A Reminder on Gift-Giving

December 2, 1978 REVENUE MEMORANDUM ORDER NO. 34-78 SUBJECT : A Reminder on Gift-Giving TO : All Internal Revenue Personnel With the advent of Christmas, a time seized upon by many as an occasion to repay debts of gratitude, it becomes opportune once again to remind one and all on the impropriety of giving gifts of any sort to superior officers. Gift-giving by a subordinate to a superior officer in consideration of a promotion in item or assignment is unwarranted and only puts both the giver and the receiver on a spot. When an employee is promoted or given a better assignment, he does not owe this as a favor to the recommending or approving officials because this is but a recognition of the worth of his performance in the public service. Thus, there is no reason for him to feel beholden to his superiors. A gift might even work to the disadvantage of the giver, because the official who wields the recommending or approving power may refuse to give a promotion or assignment that one really deserves on the basis of merit for fear that this might be taken as a favor given in exchange for the gift. On the other hand, gift-giving may be considered as a tacit admission of unworthiness on the part of the giver in the sense that he has to resort to such practice just to get a promotion or a better assignment. So, gift-giving can be a count against the giver, just as it can be a count against the receiver. Apart from the above considerations, it can be said that although PD 46 makes it punishable for public officials and employees to receive, and for private persons to give, gifts on any occasion, including Christmas, the fact that the one who gives a gift to public official in consideration of past or future favors is also a government employee does not make such gift any less objectionable on legal and moral grounds. Even if only to further strengthen the merit system in the internal revenue service, all concerned should refrain from giving gifts to their chiefs and superior officials not only during the Christmas season but at all times. cdt EFREN I. PLANA Acting Commissioner of Internal Revenue