Removing Non-Tariff Barriers and Streamlining Administrative Procedures on the Importation of Agricultural Products

May 16, 1972 BIR RULING NO. 014-72 Documentary stamps to be affixed to individual checks . This refers to your letter dated March 10, 1972 requesting opinion on whether documentary stamps may be affixed on the requisition slip of checkbooks instead of the individual checks, and of the individual check shall be annotated the words "documentary Stamps Affixed to Requisition Slip", in the light of the decision of the Court of Tax Appeals in CTA Case No. 1629 dated May 24, 1969 entitled "Fireman's Fund Insurance Co. vs. Commissioner of Internal Revenue". In reply thereto, I have the honor to inform you that the above procedure of affixing documentary stamps cannot be allowed for lack of legal basis. It should be noted that under Section 237 of the Tax Code, documentary stamps shall be affixed "to the document or instrument taxed or to such other paper as may be indicated by law or regulations as the proper recipient of the stamp." In the instant case, the documents or instruments taxed are the individual checks. There is no law or regulation which indicates other papers as the proper recipient of the stamp. It follows, therefore, that the documentary stamps should be affixed to the individual checks. The above decision of the Court of Tax Appeals cannot be cited as authority to justify the above procedure proposed by you. It should be noted that in said decision, the Court ruled that the affixture of documentary stamps to papers other than those authorized by law is not tantamount to failure to pay the tax; hence the petitioner in said case should not be required anew to pay the value of the documentary stamps which were not properly affixed. However, the court did not hold that the procedure of affixing the stamps to any other paper which is not authorized by law or regulation is valid. Very respectfully yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue