Dear PAO,
I am a dentist with a small clinic in Manila. My CPA-friend told me that for the purposes of proper tax assessment, I need to submit my appointment books, along with the list of my professional fees, to the BIR. However, I think that this is a potential violation of physician-patient confidentiality. Am I really obligated to submit my appointment books and list of professional rates?
R.G
Dear R.G.,
No, you do not need to submit your appointment books and list of professional rates to the Bureau of Internal Revenue (BIR).
Your certified public accountant-friend may have been referring to Sections 2(1) and 2(2) of Revenue Regulation No. 04-2014 issued by the BIR on March 3, 2014, which requires self-employed professionals to submit affidavits indicating professional rates and requires the registration of appointment books, saying:
“SECTION 2. Policies and Guidelines —
“1. Self-employed professionals shall register and pay the annual registration fee (ARF) with the RDO/LTDO having jurisdiction over them. In addition to the requirements for annual registration, all self-employed professionals shall submit an affidavit indicating the rates, manner of billings and the factors they consider in determining their service fees upon registration and every year thereafter on or before January 31.
“2. Self-employed professionals are obligated to register the books of accounts and official appointment books of their practice of profession /occupation/calling before using the same. The official appointment books shall contain only the names of the client and the date/time of the meeting. They are likewise obligated to register their sales invoices and official receipts (VAT or non-VAT) before using them in any transactions. xxx”
On its face, the guidelines require self-employed professionals to submit appointment books and professional rates for the purpose of proper tax assessment. However, in the case of Integrated Bar of the Philippines, et al., vs. Department of Finance, et al., G.R. No. 211772, April 18, 2023, Ponente: Honorable Senior Associate Justice Marvic M.V.F. Leonen, the Supreme Court ruled that certain portions of Sections 2(1) and 2(2) of BIR Revenue Regulation No. 04-2014 are unconstitutional, saying:
“The mandatory registration of appointment books under Section 2(2) of Revenue Regulations No. 4-2014 is an unconstitutional intrusion into the fundamental rights of professionals and their patients and clients. It violates privacy rights and the ethical norms in petitioners’ professions. xxx
“Mandating a registered appointment book violates the ethical standards of petitioners’ professions. The nature of their profession requires strict adherence to confidentiality rules. On this score, petitioners’ argument on their codes of ethics is well taken. xxx
“As demonstrated by law and jurisprudence, the State policy in protecting the people’s right to privacy is clear. In mandating the registration of appointment books of self-employed professionals, Revenue Regulations No. 4-2014 is an unconstitutional intrusion into this right.”
Thus, Sections 2(1) and 2(2) of Revenue Regulation No. 4-2014, insofar as they require the submission of an affidavit indicating your professional rates, and the mandatory registration of your appointment books, are declared void for violating the fundamental right to privacy. Consequently, there is no need to submit such documents to the BIR as it would violate the right to privacy of your patients.
We hope that we were able to answer your queries. This advice is solely based on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.
Thank you for your continued trust and support.
Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net
