures that the rules applicable to exchange of information (and in particular the confidentiality of information exchanged) are respected and consistently applied. Bypassing the competent authorities constitutes a breach of tax confidentiality which is expressly prohibited by Section 270 of the National Internal Revenue Code (NIRC) and by the terms of our DTAs and TIEAs. CTIEac Our DTAs generally provide that "the Secretary of Finance or his authorized representative(s)" are the competent authorities for the Philippines. The DTAs with Bahrain, Bangladesh, Czech Republic, Sweden and United Arab Emirates provide that the competent authority is "the Secretary of Finance or the Commissioner of Internal Revenue". The DTA with the United States indicates that the competent authority is "the Secretary of Finance or his delegate." Section 4 of Revenue Regulations 10-2010 expressly designates the Commissioner of Internal Revenue (Commissioner) as the Philippine competent authority for EOI purposes. V. Scope and Coverage of Exchange of Information Exchange of information covers any information that is necessary or foreseeably relevant to the administration or enforcement of the domestic laws of the contracting parties concerning income taxes and other taxes covered by the terms of our EOI arrangements. It includes information for cases that involve tax evasion and other criminal tax offenses but is not limited to such cases. A request for information can include any or all of the following items but not limited to: 1. The fiscal residence of an individual or a company; 2. The tax status of a legal entity; 3. The nature of income in the source country; 4. The income and expenses shown on a tax return; 5. Business records (for instance to determine the amount of commissions paid to a company of another State); 6. Formation documents of an entity and documents about subsequent changes of shareholders/partners; 7. Name and address of the entity at the time of formation and all subsequent name and address changes; aCATSI 8. Number of entities residing at the same address as the requested entity; 9. Names and addresses of the directors, managers, and other employees of a company for the relevant years, evidence (contracts and bank statements) of their remuneration, social security-payments and information about their occupation with regard to any other entities; 10. Banking records; 11. Accounting records and financial statements; 12. Copies of invoices, commercial contracts, etc.; and 13. The price paid for goods in a transaction between independent companies in both States. 3 It must be stressed, however, that the scope of exchange of information is not limited to taxpayer-specific information but also includes information related to tax administration and compliance improvement, such as statistics, information about a particular industry, tax evasion trends, administrative interpretations and practices, 4 laws, court decisions, official publications and other subjects. Time periods during which tax situations may be examined vary from country to country, and the beginning of the tax year does not always coincide with the calendar year. Where there is a significant time lag between the time the information is supplied and the year to which the information relates, a statute of limitations issue may arise. The question of whether use of the information is time barred has to be determined by reference to the statute of limitations rules of the country where the information is to be used. 5 VI. Limitations to Exchange of Information The obligation to exchange information is mandatory and is not limited to information contained in the tax files held by the Bureau. When a request is received from a treaty partner, the Bureau will have to take action to obtain the information requested, if it is not available on its files. It cannot rely solely on the information in its possession. However, the Bureau is not bound to go beyond its own internal laws and administrative practice in putting information at the disposal of the requesting state. ECaSIT Thus, the Commissioner can order the obtention of information, and even summon, examine and take the testimony of a person to acquire the information requested since these acts are authorized under Section 5 of the National Internal Revenue Code (NIRC). In addition, the Commissioner can inquire into bank deposit accounts pursuant to Section 6 (F) of the NIRC, as amended by RA 10021. Moreover, the income tax return/s of specific taxpayer/s subject of a request of a treaty partner may be open to inspection upon the order of the President. There are instances, however, where the obligation to exchange information is lifted and a request for information can be declined, viz. : 1. Information that the requesting party would not be able to obtain under similar circumstances under its own laws or administrative practice; 2. Information relating to years not covered by DTAs or taxes not covered; 3. Disclosure of information requested would be contrary to public policy. "Public policy" generally refers to the vital interests of a country, for instance where information requested relates to a state secret, the disclosure of which would be contrary to the vital interests of the requested State. A case of "public policy" might also arise, for example, where a tax investigation in another country was motivated by racial or political persecution. 4. Information relating to the administration or enforcement of a provision of the tax laws which discriminates against a national of the requested party ( i.e. , Philippines) as compared with a national of the applicant party in the same circumstances; and 5. Information subject to legal privilege; that is confidential communications between attorneys or other admitted legal representatives in their role as such and their clients to the extent that the communications are protected from disclosure under domestic law. TcHEaI VII. Procedures A. Responding to a Request for Information The international standard for processing requests for information is ninety (90) days from receipt for a request by the tax authority. However, this period may be extended where difficulties in obtaining and providing information are encountered. In order to respond promptly to requests from tax treaty partners, the following procedures are hereby adopted: Receipt, Evaluation and Acknowledgment of Requests 1. All requests for information from foreign tax authorities received shall be coursed through and processed by the International Tax Affairs Division (ITAD). Should a request for information be received by another office, it should immediately be transmitted to the Chief, ITAD. 2. Upon receipt, ITAD shall assign a reference number to the request for identification of cases and refer it to the Exchange of Information (EOI) Section. 3. The EOI Section shall evaluate and verify the sufficiency of the request. Requests for bank information shall be verified against the checklist of requirements attached to this RMO as Template "1". 4. ITAD shall prepare the acknowledgment letter to the requesting tax authority to be signed by the Commissioner or his/her duly authorized representative within seven (7) days from receipt of the request. The standard format attached to this RMO as Templates "2" and "3" may be used for acknowledging receipt of requests. 4.1. If a request is found to be sufficient, and the information cannot readily be provided by ITAD, the Commissioner or his/her duly authorized representative will send letters to the appropriate information holders ( e.g. , government or BIR offices, banks, or financial institutions) requesting the relevant information. (Refer to Templates "4", "5" and "6" ). DEcITS 4.2. If a request is considered to be insufficient, the requesting tax authority will be asked in the acknowledgment letter to clarify the request or to furnish additional documents or information as required to allow a response to be made. 4.3. Where there is ground to refuse or decline a request, the requesting tax authority will be informed in the acknowledgment letter of the grounds for such refusal. Gathering of Information by BIR Offices 5. If a request for taxpayer information is forwarded to another office within the Bureau that office should act on the request within sixty (60) days from the date of the request. The information request may already be at the disposal of the requested BIR office or it may require information gathering measures. 6. If access to a taxpayer's records is required to obtain the information requested by the foreign tax authority, the concerned Revenue District Officer/Chief of the Division shall issue an Access to Records/Request for Information (for Exchange of Information Purposes Template "7" ) to the taxpayer or entity concerned and serve the same within seven (7) days from date of issuance. Revenue officers should, as much as possible, secure records requested within thirty (30) days from date of service to the taxpayers. 7. Once obtained, the information requested should immediately be forwarded to the Chief, ITAD (Attention: EOI Section) using the Feedback Sheet attached as Template "8" to this RMO. 8. The Feedback Sheet shall also be used if the action/information requested cannot be provided by the Revenue District Officer/Chief of the Division at the end of the 60-day period. ScEaAD A revenue official or employee shall under no circumstances communicate directly to the requesting foreign tax authority (or a representative thereof) on matters pertaining to the latter's request for information without prior approval of the Commissioner. Issuance of Subpoena Duces Tecum to Officers of Banks and Financial Institutions 9. If a bank or financial institution is requested to provide information but does not reply to a request for that information within the period specified in the request, or provides incomplete information, the Commissioner or his/her duly authorized representative, upon request of ITAD, shall issue a subpoena duces tecum (SDT) against the said bank or financial institution pursuant to existing revenue issuances, copy furnished the Bangko Sentral ng Pilipinas. Should the officer, owner, agent, manager, director or officer-in-charge of such bank or financial institution fail to comply with the subpoena duces tecum (SDT), ITAD shall refer the case to the Prosecution Division for the filing of appropriate criminal actions against such person ( i.e. , for violation of Section 6 and Section 266 of the NIRC and RA 10021). Sending of Information to the Requesting Tax Treaty Partner 10. Upon receipt of information from the appropriate offices, banks, or financial institutions, ITAD shall prepare a transmittal of the information to the requesting foreign tax authority to be signed by the Commissioner or his/her duly authorized representative. (Template "9") Documents transmitted shall be stamped with a note that the information contained therein is solely for the use of the requesting foreign tax authority pursuant to an existing income tax treaty or agreement on tax matters. SHECcT 11. If the information requested cannot be obtained or exchanged within 90 days, the Commissioner or his/her duly authorized representative shall inform the requesting foreign tax authority of the obstacles encountered in obtaining the information and the reasons for the failure to provide the information. (Refer to Template "10" ) Notice to Taxpayer 12. With respect to request for information held by a bank or a financial institution and requested by a foreign tax authority, the Commissioner or his/her duly authorized representative shall, within sixty (60) days from receipt of all requested information, send a notice to the taxpayer concerned (Template "11") that he/it is or was subject of a request for information by the foreign tax authority. This Bureau shall not be at default of this provision should it fail to inform the taxpayer by reason that his or its address is not known to or is not supplied to the Bureau, when he or it cannot be located in the address registered/given by him to the Bureau, or that the notice was not sent to the current address of the taxpayer but to that only known or supplied to the Bureau. B. Making a Request for Information to a Tax Treaty Partner The following shall be observed when making a request for information to our tax treaty partners: 6 1. All requests for information by different offices of this Bureau ( e.g. , Regional Offices, Revenue District Offices [RDOs], Large Taxpayers Service, Large Taxpayers District Offices [LTDOs], National Investigation Division) shall be coordinated with ITAD. A revenue official or employee shall, under no circumstances, communicate directly to the requested foreign tax authority (or a representative thereof) on matters pertaining to this Bureau's request for information without prior approval of the Commissioner. ACETSa Form of Request 2. A request shall be contained in a Memorandum (Template "12") together with all necessary documents. The request should be drafted in a simple and clear manner. Any additional information that may facilitate the request ( e.g. , taxpayer's date of birth, middle or maiden name, foreign address), the type and required form of document ( e.g. , if authentication is required) and timeline for the request should be indicated. 3. The requesting office shall secure the approval of the supervising Regional Director or Assistant Commissioner on the Memorandum. 4. The request, together with necessary documents, shall be forwarded to the Assistant Commissioner (Legal Service), who will forward the same to Chief, ITAD for evaluation. ITAD shall prepare the acknowledgement letters to the concerned office of the Bureau confirming receipt of request for information. Sending of Request to Tax Treaty Partners 5. If the request meets all the requirements, ITAD shall prepare the request letter to be signed by the Commissioner or his/her duly authorized representative addressed to the competent authority of the requested foreign tax authority. ( Template "13" with attachments). Receipt and Transmittal of Information 6. Upon receipt of information from the requested foreign tax authority, ITAD shall prepare and send a letter to the said tax authority to be signed by the Commissioner or his/her duly authorized representative to acknowledge the information given. (Template "14") ATHCac 7. The Chief, ITAD shall also cause the transmittal of the information to the requesting BIR office signed by the Commissioner or his/her duly authorized representative. (Template "15") VIII. Confidentiality All taxpayer information obtained pursuant to this Order are confidential and may only be disclosed in accordance with Philippine law ( e.g. , Section 270 of the NIRC). Confidentiality obligations are also imposed under our EOI arrangements which generally follow the rules of the OECD Model Tax Convention or Model TIEA. Moreover, the provisions cover not only information received in response to a request, but also information contained in competent authority letters, including the letter requesting information. Generally, the Exchange of Information article in our DTAs provides that any information received shall be treated by the Bureau as secret in the same manner as information obtained under the domestic laws of the Philippines and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to taxes on income. Such persons or authorities shall use the information only for such purposes, but they may disclose the information in public court proceedings or in judicial decisions. However, some of the Philippines' DTAs, e.g. , those with Canada and Singapore, have even more restrictive confidentiality provisions. Accordingly, any disclosure of taxpayer information received under an EOI arrangement, outside of the Bureau, must be in accordance with the terms of the relevant EOI arrangement and shall only be allowed after sign-off by the Commissioner or his/her duly authorized representative for this purpose. IX. Final Provisions The gathering of information by this Bureau for a foreign tax authority pursuant to the latter's request does not constitute an actual investigation of this Bureau on the subject taxpayer or taxpayers nor authorizes the Bureau to issue corresponding Letters of Authority on the request, unless warranted. IDSaEA However, information supplied by a bank or a financial institution to the Bureau may be used by it in its own assessment, verification, audit, and enforcement of the taxpayer whose account and his or its transactions are now made known to the Bureau. Likewise, the Bureau shall not be precluded from carrying out subsequent investigations on taxpayers whose transactions with foreign taxpayers were subject of examination by foreign tax authorities. X. Repealing Clause All issuances or portions thereof not consistent with the provisions of this Order are hereby repealed or amended accordingly. XI. Effectivity This Order takes effect immediately. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue TEMPLATE 1 Request for Bank Information should contain: 1. The identity of the person under examination or investigation; 2. A statement of the information being sought including its nature and the form in which the said foreign tax authority prefers to receive the information from the Commissioner; 3. The tax purpose for which the information is being sought; 4. Grounds for believing that the information requested is held in the Philippines or is in the possession or control of a person within the jurisdiction of the Philippines; cADEHI 5. To the extent known, the name and address of any person believed to be in possession of the requested information; 6. A Statement that the request is in conformity with the law and administrative practices of the said foreign tax authority, such that if the requested information was within the jurisdiction of the said foreign tax authority then it would be able to obtain the information under its law or in the normal course of administrative practice and that it is conformity with a convention or international agreement; and 7. A statement that the requesting foreign tax authority has exhausted all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties. IcDESA TEMPLATE 2 Acknowledgment letter to the requesting State of receipt of an EOI request for non-banking information Our ref: EOI (Please quote our EOI number in all correspondence) . Your ref: xxxx 2013 Re: [case name] Exchange of Information under Article xx of our Double Taxation Agreement Dear _______: I acknowledge receipt of your request for information in relation to the above case which we received on xxx 2013. Enquiries are being carried out and I will issue a full response to you as soon as possible. [Where the information requested is likely to be held by a Philippine's taxpayer, the following sentence should be included in the acknowledgement letter: In the event that the information you requested is not already on our files, I intend to contact the taxpayer directly to obtain the information. If you have an objection to this course of action, please contact [Name Official] (Chief of ITAD) immediately at Telephone: + 632 1 xxxxxxx E-mail:] I confirm that this information is governed by the provisions of Article xx of our Double Taxation Agreement. Yours sincerely, TEMPLATE 3 Acknowledgment letter to the requesting State of receipt of an EOI request for bank information Our ref: EOI (Please quote our EOI number in all correspondence) . Your ref: xxxx 2013 Re: [case name] Exchange of Information under Article xx of the Double Taxation Agreement between the Philippines and [insert name of country] Dear _________: I acknowledge receipt of your request for information in relation to the above case which we received on xxx 2013. HCaEAT Enquiries are being carried out and I will issue a full response to you as soon as possible. Our regulations provide that, with respect to information held by a bank or financial institution which is requested by a foreign competent authority, we shall, within 60 days, notify the taxpayer concerned that he is subject of a request by the foreign competent authority. If you do not wish us to notify the taxpayer or you would prefer that we try to obtain the information before issuing the notifications, please contact [Name Official] (Chief of ITAD) immediately at Telephone: + 632 1 xxxxxxx E-mail:] I confirm that this information is governed by the provisions of Article xx of our Double Taxation Agreement. Yours sincerely, TEMPLATE 4 Reference No. ______________ (Date) Memorandum for : (Name) Assistant Commissioner Information Systems Operations Service or Information Systems Development Service With reference to the request for information of (foreign tax authority) made pursuant to the article on Exchange of Information of the Philippines-(foreign country) income tax treaty, please provide information on the following: SIcTAC Taxpayer/s Subject of Request for Information Name Last Known Address ______________ _________________ ______________ _________________ ______________ _________________ Information to be Verified/Certified or Document/s to be Provided When complying, please refer to the above-mentioned Reference No. and attach a copy of this letter. Please respond within fifteen (15) days from receipt of this letter to the Chief, International Tax Affairs Division of this Bureau. Should you have any queries relating to this matter, please contact [Name Official] (Chief of ITAD) immediately at Telephone: xxxxxxx E-mail:] Thank you. TEMPLATE 5 Letter of request to Revenue District Office and other concerned Agencies to provide information Reference No. ______________ (Date) (Name) Revenue District Officer Revenue District Office No. _______ (Address) Or (Name) Corporation/Entity Address Dear Mr./Ms. ____________: I am writing to inform you that a request for exchange of information has been received from (name of foreign tax authority) pursuant to Article [Insert article number] (Exchange of Information) of the Philippines- (Insert name of foreign country) Double Taxation Agreement. To enable us meet our obligations under this treaty, please provide the information described below on the following: HAaDTE Taxpayer/s Subject of Request for Information Name Last Known Address ______________ _________________ ______________ _________________ ______________ _________________ Information to be Verified/Certified or Document/s to be Provided When complying, please refer to the above-mentioned Reference No. and attach a copy of this letter. Please respond within fifteen (15) days from receipt of this letter to the Chief, International Tax Affairs Division of this Bureau. Should you have any queries relating to this matter, or in the unlikely event that the information holder challenges our authority to obtain the information requested, please contact [Name Official] (Chief ITAD) immediately at Telephone: xxxxxxx E-mail:] Thank you. TEMPLATE 6 Letter of request for banking information from financial institution Reference No. ______________ (Date) (Name) (Position) (Bank or Financial Institution) (Address) Dear Mr./Ms. ___________: Pursuant to Republic Act No. 10021 1 and Revenue Regulations No. 10-2010 and Article [Insert article number] (Exchange of Information) of the Philippines-[Insert foreign country name] income tax treaty, 2 you are requested to provide the information set out below: ECcaDT Subject of Request for Information Name Account No. ______________ ______________ ______________ ______________ ______________ _________________ Relative thereto, please provide the following information/documents on the subject: When complying, please refer to the above-mentioned Reference No. and attach a copy of this letter. Please respond within fifteen (15) days from receipt of this letter to the Chief, International Tax Affairs Division of this Bureau (Room 811, 8th Floor, BIR National Office Building, Diliman, Quezon City). Should you have any queries relating to this matter, please contact [Name Official] (Chief of ITAD) immediately at Telephone: xxxxxxx E-mail:] Thank you. TEMPLATE 7 Letter of request to taxpayer/third party to provide information ACCESS TO RECORDS AND REQUEST FOR INFORMATION Date: __________ ___________________ ___________________ ___________________ Sir/Madam: Pursuant to the Exchange of Information provisions of the Philippines-____________ tax treaty and in connection with Sections 5 and 7 of the National Internal Revenue Code, please be informed that (Mr./Mrs.) ___________________ of RDO No. _________ of this Bureau is authorized to request the following documents and/or information or to have access to your records pertaining to the specific transaction for which information is being requested by the __________ tax authority. SEcITC RECORDS TO BE VERIFIED: INFORMATION DESIRED: It will be appreciated if the desired documents/information are presented to this Office on or before _______________________. I want to assure you that the documents furnished and/or information obtained are subject to the confidentiality requirements of the National Internal Revenue Code and those imposed on us by the terms of the Philippines-__________ Double Taxation Agreement. Any inquiry on this matter should be directed to this Office at (RDO/Division Address) with Tel. Nos. __________ or Fax No. ______________. Very truly yours, Commissioner of Internal Revenue By: Revenue District Officer/Division Chief TEMPLATE 8 Feedback Form from RDO/Division REQUEST FOR INFORMATION STATUS REPORT/FEEDBACK DOCUMENT Subject of Investigation: ____________________________ Requesting Party: _________________________________ Date of Referral to RDO/Division: ___________________________ (Note: Please use another paper, if necessary) Action or Information Requested Action Taken/Remark (Attach documentary proof) HAEIac Recommendations/Suggestions Signed by: _____________________ Revenue Officer Noted by: ________________________________ Revenue District Officer/Division Chief RDO No./Division ________________ TEMPLATE 9 Sample of Final Reply to EOI request (to be further developed and adapted to each particular situation where information is being provided) Our ref: EOI (Please quote our EOI number in all correspondence) . Your ref: xxxx 2013 Re: [case name] Exchange of Information under Article xx of the Double Taxation Agreement between the Philippines and [insert name of country] Dear (insert name of foreign Competent Authority) : I refer to your request for information in relation to the above case, which we received on xxx 2013 and to previous correspondence of (insert dates of previous correspondence, if any) . We wish to inform you that we have now completed our inquiries and have obtained the information needed to respond to your request. Please find attached (add details of attached documentation) Should you have any further queries relating to this matter, please contact [Name Official] (Chief of ITAD) immediately at Telephone: + 632 1 xxxxxxx E-mail:] The use and disclosure of this information is governed by the provisions of Article xx of our Double Taxation Agreement. I would appreciate it if you could inform us, in due course, as to whether the information and documentation we have provided helped you in your investigation. Yours sincerely, TEMPLATE 10 Sample of Interim 90 Day Reply to EOI request (to be further developed and adapted to each particular situation where information cannot be provided within 90 days) Our ref: EOI (Please quote our EOI number in all correspondence) Your ref: xxxx 2013 Re: [case name] Exchange of Information under Article xx of the Double Taxation Agreement between the Philippines and [insert name of country] Dear (insert name of foreign competent authority) : IaEASH I refer to your request for information in relation to the above case, which we received on xxx 2013. We wish to inform you that as of this writing, we have not as yet been able to obtain the requested information. [Add some descriptive details as to why the information has not yet been provided.] We will endeavor to forward the requested information to you as promptly as possible. We expect to be able to provide this information by [date]/within [number] weeks. Should you have any queries relating to this matter, please contact [Name Official] (Chief of ITAD) immediately at Telephone: + 632 1 xxxxxxx E-mail:] I confirm that this information is governed by the provisions of Article xx of our Double Taxation Agreement. Yours sincerely, TEMPLATE 11 Notification Letter to Taxpayer where banking information is requested Our ref: EOI xxxx 2013 Re: [taxpayer name] Exchange of Information under Article xx of our Double Taxation Agreement Dear __________: Pursuant to Republic Act No. 10021 and Revenue Regulations No. 10-2010, I wish to inform you that a request for exchange of bank information has been made under the provisions Article XXX of the Philippines [foreign country] Double Taxation agreement in respect of accounts held by [taxpayer] at [name of bank]. Enquiries are being carried out with the bank in accordance with the powers granted to me under Section 6 (F) of the NIRC and Republic Act No. 10021. EAcTDH I confirm that any information exchanged will be governed by the provisions of Article xx of our Double Taxation Agreement (DTA) with [foreign country] and must be treated as confidential by [the requesting state] in line with those provisions. Yours sincerely, TEMPLATE 12 MEMORANDUM FOR : COMMISSIONER OF INTERNAL REVENUE Philippine Competent Authority ATTENTION : Assistant Commissioner, Legal Service RE : REQUEST FOR INFORMATION FROM FOREIGN TAX AUTHORITY DATE : xx xx xx We would like to ask your assistance to request information from the competent authority of __________________ (name of treaty partner) in connection with our investigation of the tax liabilities of (Name of taxpayer). 1 We confirm that we have exhausted all possible means domestically to obtain the information subject of this request. We also confirm that this request for information shall be subject to confidentiality under the EOI Article of our income tax treaty with ____________________ (name of treaty partner) . BACKGROUND: (Background should contain the following information) 1. Identification of Taxpayer under examination or investigation a. Full name of Taxpayer b. Date of Birth (for individuals)/Date of Incorporation or Formation (for juridical entities) c. Marital Status (if relevant) d. Tax Identification Number (TIN) e. Full address (including email or internet address, if known) 2. Identification of Taxpayer in the Requested Country relevant to the examination or investigation and to the extent known, their relationship to the person(s) under examination or investigation: a. Name of Taxpayer AcSHCD b. Marital Status (if relevant) c. TIN (if known), addresses (including email or internet addresses if known) d. Registration Number in the case of legal entity (if known) e. Charts, Diagrams or other documents illustrating the relationships between the persons involved. 3. If the information requested involves a payment or transaction via an intermediary, mention the name, address/es and TIN (if known) of the intermediary, including, the name and address of the bank office or branch as well as the bank account number where bank information is requested (if known); 4. General case description Relevant background information including the tax purpose for which the information is sought, the taxes concerned, the tax periods under examination (day, month, year they begin and end), the stage of the procedure, the issues identified and whether the investigation is of a civil or administrative nature only or may also have criminal consequences. Where references are made to our Tax Code and other domestic laws, it is useful to provide some background or explanation as the foreign competent authority will not be familiar with our laws. INFORMATION REQUESTED 1. State the information (simple information or series of questions) and why it is needed. Also, specify the information that may be pertinent ( e.g., invoices, contracts, land title); 2. If information requested relates to bank information, state the bank account number and name and address of bank; 3. State the currency whenever figures are mentioned; 4. State the urgency of the reply (state the reasons for the urgency) and, if applicable, indicate the date after which the information may no longer be useful; 5. Whether a translation should be provided; 6. If copies of documents or bank records are requested, what type of authentication is necessary, if any; 7. If the information is likely to be used in a court proceeding and the applicable rules of evidence require the information to be in a certain form, the form should be indicated to the other competent authority; HTCISE 8. Whether there are reasons for avoiding notification of the taxpayer under examination or investigation ( e.g. , in cases where the EOI is of a very urgent nature or where the notification may endanger the investigation). Submitted by : Revenue Officer Revenue District Officer/ Division Chief Noted by : Regional Director/Assistant Commissioner TEMPLATE 13 Date: _______________ (Competent Authority Address) ____________________________ ____________________________ Attention: (Name of the Competent Authority) RE: Exchange of Information Request Foreign and Philippines Entity/Taxpayer: _______________________ Type of Investigation: ______________________________________ Coverage: _______________________________________________ Dear Sir: In accordance with the exchange of information provisions of our income tax convention, we request your assistance in connection with our investigation. The specific information required is described in the enclosed memorandum. This information is requested in accordance with the provisions in our income tax convention. Its use and disclosure must be governed by the provisions contained therein. Sincerely yours, ATTACHMENT OF TEMPLATE 13 MEMORANDUM (Our Reference No. _____) Request for Information Competent Authority Name Tax Treaty Partner Address Attention: Chief, ITAD This is in accordance with the exchange of information Article xx provisions of our income tax convention with (Tax Treaty Partner Name). TcIAHS All possible means of investigation have already been exhausted in our jurisdiction. I. Identification of Taxpayer under our jurisdiction a. Name of Taxpayer b. TIN c. Type of Tax II. Line Business III. Background of Information IV. Identification of Taxpayer in the requested country a. Name of Taxpayer b. Address V. Period under investigation VI. General case description VII. Information Requested VIII. Others A. Approximate date when the information is needed B. Approximate date when the need will prescribe C. Attachments (relevant documents that may aid in securing the requested information) Signed: Requesting Office TEMPLATE 14 Sample of Final Reply to requested State where information has been received (to be further developed and adapted to each particular situation where information is being provided) Our ref: EOI (Please quote our EOI number in all correspondence) . Your ref: xxxx 2013 Re: [case name] Exchange of Information under Article xx of the Double Taxation Agreement between the Philippines and [insert name of country] cHCaIE Dear (insert name of foreign Competent Authority) : Thank you for your letter of xxx 2013 containing the information we requested in the above case (refer also to previous correspondence if relevant) . We are very grateful for your assistance on this matter. The information received has been transmitted on to the auditor/s responsible for the case and we will, in due course, provide you with feedback on the importance of this information for their investigation. I confirm that this information is governed by the provisions of Article xx of our Double Taxation Agreement. Yours sincerely, TEMPLATE 15 Letter to the revenue officer accompanying information received from requested State (to be further developed and adapted to each particular situation where information is being provided) Our ref: EOI (Please quote our EOI number in all correspondence) . Re: [case name] Exchange of Information under Article xx of the Double Taxation Agreement between the Philippines and [insert name of country] Dear (insert name of Revenue Officer/Auditor) : I refer to your request of xxx 2013 (refer also to previous correspondence if relevant) for exchange of information with (insert name of country) . I have made a request for information to the competent authority of (insert name of country) under the terms of Article xx of the Double Taxation Agreement between the Philippines and (insert name of country). The information requested has now been received and a copy of the letter and documents requested are attached. I want to emphasize that the use and disclosure of this information is governed by the provisions of Section 270 of the NIRC and Article xx of our Double Taxation Agreement. These documents should be stored securely and it is not permitted to make copies of them or to forward them to other offices of the BIR without prior consultation with the EOI Section of ITAD. Note that the procedures to be followed by RDOs in handling information received from foreign tax authorities are set out in RMO ____-2013 and no exceptions from these procedures are permitted. ECTAHc Should you have any further queries relating to this matter, please contact [Name Official] (Chief of ITAD) immediately at Telephone: xxxxxxx E-mail:] Yours sincerely, Footnotes 1. The Philippines is planning to enter into negotiations for TIEAs but has not yet signed any such agreements. 2. Refers to a situation where the competent authority of one country asks for particular information from the competent authority of another contracting party. 3. Par. 26, Module 1, OECD Manual of Exchange of Information. 4. Par. 27, Module 1, OECD Manual of Exchange of Information. 5. Par. 30, supra. 6. See List of Tax Treaty Partners. TEMPLATE 6 1. An Act to Allow the Exchange of Information by the Bureau of Internal Revenue on Tax Matters Pursuant to Internationally-Agreed Tax Standards, Amending Sections 6 (F), 71 and 270 of the National Internal Revenue Code of 1997, as Amended, and for Other Purposes. 2. Official title of the treaty. TEMPLATE 12 1. Or if it is a tax case state "in connection with the tax case of . . ."