BIR Ruling

May 7, 1973 2nd Indorsement Respectfully returned to the Honorable, the Secretary of Finance, Manila, the within papers bearing on the request of Mr. B. M. Aragon, Vice-President and Managing Director, Philippine Home Makati Insurance Group, AIU Building, 6797 Ayala Avenue, Makati, Rizal for approval of their plan to affix and cancel the documentary stamps on their "Premium Register" only instead of on the individual insurance policies in view of the volume of work involved in the present practice and requirement. It has been consistently held by this Office that the procedure in affixing documentary stamps on insurance policies is that stated in Section 210 in relation to Sections 220 to 222 and Section 237 of the Tax Code. These provisions clearly indicate that the stamps should be affixed to the documents or instruments taxed. Moreover, it has been held that the liability of an instrument to stamp tax and the amount of tax due thereon are determined by the form and facts of the instrument itself and cannot be affected by proof of facts outside of the instrument. (U.S. v. Ishan 17 Wall. 496, 84 U.S. 496). Such being the case, the present procedure of affixing the documentary stamps on each and every file copy of insurance policies, renewal certificates and endorsement issued should be always followed. cdtech In view thereof, this Office believes that the foregoing request should be denied. (SGD.) CONRADO P. DIAZ Acting Commissioner of Internal Revenue