BIR Ruling

July 17, 1973 Peoples Bank & Trust Company Makati Branch, Makati, Rizal Attention: Mr . Severino P . Coronacion Asst . Vice-President Gentlemen : This refers to your letter dated May 11, 1973 requesting this Office to permit you to follow the following alternatives: cdta a) Total of the stamps for a checkbook to be charged to a depositor will be printed on the requisition slip duly signed by him (as per attached specimen); b) At the back of each individual check will be printed "Documentary and science stamps affixed on requisition slip on file." instead of affixing the P004 documentary stamps and the P.04 science stamps on each individual check before issuing the checkbooks to current account depositors of the bank in accordance with the provisions of Section 216 of the National Internal Revenue Code. Your request is prompted by the difficulties that you have been encountering in printing the required amount of stamps because of the large volume of checks requisitioned by depositors, in addition to the fact that each check has to pass thru two franking machines (one for a documentary and another for science); that to save man-hours and to avoid costly machine errors in printing stamps on the individual checks, you now request for the above alternative to follow. In reply thereto, I have the honor to inform you that your request cannot be granted for lack of legal basis. The procedure in affirming documentary stamps on bank checks is governed by Section 210 in relation to Section 216 and 237 of the Tax Code. These provisions clearly indicate that the stamps should be affixed to the bank checks which are the documents or instruments taxed. There is no law or regulations which allows the affixture of the stamps on the requisition slip. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5