LAW OF BASI ‘AXATION IN THE PHILIPPINES filed in any office authorized to receive the same shall not be withdrawn, However, within three (3) years from the date of such filing, the same may be modified, changed or amended, provided that no notice for audit or investigation of such return, statement or declaration has in the meantime been actually served upon the taxpayer (Sec. 6/A], 1997 NIRC). Are tax returns filed with the BIR confidential? Although Sec. 64 (now, Sec. 71 of the 1997 Tax Code) provides that tax returns shall constitute public records, it is necessary to know that these are confidential in nature and may not be inquired into in unauthorized cases under pain of penalty provided for in Sec. 269 (now, Sec. 270, 1997 NIRC), which states, as follows: “xx x any officer or employee of the Bureau of Internal Revenue who divulges to any person or makes known in any other manner than may be provided by law, information regarding the business, income, or estate of any taxpayer, the secrets, operation, style or work, or apparatus of any ‘manufacturer or producer, or confidential information regarding the business of any taxpayer, knowledge of which was acquired by him in the discharge of his official duties, shall upon conviction for each act or omission be punished by a fine of not less than Fifty thousand pesos (P50,000) 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) years, or both.” ‘The confidentiality rule above, however, is subject to certain exceptions. In the following cases, inquiry into the income tax returns of taxpayers may be authorized: 1, When the inspection of the return is authorized upon the written order of the President of the Philippines; 2. When inspection is authorized under Finance Regulation No. 83 of the Secretary of Finance; 3, When the production of the tax return is material evidence ina criminal case wherein the Government is interested in the result (Cu Unjieng, et al. v. Posadas, etc., et al., 58 Phil. 360); and 4. When the production or inspection thereof is authorized by the taxpayer himself (Vera, etc. v. Cusi, etc., et al., 1-33115, June 29, 1979). In connection with the above authority, Sec. 290 of the 1997 NIRC, provides for the constitution of the Congressional Oversight Committee 180 ‘TAX ADMINISTRATION AND ENFORCEMENT ‘composed of the Chairmen of the Committee on Ways and Means of the Senate and the House of Representatives and four (4) additional members from each house, to be designated by the Speaker of the House of Representatives and the Senate President, respectively. ‘The Committee shall, among others, in aid of legislation: 1. Monitor and ensure the proper implementation of R.A. 8424 (The Tax Reform Act of 1997); 2. Determine that the power of the Commissioner to ‘compromise and abate is reasonably exercised; 3. Review the collection performance of the Bureau of Internal Revenue; and 4, Review the implementation of the programs of the Bureau of Internal Revenue. In furtherance of the above-cited objectives, the Committee is ‘empowered to require of the Bureau of Internal Revenue: 1. the submission of all pertinent information, including but not limited to industry audits; collection performance data; status reports on criminal actions initiated against persons; and 2. the submission of taxpayer returns, provided, however, that any return or return information which can be associated with, or otherwise identify, directly or indirectly, a particular taxpayer shall be furnished the Committee only when sitting in Executive Session unless such taxpayer otherwise consents in writing to such disclosure. B. Assessment Based on the Best Evidence Obtainable - The law authorizes the Commissioner to assess taxes on the basis of the best evidence obtainable in the following cases: 1. if a person fails to file a return or other document at the time prescribed by law; or 2. he willfully or otherwise files a false or fraudulent return or other document, By the use of this method, the Commissioner makes or amends the return from his own knowledge and from such information as he can obtain through testimony or otherwise, Assessments made as such are deemed prima facie correct and sufficient for all legal purposes (Sec. 6{B}, 1997 NIRC). Best evidence obtainable refers to any data, record, papers, documents, or any evidence gathered by internal revenue officers from 181