The Supreme Court has struck down sections of a Bureau of Internal Revenue (BIR) regulation that compelled self-employed professionals to divulge their rates and register appointment books.

The ruling, penned by Senior Associate Justice Marvic M.V.F. Leonen, declared portions of BIR Revenue Regulation (RR) No. 4-2014 as unconstitutional, citing violations of privacy rights.

RR No. 4-2014, issued on March 3, 2014, mandated self-employed professionals to submit affidavits detailing their rates, billing methods, and factors influencing their service fees.

Additionally, it required the registration of appointment books, including client names and meeting details.

The Court's decision, based on petitions from professional associations, partially grants relief by deeming these requirements invalid.

The ruling emphasizes that mandating the submission of fee schedules exceeds the BIR's authority, as it extends beyond the scope of tax assessment and collection.

Moreover, the necessity to register appointment books was deemed a breach of privacy rights guaranteed by the Constitution.

While the Court upheld the registration of books of accounts to monitor taxable income, it underscored that requiring disclosure of appointment schedules could potentially reveal sensitive information about individuals' behavior, thus warranting protection under privacy laws.

Notably, the Court upheld the obligation to issue receipts for pro bono services, deeming it a legitimate tax measure that does not infringe on professional ethics or the judiciary's exclusive authority over legal practice regulation.

This decision sets a precedent in balancing tax enforcement with individual privacy rights and professional ethics.