BIR Ruling

November 8, 1972 The Philippine National Bank Manila Attention: Conrado S . Reyes Asst . Vice-President and Chief Accountant Gentlemen : This refers to your letter dated October 31, 1972 stating that per your standing regulation, the fixed tax on banks of P500.00 per annum for every separate or distinct establishment is being paid by your individual branches, agencies and extension offices at their respective localities which they debit against Head Office and correspondingly charged at the Head Office against the lump sum provision for taxes; that you find this procedure inconvenient because your inter-office transactions are clogged with inconsequential entries, which often result in the accumulation of exceptions in the reconcilement reports; that in several instances, some of your provincial offices also failed to pay the fixed tax on time as provided for under Section 180 of the Tax Code thereby incurring penalties for late payment. In order to avoid the foregoing difficulties, you propose to revise your internal regulation so that PNB Head Office could pay at the BIR, Manila, on or before the 20th of January the respective fixed taxes pertaining to the PNB's 154 offices scattered all over the country. In reply, I have the honor to inform you that under the foregoing circumstances, you may pay in Manila the P500.00 annual fixed tax prescribed in Section 182(A)(3)(gg) of the Tax Code for each and every branch of that bank, provided that the official receipt issued for each payment of the privilege tax shall be forwarded to the branch concerned so as to be readily available for verification purposes. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue