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BIR explains the need of and reasons behind ‘informant’s reward’

As the news about the Bureau of Internal Revenue (BIR) going after content creators and social media influencers for the tax continues, the issue about ‘informer’s reward’ for reporting alleged tax evaders suddenly enters into the picture.

This program comes in according to Section 282 of the National Internal Revenue Code (NIRC) of 1997, wherein “persons instrumental in the discovery of violations of the National Internal Revenue Code and the discovery and seizure of smuggled goods” shall be rewarded in a  sum equivalent to 10% of the revenues, surcharges or fees recovered and/or fine or penalty imposed and collected or P1,000,000 per case, whichever is lower.

BIR’s Revenue Regulations (RR) number 16-2010 backs this section by providing guidelines and procedures in filing confidential information and investigating cases involving tax fraud.

BIR chief of Prosecution Division Atty. Zeus Gamaliel Mendoza provided details on how an informant can tip information about an alleged defrauding taxpayer, plus requirements and qualifications for such reward. 

While social media has been the people’s venue to vent out information, Mendoza said tagging or messaging BIR through its pages would not suffice if they want to report an evading taxpayer.

Ang kailangang gawin ng gustong mag-report sa BIR is mag-execute sila at mag-file ng sworn affidavit of confidential information before sa Prosecution Division or sa Legal Division ng revenue region na may jurisdiction sa taxpayer na sinusumbong nila,” Mendoza said to Asian Consulting Group’s Chairman, Mon Abrea, in the latter’s online show called BIR In Action Live last August 30, 2021.

(What needs to be done by an informer is to execute a sworn affidavit of confidential information before the BIR’s Prosecution Division or to the Legal Division of the revenue region, which has jurisdiction of the taxpayer being reported.)

There are certain qualifications for being considered an informant and parameters on what violations one makes an erring taxpayer. Supporting documents and other evidence should back them up, too, to push the case through the preliminary investigation. Check out our Ask The Tax Whiz on Rappler article on the entirety of the process on how to report a tax evader.

You can also watch last Monday’s episode of BIR In Action Live here for more of the conversation between The Philippine Tax Whiz and BIR chief of Prosecution Division Atty. Zeus Gamaliel Mendoza among tax rewards and other related topics.

Whether you want to ask more questions about getting tax rewards or just to check if you’re missing out on your tax obligations, Asian Consulting Group can help you with our FREE Tax Assistance and Consultation service. Check out the QR Code below to know more.

Cordero, T. (2021, August 31). Want P1 Million? Here’s how to report a tax evader. GMA News. 

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