BIR Ruling

December 10, 1973 First United Bank Escolta Corner David Street P. O. Box 4230, Manila Attention: Mr . Onesimo S . Baares In Charge of Legal Services Gentlemen : This refers to your letter dated August 31, 1973 requesting opinion as to whether it is sufficient compliance with the National Internal Revenue Code to affix documentary stamps on the duplicate instead of on the original of Certificate of Time Deposits. You stated that for the purpose of avoiding the ever-present possibility of illegal re-usage of the stamps and for control and audit examination, you believe that it will be advantageous and expedient to affix the required stamps on the duplicate copy of the CTD and merely imprinting on the original "Documentary Stamp Tax affixed on the duplicate hereof" instead of vice-versa. acd In reply, I have the honor to inform you that pursuant to Section 237 of the Tax Code, as implemented by Section 203, Regulations No. 26 as amended, documentary stamps should be affixed on the originals of all documents, papers and instruments subject to the documentary stamp tax. The only exception to this rule is where the duplicate of a document has been substituted and used in the place of the original, and the original itself cannot be reached by taxation, in which case, the documentary stamps shall be affixed on said duplicate. Besides, for tax purposes, the present procedure assures sufficient basis for collection and verification of the documentary stamp tax due on the document in question. In view thereof, you are advised that the affixture of documentary stamps on the duplicate certificates of Time Deposits does not comply with the law and regulations. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5