BIR Ruling

November 22, 1968 The Manila Electric Company P.O. Box 451 Manila Attention: Mr . A . U . Apolinar Vice President & Comptroller Gentlemen : This refers to your letter dated August 20, 1968 requesting that the ruling dated July 22, 1955 issued by this Office in favor of Manila Electric Company, exempting it from the withholding requirements of R.A. No. 1051 be confirmed, I have the honor to inform you that the provision of said Act do not apply to franchise wherein there is a definite manner and date of payment of the franchise tax which in the instant case, is due and payable monthly and after audit by the Auditor General (See Ruling, Philippine Airlines, Inc., dated June 27, 1955; Manila Railroad Co., July 22, 1955). In view of the fact that there has been no change in Meralco's manner of payment of its franchise tax, this Office is of the opinion and so holds that the Manila Electric Company is exempt from the withholding requirements of Republic Act No. 1051. prcd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue