Revocation of Authority to Pay/Remit Withholding Taxes to RDOs Nearest to SMC Units

February 6, 1998 BIR RULING NO. 017-98 51, 74-000-00-017-98 San Miguel Corporation Mandaluyong City Attention: Mr . Jose S . Tayag, Jr . Vice President and Manager Tax Management Department Gentlemen : This refers to your letter-authority dated February 8, 1996 previously approved and granted by this Office relative to the payment/remittance of your withholding taxes on compensation income and expanded withholding taxes to the nearest revenue district offices where the different SMC Units are located to enable the latter to have direct control of the amounts withheld and remitted by them and to have the reconciliation done at the local levels. Republic Act No. 7646 (otherwise known as an Act Authorizing the Commissioner of Internal Revenue to Prescribe the Place for Payment of Internal Revenue Taxes by Large Taxpayers, Amending for the Purpose Certain Provisions of the National Internal Revenue Code, As Amended) authorizes the Commissioner of Internal Revenue to require the filing of returns, papers and statements and payment of taxes by Large Taxpayers at a designated place to centralize the monitoring thereof considering the substantial amount of internal revenue taxes collected from said source and the imperative need to monitor promptly their tax compliance. cdlex Moreover, under Sec. 2 of Revenue Regulations No. 3-94 amending Sec. 3(a) of Revenue Regulations No. 12-93 implementing R.A. No. 7646, withholding taxes of Large Taxpayers shall continue to be paid at venues in accordance with existing laws and regulations applicable to non-Large Taxpayers, i.e. where the principal office of the corporation is located (Secs. 51 and 74 both of the Tax Code, as amended). Accordingly, the authority granted to SMC effective March 6, 1996 which decentralized your remittances/payments of withholding taxes on compensation income and expanded withholding taxes to the revenue district offices or the nearest revenue district offices where the different SMC Units are located is contrary to Section 2, Revenue Regulation No. 3-94 amending Section 3(a) of Revenue Regulations No. 12-93 implementing R.A. No. 7646. In view thereof, this Office hereby revokes the aforesaid authority granted to SMC. Taxes deducted and withheld from compensation income and expanded withholding taxes by SMC as well as its different Units shall be remitted/paid to Revenue District Office No. 41, Mandaluyong City where its principal office is located. cdll Very truly yours, (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue