BIR Ruling

February 14, 1973 Atlas Consolidated Mining & Development Corporation Toledo City Gentlemen : This is in connection with the decision of the Court of First Instance of Cebu, Branch LX, Toledo City in Civil Case No. 115-T entitled "City of Toledo, petitioner vs. The Commissioner of Internal Revenue, et als., respondents", whereby, Citing Revenue Memorandum Circular No. 19-66 dated April 11, 1966 implementing Sections 45, 46 and 51 of the Tax Code, the Court held, among other things, that you should file your income tax return and pay the tax due thereon, in whole or in part, in the City of Toledo inasmuch as all your mining operations are conducted in Toledo City; that you have no branch in Cebu City; and that it is in Toledo City where your principal office or place of business is located and where your records or books of accounts are kept. Reinvestigation conducted by this Office, however, disclosed that you have a branch office and that you are transacting business in Cebu City. cdi Accordingly, in the light of the aforecited Revenue Memorandum Circular No. 19-66 supra payment of a portion of your income tax liability in Cebu City would have been allowed. However, Article 3 of Supplement "B", Title II of the Tax Code which was made a part of the law of the land by Presidential Decree No. 30 dated October 27, 1972, and Section 5 of Revenue Regulations No. 12-72 dated December 1, 1972 implementing said Decree provides that the quarterly returns shall be filed with, and the tax due thereon paid to, the Commissioner of Internal Revenue, Regional Director, Revenue District Officer, or the Collection Agent of the city or municipality where the corporation's principal office is located and where its books of accounts and other data from which the return is prepared are kept; in case of a corporation that has no office of any kind or agency in the Philippines, then the return shall be filed and the tax thereon paid with the Commissioner of Internal Revenue. In other words, payment of the portion of income tax due from a corporation in a place where it has a branch office only or in different cities and municipalities where it has branches as provided in Revenue Memorandum Circular No. 19-66 supra is no longer allowed. (BIR Ruling No. 73-002, January 31, 1973) In view thereof, and in accordance with Presidential Decree No. 30 as implemented by Revenue Regulations No. 12-72, your quarterly returns should be filed with, and the income tax due thereon should be paid to the Collection Agent of Toledo City. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue