Penalties for the BIR 2: Sec. 270-273, NIRC

Continuing from the last post, here's the next set of penalties that can be imposed on public officers.

Unlawful Divulgence of Trade Secrets (Sec. 270, NIRC)

Officers and employees of the BIR can be imprisoned for 2 to 5 years and/or fined Php50,000.00 to 100,000.00 per offense if they divulge information on the business, income, or estate of a taxpayer, or his trade secrets, equipment or confidential information on his business to another person without authority of law. This provision was made to protect taxpayers from unfair competition resulting from the revelation of his trade secrets.

Lawful divulgence is limited to the following:

1.) When a candidate for an elected post files his certificate of candidacy, he waives the privilege from public disclosure of his income tax returns and tax census statements. This waiver covers the last 2 years before the election and is effective only for the candidate's period of candidacy.

2.) If the divulgence is provided by law.

3.) Income tax returns that have already been filed are public records and, under orders of the president, open to inspection under recommendation by the BIR commissioner (sec. 71, NIRC.) The commissioner can have a list of names and addresses of those who filed their ITRs published.

4.) If the ITRs are evidence in a criminal case (Cu Unjieng vs. Posadas, 58 Phil 360) except if the case involves sec. 268 of the NIRC, which covers the forfeiture of illegally stored/removed goods, property used in unlicensed businesses or dies used in printing false internal revenue stamps, tags and labels as well as misdeclaration/misrepresentation of manufacturers subject to excise tax.

Unlawful Interest (Sec. 271, NIRC)

People for the BIR are also prohibited from having an interest, whether direct or indirect, in the manufacture, sale or importation of any article subject to excise tax or in the manufacture, sale or repair of dies for printing or making internal revenue labels or stamps. For every such offense, the penalty is imprisonment for 2 years and 1 day to 4 years and/or a fine of Php5,000.00 to 10,000.00.

Violation of Withholding Tax Provisions (Sec. 272, NIRC)

Employees of all branches of government, including GOCCs, who violate the NIRC provisions on withholding tax will be punished by imprisonment for 6 months and 1 day to 2 years and/or a fine of Php5,000.00 to 50,000.00 per offense committed. The following are considered violations under sec. 272:

Failing/causing the failure to deduct and withhold any internal revenue tax under any of the withholding tax laws and implementing rules and regulations

Failing/causing the failure to remit taxes deducted and withheld within the time prescribed by law and implementing rules and regulations

Failing/causing the failure to file a return or statement within the prescribed time or rendering/furnishing a false/fraudulent return or statement under withholding tax rules and regulations

Failure to Issue and Execute Warrants (Sec. 273, NIRC)

An officer who fails to issue or execute a warrant of distraint or levy within 30 days after the expiry of the time in sec. 207 (distraint and levy) or is guilty of abusing the exercise thereof by competent authority will be automatically dismissed from service after due notice and hearing.