BIR Ruling

September 22, 1969 The Commissioner Bureau of Immigration Manila S i r : This refers to your letter dated January 15, 1969, suggesting that tax clearance certificates of the persons named therein who are allegedly involved in the visa racket and who are currently facing criminal or administrative cases be refused so as to prevent them from leaving the country as desired by the Bureau of Tourists and Travel Industry. prcd In reply, please be informed that the issuance of a tax clearance to a person desiring to leave the Philippines, with, or without intent to return can be refused only on the following grounds: 1. When the applicant is a Filipino citizen who desires to leave the country with intent to return does not pay his tax liabilities. 2. When the applicant is a Filipino citizen who is leaving the country to take up permanent residence abroad as an immigrant to a foreign country has not paid his/her tax liabilities in full. 3. When the applicant is a non-resident alien who has not paid his tax liabilities in full. 4. When the applicant who is departing from the Philippines after December 31 but prior to the last day for the filing of income tax returns or any other return required by law, failed to file the corresponding income or other tax return which he is duty-bound to file. 5. When the applicant, whether a Filipino citizen or a resident alien, who is leaving the country with intent to return within two years after the date of departure has neither paid his/her tax obligation in cash nor filed a surety bond equal to the amount of tax obligation. (Rev. Regulations No. 19-67, May 2, 1967) A tax clearance certificate shall be issued on B.I.R. Form No. 17-14 to applicant desiring to leave the Philippines after an application for tax clearance certificate has been duly processed as required in Section 2, Revenue Regulations No. 19-67. The issuance of a tax clearance becomes a ministerial duty on the part of the Commissioner of Internal Revenue or his authorized representative, who is charged with the responsibility of processing tax clearance applications and issuing tax clearance certificates when said applicant meets all the requirements set forth in Revenue Regulations No. 19-67 dated May 2, 1967, and is found free from all tax liabilities after a thorough checking of his/her income and other tax liabilities. Thus it has been held that "an official duty (like the issuance of tax clearance by the Commissioner of Internal Revenue or his authorized representative pursuant to Section 343 of the Tax Code and Revenue Regulations No. 19-67, May 2, 1967) is ministerial when it is absolute, certain and imperative, involving merely the execution of a set task and when the law which imposes it prescribes and defines the time, mode and occasion of its performance with such certainty that nothing remains for judgment or discretion." (Garff v. Smith 86 p. 772, 773, 31 Utah, 102, 120 Am. St. Rep 924, quoting People for use of Munson v. Bartels, 27 N. E. 1091, 138 Ill. 322; Kirby Lumber Co. v. Adams, Tex. Co. App. 62 S.W. 2d 366, 370; Grider v. Tally, 77 Ala. 422, 424, 54 Am. Rep. 65; Rainery v. Ridgnay 43 So. 843, 844, 151 Ala. 532, 27 Words & Phrases, pp. 250, 253.) It is thus clear that this Office has no authority to withhold the issuance of a tax clearance for reasons other than those hereinabove mentioned. In view thereof, it is regretted that we cannot grant your request. LibLex Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue