BIR Ruling

July 23, 1970 Action Line c/o The Manila Times P. O. Box 775 Manila Gentlemen : This refers to the letter dated June 4, 1970 of Mr. Victorio Calibo of Mayflower Apartment No. 1, Junquera St., Cebu City, requesting information as to whether the gross sales for 1968 or 1969 will be taken as the basis for computing the deficiency graduated fixed tax for the second semester of 1969 under Republic Act No. 6110, the Omnibus Tax Law. In reply, I have the honor to inform you that Republic Act No. 6110 took effect on September 1, 1969. Therefore, the gross sales for 1968 should be used as the basis for computing the deficiency graduated fixed tax for the reason that the gross annual sales for the preceding year is the basis of the graduated annual fixed tax under Section 182(A)(2) of the Tax Code, as amended. aisadc Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue