Nature of Privilege Tax Receipts

1970 BIR RULING NO. 025-70 Privilege Tax Receipts : Nature of . A privilege tax receipt is a more evidence of payment of tax and cannot be considered as authority to exercise a profession (see People vs. Cinco (1922) R.G. No. 17875). While it is true that Section 182(B) of the Tax Code states that a professional who has paid the corresponding annual privilege tax shall be entitled to practice in all parts of the Philippines, said statement is qualified by the phrase "every professional legally authorized to practice his profession" and "for which he has been duly qualified under the law." It is clear from the very provisions of Section 182(B) that payment of the tax is but one of the prerequisites of the practice of a profession and evidence of payment thereof cannot serve as evidence of qualification required of the profession, nor as evidence of authority of a government employee to engage in private practice of his profession. casia