BIR Ruling No. 096-61

April 5, 1961 BIR RULING NO. 096-61 The Provincial Treasurer Iba, Zambales S i r : Reference is made to your letter dated February 22, 1961, stating that the Benguet Mining Co., whose principal place of business is in Masinloc, that province, desires to pay its 1960 income tax in that Office. You now request information whether or not you can accept the return and at the same time direct the taxpayer to pay to the municipality of Iba "so as to entitle this (that) province to the 10% and 20% additional tax allotment". cdpr In answer thereto, I have the honor to inform you that considering that the law (Section 46(c), Tax Code) fixing the place where corporation returns should be filed is merely directory and considering further that acceptance of a return being filed by a taxpayer is a ministerial duty of the officer concerned, this Office is of the opinion and so holds that you have no right to refuse acceptance of the income tax return being filed by this company. (See: Opinion No. 175, s. 1960, Secretary of Justice) On the other hand, when the tax due is P500.00 or less, the same shall be paid in full at the place where the income tax return was filed. Likewise, even if the tax due is in excess of P500.00, if the taxpayer does not elect to pay in installments, it shall be paid in full at the place where the return was filed. However, in case the taxpayer elects to pay in installments, the first installment shall be paid at the place where the return was filed and the second installment at the place desired or chosen by the taxpayer. Accordingly, your query is answered in the negative. In this connection, we wish to state that the purpose of Republic Act No. 2343 in providing for a special allotment in the excess of income tax collections for a year over those for the year 1959 is to give more "incentive to the local governments so that the increased participation will be due at the end to their own efforts" (per Senator Puyat, Senate Diario No. 53, April 16, 1959). In other words, the philosophy behind the law is to provide an incentive for the local governments to exert legitimate efforts at increasing their revenue collections. This, undoubtedly, in the spirit of the law. Obviously, a mere request to a taxpayer to pay in one place instead of paying in another does not measure up to said spirit, because while the payment will increase the collections of the recipient municipality, certainly, the same payment will reduce the collections of the municipality where the taxpayer formerly used to pay. There is in such case, therefore, as actual increase in revenue collections. Please be guided accordingly. aisadc Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue