BIR Ruling No. 036-62

January 30, 1962 BIR RULING NO. 036-62 2nd Indorsement Returned thru the Regional Director, B.I.R. Regional District No. 9, Zamboanga City, to the Municipal Treasurer of Lala, Lanao del Norte, the within papers relative to his (treasurer's) query. cdtech The law involved is section 11 of Republic Act No. 2343 approved on June 20, 1959 which inserted or reenacted section 360 of the Tax Code which was repealed by Commonwealth Act No. 556. The pertinent provision of section 360 as re-enacted is quoted below as follows: "In addition to the foregoing, whenever the total annual collection of income taxes within a municipality or province, as the case may be, exceeds the total collection of such taxes within such municipality or province during the fiscal year nineteen hundred fifty-nine , all the exceeds shall be apportioned as follows ; twenty per cent to the municipality, tax per cent to the province and seventy per cent to the National Government." (Emphasis supplied) To be entitled to the 20% share, the law requires that the municipality must exceed the collection (for income tax) made during the fiscal year 1959. The law speaks of actual collections by a particular municipality or province, hence, it must exclude uncollected income taxes irrespective of the cause or causes for the failure to collect. MELECIO R. DOMINGO Commissioner of Internal Revenue