BIR Rules on Confidential Info and Informer Rewards

In handling confidential information and informer reward processing, responsible BIR offices must observe the policies and guidelines stated in this Order.
Confidential information is investigated through the Special Investigation Division (SID) in the respective Revenue Region where the confidential information is filed.
The case investigation runs through a chain of review and possible reassignment to ensure further investigation when thresholds are met.
The processing and decision workflow applies in relation to implementing Revenue Regulations No. 16-2010.

During the SID investigation of confidential information filed in the respective Revenue Region, a reassignment mechanism is triggered by the estimated tax liability result.
If the SID determines that the denounced taxpayer’s estimated basic tax liability exceeds one million pesos (P1,000,000.00), the SID, through the Regional Director, must submit a progress report of the case to the Deputy Commissioner for Legal and Inspection Group.
The Deputy Commissioner for Legal and Inspection Group may re-assign the case to the National Investigation Division for further investigation when warranted under the circumstances.
The reassignment is tied specifically to cases where the estimated basic tax liability exceeds P1,000,000.00 based on the SID determination during investigation.

The Order applies to claims for reward on cases investigated by the SID under Section 16 of Revenue Regulations No. 16-2010.
For such reward claims, the recommendation for approval/denial forwarded by the Regional Director to the Deputy Commissioner for Legal and Inspection Group follows a defined review route.
The Deputy Commissioner for Legal and Inspection Group may forward the recommendation to the Assistant Commissioner for Enforcement Service for further evaluation and review.
The reward decision flow is thus structured to pass through Regional Director → Deputy Commissioner for Legal and Inspection Group → Assistant Commissioner for Enforcement Service (for further evaluation and review when forwarded).

The provisions of Revenue Regulations (RR) No. 16-2010 are prospective in application.
Confidential information filed prior to the effectivity of RR No. 16-2010 is processed under the law division procedure applicable to earlier cases.
Claims for informers’ reward relevant to confidential information filed prior to the effectivity of RR No. 16-2010 are processed by the Law division pursuant to Revenue Administrative Order No. 11-2009.
This transitory rule ensures continuity of processing for pre-effectivity confidential information and related reward claims.

Strict compliance with BIR Revenue Memorandum Order No. 46-2011 is required.
Any violation of the Order constitutes an administrative infraction.
The administrative penalty for violations is the corresponding penalty provided under the Updated Code of Conduct.
The Order’s enforcement structure ties non-compliance to the Updated Code of Conduct penalty framework.

Any provision of any order and/or pertinent issuance that is inconsistent with BIR Revenue Memorandum Order No. 46-2011 is revoked, modified, or amended accordingly.
The Order’s effectivity is immediate.
The Commissioner of Internal Revenue signs the Order as KIM S. JACINTO-HENARES.