Under the non-retroactivity of rulings by the BIR, which of the following are exceptions?

• A. The taxpayer deliberately misstates or omits material facts.
• B. The facts subsequently gathered by the BIR are materially different.
• C. The taxpayer acted in bad faith.
• D. All of the above.

Answer: (D)

Non-retroactivity means a BIR ruling generally applies only to the specific facts and the taxpayer who requested it, and typically does not govern past periods or different situations. But there are recognized exceptions when the ruling loses its footing. If the taxpayer deliberately misstates or omits material facts, the ruling rests on false premises, so applying it retroactively would reward the deception. If the facts later gathered by the BIR are materially different from what the ruling assumed, the ruling can’t stand as a shield for those changed circumstances. And if the taxpayer acted in bad faith, using the ruling to obtain an unwarranted advantage, the protective effect of the ruling should not apply. In all these situations, the fairness and integrity of the tax process require treating the ruling as not controlling for the affected periods or facts. That's why all of the listed scenarios are the exceptions.