Payment of the Portion of the Income Tax Due from Garcia-Hernandez, Bohol

March 4, 1987 BIR RULING NO. 065-87 80 000-00 065-87 Gentlemen : This refers to your letters dated September 8, 1986 and February 18, 1987, requesting information as to whether you can pay a portion of the income tax due from you at Garcia-Hernandez, Bohol, as requested by the Officer-In-Charge of said province. It appears that you have been filing your income and business tax returns and paying the corresponding taxes thereon to the municipality of Villanueva, Misamis Oriental, the place where all your production facilities are situated. This is in accordance with the authority granted by this Office on October 23, 1985 authorizing you to file your income and business tax returns in said municipality where the processing of raw materials into sintered ore and its exportation abroad are done. However, since the limestone which are used in your sintering operations are being produced in Garcia-Hernandez, Bohol, you have been requested to pay a portion of your income tax in said municipality. Obviously, the purpose of the Officer-In-Charge of Bohol is to get a bigger share in the allotment of national internal revenue taxes once you pay a portion of your income tax thereat. It appears also that your principal office is located in Makati, Metro Manila; and that your plant office at Villanueva, Misamis Oriental, maintains books of accounts which record all cost data from your plant operations. In reply, please be informed that your query is answered in the negative. Under the foregoing facts and pursuant to Section 80(a) of the Tax Code and Section 6 of Revenue Regulations No. 10-77 reading as follows: "Sec. 80. (a) Place of Filing The quarterly income tax declaration required in Section 78 and the final adjustment return required in Section 79 shall be filed with the Revenue District Officer or the Collection Agent or duly authorized treasurer of the municipality having jurisdiction over the location of the principal office of the corporation filing the return or place where its main books of accounts and other data from which the return is prepared are kept. "Sec. 6. Place of Filing of Declaration and Paying of Income Tax . The quarterly declaration shall be filed with, and the tax due thereon paid to, the Commissioner of Internal Revenue, Regional Director, Revenue District Officer or the Collection Agent of the City or Municipality in which is located the principal office and where the books of accounts and other data from which the return is prepared are kept; in case a corporation has no office of any kind or agency in the Philippines, then the return shall be filed and the tax due thereon paid with the Commissioner of Internal Revenue." your quarterly income tax declaration and your final adjustment returns should be filed with the internal revenue officer concerned either in Makati, Metro Manila or in Villanueva, Misamis Oriental. The income tax due on the quarterly and final returns shall be paid at the time the declaration or return is filed. [Sec. 80(c), Tax Code] In this connection, your attention is invited to the provisions of Section 282 of the Tax Code which imposes a civil penalty of 25% of the tax due if the return is filed with an internal revenue officer other than those with whom the return is required to be filed. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner