BIR Ruling

October 24, 1967 Mr. Alejandro Pallugna, Jr. Gingoog City S i r : In reply to your letter dated June 20, 1967 to the Secretary of Finance, which was referred to this Office for appropriate action, I have the honor to inform you that under Section 21, Revenue Regulations No. 1, otherwise known as the Residence Tax Regulations, a person who wants to purchase a residence certificate must have to present his previous year's residence certificate before the current year's certificate could be issued. If the taxpayer cannot present his previous year's residence certificate but claims to have purchased one in the same place where application for the current year's certificate for the current year. If the fact of purchase of the previous year's residence certificate or exemption cannot be proven from the folder or if said documentary evidence cannot be presented, the internal revenue officer may issue the residence certificate for the current year if the taxpayer states under oath that he purchased one for the previous year, giving the place where purchased, the date and other data appearing in the residence certificate, or if the taxpayer states under oath that he is exempt, giving reasons thereof, all of which must be investigated either by personal verification or by forwarding the sworn statement to the collection agent of the place where the residence certificate was claimed to have been purchased. Should the investigation show that a residence certificate has not been purchased or that a person was not exempt, full report shall be made to the Commissioner of Internal Revenue. The foregoing regulation apparently does not cover a situation where, without being exempt from tax, it is shown or admitted that the taxpayer did not purchase a residence certificate for the previous year. Notwithstanding the non-payment of the previous year's residence certificate, the current year's certificate may be issued to the taxpayer without prejudice to the collection of his liability for the previous year including penalties, in appropriate proceedings. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue