BIR Ruling No. 009-64

March 5, 1964 BIR RULING NO. 009-64 Messrs. Picazo and Agcaoili Attorneys-at-Law Soriano Building Manila Attention : Atty . Alfonso V . Agcaoili Gentlemen : Reference is made to your letter dated January 11, 1964, requesting a ruling on the question of whether or not it will be in accordance with the law and regulations, for your client, The First National City Bank, to follow "such a procedure of affixing stamps on a basic bank record for its current account checks with a printed clause on the face of each check reading "Appropriate Documentary Stamp affixed on the Drawee Bank Records". The Documentary Stamp(s) will thus be affixed on the Bank's records themselves instead of being placed on the current check(s) issued." In reply thereto, I have the honor to inform you that on such taxable document there must be affixed the corresponding documentary stamps pursuant to Section 216 of the Tax Code, which for ready reference, is quoted hereunder: " On each blank check , draft, or certificate of deposit not drawing interest, or order for the payment of any sum of money drawn upon or issued by any bank , trust company, or any person or persons, companies or corporations, as sight or on demand, there shall be collected a documentary stamp tax of four centavos." (As amended by Section 5, Republic Act No. 40). (Emphasis supplied). Under the aforequoted provision of law, the original copy of the blank checks to be issued by the bank must bear the required documentary stamps. Section 237 of the Tax Code and Section 203 of the Revised Documentary Stamps Regulations cannot be invoked in justification of the proposed procedure because bank records are not the proper recipients of the stamp, unlike warehouse receipts, certificates of stock, passage tickets and other documents having stubs or duplicates where such stubs or duplicates are original copies of the instrument. Bank records are not considered stubs or duplicates by law and regulations. It is also observed, in this connection, that for tax purposes, your client, proposed procedure of affixing the required documentary stamps on its bank records will not assure this Bureau sufficient basis for verification. In view thereof, your request has to be, as it is hereby denied. Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue