BIR Ruling

March 28, 1972 The Revenue Collection Agent Toledo City S i r : This is with reference to the decision of the Court of First Instance of Cebu, Branch IX, Toledo City, in Civil Case No. 115-T entitled "City of Toledo, petitioner vs. The Commissioner of Internal Revenue, et als., respondents", the dispositive portion of which is quoted hereunder as follows: "WHEREFORE, the Court renders judgment in favor of the petitioner City of Toledo, and against the respondents as follows: 1. That the respondent, the Atlas Consolidated Mining & Development Corporation, should henceforth file its corporate income tax return with, and pay all its income taxes or all installments of its income taxes therefrom, to the Collection Agent of the Bureau of Internal Revenue at the City of Toledo; 2. orders the respondent Commissioner of Internal Revenue to credit in favor of the City of Toledo an amount of One Million One Hundred Thousand Pesos (P1,100.00) paid as income tax by the respondent corporation, the Atlas Consolidated Mining & Development Corporation, and its share of the same in the amount of Three Hundred and Thirty Thousand Pesos (P330,000.00), and to release finally the same to the City of Toledo within Five (5) days after the finality of this judgment; 3. orders the respondent City Treasurer of the City of Cebu to deliver to the City of Toledo whatever sum or' sums he must have received as its share of the amount of one Million One Hundred Thousand Pesos (P1,100.000) paid to the Collection Agent of the Bureau of Internal Revenue of the City of Cebu, within five (5) days after the finality of this judgment; 4. that the writ of preliminary injunction dated October 1, 1966 issued by this Court pending the proceedings is hereby made permanent; and 5. without pronouncement as to the payment of the costs of the proceedings. SO ORDERED. Barili, Cebu (for Toledo City), Philippines May 31, 1967." (SGD.) FILEMON R. CONSOLACION Judge It may be stated in this connection that if Atlas Consolidated Mining & Development Corporation (hereinafter referred to as Atlas) has branches in cities and/or municipalities other than Toledo City, it is given the option to apportion the second installment of its income tax payments among such cities and/or municipalities where it has branches. In other words, if ATLAS has a branch in Cebu City, payment of a portion of the second installment of its income tax liability may be made and received in Cebu City; otherwise, all such installment payments should be made only in Toledo City. (See Rev. Memorandum Circular No. 19-66 dated April 11, 1966 cited in City of Toledo vs. C.I.R. et als., supra ) Enclosed herewith is a copy of Revenue Memorandum Circular No. 19-66 dated April 11, 1966 implementing Sections 45, 46 and 51 of the Tax Code, for your information and guidance on the rules regarding the place of filing of income tax returns and payment of the corresponding income tax. Taxpayer in your locality should be advised accordingly. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue