BIR Ruling

October 11, 1974 The Regional Director Revenue Region No. 12 Tacloban City S i r : This refers to your letters requesting advice, instruction and/or confirmation on the efficiency of Opinion No. 198 Series of 1972 of the Department of Justice the dispositive portion of which states that ". . . the school, college or university issuing the diploma and/or certificates should shoulder the burden of the said stamp taxes. Of course, as to diploma or certificates issued by public schools or universities, since the liability for said taxes would fall on the public schools and universities themselves which are parts of the government and pursuant to the fundamental principles that branches and agencies of the government enjoy the latter's privilege of exemption from taxation because taxing them would just be like taking money from one's left pocket and putting it in the other I believe that the stamps in question need not be affixed to the diploma or certificates issued by public schools, colleges or universities ." cdt ON THE PENDING INTERNAL REVENUE CASE of the Leyte National High School, that City, involving the amount of P926.80 for the years 1969 1972 for documentary and science stamp taxes under Letter of Demand No. 281-72 dated October 31, 1972. It appearing that the adverted opinion is well taken, the aforesaid assessment may now be cancelled and the case against the Leyte National High School which is a public education institution be considered closed and terminated. Please be guided accordingly. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5