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Question VII
May the bank deposits – peso and foreign currency of the an individual taxpayer be disclosed by a commercial bank to the Commissioner of Internal Revenue, in connection with a tax investigation being conducted by revenue officials, without violating the relevant bank secrecy laws? Explain your answer.
(a)May the bank deposits – peso and foreign currency of the an individual taxpayer be disclosed by a commercial bank to the Commissioner of Internal Revenue, in connection with a tax investigation being conducted by revenue officials, without violating the relevant bank secrecy laws? Explain your answer.
(b)In 2011, the Commissioner of the U.S. Internal Revenue Service (IRS) requested in writing the Commissioner of Internal Reveneu to get the informatrion from a bank in the Philippines, regarding the deposits of a U.S. Citizen residing in the Philippines, who is under examiniation by the officials of the US IRS, pursuant to the US-Philippine Tax Treaty and othert existing laws. Should the BIR Commissioner agree to obtain such informarion from the bank and provide the same to the IRS? Explain your answer.
(c)Is the bank secrecy lawq in the Philippines violated when the BIR issues a Warrant of Garnishment directed against a domestic bank, requiring it not to allow any withdrawal from any existing bank deposit of he delinquent taxpayer mentioned in the Warrant and to freeze the same until the tax delinquency of said taxpayer is settled with the BIR? Explain your answer.
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