BIR Ruling

December 17, 1970 LCDR Carlos L. Agustin Headquarters, Philippine Navy Roxas Boulevard, Manila S i r : This is with reference to your letter dated April 15, 1970 requesting comment on the following: "(a) The possibility of a PN finance officer being allowed to receive income tax payment; "(b) The possibility of said collecting officer to be allowed to received payments for professional tax; "(c) The possibility of allowing either the Adjutant General's Office or the Finance Office to issue "A" and "B" Residence Certificates". You also stated that your request is in connection with your study as to how internal revenue matters insofar as military personnel is concerned can be simplified without prejudice to effective control on the part of the government. In reply thereto, I regret to inform you that this Office cannot allow PN finance officers to receive payments of the income and occupation taxes from military personnel. Please be informed that Department Order No. 21-70 dated March 17, 1970 of the Honorable, the Secretary of Finance which implements Executive Order No. 206 dated January 9, 1970 of the President of the Philippines now authorizes commercial banks to accept payment of income taxes. However, payments of occupation taxes shall continue to be received by our collection agents. With this new arrangement with commercial banks, it is believed that there is now an effective system of collecting internal revenue taxes, especially income tax. Accordingly, this Office does not see any need for allowing other agencies of the government to receive payments of income and occupation taxes. cdt As regards the issuance of the residence certificates "A" and "B" by the Adjutant General's Office or by the Finance Office, the same cannot also be allowed in view of the express provision of Section 16 of Revenue Regulations No. 20-67, dated May 2, 1967 which provides for a procedure to be followed in the issuance of residence certificates in other offices, which for ready reference is hereunder quoted: "In order that employees need not come personally to the Office of the revenue collection agent to get their residence certificates, heads of government and private offices may request that payment of the residence taxes and the issuance of residence certificates shall be done in their offices. The head of the office shall file a written request with the Regional Director concerned. If there are 50 persons or more who are required to pay the residence certificate, the Regional Director shall send a Revenue Collection Agent or Cash Clerk to accept payment of the residence tax and issue the corresponding residence certificate. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue