REVENUE REGULATIONS NO. 10-2010 issued on October 6, 2010 provides the guidelines relative to the exchange of information pursuant to an existing international convention or agreement on tax matters. The Commissioner of Internal Revenue (CIR) is authorized to obtain any information, including but not limited to bank deposits and other related information held by financial institutions, as may be required, to respond to a request pursuant to an international convention or agreement on tax matters to which the Philippines is a signatory or a party to. Once information is gathered, the BIR is likewise authorized to use, for tax assessment, verification, audit and enforcement purposes, any such information obtained from financial institutions. Income Tax Returns of specific taxpayers subject of a request for exchange of information by a foreign tax authority pursuant to an international convention or agreement on tax matters shall be open to inspection upon order of the President of the Philippines, under rules and regulations as may be prescribed by the Secretary of Finance, upon recommendation of the CIR. Any information received by a foreign tax authority from the BIR shall be treated by the authority as absolutely confidential in nature, in the same manner as the information obtained by the latter under its laws and regulations, and shall be disclosed only to persons or authorities, including courts and administrative bodies involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by such conventions or agreements. All requests for information pursuant to an international convention or agreement on tax matters shall be coursed through the BIR International Tax Affairs Division (ITAD). After processing/evaluation of the request by ITAD, the CIR shall inform in writing the financial institution concerned of the request for exchange of information. The financial institution has fifteen (15) days from receipt of the CIR’s notice to provide the information specified therein. In the event that it is unable to provide the information, it should state in writing the reasons for failure to do so, and should it need additional time within which to submit the information, it should request for extension which should not be more than thirty (30) days from receipt of the original notice. Under no circumstances shall a revenue official or employee communicate directly to the competent authority or foreign tax authority on matters pertaining to the request without prior approval of the CIR. Any officer, owner, agent, manager, director or officer-in-charge of a financial institution within the purview of these Regulations who, being required in writing by the CIR, willfully refuses to supply the required information shall be punished by a fine of not less P 50,000 but not more than P 100,000, or suffer imprisonment of not less than two (2) years but not more than five (5) years, or both. The taxpayer shall be duly notified in writing by the CIR that a foreign tax authority is requesting for exchange of information held by financial institutions pursuant to an international convention or agreement on tax matters within sixty (60) days from receipt of the said request. .