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2010

CEilTRALT

$an FeIa Gottrgs ol asb zED BAR 0PERAT I ot{s


be used by the Bureau of Intemal Revenue for assessment, verification' audit and enfotcement purPoses'

tax

Summary of Features:

1.

Authorizes the Commissioner


into:

to

inquire

"ln case of request from a foreign tax authority for tax informjtion held by banks and financial institutions, the exchange of information shall

be done in a secure manner to

ensure

a. b.

Bank deposits; and Other related information

confidentiality thereof under such rules and regulations is may be promulgated by .the SJcretary of Finance, upon recommendation
cf the Commissioner'

. Held by financial institutions . To suilply information to a requesting foreign :tax authority pursuant to a convintion oi agreement to which the . 2. . 3. , 4.
Philippines is a signatory Subject to specific requirements as to the relevance of the tax information requested' Allows the foreign tax authority to examine income tax returns of taxpayers upon order of the President

"The Commissioner shall provide the tax


information obtained ftom banks and financial

institutions .pursuant to a convention or agreement upon request of the foreign tax aitnority when such requesting foreign tax

authority

following foreseeable relevance of the information to the request:

has provided the


to demcnstrate the

informaiion

"(a) The identib/ of the person under


examination or investigation; "(b) A statement of the information being sought including its nature and information from the Commissioner; information is being sought;

Subjecl to rules and regulations on neclssitY and relevance as maY be


promulgated

Penalizes officers/ employees of the BIR

the form in which the said foreign tax authoritY Prefers to receive the

for

unlawful divulgence of information obtained under this Act to persons other


Seeks to provide sanctions for officers of banks and financial institutions for willful refusal to suPPlY information.

"(c) The tax Purpose for which the

than the requesting foreign tax authority

"(d) Grounds fot believing that control


l'1e1

the

information requested'is held in the Philippines or is in the possession.or

of a

Person within the

lurisdiction of the PhiliPPines;

Relevant Provisions: Section 3. Authority of the Commissioner of lnternal Revenue to lnquire into Bank Deposit

and address of any person believed to be in Possession of the requested


information;

To the extent known, the name

Accounts and Related lnformation Held by Financial lnstitutions. - Section 6(F) of


otherwise kn^wn as the National Revenue Code of 1997. as amended, is hereby further
amended to read as follows:

Republic

Act No. 8424, as

amended,

"(F) Authority of the Commissioner to lnquire into Bank Deposit Accounts and Other Relaled lnformation Held by Financial
lnstitutions."(1) "(2) xxx
XXX

xf *x

(3) A specific taxpayer or taxpayers subiect of a requesl for the supply of tax information fron': a foreign tax authority pursuant to an international convention or agreement on tax matters to which the e-nillppines is a signatory or a party of: Provided, That the information obtained from
the banks and other financial institutions may

5rn pela Qolbgt ot T.ab

IAx ADnrilIslRATtoil AilD Etroncrretr


requesting foreign tax authority. To ensure a prompt response, the Commissioner shall confirm receipt of a request in writing to the requesting tax authority and shall notiry the latter of deficiencies in the request, if any, within sixty (60) days ftpm the receipt of the
request

'Any officer or employee of the Bureau of


lnternal Revenue who divulges or makes known In any other manner to any person
other than the requesting foretgn tax authority information obtained from banks and financial institutions pursuant Sedion 6(F),

"lf the Commissioner is unable to obtain and

from the receipt of the request, due lo


obstacles encountered in fumishing the information or when the bank or financial
institution refuses to furnish the information, he

provide the information within ninety (90) days

knowledge or information acquired by him in the discharge of his official duties, shall, upon conviction, be punished by a fine of noi less than Fifty thousand pesos (P50,000) but not

to

more than One hundred thousand pesos

shall immediately inform the requesting tax


authority of the same, explaining the nature of

(P100,000), or suffer imprisonment of not less than two (2) years but not more than flve (5) years, or both."

the obstacles encountered or the reasons of


refusal."

Section 5. Willful Refusal to Supply Information. - Any officer, owner, agent,


manager, director or officer-in -charge of any bank or financial institution within the purview of this Act who, being required in writing by the Commissioner, wilffully, refuses to supply the

"The term 'foreign tax authority', as used herein, shall refer to the tax authority or tax administration of the requesting State under the tax treaty or convention to which the
Philippines is a signatory or a party ot.',

Section 4. Allowing a Foreign Tax Authotity to lncome Tax Returns of Taxpayers in the Philippines. - Section 71 of Republic Act No. 8124, as amended, otherwise known as the National lnternal Revenue Code of 1gg7, is
hereby amended to read as follows:

required information shall be punished by a fine of not less than Fifty thousand pesos (50,000) but not more than One hundred thousand pesos (P100,000) , or suffer imprisonment of not less than two (2) years
but not more than five (5) yearc, or both. Maintain Confidentiality of lnformation Rece,ved - Any information received by a foreign tax authority from the Bureau of lntemal Revenue pursuant to an lnternational convention or agreement on tax mafters shall be treated by lhe authority as absolutely confidential in nature in the same

Section 7. Obligation to

SEC. 71. Disposition of lncome Tax Returns, Publication of Lists of Taxpayers and Filers. -

ux
XXX

"lncome

subject

of a

tax returns of specific


request

for

taxpayers

exchange of

information by a foreign tax authority pursuanl to an international convention or agreement on

administrative bodies, involves

manner as information obtained by the latter under its laws and shall be disclosed only to persons or authorities, including courts and

inspection upon the order of the president if the Philippines under rules and regulations as may be prescribed by the Secretary of

tax matters to which the philippines is a signatory or a party of, shall be open to

or

assessment or collection of, the enforcement

in

the the

prosecution

determinatron

:1:"^_::."^*9C

of appeals in relatton to, the by such lcgl'y:tlions of

in

respect

of, or

Finance, upon recommendation

Commissioner."

of

the

8- Notice to Taxpay,6ri. - e duly. notifidd i;i' wiitiird

Section 5. Authority of the Commissioner of lhtemal Revenue to Supply lnformation to a Foreign Tax Authority Which rs at r,s Drsposat - Section 270 of Repubiic Act No. 8424, as
amended, otherwise known as the National lntemal Revenue of 1997, is hereby amended
to read as follows:

'SEC. 270. Unlawtul


lnformation. xro<

Divutgencc of

t)