BIR Ruling

March 30, 1970 Action Line c/o The Manila Times P. O. Box 775 Manila Gentlemen : This refers to the letter dated February 19, 1970 of Mr. Ramon A. Zalar, 2322 Radium Sta. Ana, Manila, inquiring as follows: "In the provisions on tax on professionals under the Omnibus Tax Code (RA 6110), are professionals in government service entitled to practice their profession outside the government so as to compete private practitioners?" acd In reply, I have the honor to inform you that the Bureau of Internal Revenue has no authority to pass upon the question of whether or not professionals in the government service who have paid their occupation tax pursuant to Section 182(B) of the National Internal Revenue Code as amended by Republic Act No. 6110 are entitled to practice their profession outside the government so as to compete private practitioners. Such a question should be referred to the Civil Service Commission. It may be stated in this connection that the privilege tax receipt is a mere evidence of payment of said tax and cannot be considered as authority to exercise a profession (see People vs. Cinco (1922) R.G. No. 17974; People vs. Abenis (1922) R. G. No. 17875, both not published). While it is true that Section 182(B) of the Tax Code states that a professional who has paid the corresponding annual privilege tax shall be entitled to practice in all parts of the Philippines, said statement is qualified by the phrases "every professional legally authorized to practice his profession" and "for which he has been duly qualified under the law". It is clear from said provisions that payment of the said tax is only one of the prerequisites of the practice of a profession. His payment thereof cannot remove the disqualification possessed by him as a government employee as regards engaging in the private practice of his profession. cd Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue