Is Your Tax Return Confidential? BIR Unlawful Divulgence Under NIRC Section 270 and Section 71
Taxpayer information held by the Bureau of Internal Revenue (BIR) is protected by Section 270 of the National Internal Revenue Code (NIRC), which penalizes any BIR officer or employee who divulges information about a taxpayer’s business, income, or estate, except as the Code itself allows. The main exceptions sit in Section 71 and Section 6(F). The penalty is a fine of ₱50,000 to ₱100,000, imprisonment of two to five years, or both.
Prepare Your Own BIR Forms and Records FREE →What does NIRC Section 270 prohibit? #
Section 270 prohibits any BIR officer or employee from divulging information regarding the business, income, or estate of a taxpayer, or confidential business information, learned in the course of official duties. Each act or omission is punishable by a fine of ₱50,000 to ₱100,000, or two to five years’ imprisonment, or both. The section was amended by Republic Act No. 10021 (approved March 8, 2010), and the LawPhil text of that Act reads:
“Except as provided in Sections 6(F) and 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 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 (P50,000) but not more than One hundred thousand pesos (P100,000), or suffer imprisonment of not less than two (2) years but not more than five (5) years, or both.”
— NIRC Section 270, as amended by Republic Act No. 10021, Section 5
The original 1997 text was titled “Unlawful Divulgence of Trade Secrets” and cited only Section 71 and Republic Act No. 6388; Republic Act No. 10021 added the reference to Section 6(F) and a second paragraph on information obtained for a foreign tax authority.
What does Section 71 say about returns being public records? #
Section 71 provides that, after assessment, income tax returns are filed in the Office of the Commissioner and constitute public records open to inspection only upon the order of the President of the Philippines, under rules prescribed by the Secretary of Finance. It also allows the BIR to publish lists of filers. The relevant text, as amended by Republic Act No. 10021, Section 4, states:
“After the assessment shall have been made, as provided in this Title, the returns, together with any corrections thereof which may have been made by the Commissioner, shall be filed in the Office of the Commissioner and shall constitute public records and be open to inspection as such upon the order of the President of the Philippines, under rules and regulations to be presented by the Secretary of Finance, upon recommendation of the Commissioner.”
— NIRC Section 71, as amended by Republic Act No. 10021, Section 4
Two further points come from the same section. The Commissioner “may, in each year, cause to be prepared and published in any newspaper the lists containing the names and addresses of persons who have filed income tax returns,” which is a list of names and addresses, not of return contents. Republic Act No. 10021 also added that returns of specific taxpayers subject of a foreign tax authority’s exchange-of-information request under a tax treaty or convention “shall be open to inspection upon the order of the President.”
What other exceptions to confidentiality does the Code recognize? #
Besides Section 71, Section 270 itself excepts Section 6(F) and Section 26 of Republic Act No. 6388, and Republic Act No. 10021 allows information to be supplied to a foreign tax authority under a treaty. Section 6(F) separately lets the Commissioner inquire into bank deposits in limited situations. In short:
- Section 6(F)(1) covers a decedent, to determine the gross estate.
- Section 6(F)(2) covers a taxpayer who applies for compromise of tax liability on the ground of financial incapacity, and who must waive bank secrecy in writing.
- Section 6(F)(3), added by Republic Act No. 10021, covers a taxpayer subject of a foreign tax authority’s request under an international convention or agreement.
Republic Act No. 10021 also requires that exchanges be done “in a secure manner to ensure confidentiality,” and its Section 7 requires the receiving foreign authority to treat the information as “absolutely confidential.” The bank-deposit side of this is the same limit noted in Section 5 and discussed in BIR Summons: What Section 5 Allows and the Penalty for Ignoring It Under Section 266.
Scenarios: who can get a copy of a return? #
The Code text answers who may inspect a return in general terms but does not describe a request procedure for private parties. Each scenario below therefore states what the statute says, and where the statute is silent, so readers can separate settled law from open questions.
| Scenario | What the Code text says | What the text does not settle |
|---|---|---|
| A competitor asks the BIR for your return | Section 71 opens returns to inspection upon the President’s order; Section 270 penalizes BIR personnel who divulge taxpayer information other than as provided by law | No provision gives a private competitor a right of access |
| A competitor asks a BIR employee informally | Section 270 penalizes the employee; Section 278 penalizes anyone who causes or procures the divulgence | Nothing in the text excuses informal sharing |
| A bank asks you for a copy of your income tax return | Section 270 binds BIR officers and employees, not the taxpayer holding a copy | Whether a bank may demand a BIR-certified copy is a matter of the bank’s requirements and BIR office procedure, not stated in Sections 270 or 71 |
| You ask for your own return | The prohibition in Section 270 is on divulging to “any person” information about a taxpayer | The Code text reviewed here does not describe the request procedure; confirm it with your Revenue District Office |
Section 278 adds a separate offense for third parties. It punishes “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” 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.” The stated penalty is a fine of not more than ₱2,000, or imprisonment of six months to five years, or both.
Worked example: a supplier asks for your return #
This fictional example shows how Sections 270 and 278 apply when a competitor wants a business’s reported figures, and how a taxpayer’s own copy of its return differs from a copy held by the BIR, including what the Code text leaves open. Names and amounts are illustrative only.
Reyes Hardware, a sole proprietorship, reported gross receipts of ₱4,800,000 in its annual income tax return. A competing hardware store asks a friend inside the Revenue District Office to share the figure. If the employee complies, the employee faces Section 270 exposure of a ₱50,000 to ₱100,000 fine, two to five years’ imprisonment, or both. The competitor who procured it faces Section 278.
Reyes Hardware’s own position is different. It holds its own copy of the return and can lawfully share it, for instance with a lender evaluating a loan. Section 270 does not restrict the taxpayer’s own copy. If the lender wants a document issued by the BIR rather than the taxpayer’s filed copy, Reyes Hardware should ask the RDO what the current request procedure is.
How does the Data Privacy Act relate to tax returns? #
Republic Act No. 10173, the Data Privacy Act of 2012, lists tax returns as sensitive personal information issued by government agencies, but Section 4(e) excludes information necessary to carry out the statutory functions of regulatory and law enforcement agencies, so the two laws apply to different actors. The Act’s Section 3(l)(3) lists “social security numbers, previous or current health records, licenses or its denials, suspension or revocation, and tax returns” among sensitive personal information. The LawPhil text of Section 4(e) excludes “information necessary in order to carry out the functions of public authority which includes the processing of personal data for the performance by the independent, central monetary authority and law enforcement and regulatory agencies of their constitutionally and statutorily mandated functions.”
Practically, the Data Privacy Act and the Tax Code operate side by side. The NIRC governs what BIR personnel may divulge; the Data Privacy Act governs how private parties, such as employers, accountants, and software vendors, handle the same personal data. For the private-sector side, see how each Excel-to-DAT tool handles data privacy and where tax files are stored. How the two laws are reconciled in specific disputes was not verified for this article.
What should you do to protect your own tax information? #
Treat your filed returns and attachments as confidential business records: limit who holds copies, share them only for a stated purpose, keep a log of who received them, and report any suspected BIR leak in writing to the relevant BIR office or a lawyer. A practical routine:
- Keep your own filed copies of returns and attachments, such as the ones described in BIR Form 1701 Annual ITR Attachments.
- Share only what a requester needs, and note who received what and why.
- Do not ask BIR personnel for another taxpayer’s information, since Section 278 reaches those who procure it.
- Ask your RDO in writing for the current procedure to obtain a BIR-certified copy.
- Consult a tax professional or lawyer if you suspect an unlawful disclosure.
Frequently asked questions #
Is my income tax return confidential under Philippine law? #
Taxpayer information held by the Bureau of Internal Revenue (BIR) is protected by NIRC Section 270, which penalizes any BIR officer or employee who divulges information regarding the business, income, or estate of any taxpayer, except as provided in Sections 6(F) and 71 of the Code and Section 26 of Republic Act No. 6388.
What is the penalty for a BIR employee who leaks taxpayer information? #
Under NIRC Section 270, upon conviction for each act or omission, a BIR officer or employee who unlawfully divulges taxpayer information is punished by a fine of not less than ₱50,000 but not more than ₱100,000, or imprisonment of not less than two years but not more than five years, or both.
Can a competitor get a copy of my tax return from the BIR? #
The Code text does not give a private competitor a right to a taxpayer’s return. Section 71 opens returns to inspection only upon the order of the President of the Philippines under rules prescribed by the Secretary of Finance, and Section 270 penalizes BIR personnel who divulge taxpayer information in a manner not provided by law.
Is it a crime to cause a BIR employee to leak a taxpayer’s information? #
Yes. NIRC Section 278 punishes any person who causes or procures a BIR officer or employee to divulge confidential information regarding the business, income, or inheritance of any taxpayer, and any person who publishes or prints, in a manner not provided by law, any income, profit, loss, or expenditure appearing in an income tax return.
Does the Data Privacy Act of 2012 cover tax returns? #
Yes, in part. Republic Act No. 10173 lists tax returns among sensitive personal information issued by government agencies peculiar to an individual, but Section 4(e) excludes from the Act’s scope information necessary to carry out the functions of public authority, including law enforcement and regulatory agencies’ statutory mandates.
Summary #
- NIRC Section 270 penalizes BIR officers and employees who divulge taxpayer information, with a fine of ₱50,000 to ₱100,000, two to five years’ imprisonment, or both.
- Section 71 makes assessed returns public records open to inspection upon the President’s order; the BIR may also publish lists of filer names and addresses.
- Republic Act No. 10021 (2010) amended Sections 6(F), 71, and 270 to allow exchange of information with foreign tax authorities under treaties.
- Section 278 reaches third parties who procure or publish return information.
- The Code text does not set out a private-party request procedure; confirm current practice with your RDO.
Sources #
Primary sources