Rate of Income Tax Applicable to Non-Resident Foreign Cinematographic Film Owners, Lessors or Distributors

November 27, 1973 BIR RULING NO. 032-73 Illegally cut logs, treatment of : Sections 13 and 14 of Revenue Regulations No. 3-72 provides as follows: "SEC. 13. Payment of charges on forest Products taken without license . Timber cut without license issued by the Director of Forestry shall be assessed of the forest charges and surcharges, and other fees due the government based on the gross volume, without benefit to deductions for natural defects and the same shall be collected immediately upon apprehension, unless the forest products are distraint to be used by the government. Likewise, corresponding forest charges and surcharges and other fees on other forest products shall be collected immediately upon apprehension. The forest products must be confiscated if the possessor thereof cannot pay the charges and penalties due thereon, without prejudice to existing laws and regulations governing the products." "SEC. 14. Penalties in the form of surcharges . The following penalties shall be imposed in addition to the regular forest charges due, as the case may require. "(a) 300% surcharge for cutting without license, or if cut under license, in violation of the terms and conditions thereof; or cutting undersigned timber or on damaged residuals; "(b) 25% surcharge for failure to list the forest products in an auxiliary invoice after cutting; "(c) 25% surcharge for discharging without permit if removed from the geographical limits of the concession; "(d) 25% surcharge for late payment as the case may be." The pertinent provision of Presidential Decree No. 54 provides as follows: ". . .: That any natural or juridical person who directly or indirectly cuts, declares, classifies, possesses or exports logs in violation of existing laws, rules and regulations shall be penalized as follows: "1. Confiscation of the logs in question and payment of fine to be imposed in accordance with existing laws, rules or regulations and suspension of the license and permit to operate for six months during the cutting period, for the first offense. "2. Confiscation of the logs in question and payment of fine to be imposed in accordance with existing laws, rules or regulations; and immediate cancellation of the license and permit to operate; and arrest and detention of the offenders until ordered released by me or by my duly authorized representative, for the second offense. "All laws, rules and regulations inconsistent herewith are hereby amended or modified accordingly." Under the above-quoted provisions of Revenue Regulations No. 3-72, it is clear that the forest products cut in violation of the law must be confiscated only if the possessor thereof cannot pay the charges and penalties due thereon. On the other hand, under Presidential Decree No. 54, the logs must be confiscated in case of violation of existing laws, rules or regulations. The application of the above-quoted provisions of Revenue Regulations No. 3-72 is, therefore, deemed modified to the extent that all illegally cut logs are not subject to confiscation. The confiscation, however, relieves the owner or possessor of the illegally cut logs from liability for forest charges otherwise due thereon; but he shall he prosecuted for illegally cutting said logs. Even logs cut in titled lands are subject to confiscation under Presidential Decree No. 54. It is the duty of the collection agent concerned to receive the payment of the forest charges and surcharges due on legally cut logs, after which the logs shall be released to the owner. In the case of illegally cut logs, the collection agent should refuse payment of the forest charges because, as heretofore stated, said logs are not subject to forest charges but subject to confiscation.