BIR Ruling

April 3, 1967 3rd Indorsement Respectfully returned to the Honorable, the Undersecretary of Finance, Manila, the within papers relative to Resolution No. 125 of the Provincial Board of Marinduque requesting reconsideration of the implementation of the fifty (50%) per centum Tobacco Allocation Fund under Republic Act 4155. prcd Since the effectivity of the law, this Bureau had been effecting the turn-over of the aforesaid percentage to said Fund in compliance thereof. It is believed that the suspension of the implementation of the law cannot be legally effected. In this connection, it may be stated that the province of Cavite assailed the constitutionality of R.A. No. 4155 in Civil Case No. 67230 of the Court of First Instance of Manila. In consequence of this suit, the Court restrained defendants Commissioner of Internal Revenue and Secretary of Finance from collecting, retaining and/or deducting that percentage provided in R.A. No. 4155 from the allotment of Cavite province in specific taxes due it. This restraining order affects Cavite province only and other provinces cannot avail of the force and effects thereof. By virtue of the restraining order, so much of the 50% specific tax collection accruing to the Tobacco Fund corresponding to the allotment of Cavite province is being withheld and held in trust by the PVTA pending final adjudication of the suit brought by the province of Cavite. As the matter now stands, therefore, even Cavite province is not yet receiving its allotment representing its share in the 50% of the specific tax accruing to the Tobacco Fund as provided for in the questioned law. In the light of the foregoing, this Office believes that Resolution No. 125 of the Provincial Board of Marinduque cannot be given due course. (SGD.) MISAEL P. VERA Commissioner of Internal Revenue