a 
t I, 
THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
First Regular Session 
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S E N A T E  
S.No. 
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Introduced by Senator S. R. Osmeiia 111 
EXPLANATORY NOTE 
Whenever tax data or,statistics are required from the Bureau of I 
Revenue, any of its officer or employee can readily invoke Sections 270 a 
of National Internal Revenue Code (quoted in full text below) as 
withholding information. 
Sec. 270 Unlawful Divulgence of Trade Secrets. Except as 
provided in Section 71 of this Code and Section 26 of Republic Act No 
6388, any officer or employee of the Bureau of Internal Revenue who 
divulges to any person or makes known in any other manner than may be 
provided by law information regarding the business, income, or estate of 
any taxpayer, the secrets, operation, style or work, or apparatus of any 
manufacturer or producer, or confidential information regarding the 
busiqess of any taxpayer, knowledge of which was acquired by him in the 
discharge of his official duties, shall, upon conviction for each act or 
omission, be punished by a fine of not less than Fifty thousand pesos 
(P50,OOO) but not more than One hundred thousand pesos (PlOO,OOO), or 
suffer imprisonment of not less than two (2) years but not more than five 
(5) years, or both. 
Sec 278 Procuring Unlawful Divulgence of Trade Secrets Any 
person who causes or procures an officer or employee of the Bureau of 
Internal Revenue to divulge any confidential information regarding the 
business, income or inheritance of any taxpayer, knowledge of which was 
acquired by him in the discharge of his official duties, and which it IS 
unlawful for him to reveal, and any person who publishes or prints in any 
manner whatever, not provided by law, any income, profit, loss or 
expenditure appearing in any income tax return, shall be punished by a 
fine of not less-than six (6) months nor more than five (5) years, or both 
This 'inability of the Bureau of Internal Revenue to provide information of 
tax payments of individuals and corporations has been a hindrance to policy 
formulation in many instances. 
This bill therefore seeks to remove the legal 
impediment in ensuring transparency in the operations of the Bureau of Internal 
Revenue. 


The confidentiality provision only protects the rich, reinforces graft and 
corruption in the Bureau and perpetuates dishonesty in tax declarationhax 
payment. Thus, it is necessary for Congress to repeal the above-mentioned 
legal constraints. 
In view of the foregoing, approval of this bill is earnestly requested 
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ABE/rlm 
SERGIO OSMENA ill 
Senator 


RUG -4 Wsi 52 
THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
SENATE 
_. 
Introduced by Senator S. R. Osmeiia 111 
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AN ACT 
INSTITUTING FULL TRANSPARENCY IN TAX COLLECTION, AMENDING 
FOR THE PURPOSE SECTIONS 71, 270 AND 278 OF THE TAX REFORM 
ACT OF 1997, ASAMENDED 
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Be it enacted by the House of Representatives and the Senate of the Republic of 
the Philippines in Congress assembled: 
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read as follows: 
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4. 
Publication of Lists of Taxpayers and Filers. - After th 
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assessment shall have been made, as provided in this Title, th 
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returns, together with any corrections thereof which may have been 
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made by the Commissioner, shall be filed in the Office of the 
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Commissioner and shall constitute public records [ and be open to 
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inspection as such upon the order of the President of the 
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Philippines, under rules and regulations to be prescribed by the 
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Secretary of Finance, upon recommendation of the Commissioner.] 
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"The Commissioner [may] SHALI-, [in each] ON OR 
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BEFORE MAY 31 FOLLOWING THE CLOSE OF EACH 
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CALENDAR year, [cause to be prepared and published in any 
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newspaper] PREPARE AND ORDER THE PUBLICATION BY ANY 
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PUBLISHING COMPANY AND/OR MAGAZINE OF GENERAL 
Section 1. Section 71 of the Tax Reform Act of 1997 is hereby amended to 
"SECTION 71 .Disposition 
of 
Income 
Tax 
Returns, 
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CIRCULATION the lists containing the names [and] addresses, 
TYPE 
OF 
BUSINESS 
WHETHER 
CORPORATION, 
PARTNERSHIP 
OR 
SOLE 
PROPRIETORSHIP, 
GROSS 
SALESlRECElPTS DURING THE YEAR, AND THE AMOUNT OF 
INCOME TAXES PAID BY [ofl persons who have filed THEIR 
income tax returns WITH THE BUREAU DURING THE YEAR. 
Sec. 2. Section 271 of the same Act is hereby amended to read as 
follows: 
"SECTION 270. Unlawful Divulgence of Trade Secrets. - 
[ Except as provided in Section 71 of this Code and Section 26 of 
Republic Act No. 6388,] [a]Any officer or employee of the Bureau of 
Internal Revenue who divulges to any person or makes known in 
any other ,manner 
than may be provided by law information 
regarding [ the business, income, or estate of any taxpayer,] the 
secrets, operation, style or work, or apparatus of any manufacturer 
or producer, or confidential information [regarding] ABOUT the 
business of any taxpayer, knowledge of which was acquired by him 
in the discharge of his official duties, shall, upon conviction for each 
act or omission, be punished by a fine of not less than Fifty 
thousand pesos (P50,OOO) but not more than One hundred 
thousand pesos (PlOO,OOO), or suffer imprisonment of not less than 
two (2) years but not more than five (5) years, or both. 
Sec. 3. Section 278 of the same Act is hereby amended to read as 
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follows: 
"SECTION 278. Procuring Unlawful Divulgence of Trade 
Secrets. - Any person who causes or procures an officer or 
employee of the Bureau of Internal Revenue to divulge any 
confidential information regarding the business [, income or 


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him in the discharge of his official duties, and which it is unlawful for 
him .to reveal, and any person who publishes or prints in any , 
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