Tax Liability of Bislig Bay Lumber Company

February 17, 1959 BIR RULING NO. 091-59 The Municipal Council Municipality of Lingig Province of Surigao Gentlemen : Resolution No. 11 of the Municipal Council of that municipality requesting that the Bislig Bay Lumber Company be required to pay to that municipality the forest charges due on forest products cut or gather within the territorial boundaries of that municipality has been referred to this Office by the Director of Forestry for reply. LibLex In reply thereto, I have the honor to inform you as follows: Pursuant to Section 12 of Revenue Regulations No. 85 and Section 273 of the Tax Code, forest charges may, under certain conditions, be paid at the point of destination or at such time and place as the Commissioner of Internal Revenue may direct where the payment of the charges at the point of origin would result in undue hardship. The records of this Office show that the Bislig Bay Lumber Company is an operator of a class "C" sawmill. It posted a bond on May 10, 1951 in the amount of P87,800.00 conditioned for the payment of forest charges and the same was approved by the Commissioner of Internal Revenue on May 11, 1951. No place of payment of forest-charges was designated in said bond. Such being the case, the company may pay the forest charges due from it at destination which is at Bislig because its sawmill is located there. In this connection, please be advised that payment by the Company of forest charges at Bislig does not deprive your municipality of its share of the said charges. These charges accrue to the National Treasury pursuant to Section 362 of the Tax Code. Two per centum (2%) of the revenue accruing to the National Treasury in accordance with the said section is allotted to the various municipalities to be divided equally between their general and permanent improvement funds, (Sec. 8(c) Commonwealth Act No. 586, as amended) LLphil Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue