Unauthorized Deduction of 10% Share of the Municipality from the Ad Valorem Taxes and Royalties

January 23, 1958 BIR RULING NO. 049-58 3rd Indorsement Respectfully returned to the Honorable, the Secretary of Finance, Manila Comment is requested on Resolution No. 10 of the Municipal Council, Malangas, Zamboanga del Sur, requesting authority from the Department of Finance, thru the President of the Philippines, to authorize the Municipal Treasurer of said town to deduct the 10% share of the municipality from the ad valorem taxes and royalties collected by him before remitting the same to the National Treasurer. Section 368 of the Tax Code provides that the payment of internal revenue allotments shall be made from the National Treasury quarterly upon warrants drawn by the Collector (now Commissioner) of Internal Revenue. Since the manner of payment of internal revenue allotments is prescribed by law, the request of the municipality of Malangas cannot be granted because it is clearly in contravention of the law. This Office, therefore, recommends the denial of the request. (SGD.) JOSE ARAAS Commissioner of Internal Revenue