BIR Ruling

June 26, 1969 Mr. Alfredo P. Pekson Asst. Vice-President Philippine National Bank Cagayan de Oro City S i r : This refers to your letter dated September 26, 1968 requesting information as to whether or not a private check drawn in favor of the Commissioner of Internal Revenue in payment of taxes could be negotiated with your office without proper endorsement of the Commissioner of Internal Revenue for purchase of a demand draft in favor of the Treasurer of the Philippines. casia General Auditing Office Circular No. 110, dated October 10, 1968, paragraph 2 provides: " Collection in the form of checks xxx xxx xxx "Sec. 612. Checks receivable as money . An official charged with the collection of revenue or the receiving of moneys payable to the Government for taxes or dues, may accept payment in the form of checks drawn on any bank established in the Philippines, and when so received, such checks may be deposited by the collecting officer as money. xxx xxx xxx." Nowhere in the above circular or law can we find a provision where a check drawn in favor of the Commissioner of Internal Revenue in payment of taxes could be negotiated for purchase of a demand draft in favor of the Treasurer of the Philippines. In reply, I regret to inform you that pursuant to the above provision a check drawn in favor of the Commissioner of Internal Revenue for payment of taxes could not be negotiated for purchase of a demand draft in favor of the Treasurer of the Philippines. Such check should be deposited as money. Under no circumstance shall checks accepted for payment of taxes drawn in favor of the Commissioner of Internal Revenue be used for purchase of a demand draft in favor of the Treasurer of the Philippines. LLphil Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue