BIR Ruling

August 27, 1969 3rd Indorsement Respectfully returned to the Honorable, the Auditor General, General Auditing Office, Quezon City, the within papers relative to his 1st Indorsement dated April 22, 1969, requesting comment on whether or not the Otis Elevator Company may be required to submit tax clearance and letter of confirmation to support its claim with the Philippine Postal Savings Bank as required by Administrative Order No. 66, Office of the President, series of 1967. The pertinent provisions of the aforesaid Order are quoted as follows: "Government offices, entities and instrumentalities and local governments shall impose this condition and shall require, in addition, the latest certified copy of BIR Letter of Confirmation Form No. 19.65-E-1 and BIR tax clearance Form No. 17.16 as prerequisites to participation in any public bidding or execution of any contract with them . Violation of this order shall be a ground for administrative action ." (Emphasis supplied) It is very clear from the aforequoted provisions of the Order that the tax clearance and letter of confirmation are required only in biddings, not on payments under existing contracts. Accordingly, the Otis Elevator Company is not required to submit the tax clearance certificate and letter of confirmation in question to support its claim with the Postal Savings Bank. (SGD.) MISAEL P. VERA Commissioner of Internal Revenue