BIR Ruling

January 14, 1974 Guzman Bocaling & Co. Certified Public Accountants 416 Regina Building Manila Gentlemen : This refers to your letter dated January 2, 1974 requesting a ruling on the following query: "Request for a ruling is hereby being made as to whether the balance of the income tax liability of a corporation, which is less than one half of its total income tax due for the taxable year may be paid on the fifteenth day of the seventh month after the close of its fiscal year under Section 51 (a)(2) of the National Internal Revenue Code as amended by Presidential Decree No. 69 where the aggregate of the first three quarterly income tax payments pursuant to Presidential Decree No. 30 has already been made. casia "Inasmuch as the ruling herein being requested will affect one of our clients with a fiscal year ended September 30, your early reply will be appreciated." In reply, I have the honor to inform you that Section 51 (a)(2) of the Tax Code which allows a corporation to pay the second installment of the income tax due from it on or before the 15th day of the seventh month following the close of the fiscal year, has been superseded by the provisions of Presidential Decree No. 30 amending the Tax Code, by adding another supplement, known as "Supplement B" to Title II (Income Tax). Section 6 of Revenue Regulations No. 12-72 implementing said Decree as regards the final payment of corporate income tax, provides: "SEC. 6. Filing of Final or Adjustment return and final payment of income tax . (a) A final or an adjustment return on BIR Form 1702 covering the total taxable income of the corporation for the preceding calendar or fiscal year shall be filed on or before the 15th day of the fourth month following the close of the calendar or fiscal year. The return shall include all the items of gross income and deductions for the whole taxable year. The amount to be paid shall be the balance of the total income tax shown on the final or adjustment return after deducting therefrom the total quarterly income taxes paid during the preceding three quarters of the same taxable year. "Any excess of the total quarterly payments over the actual income tax shown on the adjustment return shall be credited or refunded to the corporation." It will be noted from the foregoing provisions of the regulations that the balance of the total income tax due from the corporation shall be paid at the same time that the final or adjustment return is filed which is on or before the 15th day of the fourth month following the close of the fiscal year. In view thereof, your query is answered in the negative. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."