Amending Sections 3 of Finance Regulations No. 1, Implementing R.A. No. 2338

March 24, 1966 REVENUE REGULATIONS NO. 01-66 SUBJECT : Amending Sections 3 of Finance Regulations No. 1, Implementing R.A. No. 2338, Providing for Rewards to Informers of Violations of Internal Revenue and Tariff and Customs Code TO : All Internal Revenue Officers and Others Concerned Pursuant to Section 1 of R.A. No. 2338, the following regulations amending Finance Regulations No. 1 are hereby promulgated and shall be known as Revenue Regulations No. 1-66. cdt SECTION 1. Section 3 of Finance Regulations No. 1 is hereby amended to read as follows: "Sec. 3. Kinds of information entitled to reward . In order to entitle an informer to a reward, his information must not yet be in the possession of the Bureau of Internal Revenue or the Bureau of Customs nor shall it refer to a case of fraud or violation already pending or previously investigated or examined by the Commissioner of Internal Revenue or the Commissioner of Customs, or any of their deputies, agents or examiners, as the case may be, or by the Secretary of Finance or any of his deputies or agents. (Section 1, Republic Act No. 2338). "THE SWORN INFORMATION MUST ALSO BE FILED PRIOR TO OR SIMULTANEOUS WITH THE ACTUAL ACT OF APPREHENSION OR SEIZURE OF THE GOODS BY THE AGENCY RECEIVING THE SAME WHICH FACT MUST BE DULY RECORDED AS PROVIDED IN SECTION 6 OF THESE REGULATIONS. "AN INFORMATION NOT FILED IN ACCORDANCE WITH THE PROVISIONS HEREOF SHALL NOT BE CONSIDERED AND SHALL NOT ENTITLE THE INFORMER TO REWARD. "In case the information given is not entitled to reward, the informer shall be advised immediately of such fact." SECTION 2. These regulations take effect upon promulgation in the Official Gazette. EDUARDO Z. ROMUALDEZ Secretary of Finance Recommended : MISAEL P. VERA Commissioner of Internal Revenue ATTACHMENT March 24, 1996 The Honorable The Secretary of Finance M a n i l a S i r : As suggested, I am forwarding herewith, for approval, proposed Revenue Regulations No. 1-66 amending Section 3 of Finance Regulations No. 1. This Office believes that the subject-matter of the suggestion is more appropriately covered by Section 3 and not by Section 2 of the regulations. It is for this reason, that the proposed regulation amends instead Section 3 and not Section 2 as originally suggested. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue February 26, 1966 The Commissioner of Internal Revenue and The Commissioner of Customs M a n i l a S i r s : It has been observed lately that controversy has arisen and the payments of reward to informers under Republic Act No. 2338 have been delayed for the reason that in many cases the informer's sworn statements required to be given have been reduced to writing only many days after furnishing the supposedly oral information. Such procedure gives rise to suspicion that in those cases a connivance between the informant and the official confiscating or apprehending the contraband exists; and that the knowledge of the violation of the law has been in the possession of the apprehending official and only transmitted to the supposed informer later. This anomally happens because Republic Act No. 2338 and Finance Regulations No. 1, approved on July 15, 1960, implementing it are not clear as to when the sworn statement of the informer should be submitted in writing. In Order to clarify the matter and the payment of rewards to informers may be expedited, it is hereby suggested that, pursuant to the last proviso in Section 1 of Republic Act No. 2338, the first paragraph of Section 2 of the aforesaid Finance Regulations No. 1 be amended to read as follows: aisadc Sec. 2. Form and contents of the information . The information shall be in the form of a written sworn statement given voluntarily and simultaneous with, or prior to, the apprehension or seizure of the goods and shall state definitely the facts or acts constituting the fraud upon or violation of the Internal Revenue or the Tariff and Customs Laws (as defined in Section 3514 of Republic Act No. 1937). (Section 1, Republic Act No. 338). Very truly yours, EDUARDO Z. ROMUALDEZ Secretary