BIR Ruling

August 21, 1968 Mr. Gregorio A. Villena Provincial Treasurer Puerto Princesa, Palawan S i r : This refers to your letter dated May 10, 1968 to the Honorable, the Secretary of Finance, Manila, requesting information as to whether or not the province of Palawan and the Municipality of Puerto Princesa are entitled to a share in the amount of P100,000.00 income tax paid by the San Miguel Corporation in Manila for the year 1967, which was referred to this Office for appropriate action. In reply thereto, I have the honor to inform you that pursuant to Section 46 and 51 of the Tax Code as implemented by Revenue Memorandum Circular No. 19-66 dated April 11, 1966 income tax returns are to be filed with and the tax paid to the collection agent of the city or municipality where the principal office of the business of the corporation is located and where its books of accounts are kept. Where, however, the tax is payable in installments, the taxpayer may apportion, at its option, the second installment to the municipalities where it has branch establishments. Since the payment in Manila had already been receipted and accounted for as collection for said city, the province of Palawan or the municipality of Puerto Princesa are no longer entitled to share in the amount paid by the corporation in Manila where its principal office is located. adc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue