BIR Ruling

November 16, 1970 2nd Indorsement Returned to the Revenue operations Head (Specific Tax), the within papers relative to the application for permit to produce cinematographic films filed by BEN-SOR Productions, RJR Movie Producers and JORBID Productions, all having business addresses at Garcia Bldg., Rizal Avenue, Manila Under Section 156 of the Tax Code, manufacturers and importers of articles subject to specific tax shall give bond in an amount equal, as nearly as can be estimated, to 20% of the taxes payable by them during an average year. The minimum amount of the bond is P1,000.00. cdta It is alleged by that Department that under the present policy of this Office, a new movie producer is being required to file an initial surety bond of P2,000.00. Considering the big volume of business of movie producers at present, resulting in the increase of specific taxes payable by them, it follows that said initial surety bond should be increased. In the light of the foregoing, this Office has decided that as a matter of policy manufacturers of cinematographic films should file a surety bond in the amount of P5,000.00 before engaging in said business, as required by Section 156 of the Tax Code. cd CONRADO P. DIAZ Acting Commissioner of Internal Revenue