BIR Ruling No. 063-61

February 20, 1961 BIR RULING NO. 063-61 1st Indorsement Returned to the Revenue Operations Executive (Collection), Manila, the attached docket bearing on the internal revenue case of the VICTORY LUMBER CO., with the following comment: Issue . Whether or not the Government can still collect from Dr. Pablo C. Feliciano, former President of the defunct Victory Lumber Co., the amount of P898.34, representing the latter's forest charges and surcharges due the Government, which amount is covered and guaranteed by a forestry bond. Please be informed that former officers or directors of a defunct corporation are the proper parties in interest in so far as they may be (and in fact are) held personally liable for the unpaid deficiency assessments made by the Collector (now Commissioner) of Internal Revenue against said defunct corporation. (Tan Tiong Bio, et al. vs. Bureau of Internal Revenue, G.R. No. L-8800, prom. Oct. 23/56.) "A corporation can act only through its officers and agents, and where the business itself involves a violation of the law, the correct rule is that all who participate in it are liable." (People vs. Tan Boon Kong, 54 Phil. 607) Accordingly, Dr. Pablo C. Feliciano, for being the former officer (President) of the defunct Victory Lumber Co., should be required to pay the tax in question. Otherwise, forfeiture of the forestry bond (Philippine Guaranty Forestry Bond No. 24186) is in order if Dr. Feliciano refuse to pay the said tax. (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue