Publishing Department Order No. 46-66 of the Department of Finance dated June 22, 1966, entitled, "Claims for Reward under Republic Act No. 2338

August 11, 1966 REVENUE MEMORANDUM ORDER NO. 47-66 SUBJECT : Publishing Department Order No. 46-66 of the Department of Finance dated June 22, 1966, entitled, "Claims for Reward under Republic Act No. 2338 TO : All Internal Revenue Officers and Others Concerned There is quoted herein-below, for the information and guidance of all internal revenue officers and others concerned, Department Order No. 46-66 of the Department of Finance, dated June 22, 1966, prescribing the procedure in processing and evaluating claims for rewards and the manner of payment thereof, under Republic Act No. 2338, as follows: aisadc "Republic of the Philippines DEPARTMENT OF FINANCE Manila "June 22, 1966 "DEPARTMENT ORDER NO. 46-66 " CLAIMS FOR REWARD UNDER REPUBLIC ACT NO . 2338 "Section 1. Purpose . This Department Order prescribes the procedure in processing and evaluating claims for rewards under Republic Act No. 2338 and the manner of payment of rewards to informers of fraud upon or violation of the internal revenue, tariff and customs laws. "I. Receipt, Custody and Handling of Information "Section 2. Form of Information . The information shall be in the form of a written sworn statement given voluntarily and shall state: "(1) The facts or acts constituting the fraud upon or violation of the internal revenue, tariff and customs laws; "(2) Name and address of taxpayer, importer or exporter, if known, committing the same; "(3) Exact or approximate date or period when fraud or violation was or will be committed; and "(4) Names and addresses of witnesses, if any. Any document, records or books including copies or excerpts thereof, which may serve as evidence of the fraud or violation, shall be submitted with the sworn statement. If the informer does not have possession or control of such documents, records or books, but he has knowledge of the person(s) who has/have the custody, possession or control thereof, or the place(s) where they are kept, he shall state in his sworn statement the name(s) and address(es) of such person(s) and place(s). The sworn statement shall bear the right thumbmark of the informer. The attached D.F. Informer's Form No. 1 should be substantially followed. "The sworn statement shall be accomplished in quintuplicate. The original and all copies thereof, except the duplicate which shall be given to the informer, shall be kept by the agency receiving the information. Within seventy-two (72) hours after apprehension has been effected, the agency receiving the information shall forward a copy of the sworn statement each to the following: The Secretary of Finance, The Administrator, Custody and Disposal Administration (CADA), and the Chairman, Anti-Smuggling Action Center (ASAC). The original of the sworn statement shall be kept by the agency receiving the information and shall be attached to the other pertinent papers to the claims for reward filed by the informer. "Section 3. Registry Book . Each of the officials mentioned in Section 5 hereunder shall maintain a Registry Book which shall be kept confidential and on which shall be recorded the information received by them. Entries of information in the Registry Book shall be consecutively numbered in the order they are received. The individual information entered must indicate the date and time the information was received, the names (including pseudonyms) and addresses of informers, the names and addresses of witnesses, if any, the importation or exportation reported, the nature and/or subject matter of the information and the list of records, documents, books and bank accounts submitted, if any. Each information entered in the Registry Book shall be properly thumb-marked with the right thumb of the informer. The attached D.F. Informer's Form No. 2 shall be substantially followed for this purpose. "Registry Books to be used for this purpose by the agencies mentioned in Section 5 hereunder shall be submitted to the Department of Finance to be duly stamped for control purposes. "Section 4. Handling of Information . Upon receipt of the information, the receiving official shall enter immediately the information in the confidential Registry Book. He shall also then enter the registry number of the information as appearing in the Registry Book in the original and all copies of the sworn statement. He shall place the original of the sworn statement in sealed envelop and shall keep the envelop at all times until the apprehension. The remaining copies, except one copy to be given to the informer, shall likewise be placed in another sealed envelop and kept by the receiving official. After the apprehension, the receiving official shall attach the sealed envelop containing the original of the sworn statement of the informer to the claim for reward that may be filed by the informer together with the other pertinent papers bearing on such claim, and shall distribute the other remaining copies of same, as provided in Section 2 above. "Section 5. Persons to Whom Information may be Given . Information may be given to any of the following Officials: cdtech "a. Secretary of Finance, his deputies or authorized agents; "b. Presidential Assistant on Reforms and Government Operations, his deputies or authorized agents; "c. Commissioner of Customs, Collectors of Customs, their deputies and authorized agents; "d. Commissioner of Internal Revenue, BIR Regional Directors, their deputies and authorized agents; "e. Chairman, Anti-Smuggling Action Center (ASAC); "f. All unit commanders of the Armed Forces of the Philippines; "g. Director, National Bureau of Investigation; "h. Chairman, Embroidery and Apparel Control and Inspection Board; and "i. Other law-enforcement agencies. "II. Procedure in Filing and Processing Claims for Reward "Section 6. Form of Claim . No Claim for reward shall be entertained unless it is based on an information entered in the Registry Book. Claims for reward shall be in writing and sworn to by the informer-claimant in quintuplicates and shall state, among other things, the following material facts: "1. Name and/or pseudonym and address of the informer-claimant; "2. The agency to which the information was reported; "3. The time and date when the information was reported; "4. Registry number assigned to the information; and "5. A summary of the information. "D.F. Informer's Claim Form No. 3, attached hereto, should be substantially followed. "The claimant shall file his claim for reward with the agency to which he gave the information, which in turn shall forward it to the Chairman, Anti-Smuggling Action Center (ASAC), together with the sealed envelop containing the original copy of the information. The claimant will retain a copy of the claim. "Section 7. Handling of Claims for Reward . The agency receiving the claim shall attach to the original copy of the claim, in addition to the sealed envelop containing the sworn statement previously given by the informer, a sworn statement of the officer receiving the information, and a sworn statement of the apprehending officer, and forward the same to the ASAC or Secretary of Finance, as the case may be. Extract of the information from the Registry Book shall also be forwarded accordingly. "Section 8. Rewards payable from proceeds from sales of articles at public auction . (a) The agency which effect confiscation, seizure or catch based on the information described in Section 6 shall immediately submit a report thereof, by the fastest available means (wire or telephone) to the Anti-Smuggling Action Center (ASAC), Camp General Emilio Aguinaldo, Quezon City. He shall include a statement that such confiscation, seizure or catch was the direct result of an information (specify number) and that a claim for reward is being filed. He shall also notify the informant concerned to file a claim for reward in the form and manner described in Section 6 above. "(b) The Chairman, ASAC, shall forward all the claim papers with his recommendation to the Secretary of Finance. "(c) The Secretary of Finance approves or disapproves the claim. If his action is approval, he authorizes payment of the reward. In either case, he sends back the claim papers to ASAC. "(d) The Chairman, ASAC, shall take appropriate action on the decision made by the Secretary of Finance 1. If claim is disapproved, he shall advise the claimant accordingly, furnishing copies to ASAC and to the agency to which the information was given; 2. If claim is approved, he shall refer the claim papers to CADA for payment of reward as outlined in Section 10 below. He shall accordingly inform the ASAC and the agency which received the information. "Section 9. Rewards payable from proceeds realized from additional assessment and collection of customs duties, taxes, fees, surcharges, fines, penalties and compromises . The agency which effects confiscation, seizure or catch, based from the information described in Section 2 shall immediately submit a report, by fastest means available, to the Secretary of Finance. The report shall include a statement that such confiscation, seizure or catch was the result of the information (specify registry number) and that a claim for reward is being filed. The agency shall also forward to the Secretary of Finance all the papers, documents and records of the case including the informer's report and a copy of the affidavit of information, together with its comment and recommendation. "Section 10. Payment of Rewards . Payment of the rewards shall be effected as follows: "a. The Comptroller, CADA, shall prepare General Voucher (Gen. Form No. 5(A), Revised July, 1962) in four (4) copies. Paragraph 2 of the voucher shall be under the signature of the Comptroller and paragraph 3 shall be under the signature of the Administrator. "b. The General Voucher together with the supporting papers shall be referred to the representative of the Auditor General in the CADA, for audit. "c. If the voucher is passed in audit, the Comptroller of CADA shall prepare a check under his signature and shall be countersigned by the Administrator; if not passed in audit, informer-claimant shall be apprised of such disapproval. "d. The check shall be delivered personally to the informer upon presentation and verification of the sealed copy of information, copy of his claim and receipts given to him by the agency to which he gave the information and with whom he filed his claim, except when he expressed in writing his desire to have the check mailed to his mailing address. "Section 11. Conflicting Claims . "1. Whenever two or more persons claim to be the informer entitled to a reward arising from the same case, the person who gave the information which fully satisfies all the conditions herein outlined shall be entitled to the reward. However, the informer who gave the information that was acted upon successfully, even though not fully complying with all conditions herein outlined, shall be entitled to the reward. "2. In the event two or more informers meet fully all the conditions herein outlined, the informer who first furnished the information shall be entitled to the reward. "3. Where two or more informers supplied the information simultaneously in point of time and their information fully satisfy the conditions herein outlined, the informer whose information was acted upon first in point of time shall be entitled to the reward. "4. In order that the reward may be paid to the proper person, the identity of the informer shall be duly established by requiring him to present copies of his information and claim and receipts issued to him by the government agency to whom he gave the information and filed his claim. He may be required to submit additional evidence that will satisfactorily establish his identity. "Section 12. Identity of Informer to be kept Confidential . Except when the information is proven to be malicious or false, the identity of the informer shall be kept confidential at all times either before or after termination of the case and shall not be disclosed to unauthorized persons, especially to the taxpayer, importer or exporter involved, without the informer's consent. Any government official or employee who maliciously reveal the identity of any informer without his consent shall be subject to severe disciplinary action. "Section 13. Action in case of False or Malicious Information . Should the information later turn out or be proved to be false or to have been made only for the purpose of harassing, molesting or in any way prejudicing the person denounced, the latter shall be entitled to any action, criminal or civil, as the facts may warrant. "Section 14. Disposition of Old Claims for Informer's Rewards . All claims for reward filed on or before the date of this Department Order shall be governed by the provisions of Finance Regulation No. 1 approved on July 15, 1960, implementing Republic Act No. 2338. "Section 15. Effectivity . These regulations shall take effect immediately. cdll "Section 16. All provisions of Finance Regulation No. 1 "Providing for Rewards to Informers of Violation of Internal Revenue and Tariff and Customs Laws" approved on July 15, 1960, which are inconsistent with the provisions of this Department Order, are hereby superseded by the provisions embodied in this Department Order. "(SGD.) EDUARDO Z. ROMUALDEZ Secretary" "Published in the OFFICIAL GAZETTE Vol. ____, No. _____ ____________, 1996 (Date) In the cases where information has been given to the Bureau of Internal Revenue in consonance with paragraph "d" of Section 5 of the aforequoted Department Order, all internal revenue officers and others concerned are enjoined to observe and comply faithfully and strictly with the instructions and requirements contained therein. MISAEL P. VERA Commissioner of Internal Revenue Enclosures: 1. Appendix "A" D.F. Informer's Form No. 1 2. Appendix "B" D.F. Informer's Form No. 2 3. Appendix "C" D.F. Informer's Form No. 3 APPENDIX "A" D.F. Informer's Form No. 1 (In Quintuplicate) Registry No. _________ Date of Registry ______ Agency receiving information _______ ) S.S. ) AFFIDAVIT I/We _______________________________, __________________________ citizen(s), years of age, years of age, married/single/widower, residing at __________, after having been duly sworn in accordance with law, hereby depose and state voluntarily that 1. _____________________________________________________ _____________________________________________________ (State facts or acts constituting fraud or violation of internal revenue, tariff and customs laws) 2. _____________________________________________________ _____________________________________________________ (Name and address of taxpayer, importer or exporter, if known, committing the same.) 3. _____________________________________________________ _____________________________________________________ _____________________________________________________ (Exact or approximate date or period when fraud or violation was or will be committed) 4. _____________________________________________________ _____________________________________________________ _____________________________________________________ (Names and addresses of witnesses, if any) 5. _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ (Documents, records or books including copies or excerpts thereof, which may serve as evidence of the fraud or violation or persons who have custody, possession or control of such documents, records or books, or the places where they are kept) Right Thumbmark of Informer Informer SUBSCRIBED and sworn to before me this _____ day of _________, 19 _____. __________________________ Person Administering Oath APPENDIX "B" D.F. Informer's Form No. 2 Confidential Registry No. _______ ACTION REPORT (To be accomplished by Agency receiving the information) a. Time, date and place information was received: _______________ _____________________________________________________ _____________________________________________________ b. Name (including pseudonym) and address of informer(s) _____________________________________________________ _____________________________________________________ c. Names and addresses of witnesses, if any: ____________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ d. Name(s) and address(es) of importer, exporter or person committing the smuggling, if known: __________________________________ _____________________________________________________ _____________________________________________________ e. Nature and/or subject matter of information ___________________ _____________________________________________________ _____________________________________________________ f. List of records, documents, books and bank accounts submitted, if any: __________________________________________________ _____________________________________________________ _____________________________________________________ g. I voluntarily supply the above information to __________________ _____________________________________________________ ______________________________________________ (agency). ____________________ Identification of interviewer Signature of Informer Name: _______________ Position: ______________ Right Thumbmark Office: _______________ of Informer Other Remarks: ________ APPENDIX "C" D.F. Informer's Form No. 3 CLAIM FOR REWARD UNDER R.A. 2338 (To be submitted under oath in 2 copies) (In Quintuplicate) _________________ (Date) The Honorable The Secretary of Finance M a n i l a S i r : I have the honor to claim for reward under Republic Act No. 2338. The details which are the basis for reward claims are as follows: NAME ___________________________ ADDRESS _________________________ REPORTED TO _________________ DATE REPORTED _____________________ TIME REPORTED _______________ CONTROL NO. ASSIGNED _____________ SUMMARY OF INFORMATION: ________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ______________________ (Signature of Claimant) Right of Informer SUBSCRIBED AND SWORN TO before me this ____ day of ___________ 196 ______ in the __________________, Philippines, affiant exhibited his Residence Certificate No. A ______________ issued at ________________ on _____________. ______________________ (Administering Officer) CLAIMANT'S RECEIPT (TO BE HANDED TO THE CLAIMANT) Control No. __________________ Date ________________ Time _______________ In consideration of information supplied and recorded under Control No. _______ this Receipt is issued for the purpose of identification. No claimant will be recognized as entitled to reward unless this Receipt is produced. This form shall be attached to vouchers for rewards, for purposes of accounting procedure. ____________________ (Officer's Signature) ____________________ Position & Office INFORMANT'S RECEIPT (TO BE HANDED TO THE INFORMANT) Control No. _________________ Date ___________________ Time _____________ In consideration of information supplied and recorded under Control No. ________ this Receipt is issued for the purpose of identification. No informant will be recognized as entitled to reward unless this Receipt is produced. This form shall be attached to vouchers for rewards, for purposes of accounting procedure. cd _____________________ (Officer's signature) ____________________ Position & Office