Entitlement of a Municipality to Apportionment

January 7, 1960 BIR RULING NO. 046-60 The Deputy Provincial Treasurer Sta. Cruz, Zambales (Thru the Provincial Treasurer Iba, Zambales) S i r : Reference is made to your letter dated October 26, 1959, requesting that payment made in Manila by the Acoje Mining Company of its corporate income tax be considered and credited as collections of that municipality for the purpose of the second paragraph of section 360 of the Tax Code, as amended by section 11, Republic Act No. 2343. Said paragraph of section 360 is quoted below: "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 excess shall be apportioned as follows: twenty per cent to the municipality, ten per cent to the province and seventy per cent to the National Government." From the aforequoted provisions, it seems quite clear that for a municipality to be entitled to the apportionment, it is necessary that the total income tax actually collected by such municipality during a given year exceeds that collected during the fiscal year 1959. It is obvious that the income tax paid in a municipality cannot be credited to another municipality for purposes of this law just because the taxpayer resides in the latter. Accordingly, it is regretted that your request has to be, as it is hereby, denied. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue