BIR Ruling

August 31, 1970 MEMORANDUM FOR: The Revenue Operations Head (Collection) This refers to your Memorandum dated March 20, 1970 requesting a ruling on the issue of whether the Thai International should be held liable for the payment of science and documentary stamp taxes due on the Tax Clearance Certificates of the passengers who were allowed by said airline company to board the plane without the required Tax Clearance Certificates. In this connection, you are informed that under Section 344 of the Tax Code, as amended by Republic Act No. 6110, airline or shipping companies shall not carry any passenger from a place or port in the Philippines to a foreign port or place, unless his Tax Clearance Certificate is duly presented. Since the Thai International allowed the passengers to leave the Philippines without the required Tax Clearance Certificates, said airline violated Section 344 of the Tax Code. There being no specific provision prescribing the penalty for such violation, responsible official of the said airline may be penalized under Section 352 of the Tax Code. However, the Thai International cannot be held liable for the payment of the documentary and science stamp taxes due on the Tax Clearance Certificates of the passengers considering that such taxes are the direct liability of the said passengers. Moreover, there being no tax clearance certificates issued, no documentary stamp tax is collectible. cdta MISAEL P. VERA Commissioner of Internal Revenue