REVENUE MEMORANDUM CIRCULAR NO. 71-2007 issued on November 13, 2007 circularizes the full text of Executive Order (EO) No. 646 issued on August 3, 2007 regarding the accessibility of information on taxpayers between the Bureau of Internal Revenue (BIR) and the Local Government Units (LGUs) for tax collection purposes.

        In order to ascertain, assess and collect the correct amount of local taxes, fees or charges, BIR records pertaining to any person, partnership, corporation or association subject to local taxes, fees and charges shall be made available to the local treasurer, his deputy or duly authorized representative.

       For the purpose of ascertaining the correctness of any return, or in making a return when none has been made, or in determining the liability of any person for any internal revenue tax, or in collecting any such liability, or in evaluating tax compliance, the LGUs, upon proper request of the Commissioner of Internal Revenue (CIR) or his duly authorized representative shall provide the BIR with any information such as, but not limited to, costs and volume of production, receipts or sales and gross income of taxpayers.

         The LGUs’ access to records of, or information provided for by BIR and vice versa shall be utilized for the aforementioned purposes only, and shall not be used for any other purpose or disclosed to unauthorized persons.

         The Department of Finance shall prepare and issue the necessary guidelines for the effective implementation of the EO, with due regard to the security of taxpayers’ information.

           Failure on the part of the BIR and the LGUs to comply with the directives under the EO shall make them liable for administrative sanction pursuant to existing laws, rules and regulations.