BIR Ruling

March 10, 1970 Ed. A. Keller & Co., Ltd. Shurdut Bldg., Gen. Luna St. P. O. Box 313 Manila Attention: Mr . John N . Baylis Manager Gentlemen : This is with reference to your letter dated November 18, 1969 requesting information as to what action that Company would take as regards the liability for documentary and science stamp taxes of the Marcopper Mining Corporation, both regarding documentary and science stamp already attached to Marcopper's insurance policies issued by that Office and on future policies by virtue of the Certificate of Qualification for Tax Exemption (CQTE No. 13) issued to Marcopper by the Honorable Secretary of Agriculture and Natural Resources on October 25, 1968. It is alleged in your letter that Marcopper had authority in its favor to withdraw P78,000.00 worth of documentary stamps which were deposited with the Marinduque Register of Deeds in connection with mortgage deed and that it has also a favorable recommendation from the BIR in respect of its claim for refund of documentary stamps and science taxes paid on dollar remittances amounting to P20,945.64. In reply thereto, I have the honor to inform you that the documentary and science stamp taxes due on the Marcopper insurance policies are the direct tax liability of the company which issued them. The Certificate of Qualification for Tax Exemption issued to Marcopper Mining Corporation cannot be cited as basis for exempting said insurance policies from documentary and science stamp taxes because under said certificate the mining company is exempt only from the payment of all taxes to which it is directly liable. The fact that the aforesaid taxes were passed on or charged by that Company to Marcopper will not exempt the insurance policies from the payment of the stamp taxes. casia Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue