BIR Ruling No. 012-63

March 1, 1963 BIR RULING NO. 012-63 The BIR Collection Agent Tamparas, Lanao del Sur S i r : This is with reference to your letter dated November 7, 1962 requesting opinion as to "the fine to be imposed upon a person who is actually caught in possession of Fifty-two (52) pieces of contraband locally produced dynamite." cdt In reply, please be informed that the fine to be imposed against an alleged possessor of explosives, such as dynamite, is within the discretion of the court and not within the power or jurisdiction of this Bureau. Persons caught for illegal possession of explosives are not subject to any internal revenue tax but shall be punished, however, by a fine of not less than P600 nor more than P2,000, and by imprisonment for not less than three (3) months nor more than two (2) years, in the discretion of the court, in accordance with Section 2 of Act No. 2255, as amended by Section 2 of Act No. 3023. Furthermore, the explosives in question shall be confiscated by the authorities concerned (par. 7, Executive No. 9, Feb. 1, 1954). In this connection, it may be stated that Section 291, in relation to Section 295, of the Tax Code refers only to dealers in firearms, ammunitions and explosives. In order to be a licensed dealer in explosives, the person concerned must first comply with the provisions of Act No. 2255, as amended by Act No. 3023, and the implementing regulations promulgated by Executive Order No. 9 of February 1, 1954 (Vol. 50 Off. Gaz. p. 501). In other words, the application for a license and/or permit to deal in explosives shall first be filed with, and approved or disapproved by, the Chief of Constabulary. Licensed dealers in explosives are required to pay the annual fees prescribed in Section 291 of the Tax Code, the violation of which is penalized under Section 295 of the same Code. Very truly yours, (SGD.) JOSE B. LINGAD Acting Commissioner of Internal Revenue This ruling was duly signed by the Acting Commissioner of Internal Revenue on March 1, 1963. cdpr (SGD.) P. F. LANDAS Revenue Operations Head (Legal)