BIR Ruling

January 15, 1970 Mr. Eugenio Yamson c/o Mr. Ramon Rondillo Atimonan, Quezon S i r : This refers to your letter dated June 23, 1969 requesting this Office to address you a letter stating that "logs (timber) cut from unregistered private lands (covered by absolute and valid land titles) are subject to the payment of regular forest charged". It appears that said request was made in connection with your payment of 300% surcharge on your log shipment held at Calamba, Laguna, BIR Forestry Check Point last June 20 and 21, 1969. In reply, I have the honor to inform you that based on the decision of the Supreme Court in the case of Santiago vs. Basilan Lumber Co., (G.R. No. L-15532, Oct. 31, 1963) the charges collectible on forest products which are illegally cut or removed refer not only to the regular forest charges but to the 300% surcharge as well, which are provided for in Section 266 and 267 of the Tax Code. In other words, timber which are illegally cut or removed from unregistered private lands (covered by absolute and valid titles) without license from the Bureau of Forestry are subject to the regular forest charges and surcharges of 300% of the regular charge. aisa dc Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue