BIR Ruling

July 23, 1969 Mr. Florentino V. Velasco Municipal Mayor Dipaculao, Quezon S i r : This is with reference to your follow up letter dated May 22, 1969 to the Director of the Bureau of forestry, Manila, a copy of which was furnished this Office for appropriate action regarding Resolution No. 146, Series of 1969, of the aforesaid municipality. LexLib In effect the subject resolution request the Director of Forestry, to direct his subordinate officers to require all logs and/or other forest products hauled from said municipality to be invoiced that the corresponding charges thereof paid in said municipality; that the request was prompted by the desire of the local government to insure the payment of the charges in its name so as to ascertain its share from the Bureau of Internal Revenue in pursuance to the provisions of Republic Act No. 2264, otherwise known as "The Local Autonomy Act". In reply thereto, I regret to have to inform you that your request cannot be granted for lack of legal basis, Section 273 of the Tax code as amplified by Section 11 of the Revised Forests Product Regulations No. 85 explicitly provides that the payment of the said charges may be made at the point of origin or at the point of destination depending on the attending circumstances. Moreover, the amount of the shares of a municipality from forest charges does not depend upon the place of payment but is apportioned equally to all municipalities in accordance with the allotment law. LexLib Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue