Question & AnswerQ&A (BIR REVENUE REGULATIONS NO. 16-2010)
The objectives are to provide guidelines, rules, and procedures in filing Confidential Information for violations of the NIRC, to facilitate investigation of persons covered by such information, and to delineate the responsibilities of BIR offices involved.
An informer is a qualified person who voluntarily provides definite and sworn information not yet in possession of the BIR or of public knowledge, leading to discovery of frauds or violations resulting in recovery of revenues or conviction.
Confidential Information refers to a sworn written statement given voluntarily by an informer stating facts or acts constituting fraud committed under the NIRC, 1997, as amended.
Disqualified persons include BIR officials or employees, other incumbent public officials or employees, their relatives within the sixth civil degree of consanguinity, and former officials who acquired information during their incumbency.
It should be filed before the Chief, Legal Division of the Revenue Region having jurisdiction over the taxpayer.
It must come from a qualified informer, include definite, concise, and credible facts with substantial evidence, not be in BIR's possession or public knowledge, and not involve a case already pending or previously investigated.
The information is evaluated, filed in the Confidential Entry Book, copies are distributed to various divisions including the National Investigation Division for preliminary investigation, and the informer is given a stamped receipt copy.
The identity is deleted from the copy forwarded for investigation, the docket bears no information on the informer’s identity, and access to the informer's identity is strictly limited to cases that merit communication with the informer.
The assigned investigator has sixty (60) working days from assignment to conduct the preliminary investigation for cases filed in the National or Regional Offices.
The confidential information must lead to discovery of fraud or violation resulting in actual recovery or collection of revenues, or conviction, or imposition of fines, penalties, or compromise amount.
The reward is ten percent (10%) of the actual taxes and penalties collected or One Million Pesos per case, whichever is lower.
No, taxes assessed from valid Confidential Information cases involving criminal fraud established beyond reasonable doubt shall not be compromised.
No, such taxpayers are excluded from any administrative program of the BIR designed to facilitate revenue collection and cannot avail privileges like last priority in audit or investigation.
Follow-ups must be in writing, include the Informer’s name and Confidential Information Number, be within three years of filing, and will be acted upon within ten working days; status updates relate only to overall progress, not specific investigation details.
Claims must be filed within three (3) years from the date of actual payment, recovery, or collection of revenues or imposition of fines or penalties.