RR No. 16-2010: Prescribes the guidelines, rules and procedures in the filing of confidential information and the investigation of cases arising therefrom

Key points

1. Informer’s reward. A qualified informer gets 10% of the revenues, surcharges or fees recovered and/or fine or penalty imposed and collected, or P 1,000,000 per case, whichever is lower. Current public officials and BIR personnel, their relatives within the 6th civil degree, and retired or separated personnel who learned the information through their duties are disqualified.
2. Where and how to file. The informer personally files the sworn Confidential Information with the Chief, Prosecution Division, BIR National Office, on violations such as tax evasion, failure to file or pay, receipt and invoice violations, unlawful pursuit of business, multiple TINs and false entries. If the estimated basic tax liability is less than P 1,000,000.00, it is filed with the Chief, Legal Division of the Revenue Region.
3. Validity requisites. The informer must not be disqualified and must voluntarily give sworn information. The information must not already be in BIR possession, must not refer to a case already pending or investigated, and must not be exactly similar to an earlier informer’s filing on the same taxpayer, scheme and period.
4. Identity protection. The Records Management Division deletes the informer’s name and identifying details, and the docket carries no identity information. Only in extremely meritorious cases may the NID or SID Chief be given access to the informer’s identity or contact details, and investigators share nothing with third parties or the informer beyond status updates.
5. Entitlement and effects. The information must lead to discovery of the violation and result in actual recovery or collection, conviction, a fine or penalty, or a compromise amount collected. Taxes assessed from criminal fraud established beyond reasonable doubt are not compromised, and the denounced taxpayer is excluded from administrative programs such as VAP, VAAP and CTRP unless other issuances provide otherwise.
6. Claims and tax on reward. Claims are filed with the Prosecution Division or the Regional Legal Division within three (3) years from the date of actual payment, recovery or collection. The reward is subject to a 10% Final Withholding Tax withheld by the Accounting Division.

Who is affected

• Informers filing confidential information
• Taxpayers denounced through confidential information

Deadlines and effectivity

• Claim for reward: within three (3) years from actual payment, recovery or collection