Can confidential tax information be divulged?
By: Atty. Euney Marie J. Mata-Perez on October 15, 2026
IS the Bureau of Internal Revenue (BIR) authorized to divulge tax information of any government official?
Under Section 270 of the National Internal Revenue Code (Tax Code), any officer or employee of the BIR is prohibited from divulging to any person any information regarding the business, income or estate of any taxpayer. This prohibition also extends to the secrets, operation, style or work, apparatus of any manufacturer or producer, or confidential information regarding the business of any taxpayer. Thus, any documents containing these types of information in the BIR’s possession, like taxpayers’ income tax returns, are considered confidential and are not public records. Any violation of this provision is punishable by a fine of not less than P50,000 but not more than P100,000, or imprisonment of not less than two years but not more than five years, or both.
However, under Section 6(F) of the Tax Code and pursuant to amendments introduced by Republic Act (RA) 10021, or the Exchange of Information on Tax Matters Act of 2009, the Commissioner of Internal Revenue (CIR) is authorized to inquire into bank deposits and related information of taxpayers when responding to a request for the supply of tax information from a foreign tax authority pursuant to an international tax-information-exchange convention or agreement on tax matters to which the Philippines is a signatory or party. In case of a request from a foreign tax authority, the exchange of information shall be done in a secure manner to ensure confidentiality thereof under such rules and regulations as may be promulgated by the Secretary of Finance, upon recommendation of the CIR.
Section 71 of the Tax Code also provides that, after assessment, income tax returns and corrections are filed with the CIR and may be inspected as public records upon order of the President of the Philippines, under rules and regulations prescribed by the Secretary of Finance upon the CIR’s recommendation.
Section 71 also authorizes the CIR to cause to be prepared and published in any newspaper the lists containing the names and addresses of persons who have filed income tax returns.
Disclosure is also permitted under Section 26 of RA 6388, or the Election Code of 1971. Under Section 26 of RA 6388, persons running for public office are required to file a sworn certificate of candidacy. This should state, among others, the candidate’s gross income, including deductions and exemptions, and that income taxes as assessed for the last two years immediately preceding the election were paid. In addition, it is required to state a waiver of the privilege from public disclosure of income tax returns for the said two-year period, except that with respect to financial statements attached thereto, the waiver is effective only during the period of his candidacy. It should be stressed that the waiver applies only for the tax returns or statements filed within two years prior to election or during the period of candidacy, as the case may be. No such waiver applies after an election.
Of course, a taxpayer may voluntarily authorize the production of his or her income tax returns. The confidentiality restriction under Section 270 of the Tax Code primarily governs information held and disclosed by BIR personnel. It does not necessarily prevent a taxpayer from producing his or her own copy of an income tax return when it is relevant to a civil action.
In the case of Vera v. Cusi (1979), the Supreme Court held that a taxpayer who expressly and willingly authorizes production of his returns waives the confidentiality protection, and the BIR may be compelled to produce them despite the taxpayer’s subsequent objection. In this case, the Supreme Court noted that the taxpayer not only expressed his willingness to produce before the respondent court copies of his income tax returns for the relevant years, but he even wrote the letter to the BIR requesting to deliver his returns to the Deputy Clerk of Court of the then Court of First Instance.
In Dipad v. Spouses Olivan (2012), the Supreme Court also clarified that a taxpayer can be required to produce a copy of his own income tax return when it is relevant to resolve his claim for lost profits in a civil action for damages.
It should be noted that the exceptions allowed under the law do not extend to impeachment proceedings of government officials. Section 71 allows inspection only upon orders of the president, after an assessment, and the waiver under the Election Code only applies for the two-year period prior to the election or, for financial statements, during the period of candidacy. There is no clear legal provision authorizing the BIR to divulge the tax returns of government officials after their election.
However, the 1987 Constitution explicitly provides that a public office is a public trust. Thus, public officers and employees must, at all times, be accountable to the people; serve them with utmost responsibility, integrity, loyalty and efficiency; act with patriotism and justice; and lead modest lives.” (Article XI Section 1). This Constitutional mandate of accountability at all times should prevail over the legal restrictions and authorize the production of tax returns of public officials without need of any presidential approval.
Euney Marie J. Mata-Perez is a CPA-Lawyer and the Managing Partner of Mata-Perez, Tamayo & Francisco (MTF Counsel). She is a corporate, M&A and tax lawyer and has been ranked as one of the top 100 lawyers of the Philippines by Asia Business Law Journal and is the Vice Chair of the Tax Committee of the Management Association of the Philippines. This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. If you have any question or comment regarding this article, you may email the author at info@mtfcounsel.com or visit MTF website at www.mtfcounsel.com.
The article was published at the More to Follow Column at The Manila Times on October 15, 2026. Please see this link.