Certified Public Accountant Employed as Provincial Auditor

1970 BIR RULING NO. 023-70 Certified Public Accountant Employed as Provincial Auditor Since a certified public accountant who is employed as Provincial Auditor uses or exercises the knowledge of his profession in his employment, he is subject to the occupation tax imposed in Section 182(B) of the Tax Code, as amended by Republic Act No. 6110. The fact that he does not engage in the private practice of his profession does not exempt him from the payment of the tax. The application of the knowledge of his profession in the exercise of his duties and functions is considered practice of his profession, although such practice is limited to his employment. cdt It should be noted that the former provision of Section 182(C)(7) of the Tax Code which exempted from the occupation tax persons in any branch of the service of the Government of the Philippines whose entire professional services are devoted exclusively thereto or applied under its directions, has been delated by Republic Act No. 6110. Such delation is sufficiently explicit and indicative of legislative intent to tax professionals in the employ of the Government. With respect to the contention of the Provincial Auditor that the Government should pay the tax since the exercise of his profession is limited only to his employment in the Government, it should suffice to state that occupation tax is payable by "each individual engaged in a calling subject thereto", Section 178, Tax Code). Furthermore, the responsibility of the employer merely is to see to it that said professionals employed by them pay the occupation tax and not to pay the tax. "Any individual or corporation employing a person subject to tax under Section one hundred eighty-two (B) shall require payment by that person of the privilege tax on occupation before employment and annually thereafter." (last paragraph, Sec. 182(B), Tax Code, as amended by Republic Act No. 6110)