BIR Ruling No. 053-62

February 19, 1962 BIR RULING NO. 053-62 MEMORANDUM FOR : The Chief, Accounting and Statistical Division This is in connection with your memorandum dated July 14, 1960 requesting a ruling as to the proper interpretation of the provisions of Section 11 paragraph 2 of Republic Act No. 2343 which reads 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 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." "Example: Increase or Province of 'A' 1959 1960 (Decrease) Municipality of 'B' P20,000.00 P1,000,000.00 P980,000.00 " 'C' 1,000.00 200,000.00 (800,000.00) " " 480,000.00 200,000.00 (280,000.00) TOTAL P1,500,000.00 P1,400,000.00 P(100,000.00) ========== ========== =========== The question now raised in whether or not the Province of 'A' which made a decrease in collection, should share in the increase of collection made by the Municipality of "B". The law requires that the "total annual collection of income taxes" in the province must be first determined and that there must be an increase in the total collection over the fiscal year 1959 before any special allotment could be paid to the province. The phrase "as the case may be" used in section 11 of Republic Act 2343 means that the province should be taken as separate case from the municipality. In the example given above, the province cannot share in the excess collection made by the municipality of "B" considering that there was a decrease in its "total" collection for 1960. lexlib MELECIO R. DOMINGO Commissioner of Internal Revenue