Filing of Confidential Information

FILING OF CONFIDENTIAL
INFORMATION
REVENUE REGULATIONS NO. 16-2010 issued on December 10, 2010
Objectives:
To provide guidelines, rules and procedure in the filing of
Confidential Information for violations of the NIRC of 1997, as amended;
To facilitate the investigation of persons covered by such Confidential

Information; and
To delineate the responsibilities of the different BIR offices and units involved
in the filing, investigation, disposition of such Confidential Information, and
the grant and payment of reward.
Definition of Terms:
a) Informer- any qualified person who voluntarily provides definite and sworn
information not yet in the possession of the BIR nor of public knowledge,
leading to the discovery of frauds upon the internal revenue laws or
violations of any provision of the NIRC of 1997, as amended, resulting in the
recovery of revenues, surcharges and fees and/or the conviction of the guilty
party and/or the imposition of any fine or penalty.
b) Confidential Information- refers to the sworn written statement given

voluntarily by an Informer. Such statement must definitely state the facts or
acts constituting fraud committed by a person or entity denounced to have
violated or in violation of the NIRC of 1997, as amended.
c) Relatives within the Sixth (6th) Civil Degree of Consanguinity- this

means the father, mother, children, grandchildren, grandfather, grandmother,
brothers, sisters, uncles, aunts, nephews, nieces, first cousins and second
cousins of BIR officials and employees or other public officials or
employees.
A qualified informer shall be rewarded in a sum equivalent to 10% of the revenues,

surcharges or fees recovered and/or fine or penalty imposed and collected or P
1,000,000 per case, whichever is lower. The following are disqualified to avail of the
informer's reward:
a. A BIR official or employee or any other incumbent public official or
employee;
b. Relative within the 6th civil degree of consanguinity of a BIR official or
employee, or other public official or employee; and
c. Though already retired or otherwise separated from service, BIR officials or
employees or other public officials who acquired the information in the
course of the performance of their duties during their incumbency.
Confidential Information against the denounced taxpayer shall be under oath and shall
be personally executed and filed by the Informer before the Chief, Prosecution
Division, BIR National Office on the following violations:
a. Attempt to evade or defeat tax;
b. Failure to file return, supply correct and accurate information, pay tax,
withhold and remit tax and refund excess taxes withheld on compensation;
c. Failure or refusal to issue receipts or sales or commercial invoices, violations
related to the printing of such receipts or invoices or other violations;
d. Unlawful pursuit of business.
e. Use of multiple Tax Identification Number/s (TINs);
f. Making false entries, records or reports or using falsified or false accountable
forms; and
g. Other violations of the National Internal Revenue Code (NIRC) of 1997.
However, if the estimated basic tax liability arising from the alleged violation is
less than P 1,000,000.00, the confidential information should be filed before the Chief,
Legal Division of the Revenue Region having jurisdiction over the taxpayer being
denounced.
A Confidential Information shall be treated as valid only if it meets ALL the

following requisites:
a. The Informer is not disqualified.
b. The Informer voluntarily provides sworn information on the tax fraud or
violation of the NIRC of 1997, as amended, allegedly committed by the
denounced taxpayer.
c. The said information is not yet in the possession of the BIR.
d. The said information does not refer to a case already pending or previously
investigated or examined by the Commissioner of Internal Revenue or any of
his deputies, agents or examiners, or by the Secretary of Finance or any of his
deputies or agents.
e. The said information does not refer to or is not exactly similar to a previous
information filed by another informer covering the same taxpayer describing
the same scheme or information covering the same taxable year or period.
In order to protect the identity of the Informer and safeguard the strict
confidentiality of his information, the name of the Informer or any information
appearing in the second copy of the Confidential Information that may possibly lead
to the identity of the said Informer shall be deleted by the Records Management
Division. From start until completion of the investigation, the docket of the case shall
bear no information on the identity of the Informer. However, in extremely
meritorious cases, wherein there is a need to communicate with the Informer, the
Chief, National Investigation Division (NID) or Special Investigation Division (SID),
as the case may be, should be given access to the identity or contact details of the
Informer.
Upon the commencement of the investigation process, the assigned investigators

shall not divulge to third parties, including the Informer, any information, data or
documents gathered during the investigation process. The investigators may only
provide the Informer with updates on the status of the investigation.
In order for an Informer to be entitled to a reward, the Confidential Information

given must lead to or be instrumental in the discovery of the fraud or violation of
the provisions of the NIRC of 1997, as amended, or special laws being administered
by the BIR, and the same must result in the actual recovery or collection of revenues,
surcharges and fees, and/or the conviction of the guilty party or parties, and/or the
imposition of any fine or penalty or the actual collection of a compromise amount, in
case of amicable settlement.
Where there are two (2) or more Informers in the same case, the one who gave the
information in full satisfaction of the conditions herein outlined shall be entitled to the
reward. In the event that each Informer meets all conditions fully, the Informer who
first furnished the information shall be entitled to the reward. In case two (2) or more
persons jointly filed the confidential information who are qualified for the reward,
they shall divide the reward equally among themselves.
Taxes assessed as a result of a valid Confidential Information, if involving a

commission of criminal fraud established beyond reasonable doubt, shall not be
compromised. Unless otherwise provided by relevant revenue issuances, taxpayer
subject of a valid Confidential Information shall be excluded from the coverage of
any administrative program of the Bureau promulgated to facilitate and enhance
revenue collection (i.e. VAP, VAAP, CTRP, etc.). Consequently, taxpayers who
availed of such programs are not entitled to the privilege of last priority in audit or
investigation or any other benefit to be accorded therein.
The informers claim for reward shall be filed with the Prosecution Division at the
BIR National Office or with the Legal Division, Revenue Regional Office, as the case
may be. Claims for rewards shall be filed within three (3) years from the date of
actual payment, recovery or collection of revenues, surcharges and fees, and/or the
imposition of any fine or penalty or the actual collection of a compromise amount, in
case of amicable settlement.
The Informer's Reward shall be subject to Income Tax, collected as a Final

Withholding Tax, at the rate of 10%. The tax shall be withheld by the Accounting
Division and shall be remitted to the BIR in the manner provided by law.
The procedures in the processing of Confidential Information and documents and

conduct of preliminary investigation at the National Office and Regional Office are
specified in the Regulations.
ANNEX A
BUREAU OF INTERNAL RENENUE
QUEZON CITY
Entry No.___________________
__________________
REPUBLIC OF THE PHILIPPINES
BUREAU OF INTERNAL REVENUE
QUEZON CITY
AFFIDAVIT
I, ________________________________________, ______ years of age, married/single,

and a resident of _______________________________________________, after having
been duly sworn in accordance with the law, depose and say:
1. That I am not a Bureau of Internal Revenue (BIR) official or employee, or other public
official;
2. That I am not related within the sixth civil degree of consanguinity to any BIR official
or employee, or other public official;
3. That I hereby furnish the information that __________________________________
___________________________________________________________________
___________________________________________________________________
__ (State definitely and specifically the facts constituting as grounds for the
information and frauds upon or violations of the internal revenue laws, either
contemplated or already effected.)
4. That to the best of my knowledge and belief, this information is not yet in the
possession of the Bureau of Internal Revenue; nor does this refer to any case of fraud
or violation already pending or previously investigated or examined by any official or
employee of the BIR or the Department of Finance;
5. That this information is given voluntarily and not for the purpose of harassing,
molesting or in any way prejudicing any person whatsoever;
6. That I request that this information be held strictly confidential; and
7. That I hereby reserve my right to claim for reward under Section 282 of the National
Internal Revenue Code, as amendment.
Done this ___th day of ___________, 20___
________________________
Affiant
SUBSCRIBED AND SWORN to before me this_____ day of ______________, 2010,
affiant having exhibited to me his ______________________ issued at
_______________ on _________________
NOTARY PUBLIC
REVENUE MEMORANDUM ORDER NO. 46-2011 issued on December 22, 2011
Objective:
This Order is issued to implement the procedure in the filing of confidential
information, defining the responsibilities of the different BIR offices involved in
the filing and investigation of confidential information and processing of claims
for informer's reward, prescribed under Revenue Regulations No. 16-2010.
Policies and Guidelines:
a) If during the conduct of investigation by the Special Investigation Division

(SID) of confidential information filed in the respective Revenue Region, it is
determined that the denounced taxpayer's estimated basic tax liability exceeds
P 1,000,000.00, the SID, through the Regional Director, shall submit a
progress report on the case being investigated to the Deputy Commissioner for
Legal and Inspection Group, who may re-assign the same to the National
Investigation Division, for further investigation, if warranted under the
circumstances.
b) For claims for reward on cases investigated by the SID, the recommendation
for approval/denial of the reward, which is forwarded by the Regional Director
to the Deputy Commissioner for Legal and Inspection Group, may be
forwarded by the latter to the Assistant Commissioner for Enforcement
Service, for further evaluation and review.
c) The confidential information filed prior to the effectivity of RR No. 16-2010,
and the claim for informer's reward relevant thereto, shall be processed by the
Law Division pursuant to the provisions of Revenue Administrative Order No.
11-2009.

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FILING OF CONFIDENTIAL

Confidential Information for violations of the NIRC of 1997, as amended;

To facilitate the investigation of persons covered by such Confidential

b) Confidential Information- refers to the sworn written statement given

c) Relatives within the Sixth (6th) Civil Degree of Consanguinity- this

A qualified informer shall be rewarded in a sum equivalent to 10% of the revenues,

A Confidential Information shall be treated as valid only if it meets ALL the

Upon the commencement of the investigation process, the assigned investigators

In order for an Informer to be entitled to a reward, the Confidential Information

Taxes assessed as a result of a valid Confidential Information, if involving a

The Informer's Reward shall be subject to Income Tax, collected as a Final

The procedures in the processing of Confidential Information and documents and

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE

I, ________________________________________, ______ years of age, married/single,

Done this ___th day of ___________, 20___

REVENUE MEMORANDUM ORDER NO. 46-2011 issued on December 22, 2011

Policies and Guidelines:

a) If during the conduct of investigation by the Special Investigation Division

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I, __________________________________, years of age, married/single,

Done this _th day of _______, 20_