BIR Ruling

March 20, 1973 Messrs. Ferry, De La Rosa, Deligero Salonga & Associates Attorneys and Counsellors-at-Law Philamlife Building United Nations Avenue, Manila Attention: Atty . Redentor A . Salonga Gentlemen : This refers to your letter dated January 30, 1973 requesting reconsideration of the decision of this Office, denying the request of your client, the Philippine American Life Insurance Company, Manila, that a set of procedures be approved which the Company would follow in the payment of documentary and science taxes due on policies paid for each month. In reply, I have the honor to inform you that notwithstanding the reasons set forth in your letter, this Office cannot see its way clear in reconsidering its decision on the matter. In case the proposal of your client is approved that would clearly violate the provisions of Section 237 of the Tax Code which provides that documentary stamp tax shall be paid by the purchase and affixture of the stamps to the document taxed or to such proper recipient of the tax. Moreover, as regards to your contention that it is discretionary on the part of this Office to allow the imprinting of documentary stamps on certain documents upon payment of the face value of the stamps (last paragraph of Section 237 Tax Code), please be informed that the same relates to the authority being given by this Office allowing the use of documentary stamp tax machines to print the documentary stamps to the taxable documents itself and not to any other document which is not subject to tax. In fact, upon imprinting of the stamp on the taxable document, the said provision of law no longer requires cancellation thereof. In view thereof, your request for reconsideration has to be, as it is hereby, denied. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue