Resolution No. 04 of Metro Clark Advisory Council

August 11, 1999 BIR RULING [DA-459-99] MEMORANDUM TO : Rufo Colayco President/CEO-CDC Chairman, Metro Clark Advisory Council FROM : Beethoven L. Rualo Commissioner of Internal Revenue SUBJECT : Resolution No. 04 of Metro Clark Advisory Council DATE : Series of 1999 Features of Resolution No. 04 This proposed resolution seeks to request the Department of Finance to authorize the Clark Development Corporation to effect a collection/deduction scheme involving the "One Percent Share" of Local Government Units from the gross income earned, of CSEZ locators/business. LexLib COMMENTS: While we recognize the power of the Local Government Units to create its own sources of revenues and to levy taxes, fees, and charges which exclusively accrue to them, nevertheless, the proposed resolution seeking to authorize the Clark Development Corporation to automatically collect from each locator/business/investor in the Clark Special Economic Zone (CSEZ), the amount equivalent to one percent (1%) share of the LGU of their (CSEZ) respective gross income earned is deemed unnecessary since the procedures, reporting requirements and manner of distribution of the LGU share is already covered under Revenue Regulations No. 12-97, implementing Sections 12(c) and 15 of R.A. No. 7227 and Sections 24(b) and (c) of R.A. No. 7916. In view thereof, this Office does not recommend the granting of the said request. cdll (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue