BIR Ruling

October 11, 1973 3rd Indorsement Returned to the Tax Amnesty Implementation Officer, the within papers bearing on the second installment payment of the income tax for the year 1972 of Mr. William D. Yonan, together with Traders Commercial Bank Check No. A-299252 for P2,067.64 and TPAO No. 1222836 GMA for P3,223.00. cdtech The aforesaid taxpayer can not deduct from his 1972 income tax (second installment) the amounts claimed as refund in his income tax returns for the years 1967 and 1968. Section 51 of the Tax Code, before its amendment by Presidential Decree No. 69, contains the following proviso: " . . Provided, That if in any preceding year, the payer was entitled to a refund of any amount thereof, if not yet refunded, it may be deducted from the amount of tax to be paid." However, Section 51 of the Tax Code was amended by Presidential Decree No. 69 which amendment resulted in the deletion of the above-quoted provision. Since the amendment took effect on January 1, 1973 and the 1972 income tax is payable in 1973 automatic tax credit can no longer be availed of. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."