BIR Ruling

September 24, 1973 Parang Consumer Cooperative, Inc. Casiguran, Sorsogon Attention: Mr . Fulgencio L . Arellano Manager Gentlemen : This refers to your letter dated April 10, 1973 requesting opinion whether as owner of an agricultural land, you should register the land with the Director of Forestry, to entitle you to exemption from forest charges, as provided under Section 266 of the Tax Code. In reply, I have the honor to inform you in the affirmative. Every owner of a private land, whether agricultural or forest land, must register his title to the land as required by Section 1829 of the Revised Administrative Code, as amended, in order to entitle him to the exemption from payment of forest charges under Section 366 of the Tax Code as amended. Accordingly, if the title to any private land, whether agricultural or forest land, is not registered with the Director of Forestry as required by Section 1829 of the Revised Administrative Code, the owner of such private land should secure a gratuitous license from the Director of Forestry before cutting, gathering or removing any of the forest products; otherwise, he will be subject to the corresponding forest charges and surcharges. (General Circular No. V-81 dated May 4, 1950 citing Opinion, Director of Forestry, January 25, 1950). Since it appears that we have not secured a license from the Director of Forestry which respect to your agricultural lands, our Revenue Collection Agent was right in requiring you to pay the corresponding forest charges on timber cut or removed from said lands plus the 300% surcharge for cutting without license, pursuant to Section 267 of the Tax Code. In this connection, your attention is also invited to the provisions of Presidential Decree No. 54 as amplified by administrative rulings of the Bureau of Internal Revenue which provides that all illegally cut logs are now subject to confirmation. This confirmation, however, relieve the owner or possessor of the illegally cut logs from liability for the charges otherwise due thereon; but he shall be prosecuted. Even illegally cut logs in titled lands are subject to confirmation under Presidential Decree No. 54. cdt 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."