BIR Ruling

January 13, 1967 Hon. Frisco San Juan House of Representatives Manila S i r : This refers to your Memorandum to his Excellency, President Ferdinand E. Marcos dated October 14, 1966 relative to the offer of the Philippine Investment Management Consultants, Inc. to undertake the financing and construction of cement roads in the Second Congressional District of Rizal, payable with tax credits which will be used by it to pay its income tax and other taxes due the government. In reply thereto, I have the honor to inform you that income tax collections are allotted by law to the Municipal, Provincial and National Governments. The share of the National Government in income tax collections forms part of the general fund which cannot be disposed of, except by virtue of an appropriation measure enacted by Congress. Such being the case, the offer of the Management Investment Consultants, Inc. cannot be accepted for lack of legal basis. llcd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue