Clarification on the Applicability of RR No. 12-80

July 22, 1981 BIR RULING NO. 115-81 260-00 000-00 115-81 Banco Filipino Savings and Mortgage Bank P.O. Box 2060, Manila Attention: Mrs . Carmelita C . Almera Vice President Gentlemen : This refers to your letter dated February 5, 1981 requesting clarification on the applicability of Revenue Regulations No. 12-80. In reply, I have the honor to inform you as follows: 1. The gross receipts tax return shall be filed by a bank with the Revenue District Officer or the Collection Agent of the city or duly authorized treasurer of the municipality where the bank's principal office is located and where its books of accounts are kept except in cases where the Commissioner of Internal Revenue allows. (Sec. 6, Revenue Regulations No. 12-80). Considering that provincial branches of that Bank are considered "separate or distinct establishments or place where business subject to tax is conducted" and, therefore, subject to a separate privilege tax (Sec. 188, Tax Code), said branches may be allowed to file their gross receipts tax returns in their respective localities and pay the tax declared therein with the internal revenue officer assigned in said localities. For this purpose, therefore, you should seek the prior approval of this Office. If a bank branch fails to pay the correct tax at the prescribed time, said branch or the bank as a whole shall be liable for the payment of the proper deficiency tax, together with all the interests, surcharges and penalties incident thereto. The gross receipts tax returns filed by your provincial branches may be examined by respective Revenue District Officers concerned. Both the head office and your provincial branches being considered separate and distinct establishments, for internal revenue purposes, should maintain separate books of accounts and accounting records, as required by the bookkeeping laws and regulations. 2. If the income tax withheld on interest on bank deposits exceeds the income tax due on all income earned, the depositor is not entitled to the refund of the tax withheld. This is so because the tax on interests earned on bank deposits is a final tax, and said interests need not be included in gross income in computing the depositor's income tax liability. [Sec. 29(b)(8)(D), Tax Code, as amended by Presidential Decree No. 1739; Sec. 8, Revenue Regulations No. 12-80]. cdt Very truly yours, RUBEN B. ANCHETA Acting Commissioner