BIR Ruling

December 24, 1968 The Revenue Collection Agent Dumaguete City S i r : In reply to your letter dated December 2, 1968 to the Secretary of Finance which was referred to this Office for appropriate action, you are informed that Sec. 325 of the Tax Code as amended by R. A. No. 5204, the pertinent portion of which is quoted as follows: "Sec. 325. Advertisement and Sale . . . . The collection agent, upon approval by the Revenue District Officer may, out of his collections, advance an amount sufficient to defray the costs of collection by means of the summary remedies provided for in this Code, including the preservation or transportation in case of personal property, and the advertisement and subsequent sale, both in cases of personal and real property including improvements found on the latter. In his monthly collection report, such advances shall be reflected and supported by receipts." in unmistakable terms imposes a duty which a collection agent is to perform. This duty of making an advance from his collections to defray the costs of advertisement and sale of a distrained property which shall be reflected and supported by receipts in his monthly collection report is in addition to his other duties as collection agent. Be guided accordingly. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue